Stephens & Co. maintains Rockwell Automation at Overweight, lowers price target to $500 from $550

Rockwell Automation (ROK) reported Q4 results, with Software & Control organic sales up 15% and Intelligent Devices up 5%. The company expects fiscal 2027 organic sales growth of 7.5% and adjusted earnings of $15 per share. Memory costs and component availability are noted as challenges. ROK anticipates mid-single-digit organic sales growth in Q1.

Rockwell Automation (ROK) reported Q4 2026 core sales growth of 7% and 9% for the full year, with adjusted EPS up 16% and 27% respectively. Software & Control segment grew 15%, while mining sales declined 10%. The company expects sequential declines in Q1 2027 but sees mid-teens growth in semiconductor and data center verticals.

Rockwell Automation (ROK) reported Q3 2026 sales of $2.33B, flat YoY, missing revenue expectations but exceeding profit estimates at $3.88 per share. Management cited project delays, particularly in mining, but highlighted growth in automotive, discrete, and data center markets. Operating margins expanded due to productivity gains, pricing, and Sensia JV dissolution. The company expects 300 basis points of pricing in 2027 to combat inflation and forecasts mid-teens growth in AI-driven segments.

Rockwell Automation achieved a 22% enterprise operating margin, three years ahead of schedule, and saw 7% core sales growth in Q4 2026. The OTTO AMR business became profitable, and semiconductor sales grew 50% year-over-year. For fiscal 2027, the company expects 6% to 9% organic sales growth and 7% ARR growth, with a new combined semiconductor and data center segment. Management also noted inflationary pressures and component availability challenges.

Rockwell Automation (ROK) shares dropped 13% after Q4 sales of $2.33B missed estimates of $2.41B, partly due to an $85M accrual for tariff refunds to customers. Adjusted EPS guidance for fiscal 2027 is $14.50-$15.50, slightly above the $14.92 consensus. Rival Emerson Electric (EMR) reported a 14% increase in underlying orders, indicating strong automation demand.

Rockwell Automation (ROK) reported Q4 EPS of $3.88, beating estimates by $0.19, but revenue of $2.33B missed expectations. The company provided FY 2027 EPS guidance of $14.50-$15.50, above the consensus. Shares are up 19.16% over the past year.