Rockwell Automation, Inc.

(New York Stock Exchange)
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Bullish +68

Rockwell Automation stock sets fiscal 2027 growth outlook

Earnings report Financial outlook New AI features AI-generated analysis

πŸ“ˆ Rockwell Automation reported fiscal 2026 sales of $8.989 billion, representing an 8% increase from the prior year.

πŸ’° Adjusted earnings per share jumped 27% to $13.42 for fiscal 2026, driven by higher volumes and favorable mix.

πŸš€ The company guided for fiscal 2027 organic sales growth of 6% to 9% and adjusted EPS between $14.50 and $15.50.

πŸ’» Software and Control segment led performance with full-year sales rising 18% to $2.818 billion and margins expanding to 34.0%.

πŸ€– CEO Blake Moret highlighted the strategic expansion of AI and autonomous operations to capture new value in industrial settings.

πŸ”„ Organic annual recurring revenue grew 5% in fiscal 2026 as software becomes a larger part of the offering.

⚠️ Lifecycle Services sales declined 9% due to divestitures, though organic sales within the segment increased 2%.

Bullish Signals
  • Rockwell Automation reported fiscal 2026 sales growth of 8% to $8.989 billion and adjusted EPS expansion of 27% to $13.42.
  • The company guided for strong fiscal 2027 organic sales growth between 6% and 9%, excluding the impact of divestitures.
  • Software and Control segment demonstrated exceptional strength with full-year sales up 18% to $2.818 billion and operating margins widening to 34.0%.
  • Organic annual recurring revenue increased 5% in fiscal 2026, reflecting the successful transition toward higher-margin software solutions.
  • Enterprise operating profit rose 16% to $572 million with operating margins expanding significantly to 24.5%.
Risk Factors
  • Lifecycle Services sales declined 9% in the quarter and full-year due to divestitures, which reduces reported revenue compared to organic growth.
  • The fiscal 2027 outlook includes an estimated headwind of approximately 1.5 percentage points from ongoing divestiture activities.
Full Analysis
Rockwell Automation reported a robust finish to fiscal 2026, with sales rising 8% year-over-year to $8.989 billion and adjusted earnings per share surging 27% to $13.42. The company has set an expansionary outlook for fiscal 2027, projecting reported sales growth between 4.5% and 7.5%, while organic sales are expected to grow by 6% to 9%. Adjusted EPS guidance for the upcoming year ranges from $14.50 to $15.50. The industrial automation leader highlighted Software and Control as its primary growth engine, with full-year segment sales increasing 18% to $2.818 billion and operating margins expanding to 34.0%. While Lifecycle Services revenue declined due to divestitures, organic sales within that segment grew 2%, indicating underlying demand remains resilient despite the restructuring of the business portfolio. CEO Blake Moret emphasized healthy customer demand and significant new product releases as key drivers for fiscal 2027, specifically citing the increasing adoption of artificial intelligence and autonomous operations in industrial settings. The company also noted a 5% increase in organic annual recurring revenue, signaling a strategic shift toward software-based solutions that aim to enhance margin durability and market share.