Rockwell Automation Raises Full-Year Outlook as Software Sales Climb
The industrial automation provider increased its fiscal 2026 diluted EPS guidance to a range of $12.72 to $13.02.
Rockwell Automation (ROK) raised its full-year financial targets after reporting third-quarter sales of $2,313 million.
While reported sales grew 8% year-over-year, the pace decelerated from the 12% growth seen in the prior quarter. However, organic sales grew 10% year-over-year, an acceleration from the 9% growth reported in the second quarter. Organic annual recurring revenue grew 6% year-over-year, matching the growth rate of the previous quarter.
Profitability metrics improved over the prior year. Enterprise operating margin expanded to 22.3% from 19.5% in the third quarter of 2024, though it declined slightly from 22.5% in the second quarter of 2025. Pre-tax margin increased to 20.3% from 16.0% in the same period last year.
Growth was led by the Software & Control segment, where sales rose 19% year-over-year and operating margin expanded to 34.8% from 31.6% a year ago. The Intelligent Devices segment saw sales grow 12% year-over-year, with operating margin increasing to 20.0% from 18.8%. Conversely, Lifecycle Services sales decreased 12% year-over-year, primarily due to divestitures, though the segment's operating margin rose to 15.1% from 13.3%.
Rockwell raised its fiscal 2025 reported and organic sales growth guidance to a range of 7.5% to 9.5%, up from the previous range of 5% to 9%. The company also increased its diluted EPS guidance to $12.72 to $13.02 from $11.88 to $12.48, and adjusted EPS guidance to $13.00 to $13.30 from $12.50 to $13.10.
The company reported an $18 million gain in the third quarter following the dissolution of the Sensia joint venture on April 1, 2024. Additionally, the adjusted effective tax rate increased to 19.2% from 15.3% a year ago, primarily due to the impact of BEPS Pillar Two.