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Rockwell Automation
(NYSE:ROK)
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Rating:68Neutral
Price Target:
$524.00
â–²(13.38% Upside)
Action:Reiterated
Date:08/04/26
ROK’s score is driven primarily by solid underlying financial quality (strong margins and resilient free cash flow) and a notably positive earnings update with raised FY2026 sales, margin, EPS, and cash-conversion guidance. Technicals also support the view with an uptrend versus major moving averages. The main constraints are a demanding valuation (high P/E with modest yield) and prior TTM revenue decline plus moderate leverage, which raise sensitivity if growth or services/ARR momentum softens.
Positive Factors
Strong margins
Sustained high gross margins and healthy operating/EBITDA margins indicate durable pricing power and cost structure advantages in automation hardware and software. This margin base supports reinvestment, R&D, and resilience through cyclical end-market weakness over the next several quarters.
Negative Factors
Sharp TTM revenue decline
A large trailing revenue decline reflects either portfolio impacts or cyclical weakness that can persist through multi-quarter capex slowdowns. Even with margin recovery, sustained top-line pressure can limit absolute profit growth and test execution on services and software upsell plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins
Sustained high gross margins and healthy operating/EBITDA margins indicate durable pricing power and cost structure advantages in automation hardware and software. This margin base supports reinvestment, R&D, and resilience through cyclical end-market weakness over the next several quarters.
Read all positive factors
Rockwell Automation Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Rockwell Automation is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Rockwell Automation is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyRockwell Automation (ROK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.13B
Dividend Yield1.22%
Average Volume (3M)813.79K
Price to Earnings (P/E)41.7
Beta (1Y)0.97
Revenue Growth11.27%
EPS Growth25.32%
CountryUS
Employees26,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)10.69
Shares Outstanding111,048,676
10 Day Avg. Volume669,212
30 Day Avg. Volume813,786
Financial Highlights & Ratios
PEG Ratio-6.00
Price to Book (P/B)10.78
Price to Sales (P/S)4.72
P/FCF Ratio29.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$494.44Price Target Upside6.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)13.16
Revenue Forecast (FY)$9.03B
Rockwell Automation Business Overview & Revenue Model
Company Description
Rockwell Automation, Inc., established in 1903 and headquartered in Milwaukee, Wisconsin, is a global leader in providing industrial automation and digital transformation solutions. The company's operations are segmented into three key areas: Inte...
How the Company Makes Money
Rockwell Automation makes money primarily by selling industrial automation products, software, and lifecycle services to industrial customers and channel partners. A major revenue stream is hardware and components used in factory and process autom...
Rockwell Automation Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong top-line and margin performance with raised guidance, notable outperformance in Software & Control, Intelligent Devices, and discrete end markets (Semiconductor, Data Center, E‑commerce). Cash generation, share repurchases, and margin expansion were highlighted. Headwinds include persistent inflationary cost pressure, slower-than-expected recurring services/ARR growth, Sensia-related sales impacts and pockets of weak capital spending (e.g., Food & Beverage, some process areas and Mining). On balance, positives (revenue beat, margin expansion, EPS raise, strong free cash flow and increased guidance) materially outweigh the lowlights.Positive Updates
Top-line Growth Above Expectations
Q3 reported sales +8% YoY and organic sales +10% YoY (Sensia dissolution -3% impact; currency +1%). Full-year sales guidance raised to 7.5%–9.5% (8.5% midpoint), up 150 bps vs prior guide.
Negative Updates
Lifecycle Services Softness and ARR Miss
Lifecycle Services organic sales down 2% YoY; book-to-bill 0.97. Organic ARR grew 6% in Q3, below company expectations and constrained by lack of CapEx recovery in Food & Beverage and certain process industries.
Read all updates
Q3-2026 Updates
Positive
Negative
Top-line Growth Above Expectations
Q3 reported sales +8% YoY and organic sales +10% YoY (Sensia dissolution -3% impact; currency +1%). Full-year sales guidance raised to 7.5%–9.5% (8.5% midpoint), up 150 bps vs prior guide.
