Rockwell Automation Reports Q1 2026 Earnings with Strong EPS and Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy ROK?
Source: seekingalpha
- Earnings Beat: Rockwell Automation reported a Q1 non-GAAP EPS of $2.75, exceeding expectations by $0.27, indicating strong performance and enhanced profitability in a competitive market.
- Significant Revenue Growth: The company achieved revenue of $2.11 billion in Q1, reflecting a 12.2% year-over-year increase and surpassing market expectations by $30 million, showcasing sustained demand for its products and an expanding market share.
- Updated Fiscal 2026 Guidance: Rockwell has set its sales midpoint for fiscal 2026 at approximately $8.8 billion, maintaining a sales growth rate of 3%-7%, which reflects management's confidence in future growth and a stable market outlook.
- Upgraded EPS Forecast: The adjusted EPS forecast has been raised to a range of $11.40 to $12.20, compared to the previous range of $11.20 to $12.20, indicating ongoing confidence in the company's improving profitability.
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Analyst Views on ROK
Wall Street analysts forecast ROK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROK is 416.47 USD with a low forecast of 330.00 USD and a high forecast of 470.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 406.700
Low
330.00
Averages
416.47
High
470.00
Current: 406.700
Low
330.00
Averages
416.47
High
470.00
About ROK
Rockwell Automation, Inc. is engaged in industrial automation and digital transformation. The Company operates in three segments: Intelligent Devices, Software & Control, and Lifecycle Services. The Intelligent Devices segment portfolio includes power control, motion control, safety, sensing, and industrial components, and micro control and distributed input/output. The Software & Control operating segment contains a comprehensive portfolio of production automation and production operations platforms, including hardware and software. This integrated portfolio is merging information technology (IT) and operational technology (OT), bringing the benefits of the Connected Enterprise to the production system. The Lifecycle Services segment includes consulting services, including cybersecurity and digital transformation strategy and design and professional services, including global automation and information program and project management and delivery capabilities, and connected services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Market Overview: Rockwell Automation's stock price pullback presents an investment opportunity amidst a generally bullish market driven by growth, performance, and cash flow, with a strong long-term outlook for automated manufacturing.
Earnings Performance: The company reported solid Q1 results with a 12.2% year-over-year revenue growth, outperforming market estimates, particularly in its Intelligent Devices segment, which saw an 18% increase.
Future Projections: Analysts forecast steady revenue growth over the next decade, supported by operational improvements and widening margins, with adjusted earnings expected to grow significantly.
Investor Sentiment: Despite a recent price dip, analysts remain bullish, reaffirming price targets and indicating strong support for the stock, suggesting a potential rebound as market conditions stabilize.
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- Integrated Technology and Response: The SOC integrates vendor-neutral data ingestion and contextual threat intelligence, enabling industrial companies to detect and respond to cybersecurity incidents more effectively, thereby improving response speed and remediation capabilities in complex, multi-vendor environments.
- Talent Development and Collaboration: The SOC in Singapore not only strengthens collaboration with local agencies and academia but also enhances regional industrial resilience by training young cybersecurity professionals, thereby supporting global clients' security needs.
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Earnings Performance: The company reported solid Q1 results with a 12.2% year-over-year revenue growth, outperforming market estimates, particularly in its Intelligent Devices segment, which saw an 18% increase.
Future Projections: Analysts forecast steady revenue growth over the next decade, supported by operational improvements and widening margins, with adjusted earnings expected to grow significantly.
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See More
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- SOC Launch: Rockwell Automation's newly established Security Operations Center (SOC) in Singapore offers 24/7 real-time monitoring and rapid response capabilities, significantly enhancing cybersecurity resilience for industrial clients across the Asia Pacific, marking a pivotal step in the company's digital transformation journey.
- Integrated Technology and Response: The SOC integrates vendor-neutral data ingestion and contextual threat intelligence, enabling industrial companies to detect and respond to cybersecurity incidents more effectively, thereby improving response speed and remediation capabilities in complex, multi-vendor environments.
- Talent Development and Collaboration: The SOC in Singapore not only strengthens collaboration with local agencies and academia but also enhances regional industrial resilience by training young cybersecurity professionals, thereby supporting global clients' security needs.
- Market Demand and Strategic Positioning: According to Rockwell's 2025 State of Smart Manufacturing Report, cybersecurity has become the second most critical external risk for manufacturers in the Asia Pacific, with nearly half of respondents planning to deploy AI and machine learning for cybersecurity solutions within the next year, indicating a pressing market demand for security solutions.
See More
HSBC Increases Target Price for Rockwell Automation Inc. to $445 from $415
- HSBC Raises Target Price: HSBC has increased its target price for Rockwell Automation from $415 to $445.
- Market Implications: This adjustment reflects a positive outlook on Rockwell Automation's performance and potential growth in the market.
See More
Rockwell Automation Q1 2026 Earnings Call Highlights
- Strong Sales Growth: Rockwell Automation reported a 12% year-over-year sales increase in Q1 2026, with particularly strong performance in core products and software, enhancing the company's competitive position in the market.
- Improved Profitability: Adjusted EPS reached $2.75, with gross margins and segment margins showing year-over-year improvement, indicating effective execution in cost control and productivity enhancement.
- Optimistic Outlook: Management maintained its full-year organic sales growth outlook of 2% to 6% and raised the midpoint of adjusted EPS guidance to $11.80, reflecting positive impacts from tax benefits.
- Risks and Challenges: Despite sustaining double-digit growth in core products and software, management expressed caution regarding macroeconomic and geopolitical uncertainties, emphasizing the need for more evidence of order growth to support future guidance.
See More
Significant Stock Movements in Midday Trading
- McKesson Earnings Beat: McKesson's fiscal third-quarter earnings per share exceeded Wall Street's highest estimates, and the adjusted full-year EPS guidance was raised above analyst consensus, leading to a 16% stock price increase, indicating strong performance in the medical supply sector.
- Bob's Discount Furniture IPO: Bob's Discount Furniture debuted on the New York Stock Exchange with shares priced at $17, recently rising 10%, marking a successful entry into the public market and laying the groundwork for future growth.
- Fluence Energy Earnings Miss: Fluence Energy reported first-quarter revenue of $475.2 million, falling short of the $481.2 million consensus, with a per-share loss of 34 cents missing the 21-cent loss estimate, resulting in a 31% stock price drop, reflecting market concerns over its profitability.
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See More
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- Strong Performance: Rockwell Automation reported an adjusted EPS of $2.75, a 49% year-over-year increase, surpassing the consensus estimate of $2.46, indicating a significant improvement in profitability.
- Sales Growth: Total sales reached $2.105 billion, up 12% year-over-year, exceeding the expected $2.078 billion, demonstrating robust growth amid strong market demand.
- Cash Flow and Buybacks: The company repurchased shares worth $154 million during the quarter, generating $234 million in operational cash flow and $170 million in free cash flow, showcasing strong cash generation capabilities and shareholder return strategies.
- Positive Outlook: Rockwell revised its fiscal 2026 adjusted EPS guidance to $11.40–$12.20, slightly above the analyst estimate of $12.00, reflecting confidence in future growth and continued market share expansion.
See More
