Rockwell Automation, Inc. (ROK) reported fourth-quarter sales of $2,332 million, up 1% from $2,316 million a year earlier, as year-over-year growth slowed from the third quarter’s 8% reported and 10% organic pace. Organic sales increased 3%. Divestitures decreased sales by 2%. Reported and organic sales were reduced by about 4 percentage points from the customer tariff refund program.

The industrial automation company received $103 million of International Emergency Economic Powers Act tariff refunds and $5 million of related interest in the quarter, reported as a reduction of cost of sales and an increase in interest income. It also recognized an $85 million accrual for estimated refunds to customers as a reduction of sales, reported as unallocated. The after-tax net impact of IEEPA tariff refunds, including interest, the customer tariff refund program, and related non-recurring charges, was $0.11 a share in both diluted and Adjusted EPS.

Diluted EPS was $3.11, up 153% from $1.23 a year earlier, after a 40% year-over-year increase in the third quarter. Adjusted EPS was $3.88, up 16%. Income before income taxes was $433 million, compared with $63 million a year earlier. Pre-tax margin was 18.6%, versus 2.7% a year earlier. The company said the increase was primarily driven by the prior-year non-cash impairment charge related to the Sensia joint venture and an accounting change and accrual increase for legacy asbestos liabilities, higher sales volume, the net impact of IEEPA tariff refund related items, favorable mix, and the margin benefit of the Sensia joint venture dissolution, partially offset by a charitable contribution, higher compensation, and restructuring charges.

Enterprise operating profit was $572 million, up 16% year over year, after a 23% year-over-year increase in the third quarter. Enterprise operating margin was 24.5%, compared with 21.3% a year ago. The company attributed the margin increase to higher sales volume, the net impact of IEEPA tariff refund related items, favorable mix, and the Sensia dissolution benefit, partially offset by higher compensation.

Software & Control sales were $754 million, a reported and organic increase of 15% year over year. Segment operating earnings were $256 million and segment operating margin was 34.0%. Intelligent Devices sales were $1,144 million, a reported and organic increase of 5%. Segment operating earnings were $247 million and segment operating margin was 21.6%. Lifecycle Services sales were $519 million, a reported decrease of 9%, with organic sales up 2% and divestitures down 11%. Segment operating earnings were $85 million and segment operating margin was 16.4%.

Organic ARR grew 5% year over year, after 6% year-over-year growth in the third quarter. Software ARR grew high single digits year over year. Cash provided by operating activities was $680 million and free cash flow was $602 million. The company said the increases were primarily due to higher pre-tax income and $108 million of tariff refunds and related interest income.

The company made a $50 million contribution to the Rockwell Automation Charitable Corporation in the fourth quarter. Restructuring charges were $25 million for the quarter. It repurchased approximately 1.2 million shares at a cost of $500 million. At September 30, 2026, $673 million remained available under the existing share repurchase authorization.

For fiscal 2027, Rockwell introduced guidance of reported sales growth of 4.5% to 7.5% and organic sales growth of 6% to 9%, including a about 1 percentage point benefit from the fiscal 2026 customer tariff refund program. Diluted EPS is guided at $13.78 to $14.78 and Adjusted EPS at $14.50 to $15.50. Chairman and CEO Blake Moret said the company enters fiscal 2027 from a position of strength, with healthy customer demand and significant new product releases, and that as industrial operations become increasingly AI-enabled and autonomous, Rockwell is uniquely positioned to orchestrate plant-wide workflows.