Rockwell Automation, Inc. (NYSE:ROK) stock fell after the company reported first-quarter results.

Details

The company posted adjusted EPS of $2.75, up 49% year over year (Y/Y), beating the consensus estimate of $2.46. GAAP diluted EPS was $2.69, up from $1.61 a year ago quarter, aided by increased pre-tax margin and a lower effective tax rate.

Total sales were $2.105 billion, up 12% Y/Y, exceeding the $2.078 billion estimate. Organic sales rose 10% Y/Y, and currency translation increased sales by 2% Y/Y.

Annual recurring revenue (ARR) grew 7% Y/Y in the quarter.

Income before income taxes was $342 million, up from $213 million in the prior year, and pre-tax margin expanded to 16.2% from 11.3% a year ago quarter.

Total segment operating margin was 20.7% compared to 17.1% a year ago. 

This is led by increased sales volume, positive price/cost, inclusive of productivity, and a favorable mix.

Segment Performance

Intelligent Devices segment sales were $953 million, up 18% Y/Y. Segment operating margin increased to 17.3% from 14.9% in the prior year, due to higher sales volume.

Software & Control segment sales grew 19% Y/Y to $629 million. Segment operating margin increased to 31.2% from 25.1% a year ago quarter, primarily due to higher volume.

Lifecycle Services sales were $523 million, a 4% decline Y/Y in the quarter. The segment operating margin expanded to 14.1% from 12.5% a year ago, led by productivity gains and project execution.

Buyback & Cash Flow

During the quarter, Rockwell Automation repurchased shares worth $154 million. As of December 31, the company had approximately $773 million remaining under its existing share repurchase authorization.

The company generated $234 million in operational cash flow and $170 million in free cash flow in the first quarter of fiscal 2026.

Chairman and CEO Blake Moret commented, ”Demand across our key end markets remained healthy, driving double-digit sales growth and continued momentum in our product and software businesses. Meaningful margin expansion this quarter reflects the strength of our portfolio, the discipline of our operating model, and our team’s continued focus on structural productivity.”

Outlook

Rockwell Automation revised its fiscal 2026 adjusted EPS guidance to $11.40–$12.20 from $11.20–$12.20, versus analyst estimates of $12.00, and narrowed its sales guidance to $8.80 billion from $8.592–$8.926 billion, versus an estimate of $8.845 billion.

Meanwhile, the company reaffirms fiscal 2026 reported sales growth guidance at 3%-7% and organic sales growth outlook at 2%-6%.

Moret added, ”Despite ongoing volatility in the broader environment, we are confident in our ability to gain share, execute, and deliver on our commitments. Customers continue to invest in automation, digital transformation, and productivity, and Rockwell is uniquely positioned to help accelerate their Factory of the Future initiatives.”

ROK Price Action: Rockwell Automation shares were down 6.17% at $403.34 at the time of publication on Thursday, according to Benzinga Pro data.

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