01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. (ROK) reported a strong performance for the nine months ended June 30, 2026, with total sales increasing by 10% year-over-year to $6.66 billiona, driven by robust growth across its Intelligent Devices and Software & Control segments.
Net income attributable to Rockwell Automation surged by 45% to $1.06 billionb, resulting in a diluted EPS of $9.44, up from $6.43 in the prior year period. The company's effective tax rate decreased due to favorable discrete tax items, including a benefit from the dissolution of the Sensia joint venture. Free cash flow also saw a significant improvement, increasing by 15% to $1.1 billion, underscoring the company's operational efficiency and strong cash generation capabilities.
Key strategic initiatives, including investments in new manufacturing facilities and digital infrastructure, are underway to support long-term growth and margin expansion. While facing some inflationary pressures and supply chain volatilities, the company is actively managing these through pricing actions and supply chain optimizations.
The successful completion of the Sensia joint venture dissolution contributed positively to the financial results. Rockwell Automation remains focused on delivering value through its Connected Enterprise strategy, emphasizing resiliency, agility, and sustainability for its customers.
02—Key points
Key Highlights
- Total sales for the nine months ended June 30, 2026, increased by 10% to $6.66 billion, with organic sales growing by 9%.
- Net income attributable to Rockwell Automation increased by 45% to $1.06 billion, and diluted EPS rose to $9.44 from $6.43 in the prior year period.
- Enterprise operating profit increased by 32% to $1.43 billion, and Enterprise operating margin improved to 21.4% from 18.0%, reflecting strong operational performance.
- Free cash flow increased by 15% to $1.1 billion for the nine months ended June 30, 2026, demonstrating strong cash generation.
- The dissolution of the Sensia joint venture was completed, resulting in a pre-tax gain of $20 million and contributing positively to segment operating earnings.
- Significant investments are being made in new manufacturing capacity, including a new greenfield site in Southeastern Wisconsin, as part of a $2 billion investment plan.
- The company continues to manage inflationary pressures and supply chain challenges through pricing actions and supply chain optimization efforts.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Rockwell Automation kept $0.18.
- Revenue$2.31B100.0%
- Cost of revenue−$1.17B50.5%
- Gross profit$1.14B49.5%
- Operating costs−$594.0M25.7%
- Operating income$550.0M23.8%
- Interest, other & tax−$142.0M6.1%
- Net income$408.0M17.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed August 4, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.31B$2.14B | +7.9% |
| Cost of Revenue | $1.17B$1.10B | +6.5% |
| Gross Profit | $1.14B$1.05B | +9.4% |
| R&D Expenses | $173.00M$170.00M | +1.8% |
| SG&A Expenses | $490.00M$498.00M | −1.6% |
| Operating Income | $550.00M$454.00M | +21.1% |
| Net Income | $408.00M$295.00M | +38.3% |
| EPS (Basic) | $3.66$2.61 | +40.2% |
| EPS (Diluted) | $3.65$2.60 | +40.4% |
| Shares Outstanding (Basic) | 111.10M112.50M | −1.2% |
| Shares Outstanding (Diluted) | 111.60M113.00M | −1.2% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Rockwell Automation for the reported period?
Rockwell Automation demonstrated strong financial performance for the nine months ended June 30, 2026. Total sales grew by 10% year-over-year to $6.66 billion, driven by solid demand across its key segments. Net income attributable to Rockwell Automation saw a significant increase of 45% to $1.06 billion, resulting in diluted EPS of $9.44. The company also reported improved profitability with a higher Enterprise operating margin of 21.4% and strong free cash flow generation of $1.1 billion.
How did the dissolution of the Sensia joint venture impact the company's results?
The dissolution of the Sensia joint venture, completed on April 1, 2026, positively impacted the company's results. It generated a pre-tax gain of $20 million and contributed to an improvement in the Lifecycle Services segment's operating margin. The prior period reported sales were also adjusted to reflect the divestiture of businesses related to the joint venture.
What is the company's outlook and strategy regarding market conditions and future investments?
Rockwell Automation anticipates continued inflationary pressures and supply chain volatility but plans to mitigate these through pricing actions and supply chain management. The company is executing a long-term strategy focused on industrial automation and digital transformation, highlighted by a $2 billion investment plan including new manufacturing facilities to enhance resilience, agility, and sustainability. They aim to achieve faster secular growth in traditional markets, grow market share through technology differentiation, and increase annual recurring revenue and growth from acquisitions.
How is the company managing its debt and liquidity?
The company has a strong liquidity position, with access to a $1.5 billion unsecured revolving credit facility. Short-term debt primarily consists of commercial paper borrowings. As of June 30, 2026, Rockwell Automation was in compliance with all covenants under its credit facilities. The company regularly monitors its financial counterparties and utilizes foreign currency forward contracts to manage foreign exchange risks, demonstrating a proactive approach to financial risk management.
06—Continue