Rockwell Automation Reports Third Quarter 2026 Results

• Reported sales up 8% year over year; organic sales up 10% year over year

• Diluted EPS of $3.65 and Adjusted EPS of $3.49; up 40% and 22% year over year, respectively

• Organic ARR up 6% year over year; software ARR up high single digits year over year

• Updates fiscal 2026 reported sales growth and organic sales growth ranges to 7.5% - 9.5%

• Updates fiscal 2026 diluted EPS guidance range to $12.72 - $13.02 and Adjusted EPS guidance range to $13.00 - $13.30

• Completed the dissolution of the Sensia joint venture on April 1

MILWAUKEE, August 04, 2026--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK) today reported third quarter fiscal 2026 results.

"Our strong third-quarter performance reflects healthy customer demand, an accelerated pace of innovation, and disciplined execution. Continued strength in semiconductor, data center, and warehouse automation, as well as improving activity in automotive and life sciences, drove growth across the business. Our 10% organic sales growth, combined with favorable mix and operational discipline, yielded double-digit earnings growth and expanded margins," said Blake Moret, Chairman and CEO.

Fiscal Q3 2026 Financial Results

On April 1, the Company completed the dissolution of the Sensia joint venture, which included the divestiture of certain businesses to the joint venture partner. Prior period reported sales and total ARR have been adjusted to calculate organic sales and ARR.

Fiscal 2026 third quarter sales were $2,313 million, up 8% from $2,144 million in the third quarter of fiscal 2025. Organic sales increased 10%. Divestitures decreased sales by (3)% and currency translation increased sales by 1%.

Income before income taxes was $470 million in the third quarter of fiscal 2026 compared to $342 million in the same period last year. Pre-tax margin was 20.3% in the third quarter of fiscal 2026 compared to 16.0% in the same period last year. Enterprise operating profit was $516 million in the third quarter of fiscal 2026, up 23% from $418 million in the same period of fiscal 2025. Enterprise operating margin was 22.3% compared to 19.5% a year ago. The increases in pre-tax margin and Enterprise operating margin were primarily due to higher sales volume, favorable mix, and the margin benefit of the Sensia joint venture dissolution, partially offset by negative price/cost.

Fiscal 2026 third quarter Net income attributable to Rockwell Automation was $408 million or $3.65 per share, compared to $295 million or $2.60 per share in the third quarter of fiscal 2025. The increases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to higher pre-tax margin. Fiscal 2026 third quarter Adjusted EPS was $3.49, up 22% compared to $2.85 in the third quarter of fiscal 2025 primarily due to higher Enterprise operating margin.

Cash provided by operating activities in the third quarter of fiscal 2026 was $724 million compared to $527 million in the third quarter of fiscal 2025. Free cash flow in the third quarter of fiscal 2026 was $654 million, compared to $489 million in the same period last year. Increases in cash provided by operating activities and free cash flow were primarily due to higher pre-tax income.

Fiscal Year 2026 Outlook

The table below provides updated fiscal 2026 guidance.

"Our updated fiscal 2026 outlook reflects the strong execution of our team and our confidence in the opportunities ahead. We continue to perform at the high end of our growth framework while expanding margins and investing in innovation. With a differentiated portfolio, a world-class partner ecosystem, and a highly engaged team, we are well positioned to extend our leadership and deliver sustainable value over the long term," Moret continued.

Following is a discussion of third quarter results for our business segments.

Intelligent Devices

Intelligent Devices third quarter fiscal 2026 sales were $1.1 billion, an increase of 12% compared to $968 million in the same period last year. Organic sales increased 10% and currency translation increased sales by 2%. Segment operating earnings were $216 million compared to $182 million in the same period last year. Segment operating margin increased to 20.0% from 18.8% a year ago. The increase in segment operating margin from prior year was driven by higher sales volume, favorable currency, and favorable mix, partially offset by negative price/cost.

Software & Control

Software & Control third quarter fiscal 2026 sales were $751 million, an increase of 19% compared to $629 million in the same period last year. Organic sales increased 18% and currency translation increased sales by 1%. Segment operating earnings were $261 million compared to $199 million in the same period last year. Segment operating margin increased to 34.8% from 31.6% a year ago driven by higher sales volume, partially offset by negative price/cost.

Lifecycle Services

Lifecycle Services third quarter fiscal 2026 sales were $482 million, a decrease of (12)% compared to $547 million in the same period last year. Organic sales decreased (2)%. Divestitures decreased sales by (11)% and currency translation increased sales by 1%. Segment operating earnings were flat year over year at $73 million. Segment operating margin increased to 15.1% from 13.3% a year ago driven by strong project execution and the margin benefit from the Sensia joint venture dissolution, partially offset by lower sales volume.

Supplemental Information

ARR - Organic ARR grew 6% compared to the end of the third quarter of fiscal 2025.

Corporate and other - Fiscal 2026 third quarter Corporate and other expense was $34 million compared to $36 million in the third quarter of fiscal 2025.

Amortization of acquisition-related intangible assets - Fiscal 2026 third quarter Amortization of acquisition-related intangible assets expense was $30 million, compared to $35 million in the third quarter of fiscal 2025.

