01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. (ROK) reported a strong financial performance for the six months ended March 31, 2026, demonstrating robust sales growth and improved profitability across its key segments.
Total sales increased by 12% to $4.34 billiona, driven by a 9% organic sales increase, indicating solid underlying business momentum. The company saw significant improvements in its profit margins, with Enterprise operating margin expanding to 20.9% from 17.2% in the prior year period, reflecting successful pricing strategies and operational efficiencies. Profitability metrics, including Diluted EPS and Adjusted EPS, showed substantial year-over-year growth, signaling effective cost management and strong operational execution.
The company's balance sheet remains solid, with significant cash reserves and effective management of debt. Despite some macroeconomic headwinds such as inflationary pressures and geopolitical tensions, Rockwell Automation's strategic initiatives, including investments in new manufacturing facilities and digital transformation, position it well for continued growth and margin expansion. The dissolution of the Sensia joint venture has been completed, and its financial impact has been appropriately accounted for.
02—Key points
Key Highlights
- Total sales increased 12% to $4.34 billion for the six months ended March 31, 2026, with organic sales growing by 9%, indicating strong underlying demand.
- Enterprise operating margin improved significantly to 20.9% from 17.2% in the prior year, driven by higher sales volume, pricing realization exceeding input costs, and favorable mix.
- Diluted Earnings Per Share (EPS) rose to $5.79 for the six months ended March 31, 2026, from $3.83 in the prior year, with Adjusted EPS also showing a strong increase to $6.05 from $4.35.
- The Intelligent Devices and Software & Control segments both exhibited robust sales growth and margin expansion, highlighting strength in core business areas.
- The company is actively investing in its future with plans for a new, large-scale manufacturing site in Wisconsin and the purchase of an existing facility, supporting its long-term growth and resilience strategy.
- Cash provided by operating activities was $554 million, and free cash flow was $445 million for the six months ended March 31, 2026, though slightly lower than the prior year, reflecting strategic investments and working capital changes.
- The Sensia joint venture dissolution was completed on April 1, 2026, with related costs and tax impacts accounted for in the current period's financial results.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Rockwell Automation kept $0.16.
- Revenue$2.24B100.0%
- Cost of revenue−$1.11B49.8%
- Gross profit$1.13B50.2%
- Operating costs−$595.0M26.6%
- Operating income$530.0M23.7%
- Interest, other & tax−$180.0M8.0%
- Net income$350.0M15.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.24B$2.00B | +11.9% |
| Cost of Revenue | $1.11B$1.03B | +8.3% |
| Gross Profit | $1.13B$972.00M | +15.7% |
| R&D Expenses | $180.00M$162.00M | +11.1% |
| SG&A Expenses | $478.00M$469.00M | +1.9% |
| Operating Income | $530.00M$408.00M | +29.9% |
| Net Income | $350.00M$252.00M | +38.9% |
| EPS (Basic) | $3.11$2.22 | +40.1% |
| EPS (Diluted) | $3.10$2.22 | +39.6% |
| Shares Outstanding (Basic) | 112.10M112.90M | −0.7% |
| Shares Outstanding (Diluted) | 112.60M113.30M | −0.6% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Rockwell Automation for the reported period?
Rockwell Automation demonstrated strong financial performance, with a 12% increase in total sales to $4.34 billion for the six months ended March 31, 2026. Profitability saw significant improvements, with Enterprise operating margin expanding to 20.9% and Diluted EPS rising to $5.79, reflecting effective operational management and favorable market conditions.
What are the key drivers behind the company's sales growth?
Sales growth was primarily driven by a 9% organic sales increase across the company, supported by a 12% increase in reported sales. Pricing actions, a 3% contribution from currency translation, and strong demand in North America and Europe were significant factors. The Intelligent Devices and Software & Control segments were particularly strong contributors.
How is the company managing profitability and cost pressures?
Profitability has improved due to higher sales volume, effective pricing strategies that outpaced input costs, and favorable product mix. The company is also implementing productivity measures. While inflationary pressures are expected to continue in certain cost categories, Rockwell Automation aims to mitigate these through pricing and supply chain actions.
What is the status of the Sensia joint venture dissolution?
The Sensia joint venture was dissolved on April 1, 2026. The financial statements reflect the costs and tax impacts associated with this dissolution, and the company has finalized its accounting for this event.
06—Continue