Read all positive updates
Company Guidance
Rockwell's fiscal 2026 guidance: reported and organic sales growth of 7.5–9.5% (8.5% midpoint) with ~150 bps of favorable currency at the midpoint (partially offset by the Sensia dissolution); organic ARR growth mid‑single digits; enterprise operating margin ~21.5% (≈+260 bps YoY); adjusted EPS $13.00–$13.30 (midpoint $13.15, ~25% growth vs FY25); free cash‑flow conversion ~100%; full‑year price realization ~250 bps (≈100 bps tariff, 150 bps underlying) with tariffs expected to be EPS‑neutral; full‑year incrementals >50% as‑reported and high‑40s on an organic basis; Q4 expected low‑single‑digit sequential sales growth with roughly flat enterprise margin; segment expectations — Intelligent Devices: low double‑digit revenue growth, ~20% segment margin; Software & Control: high‑teens revenue growth, low‑30s margin; Lifecycle Services: ~-$150M revenue decline with flat to slightly up margin; CapEx ≈3% of sales; corporate & other ≈$115M; net interest ≈$120M; share repurchases ≈$850M for the year (≈300k shares / ~$150M repurchased YTD); average diluted shares ≈112.2M; adjusted ETR ≈19.5%.Rockwell Automation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.97B | 8.34B | 8.26B | 9.06B | 7.76B | 7.00B |
| Gross Profit | 4.89B | 4.02B | 3.68B | 3.72B | 3.10B | 2.90B |
| EBITDA | 1.77B | 1.40B | 1.57B | 1.99B | 1.44B | 1.33B |
| Net Income | 1.20B | 869.00M | 952.50M | 1.39B | 932.20M | 1.36B |
Balance Sheet | ||||||
| Total Assets | 11.09B | 11.22B | 11.23B | 11.30B | 10.76B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 479.00M | 468.00M | 471.00M | 1.07B | 511.90M | 662.20M |
| Total Debt | 3.61B | 3.65B | 4.08B | 3.33B | 4.18B | 4.38B |
| Total Liabilities | 7.59B | 7.51B | 7.56B | 7.56B | 7.74B | 8.01B |
| Stockholders Equity | 3.49B | 3.65B | 3.50B | 3.56B | 2.73B | 2.39B |
Cash Flow | ||||||
| Free Cash Flow | 1.50B | 1.36B | 639.10M | 1.21B | 682.00M | 1.14B |
| Operating Cash Flow | 1.73B | 1.54B | 863.80M | 1.37B | 823.10M | 1.26B |
| Investing Cash Flow | -256.00M | -216.00M | -982.50M | 854.30M | -7.80M | -2.63B |
| Financing Cash Flow | -1.72B | -1.33B | -502.80M | -1.68B | -934.20M | 1.30B |
Rockwell Automation Technical Analysis
Neutral
462.16
Price Trends
463.06
Negative
437.40
Positive
414.29
Positive
Market Momentum
-5.37
Positive
44.37
Neutral
26.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROK, the sentiment is Neutral. The current price of 462.16 is above the 20-day moving average (MA) of 457.61, below the 50-day MA of 463.06, and above the 200-day MA of 414.29, indicating a neutral trend. The MACD of -5.37 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 26.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ROK.
Rockwell Automation Risk Analysis
Rockwell Automation disclosed 23 risk factors in its most recent earnings report. Rockwell Automation reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rockwell Automation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $83.31B | 26.31 | 101.74% | 2.28% | 4.30% | -3.22% | |
78 Outperform | $134.85B | 36.64 | 24.70% | 0.75% | 8.31% | 4.96% | |
76 Outperform | $32.89B | 34.40 | 9.46% | 0.09% | 7.85% | 88.74% | |
69 Neutral | $87.81B | 32.14 | 21.89% | 1.20% | 2.93% | -8.06% | |
68 Neutral | $50.13B | 41.68 | 33.32% | 1.18% | 11.27% | 25.32% | |
68 Neutral | $2.99B | 21.08 | 11.28% | 1.32% | 17.28% | -7.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ROK
Rockwell Automation
445.51
108.01
32.00%
CXT
Crane NXT
51.43
-7.39
-12.57%
CMI
Cummins
631.61
238.49
60.66%
ITW
Illinois Tool Works
290.98
38.72
15.35%
PH
Parker Hannifin
1,058.87
335.20
46.32%
IR
Ingersoll Rand
84.28
6.04
7.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.