Rockwell Automation reported fourth‑quarter revenue of $2.316 billion, a 14% year‑over‑year increase that surpassed the consensus estimate of $2.21 billion by $106 million, or 4.8%. The lift was driven by a 31% jump in Software & Control sales, which offset modest declines in Intelligent Devices and Lifecycle Services. Adjusted earnings per share reached $3.34, beating the consensus of $2.94 by $0.40, a 13.6% beat that reflects disciplined cost management and a favorable product mix that pushed pricing power higher.
Operating margin expanded to 22.5% from 20.1% a year earlier, a 2.4‑percentage‑point gain largely attributable to the Software & Control segment’s higher‑margin contracts and improved operational leverage as revenue scales. Total segment operating earnings rose 27% to $520 million, underscoring the company’s ability to convert revenue growth into profitability.
Net income attributable to Rockwell fell to $138 million from $240 million, a decline driven by a $102 million non‑cash impairment related to the dissolution of the Sensia joint venture, higher pre‑tax margin compression, and an elevated effective tax rate. The impairment reflects the company’s strategic shift to regain full control of its process‑automation business.
For fiscal 2026, management raised its revenue outlook to 3‑7% growth and adjusted EPS guidance to $11.20‑$12.20, up from the prior $10.40‑$11.40 range. The upgrade signals confidence in sustained demand for industrial automation and the effectiveness of cost‑cutting initiatives. Full‑year 2025 results showed sales of $8.342 billion, up 1% from $8.279 billion, and adjusted EPS of $10.53, a 7% increase from $9.85.
CEO Blake Moret emphasized that the company’s “relentless focus on execution” and “differentiated portfolio” positioned it for continued profitable growth. Analysts noted that the strong EPS and revenue beats, combined with margin expansion, were the primary drivers of the positive market reaction, as investors rewarded the company’s ability to deliver value amid macro‑economic uncertainty.
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