01—Abstract
Summary
Summary of the 10-Q filed February 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. reported strong financial results for the quarter ending December 31, 2025.
Total sales increased by 12% year-over-year to $2.105 billiona, with organic sales growing by 10%, driven primarily by robust performance in the Software & Control and Intelligent Devices segments. Net income attributable to Rockwell Automation surged to $305 million, or $2.69 per diluted share, a significant increase from $184 million, or $1.61 per diluted share, in the prior year's quarter. This growth was fueled by improved sales volume, effective pricing strategies exceeding input cost increases, and favorable product mix.
The company's strategic focus on industrial automation and digital transformation appears to be resonating with the market, evidenced by strong segment operating margins, particularly in the Software & Control segment which achieved 31.2%b. While the Lifecycle Services segment saw a slight decrease in sales, its operating margin improved due to productivity gains.
Management highlighted ongoing investments in manufacturing capacity and digital infrastructure to support long-term growth, resilience, and margin expansion. The company also reaffirmed its commitment to returning capital to shareholders through share repurchases and dividends, with a substantial remaining authorization for share repurchases.
02—Key points
Key Highlights
- Total sales increased 12% to $2.105 billion, with organic sales up 10%, indicating strong market demand.
- Net income attributable to Rockwell Automation increased significantly to $305 million, or $2.69 per diluted share, compared to $184 million, or $1.61 per diluted share, in the prior year.
- Segment operating margin improved significantly to 20.7% from 17.1%, driven by higher sales volume, pricing power, and favorable mix.
- The Software & Control segment demonstrated exceptional performance with sales up 19% and operating margin expanding to 31.2%.
- The company is actively investing in its future, with announced plans for new manufacturing facilities and completion of the Mequon, Wisconsin facility purchase, aligning with a $2 billion investment strategy.
- Free cash flow was $170 million for the quarter, a decrease from the prior year primarily due to incentive compensation payouts and increased working capital, but still demonstrating solid cash generation.
- The company repurchased approximately $154 million of its common stock during the quarter, with $773 million remaining on its board authorization for future repurchases.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Rockwell Automation kept $0.14.
- Revenue$2.10B100.0%
- Cost of revenue−$1.09B51.7%
- Gross profit$1.02B48.3%
- Operating costs−$581.0M27.6%
- Operating income$435.0M20.7%
- Interest, other & tax−$130.0M6.2%
- Net income$305.0M14.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed February 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.10B$1.88B | +11.9% |
| Cost of Revenue | $1.09B$1.00B | +8.6% |
| Gross Profit | $1.02B$878.00M | +15.7% |
| R&D Expenses | $172.00M$156.00M | +10.3% |
| SG&A Expenses | $478.00M$476.00M | +0.4% |
| Operating Income | $435.00M$321.00M | +35.5% |
| Net Income | $305.00M$184.00M | +65.8% |
| EPS (Basic) | $2.71$1.62 | +67.3% |
| EPS (Diluted) | $2.69$1.61 | +67.1% |
| Shares Outstanding (Basic) | 112.30M113.00M | −0.6% |
| Shares Outstanding (Diluted) | 112.90M113.50M | −0.5% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Rockwell Automation for the quarter ending December 31, 2025?
Rockwell Automation reported a strong quarter with a 12% increase in total sales to $2.105 billion, driven by a 10% rise in organic sales. Net income attributable to Rockwell Automation more than doubled to $305 million, resulting in diluted earnings per share of $2.69, up from $1.61 in the prior year. This performance was bolstered by significant improvements in segment operating margins and effective management of costs and pricing.
How did Rockwell Automation's key segments perform?
The Intelligent Devices segment saw an 18% increase in sales, with a segment operating margin of 17.3%. The Software & Control segment was a standout performer, with sales up 19% and operating margin reaching an impressive 31.2%. The Lifecycle Services segment experienced a 4% decrease in sales, but managed to improve its operating margin to 14.1% through productivity gains and project execution.
What is the company's outlook and capital allocation strategy?
Rockwell Automation continues to invest in its long-term strategy, including planned expansions of its manufacturing footprint and digital infrastructure. The company remains committed to returning capital to shareholders through share repurchases, having bought back approximately $154 million of stock in the quarter and maintaining a substantial remaining authorization. Dividends also remain a priority.
What factors are driving the company's revenue growth?
Revenue growth is primarily driven by increasing customer demand for manufacturing investments, upgrades, and solutions that enhance time to market, operational productivity, asset reliability, and business resilience. Specific growth drivers include investments in new facilities, production line upgrades, and customers' needs for agility, sustainability, and mitigation of labor shortages. Pricing realization exceeding input cost increases and a favorable mix also contributed significantly.
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