Rockwell Automation, Inc. (NYSE:ROK) stock rose after it reported better-than-expected second-quarter results and raised its FY26 guidance above estimates.

The company posted:

  • Adjusted EPS of $3.30, up 32% year over year (Y/Y), beating the consensus estimate of $2.89.
  • GAAP diluted EPS was $3.10, up from $2.22 a year ago quarter, aided by increased pre-tax margin.
  • Total sales were $2.239 billion, up 12% Y/Y, exceeding the $2.157 billion estimate.
  • Organic sales rose 9% Y/Y, and currency translation increased sales by 3% Y/Y in the quarter. Annual recurring revenue (ARR) grew 6% Y/Y in the quarter.
  • Income before income taxes was $440 million, up from $299 million in the prior year
  • Pre-tax margin expanded to 19.7% from 14.9% a year ago quarter.

Segment Performance

Intelligent Devices segment sales were $1 billion, up 13% Y/Y. Segment operating margin increased to 20.9% from 17.7% a year ago. This is led by favorable price/cost inclusive of productivity, higher sales volume, and positive mix.

Software & Control segment sales grew 20% Y/Y to $684 million. Segment operating margin increased to 34.9% from 30.1% in the year-ago quarter, primarily due to higher sales volume and positive price/cost, inclusive of productivity.

Lifecycle Services sales were $547 million, up 2% Y/Y in the quarter. The segment operating margin expanded to 14.6% from 14.5% a year ago.

Buyback & Cash Flow

During the quarter, Rockwell Automation repurchased shares worth $454 million. As of March 31, the company had approximately $318 million remaining under its existing share repurchase authorization.

The company generated $320 million in operational cash flow and $275 million in free cash flow in the second quarter of fiscal 2026.

Rockwell CEO Blake Moret noted “solid momentum across much of the business, led by improving demand in warehouse automation, data center, semiconductor, and energy.”

Outlook

Rockwell raised its fiscal 2026 adjusted EPS guidance to $12.50-$13.10 from $11.40-$12.20, versus analyst estimates of $12.15, and increased its sales guidance to $9.345 billion-$9.701 billion (from $8.80 billion), versus an estimate of $8.876 billion.

Meanwhile, the company now sees fiscal 2026 reported sales growth and organic sales growth ranges of 5% – 9%.

ROK Price Action: Rockwell Automation shares were up 8.89% at $435.92 at the time of publication on Tuesday, according to Benzinga Pro data.

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