Tax - On a GAAP basis, the effective tax rate in the third quarter of fiscal 2026 was 13.2% compared to 14.3% in the third quarter of fiscal 2025. The decrease in the effective tax rate was primarily due to the favorable discrete tax items related to the dissolution of the Sensia joint venture, partially offset by the impact of BEPS Pillar Two minimum tax rules. The Adjusted Effective Tax Rate for the third quarter of fiscal 2026 was 19.2% compared to 15.3% in the prior year. The increase in the Adjusted Effective Tax Rate was primarily due to the impact of BEPS Pillar Two.

Share repurchases - During the third quarter of fiscal 2026, the Company repurchased approximately 0.3 million shares of its common stock at a cost of $145 million. At June 30, 2026, approximately $1.2 billion remained available under our existing share repurchase authorizations.

Return on Invested Capital (ROIC) - On a GAAP basis, ROIC was 18.4% for the twelve months ended June 30, 2026, compared to 16.3% for the twelve months ended June 30, 2025. Adjusted ROIC was 18.8% for the twelve months ended June 30, 2025, compared to 15.0% for the twelve months ended June 30, 2025.

Net Income and Adjusted EBITDA - Net Income was $408 million for the three months ended June 30, 2026, compared to $293 million for the three months ended June 30, 2025. Adjusted EBITDA was $565 million for the three months ended June 30, 2026, compared to $461 million for the three months ended June 30, 2025. The increase was primarily driven by higher net income.

Definitions

Non-GAAP Measures - Organic sales, Enterprise operating profit, Enterprise operating margin, Adjusted Income, Adjusted EPS, Adjusted Effective Tax Rate, free cash flow, free cash flow conversion, Adjusted ROIC, Adjusted EBITDA, and Adjusted EBITDA margin are non-GAAP measures that are reconciled to GAAP measures in the attachments to this release.

Total ARR - Annual recurring revenue (ARR) is a key metric that enables measurement of progress in growing our recurring revenue business. It represents the annual contract value of all active recurring revenue contracts at any point in time. Recurring revenue is defined as a revenue stream that is contractual, typically for a period of 12 months or more, and has a high probability of renewal. The probability of renewal is based on historical renewal experience of the individual revenue streams, or management's best estimates if historical renewal experience is not available. Total ARR growth is calculated as the dollar change in ARR, adjusted to exclude the effects of currency, divided by ARR as of the prior period. The effects of currency translation are excluded by calculating Total ARR on a constant currency basis. Total ARR includes acquisitions even if there was no comparable ARR in the prior period. We believe that Total ARR provides useful information to investors because it reflects our recurring revenue performance period over period including the effect of acquisitions. Our measure of ARR may be different from measures used by other companies. Because ARR is based on annual contract value, it does not represent revenue recognized during a particular reporting period or revenue to be recognized in future reporting periods and is not intended to be a substitute for revenue, contract liabilities, or backlog.

Organic ARR - Organic annual recurring revenue is Total ARR that excludes comparable ARR in the prior period for the divested businesses.

Conference Call

A conference call to discuss the quarterly results will be held at 8:30 a.m. Eastern Time on August 4, 2026. This call will be an audio webcast and accessible on the Rockwell Automation website (https://www.rockwellautomation.com/en-us/company/investor-relations.html). Presentation materials will also be available on the website prior to the call.

Interested parties can access the conference call by using the following numbers: (888) 330-2022 in North America; (365) 977-0051 in Canada; +1 (646) 960-0690 for other countries. Use the following passcode: 5499533. Please call in 10 minutes prior to the start of the call.

A replay of the call will be available on the Investor Relations section of the Rockwell website through September 4, 2026.

This news release contains statements (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Words such as "believe", "estimate", "project", "plan", "expect", "anticipate", "will", "intend", and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to:

• macroeconomic factors, including inflation, global and regional business conditions (including adverse impacts in certain markets, such as Oil & Gas), commodity prices, currency exchange rates, the cyclical nature of our customers' capital spending, and sovereign debt concerns;

• laws, regulations, and governmental policies affecting our activities in the countries where we do business, including those related to trade policies, including tariffs, taxation, trade controls, cybersecurity, and climate change;

• the severity and duration of disruptions to our business due to natural disasters (including those as a result of climate change), pandemics, acts of war, strikes, terrorism, social unrest or other causes;

• the availability and price of components and materials;

• our ability to manage and mitigate the risk related to security vulnerabilities and breaches of our hardware and software products, solutions, and services;

• the availability, effectiveness, and security of our information technology systems;

• the successful execution of our cost productivity and margin expansion initiatives;

• our ability to attract, develop, and retain qualified employees;

• the successful integration and management of strategic transactions and achievement of the expected benefits of these transactions;

• the successful development of advanced technologies and demand for and market acceptance of new and existing hardware and software products;

• our ability to manage and mitigate the risks associated with our solutions and services businesses;

• competitive hardware and software products, solutions, and services, pricing pressures, and our ability to provide high quality products, solutions, and services;

• the availability and cost of capital;

• disruptions to our distribution channels or the failure of distributors to develop and maintain capabilities to sell our products;

• intellectual property infringement claims by others and the ability to protect our intellectual property;

• the uncertainty of claims by taxing authorities in the various jurisdictions where we do business;

• the uncertainties of litigation, including liabilities related to the safety and security of the hardware and software products, solutions, and services we sell;

• our ability to manage costs related to employee retirement and health care benefits; and

• other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission (SEC) filings.

Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing The Connected Enterprise(R) to life across industrial enterprises, visit www.rockwellautomation.com.