Rockwell Automation, Inc.

(New York Stock Exchange)
Back to all articles
Bullish +68

Rockwell Automation stock gets 2027 growth outlook after strong year

Earnings report Financial outlook AI-generated analysis

πŸ“ˆ Rockwell Automation finished fiscal 2026 with sales of $8.989 billion, representing an 8% year-over-year increase.

πŸ’° Adjusted earnings per share rose 27% to $13.42, while enterprise operating margin expanded significantly to 22.2%.

πŸš€ Management expects organic sales growth of 6% to 9% and adjusted EPS of $14.50 to $15.50 for fiscal 2027.

πŸ’» The Software & Control segment was the strongest performer, with fiscal-year sales increasing 18% to $2.818 billion.

πŸ“‰ Lifecycle Services remained under pressure with fiscal-year sales declining 6% to $2.071 billion in fiscal 2026.

πŸ”„ Management expects annual recurring revenue to grow 7% and enterprise operating margin to rise to about 23% in 2027.

πŸ’Έ The 2027 outlook includes a benefit of approximately one percentage point from the prior-year customer tariff refund program.

πŸ“‰ Divestitures are expected to reduce reported sales growth by about 1.5 percentage points in fiscal 2027.

πŸ“Š Intelligent Devices segment expanded with fiscal-year sales up 11% to $4.185 billion.

🏭 Investors will focus on converting software momentum and industrial demand into sustained organic growth.

Bullish Signals
  • Rockwell Automation finished fiscal 2026 with sales of $8.989 billion, an 8% year-over-year increase driven by strong performance.
  • Adjusted earnings per share rose 27% to $13.42, demonstrating a sharp improvement in profitability.
  • Enterprise operating margin expanded to 22.2%, up from 18.9% the prior year, indicating improved operational efficiency.
  • The Software & Control segment led growth with fiscal-year sales increasing 18% to $2.818 billion and a high operating margin of 33.8%.
  • Management expects annual recurring revenue to grow 7%, highlighting the strength of its software business model.
  • The company projects organic sales growth of 6% to 9% for fiscal 2027, excluding divestiture impacts.
  • Enterprise operating profit climbed 27% to $1.997 billion in fiscal 2026, reflecting strong underlying business health.
Risk Factors
  • Lifecycle Services remained under pressure with fiscal-year sales declining 6% to $2.071 billion in fiscal 2026.
  • Organic sales in the Lifecycle Services segment fell 2%, indicating ongoing challenges in this business unit.
  • Divestitures are expected to reduce reported sales growth by about 1.5 percentage points in fiscal 2027.
Full Analysis
Rockwell Automation reported strong fiscal 2026 results, finishing with sales of $8.989 billion, an 8% year-over-year increase. Adjusted earnings per share surged 27% to $13.42, driven by a significant expansion in enterprise operating margins which reached 22.2%, up from 18.9% the prior year. The company's profitability was bolstered by higher sales volumes and improved operational efficiency across its industrial automation portfolio. Management has provided an outlook for fiscal 2027, projecting reported sales growth between 4.5% and 7.5%, with organic sales expected to grow at a more robust 6% to 9%. The company anticipates adjusted earnings per share in the range of $14.50 to $15.50 for the upcoming fiscal year. This guidance reflects continued investment by industrial customers and a strategic shift toward higher-margin software solutions. Segment performance highlighted a divergence between high-growth software divisions and struggling services. The Software & Control segment led growth with an 18% increase in fiscal-year sales, while Intelligent Devices expanded by 11%. Conversely, Lifecycle Services faced headwinds with a 6% decline in sales. The company expects annual recurring revenue to grow 7% as it leverages its software momentum to offset pressure in the services sector. Rockwell Automation stock traded at 341.00 euros on November 9, 2026. Investors are closely watching whether the company can successfully convert its strong software momentum and expected industrial demand into sustained organic growth while achieving a recovery in its Lifecycle Services business. The outlook includes specific adjustments for divestitures and prior-year tariff refunds.