Rockwell Automation stock sets fiscal 2027 growth target after strong finish

Rockwell Automation reported its fiscal fourth-quarter and full-year 2026 results on Thursday, November 5, alongside its first fiscal 2027 outlook. The industrial automation group pointed to broad-based growth, stronger margins and continued demand in semiconductor and data-center markets.

Morningstar, carrying a Business Wire release, said fourth-quarter sales rose 1% year over year to 2.332 billion US dollars, while organic sales increased 3%. Diluted earnings per share reached 3.11 US dollars, compared with 1.23 US dollars a year earlier. Adjusted earnings per share rose 16% to 3.88 US dollars from 3.34 US dollars.

Software leads quarterly segment growth

Software & Control was the main quarterly growth engine. Sales increased 15% to 754 million US dollars, and segment operating margin widened to 34.0% from 31.2%. Intelligent Devices sales rose 5% to 1.144 billion US dollars, with operating margin reaching 21.6%.

Lifecycle Services sales fell 9% to 519 million US dollars. Divestitures reduced the segment's sales by 11%, while organic sales increased 2%. Segment operating margin declined to 16.4% from 17.5%, reflecting higher compensation and an unfavorable project mix.

Rockwell also highlighted a 24.5% enterprise operating margin for the quarter, up from 21.3% a year earlier. The company attributed the improvement to higher volume, favorable mix, pricing and the margin benefit from the dissolution of the Sensia joint venture.

Tariff refunds affect the comparison

The quarterly figures include several tariff-related items. Rockwell received 103 million US dollars in International Emergency Economic Powers Act tariff refunds and 5 million US dollars in related interest. It also accrued 85 million US dollars for refunds to customers, reducing sales. The combined after-tax net benefit added 0.11 US dollars to both diluted and adjusted earnings per share.

For the full fiscal year ended September 30, 2026, sales rose 8% to 8.989 billion US dollars from 8.342 billion US dollars. Adjusted earnings per share increased 27% to 13.42 US dollars, while free cash flow rose 25% to 1.701 billion US dollars. Organic annual recurring revenue grew 5%, with software annual recurring revenue increasing at a high-single-digit rate.

Management sets fiscal 2027 targets

Rockwell expects fiscal 2027 reported sales growth of 4.5% to 7.5% and organic sales growth of 6% to 9%. The outlook includes an estimated one-percentage-point benefit from the fiscal 2026 customer tariff refund program and an estimated 1.5 percentage-point headwind from divestitures. Diluted earnings per share is guided to 13.78 to 14.78 US dollars, while adjusted earnings per share is expected at 14.50 to 15.50 US dollars.

Chief Executive Blake Moret said the company entered the new fiscal year with healthy customer demand and significant new product releases. He also said Rockwell aims to expand its role as industrial operations become more AI-enabled and autonomous.

Rockwell Automation stock traded at 346.70 euros on Lang & Schwarz at 13:48 CET on Friday, November 6, 2026. The real-time quote of Rockwell Automation stock is available separately for investors following the latest market indication.

The broader market environment remains relevant as investors assess industrial demand, interest rates and capital spending across the US equity market.

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