Rockwell Automation stock sets 2027 growth target after strong year

Published on 11/05/2026 at 14:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Rockwell Automation stock enters fiscal 2027 after stronger earnings and an 8 percent annual sales increase. Management sees further growth ahead.

Rockwell reports stronger fiscal year

Fourth-quarter adjusted earnings per share rose 16 percent year over year, while organic sales increased 3 percent.
Software & Control led fiscal 2026 growth with an 18 percent sales increase and a 33.8 percent operating margin.
Rockwell expects fiscal 2027 organic sales growth of 6 percent to 9 percent and adjusted earnings per share of 14.50 to 15.50 dollars.

Rockwell Automation, US7739031091, Illustration mit AI erstellt.

Rockwell Automation reported fiscal 2026 fourth-quarter and full-year results on Thursday, November 5, alongside its first outlook for fiscal 2027. The release, carried by Business Wire, showed a stronger earnings profile despite a customer tariff refund program that reduced reported sales growth.

Fourth-quarter sales reached 2.332 billion dollars, up 1 percent from the prior-year period, while organic sales increased 3 percent. Adjusted earnings per share rose 16 percent to 3.88 dollars from 3.34 dollars. The company said reported and organic sales growth were reduced by roughly four percentage points by the customer refund program.

Software drives segment performance

Software & Control was the main growth engine in the quarter. Segment sales increased 15 percent to 754 million dollars, and its operating margin widened to 34.0 percent from 31.2 percent. Intelligent Devices sales rose 5 percent to 1.144 billion dollars, with the segment margin improving to 21.6 percent.

Lifecycle Services remained the weak spot. Sales declined 9 percent to 519 million dollars, reflecting an 11 percent reduction from divestitures, although organic sales increased 2 percent. Its operating margin fell to 16.4 percent from 17.5 percent because of higher compensation and an unfavorable project mix.

For the full fiscal year ended September 30, sales increased 8 percent to 8.989 billion dollars. Adjusted earnings per share rose 27 percent to 13.42 dollars, while operating cash flow increased to 1.958 billion dollars and free cash flow reached 1.701 billion dollars, up 25 percent.

Tariff effects shape reported figures

Rockwell received 103 million dollars in IEEPA tariff refunds and 5 million dollars in related interest during the fourth quarter. It also accrued 85 million dollars for refunds to customers. The company said the net after-tax effect of these tariff-related items added 0.11 dollars to both diluted and adjusted earnings per share and contributed 108 million dollars to annual cash flow.

Chief Executive Blake Moret said Rockwell entered fiscal 2027 with healthy customer demand and significant new product releases. He highlighted the company's position in semiconductor and data-center markets as industrial operations become more AI-enabled and autonomous.

Fiscal 2027 outlook sets next test

Rockwell expects reported sales growth of 4.5 percent to 7.5 percent in fiscal 2027 and organic sales growth of 6 percent to 9 percent. Adjusted earnings per share are forecast at 14.50 to 15.50 dollars, while diluted earnings per share are expected between 13.78 and 14.78 dollars. The guidance includes an estimated one-percentage-point benefit from the fiscal 2026 customer tariff refund program.

Rockwell Automation stock traded at 365.45 euros on Lang & Schwarz at 14:34 CET on Thursday, November 5, 2026. Investors can follow the real-time quote of Rockwell Automation stock as the market assesses the new outlook.