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Rockwell Automation
(NYSE:ROK)
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Rating:77Outperform
Price Target:
$515.00
â–²(11.43% Upside)
Action:Reiterated
Date:05/09/26
ROK’s score is driven primarily by solid underlying financial performance (strong margins and free-cash-flow generation) and a constructive earnings update with raised FY2026 sales, margin, and EPS guidance plus higher buybacks. Technicals are supportive with strong uptrend momentum, while the main offsets are a premium valuation (P/E ~28.7, modest yield) and the combination of leverage and management-flagged H2 headwinds (cost pressures, tariff complexity, and delayed large projects).
Positive Factors
Strong cash generation
Consistent high free cash flow and ~87% conversion of net income provide durable financial flexibility. This level of cash generation supports reinvestment in software R&D, targeted M&A or buybacks, and cushions the business through cyclical downturns while funding long-term transformation initiatives.
Negative Factors
Meaningful leverage
Elevated leverage relative to equity increases sensitivity to cyclical slowdowns and limits optionality. In a weaker capital-spending environment, higher interest and principal obligations can constrain investment flexibility and elevate refinancing risk, particularly if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent high free cash flow and ~87% conversion of net income provide durable financial flexibility. This level of cash generation supports reinvestment in software R&D, targeted M&A or buybacks, and cushions the business through cyclical downturns while funding long-term transformation initiatives.
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.
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The Fly
The FlyRockwell Automation (ROK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.41B
Dividend Yield1.14%
Average Volume (3M)813.79K
Price to Earnings (P/E)49.7
Beta (1Y)1.09
Revenue Growth10.45%
EPS Growth21.30%
CountryUS
Employees26,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)9.66
Shares Outstanding111,273,960
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
$480.00Price Target Upside3.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)13.03
Revenue Forecast (FY)$8.97B
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:May 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial performance in Q2 with strong top-line growth, substantial margin expansion, robust free cash flow and raised guidance for sales and EPS. Software & Control and Intelligent Devices led outperformance, data center demand accelerated, and recurring revenue grew. Offsetting risks include softer Lifecycle Services, the Sensia dissolution lowering reported revenue, tariff and memory cost pressures expected in H2, and geopolitical/trade uncertainty that is delaying some large capital projects. Overall, the positives (broader demand, margin leverage, cash generation and raised guidance) meaningfully outweigh the headwinds.Positive Updates
Top-line Growth Above Expectations
Q2 reported sales +12% year-over-year (organic sales +9% YoY) with ~3 points of growth from favorable currency; company raised full-year reported and organic sales guidance to a 5%–9% range (7% midpoint).
Negative Updates
Lifecycle Services Softness and Sensia Dissolution Impact
Lifecycle Services organic sales down 1% YoY; book-to-bill for Lifecycle Services 1.07 but customers are deferring larger projects in favor of smaller modernization work. Sensia JV dissolution (effective April 1) reduces reported revenue (company cited ~-$100M reported revenue impact in guidance) though described as EPS neutral.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth Above Expectations
Q2 reported sales +12% year-over-year (organic sales +9% YoY) with ~3 points of growth from favorable currency; company raised full-year reported and organic sales guidance to a 5%–9% range (7% midpoint).
Read all positive updates
Company Guidance
Rockwell raised its fiscal 2026 guide to reported and organic sales growth of 5%–9% (7% midpoint), with reported sales now guided to about $8.9B (up ~$100M vs prior midpoint after ~+$200M organic and ~–$100M from the Sensia dissolution) and an assumed +1.5 points currency tailwind; organic ARR is expected to grow high single digits. Management increased the enterprise operating margin outlook to 21.5% (from ~20%), raised adjusted EPS guidance to $12.50–$13.10 (midpoint $12.80, +$1 vs prior), now expects full‑year incrementals above 50% (vs an initial ~40%), and continues to target 100% free cash flow conversion and ~3% of sales for CapEx. They forecast 250 basis points of total price realization (150 bps underlying, 100 bps tariff), corporate & other expense of ~$110M, net interest of ~$120M, ~112.1M diluted shares, ~ $850M total buybacks for the year, and note a double‑digit million memory headwind in H2. For Q3 specifically they expect reported sales roughly flat sequentially (losing ~$50M sales from Sensia), flat enterprise margin, and Q3 adjusted EPS up about $0.05 sequentially (mid‑to‑high teens YoY).Rockwell Automation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.80B | 8.34B | 8.26B | 9.06B | 7.76B | 7.00B |
| Gross Profit | 4.63B | 4.02B | 3.68B | 3.72B | 3.10B | 2.90B |
| EBITDA | 1.66B | 1.40B | 1.57B | 1.99B | 1.44B | 1.33B |
| Net Income | 1.09B | 869.00M | 952.50M | 1.39B | 932.20M | 1.36B |
Balance Sheet | ||||||
| Total Assets | 11.26B | 11.22B | 11.23B | 11.30B | 10.76B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 423.00M | 468.00M | 471.00M | 1.07B | 511.90M | 662.20M |
| Total Debt | 4.05B | 3.65B | 4.08B | 3.33B | 4.18B | 4.38B |
| Total Liabilities | 7.68B | 7.51B | 7.56B | 7.56B | 7.74B | 8.01B |
| Stockholders Equity | 3.52B | 3.65B | 3.50B | 3.56B | 2.73B | 2.39B |
Cash Flow | ||||||
| Free Cash Flow | 1.34B | 1.36B | 639.10M | 1.21B | 682.00M | 1.14B |
| Operating Cash Flow | 1.53B | 1.54B | 863.80M | 1.37B | 823.10M | 1.26B |
| Investing Cash Flow | -213.00M | -216.00M | -982.50M | 854.30M | -7.80M | -2.63B |
| Financing Cash Flow | -1.33B | -1.33B | -502.80M | -1.68B | -934.20M | 1.30B |
Rockwell Automation Technical Analysis
Positive
462.16
Price Trends
463.64
Positive
429.46
Positive
409.75
Positive
Market Momentum
-0.24
Positive
49.02
Neutral
45.51
Neutral
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 462.16 is below the 20-day moving average (MA) of 466.49, below the 50-day MA of 463.64, and above the 200-day MA of 409.75, indicating a bullish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $121.39B | 35.52 | 24.69% | 0.75% | 6.03% | 4.26% | |
77 Outperform | $52.41B | 49.70 | 30.25% | 1.18% | 10.45% | 21.30% | |
76 Outperform | $87.34B | 32.76 | 22.02% | 1.20% | 0.06% | -4.25% | |
76 Outperform | $81.62B | 25.94 | 101.74% | 2.28% | 4.30% | -3.22% | |
70 Outperform | $2.97B | 22.99 | 10.63% | 1.32% | 14.01% | -23.03% | |
70 Outperform | $33.00B | 34.03 | 5.80% | 0.09% | 7.85% | 88.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ROK
Rockwell Automation
480.08
140.39
41.33%
CXT
Crane NXT
51.95
-4.35
-7.72%
CMI
Cummins
634.20
283.97
81.08%
ITW
Illinois Tool Works
286.95
40.86
16.60%
PH
Parker Hannifin
976.53
270.54
38.32%
IR
Ingersoll Rand
83.38
8.48
11.32%
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.