Rockwell Automation, Inc.

(New York Stock Exchange)
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Bullish +65

Rockwell Automation stock faces a new fiscal 2027 growth outlook

Earnings report Guidance raised AI-generated analysis

📈 Rockwell Automation reported full-year 2026 sales of $8.989 billion, marking an 8% increase year-over-year.

💰 Diluted earnings per share rose to $12.54 for fiscal 2026, with adjusted EPS reaching $13.42.

🚀 The Software and Control segment led growth with a 15% sales increase in the fourth quarter to $754 million.

📉 Lifecycle Services revenue declined 9% to $519 million due to divestitures reducing reported numbers.

🔮 Management guides fiscal 2027 organic sales growth between 6% and 9% with a midpoint of 7.5%.

💵 Adjusted EPS guidance for fiscal 2027 is set at $14.50 to $15.50 per share.

📊 Operating cash flow increased to $1.958 billion, generating $1.701 billion in free cash flow for the year.

🏭 Software and Control operating margins expanded to 34.0% in the fourth quarter of fiscal 2026.

📉 Reported sales growth is expected to be 4.5% to 7.5% in fiscal 2027, excluding tariff refund impacts.

📈 Intelligent Devices sales grew 5% in the fourth quarter to $1.144 billion.

Bullish Signals
  • Rockwell Automation achieved an 8% increase in full-year 2026 sales, reaching $8.989 billion, demonstrating strong top-line momentum.
  • The Software and Control segment delivered exceptional growth with a 15% sales surge to $754 million in the fourth quarter.
  • Operating margins for the Software and Control segment expanded significantly to 34.0%, indicating improved profitability.
  • Free cash flow reached $1.701 billion for fiscal 2026, reflecting strong underlying cash generation capabilities.
  • Management raised its organic sales growth guidance for fiscal 2027 to a range of 6% to 9%, signaling confidence in future expansion.
Risk Factors
  • Lifecycle Services segment revenue declined 9% to $519 million in the fourth quarter due to divestitures reducing reported numbers.
  • Reported sales growth for fiscal 2027 is capped at a maximum of 7.5%, which is lower than the organic growth guidance, suggesting potential headwinds or non-organic factors affecting total revenue.
  • The stock traded down 4.8% relative to the previous close, indicating some market skepticism regarding the new outlook or recent performance.
Full Analysis
Rockwell Automation reported its fiscal fourth-quarter and full-year 2026 results, finishing the period with higher sales, earnings, and free cash flow. The company posted quarterly sales of $2.332 billion, representing a 1% increase overall but a 3% rise in organic terms after excluding a customer tariff refund program that impacted reported growth by approximately four percentage points. Financial performance for the full fiscal year 2026 showed robust growth with total sales reaching $8.989 billion, an 8% increase from the prior year. Diluted earnings per share climbed to $12.54, while adjusted earnings per share reached $13.42. Operating cash flow strengthened significantly to $1.958 billion, generating $1.701 billion in free cash flow, driven by tariff refunds and related interest income. Segment performance highlighted a divergence between high-growth software units and declining services. The Software and Control segment delivered the strongest quarterly growth with sales advancing 15% to $754 million and operating margins expanding to 34.0%. Conversely, Lifecycle Services sales fell 9% to $519 million due to divestitures reducing reported revenue within that specific business unit. Management has set a new fiscal 2027 outlook expecting organic sales growth between 6% and 9%, with reported sales growth projected at 4.5% to 7.5%. Adjusted earnings per share are guided to a range of $14.50 to $15.50, assuming a seasonal decline in the first quarter followed by improvement. The stock recently traded at a discount relative to its previous close as investors assess whether the expected sequential recovery supports the new annual guidance.