Rockwell Automation (ROK)
NYSE:ROK
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Rockwell Automation
(NYSE:ROK)
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Rating:73Outperform
Price Target:
$449.00
▲(8.00% Upside)
Action:UpgradedDate:04/18/26
ROK scores well on fundamentals and the latest earnings call (solid profitability/cash generation and positive guidance with margin expansion), and technicals are notably strong with the stock trading above major moving averages. The main offset is valuation: a high P/E and low yield reduce the risk-reward and keep the overall score from moving higher.
Positive Factors
Recurring revenue and software momentum
Sustained ARR growth and outsized software organic growth indicate a structural shift toward higher-margin, sticky recurring revenue. Software platform adoption (Logix, Plex) increases customer lock-in and predictable revenue, improving long-term revenue quality and earnings durability.
Negative Factors
Elevated leverage reduces financial flexibility
Debt roughly near parity with equity limits financial flexibility versus more conservatively financed peers. In cyclical downturns or investment-heavy periods this leverage can constrain capital allocation, raise interest sensitivity, and reduce buffer for cyclical revenue or cash-flow shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and software momentum
Sustained ARR growth and outsized software organic growth indicate a structural shift toward higher-margin, sticky recurring revenue. Software platform adoption (Logix, Plex) increases customer lock-in and predictable revenue, improving long-term revenue quality and earnings durability.
Read all positive factors
Rockwell Automation (ROK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.72B
Dividend Yield1.33%
Average Volume (3M)822.38K
Price to Earnings (P/E)35.9
Beta (1Y)1.05
Revenue Growth5.84%
EPS Growth8.84%
CountryUS
Employees27,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.75
Shares Outstanding112,357,910
10 Day Avg. Volume685,471
30 Day Avg. Volume822,384
Financial Highlights & Ratios
PEG Ratio-5.99
Price to Book (P/B)10.78
Price to Sales (P/S)4.72
P/FCF Ratio29.01
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue5.67
Enterprise Value/Gross Profit11.30
Enterprise Value/Ebitda32.02
Forecast
1Y Price Target
$399.00Price Target Upside-4.02% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)12.14
Revenue Forecast (FY)$8.88B
Rockwell Automation Business Overview & Revenue Model
Company Description
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in the United States and internationally. The company operates in three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its so...
How the Company Makes Money
Rockwell Automation primarily makes money by selling industrial automation products and related software and services to industrial customers and system integrators, generating revenue through both one-time equipment sales and recurring software/s...
Rockwell Automation Key Performance Indicators (KPIs)
Any
Operating Earnings by Segment
Shows earnings from different business segments, providing insight into which areas are most profitable and how effectively resources are allocated.
Shows earnings from different business segments, providing insight into which areas are most profitable and how effectively resources are allocated.
Data provided by:
The Fly
The FlyRockwell Automation Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operating and financial performance: strong top-line growth (reported sales +12%), robust software and product momentum (ARR +7%, Intelligent Devices +16% organic, Software & Control +17% organic, Logix NA +25%+), meaningful margin expansion (total segment margin expanded 360 bps; Q1 incrementals ~50%), and an EPS beat ($2.75). Management nonetheless emphasized caution about macro uncertainties—trade/tariff volatility, delayed large CapEx projects, a softer Lifecycle Services revenue line (-6% organic), and a Q1 free cash flow decline—keeping the company prudent on full-year upside. Overall, the positive operational execution, margin gains, and customer wins materially outweigh the headwinds and uncertainty noted, supporting a Positive sentiment.Positive Updates
Strong Top-Line Growth
Reported Q1 sales up 12% year-over-year; double-digit year-over-year growth in both reported and organic sales. Currency contributed ~2 points and price contributed ~3 points to sales growth.
Negative Updates
Lifecycle Services Revenue Decline
Lifecycle Services organic sales declined 6% year-over-year, reflecting project delays and customers delaying or narrowing larger projects due to trade policy uncertainty. Book-to-bill for the segment was 1.16.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Reported Q1 sales up 12% year-over-year; double-digit year-over-year growth in both reported and organic sales. Currency contributed ~2 points and price contributed ~3 points to sales growth.
