ROK Q1 Earnings Surpass Estimates, Increase Y/Y on Higher Volumes

Rockwell Automation Inc. ROK reported adjusted earnings per share (EPS) of $2.75 in the first-quarter fiscal 2026 (ended Dec. 31, 2025), which beat the Zacks Consensus Estimate of $2.54. The company disclosed an adjusted EPS of $1.85 for the prior-year quarter, excluding net legacy asbestos and environmental charges, which are considered unrelated to current operations. 

Including one-time items, ROK's earnings were $2.69 per share in the fiscal first quarter compared with the prior-year quarter’s $1.61.

ROK’s total revenues were $2.11 billion, up 11.9% from the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $2.09 billion. Organic sales were up 10% year over year.  We expected organic sales to increase 9.6% in the quarter.

ROK’s Margin Performance in Q1

The cost of sales increased 8.6% year over year to $1.09 billion. The gross profit grew 15.7% year over year to $1.02 billion. Selling, general and administrative expenses moved up 0.4% year over year to $478 million.

Consolidated segment operating income totaled $435 million, up 36% from the prior-year quarter. The total segment operating margin was 20.7%, higher than the prior-year period’s 17.1%. The upside was driven by higher sales volume, positive pricing and a favorable mix. This was partially offset by higher compensation.

Rockwell Automation’s Segmental Results in Q1

Intelligent Devices: Net sales amounted to $953 million, up 18% year over year. The reported figure missed our estimate of $968 million.

The segment’s operating earnings totaled $165 million compared with the year-earlier quarter’s $120 million. We predicted the segment’s operating earnings to be $175 million. The segment’s operating margin increased to 17.3% from the year-ago quarter’s 14.9%, driven by higher sales volume.

Software & Control: Net sales grew 19% year over year to $629 million. Reported sales surpassed our estimate of $568 million. 

The segment’s operating earnings increased 47.4% year over year to $196 million. We predicted segmental operating earnings of $168 million. The segment’s operating margin was 31.2% compared with 25.1% in the year-earlier quarter. The upside was driven by higher sales volume.

Lifecycle Services: Net sales for the segment were $523 million, down 4% year over year. We projected the segment’s sales to be $521 million. The segment’s operating earnings totaled $74 million compared with the prior-year quarter’s $68 million.

Our estimate for the segment’s operating earnings was $51 million. The segment’s operating margin was 14.1% compared with the year-earlier quarter’s 12.5%, reflecting gains from productivity, offset by lower sales volume.

Rockwell Automation’s Cash Position & Balance Sheet Updates

At the end of the first quarter of fiscal 2026, cash and cash equivalents were $444 million, down from $468 million at the end of fiscal 2025. The long-term debt was $2.57 billion at the end of the quarter, down from the fiscal 2024-end figure of $2.61 billion.

Cash flow from operations in the first quarter of fiscal 2026 was $234 million compared with the prior-year quarter’s $364 million. Return on invested capital was 16.3% as of Dec. 31, 2026.

In the first quarter, ROK repurchased 0.4 million shares for $154 million. As of the end of the quarter, $773 million was available under the existing share-repurchase authorization.

ROK’s FY26 Guidance

The company continues to expect reported sales to grow 3-7% in 2026. Organic sales growth is expected between 2% and 6% for the fiscal year.

Rockwell Automation expects adjusted EPS of $11.40-$12.20 for fiscal 2026, updated from the prior stated $11.20-$12.20.

Rockwell Automation Stock’s Price Performance

In the past year, ROK shares have gained 62.5% compared with the industry’s 32.4% growth.

ROK’s Zacks Rank

Rockwell Automation currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ROK’s Peer Performances

Teradyne, Inc. TER reported fourth-quarter 2025 adjusted earnings of $1.80 per share, which beat the Zacks Consensus Estimate of $1.36. The company’s bottom line surged 89.5% year over year.

Teradyne’s revenues of $1.08 billion beat the Zacks Consensus Estimate of $0.97 billion and increased 43.7% year over year.

KLA Corporation KLAC reported second-quarter fiscal 2026 adjusted earnings of $8.85 per share, beating the Zacks Consensus Estimate of $8.82. The company’s bottom line increased 7.9% year over year.

KLA’s revenues increased 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02%.

The Timken Company TKR posted an adjusted EPS of $1.14 in the fourth quarter of 2025, beating the Zacks Consensus Estimate of $1.09. The company’s bottom line dipped 2% year over year from the EPS of $1.16 in the year-ago quarter.

Timken’s total revenues were $1.11 billion, up 3.4% from sales of $1.07 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.08 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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