Rockwell Automation, Inc. (NYSE:ROK) reported third-quarter fiscal 2026 results that topped Wall Street expectations, but the company’s shares fell more than 4% in pre-market trading as investors focused on its updated earnings outlook.
Although revenue and profit exceeded forecasts, the guidance failed to generate enthusiasm in the market.
Revenue and Earnings Surpass Expectations
Rockwell Automation posted adjusted earnings of $3.49 per share, ahead of the analyst consensus estimate of $3.38.
Revenue increased 8% year over year to $2.31 billion, beating market expectations of $2.24 billion.
Organic sales climbed 10%, supported by continued strength in the semiconductor, data center and warehouse automation markets, alongside improving demand from automotive and life sciences customers.
Updated Guidance Weighs on Sentiment
The company revised its fiscal 2026 adjusted earnings guidance to a range of $13.00 to $13.30 per share.
While the updated midpoint of $13.15 remained broadly in line with expectations, investors appeared disappointed by the outlook, contributing to the decline in the stock despite the stronger quarterly performance.
Rockwell also increased its full-year sales growth forecast, now expecting reported and organic sales growth of between 7.5% and 9.5%, compared with its previous outlook of 5% to 9%.
Full-year revenue is projected to reach approximately $9.0 billion.
CEO Highlights Customer Demand and Execution
Chairman and Chief Executive Officer Blake Moret said the company’s performance reflected improving market conditions and operational discipline.
“Our strong third-quarter performance reflects healthy customer demand, an accelerated pace of innovation, and disciplined execution,” said Blake Moret, Chairman and CEO. “Our 10% organic sales growth, combined with favorable mix and operational discipline, yielded double-digit earnings growth and expanded margins.”
Margins Continue to Improve
Enterprise operating margin expanded to 22.3% during the quarter, compared with 19.5% a year earlier.
On a GAAP basis, diluted earnings per share rose 40% year over year to $3.65 from $2.60.
The company also completed the dissolution of its Sensia joint venture on April 1.
Software Business Leads Growth
The Software & Control division delivered the strongest performance, with revenue increasing 19% year over year to $751 million.
Sales in the Intelligent Devices segment rose 12% to $1.08 billion, while Lifecycle Services revenue declined 12% to $482 million, primarily reflecting the impact of recent divestitures.
Rockwell Automation stock price