Read all positive updates
Company Guidance
Rockwell’s fiscal‑2026 guidance calls for organic sales growth of 2%–6% (midpoint assumes gradual sequential improvement), recurring revenue up high single‑digits, and total company segment margin expansion of >100 bps; adjusted EPS guidance was nudged up (lower end to $11.40, midpoint $11.80), with free cash‑flow conversion ~100% and CapEx targeted at ~3% of sales. Management expects total price of ~2 points (1 pt underlying, 1 pt tariff), full‑year incremental margins of ~40% (inclusive of tariff pricing), an anticipated full‑year effective tax rate of ~19.5% (Q1 was ~17%, which contributed ~$0.09 to EPS and creates an expected ~$0.10 sequential tax headwind into Q2), and Sensia dissolution is excluded from the guide (anticipated annualized sales reduction ≈ $250M and ≈50 bps improvement to segment margin). Corporate & other expense is expected ≈ $105M, net interest ≈ $115M, average diluted shares ≈ 112.7M, and the company is targeting ≈ $500M of repurchases; near‑term Q2 expectations are slightly up sequential sales (mid‑single‑digit YoY), modest sequential margin improvement (tens of bps; <100 bps YoY), and Q2 adjusted EPS roughly ~$2.85 (low single‑digit sequential growth).Rockwell Automation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.57B | 8.34B | 8.26B | 9.06B | 7.76B | 7.00B |
| Gross Profit | 4.30B | 4.02B | 3.68B | 3.72B | 3.10B | 2.90B |
| EBITDA | 1.52B | 1.40B | 1.57B | 1.99B | 1.44B | 1.33B |
| Net Income | 990.00M | 869.00M | 952.50M | 1.39B | 932.20M | 1.36B |
Balance Sheet | ||||||
| Total Assets | 11.23B | 11.22B | 11.23B | 11.30B | 10.76B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 444.00M | 468.00M | 471.00M | 1.07B | 511.90M | 662.20M |
| Total Debt | 4.06B | 3.65B | 4.08B | 3.33B | 4.18B | 4.38B |
| Total Liabilities | 7.43B | 7.51B | 7.56B | 7.56B | 7.74B | 8.01B |
| Stockholders Equity | 3.75B | 3.65B | 3.50B | 3.56B | 2.73B | 2.39B |
Cash Flow | ||||||
| Free Cash Flow | 1.24B | 1.36B | 639.10M | 1.21B | 682.00M | 1.14B |
| Operating Cash Flow | 1.41B | 1.54B | 863.80M | 1.37B | 823.10M | 1.26B |
| Investing Cash Flow | -202.00M | -216.00M | -982.50M | 854.30M | -7.80M | -2.63B |
| Financing Cash Flow | -1.23B | -1.33B | -502.80M | -1.68B | -934.20M | 1.30B |
Rockwell Automation Technical Analysis
Positive
415.73
Price Trends
383.03
Positive
393.86
Positive
371.02
Positive
Market Momentum
8.68
Negative
68.93
Neutral
82.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROK, the sentiment is Positive. The current price of 415.73 is above the 20-day moving average (MA) of 376.44, above the 50-day MA of 383.03, and above the 200-day MA of 371.02, indicating a bullish trend. The MACD of 8.68 indicates Negative momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 82.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROK.
Rockwell Automation Risk Analysis
Rockwell Automation disclosed 20 risk factors in its most recent earnings report. Rockwell Automation reported the most risks in the "Macro & Political" 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $122.98B | 32.82 | 25.65% | 0.79% | 2.78% | 13.31% | |
73 Outperform | $45.72B | 35.94 | 27.69% | 1.33% | 5.84% | 8.84% | |
72 Outperform | $77.74B | 23.48 | 95.18% | 2.43% | 0.92% | -10.50% | |
67 Neutral | $91.30B | 24.76 | 24.13% | 1.48% | -1.27% | -27.23% | |
67 Neutral | $32.90B | ― | 5.70% | 0.10% | 5.75% | -29.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $2.55B | 14.07 | 12.21% | 1.42% | 11.43% | -21.53% |
* Industrials Sector Average
ROK
Rockwell Automation
401.29
157.35
64.50%
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PH
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IR
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5.83
7.74%
Rockwell Automation Corporate Events
Business Operations and StrategyExecutive/Board Changes
Rockwell Automation Expands Board, Appoints New Independent Director
Positive
Apr 17, 2026
On April 15, 2026, Rockwell Automation’s board approved an expansion of its board size from ten to eleven directors, effective April 16, 2026, as part of its governance framework under the company’s by-laws. The move reflects an effort...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Rockwell Automation Shareowners Approve 2026 Long-Term Incentive Plan
Positive
Feb 17, 2026
On February 10, 2026, Rockwell Automation shareowners approved the company’s 2026 Long-Term Incentives Plan at their annual meeting, authorizing 10.6 million shares of common stock for a broad range of equity awards to employees and director...
Executive/Board ChangesShareholder Meetings
Rockwell Automation Shareholders Approve Directors and Incentive Plan
Positive
Feb 13, 2026
At Rockwell Automation’s annual shareholders meeting held on February 10, 2026, investors elected three directors—William P. Gipson, Pam Murphy, and Robert W. Soderbery—to terms expiring at the 2029 annual meeting, reinforcing co...
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.