Rockwell Automation Q1 sales rise 12%, beat estimates

Overview

• Industrial automation firm's fiscal Q1 sales rose 12%, beating analyst expectations

• Adjusted EPS for fiscal Q1 increased 49% yr/yr, beating analyst expectations

• Company reaffirmed fiscal 2026 sales growth guidance and updated EPS guidance

Outlook

• Rockwell Automation updates fiscal 2026 diluted EPS guidance to $10.75 - $11.55

• Company reaffirms fiscal 2026 reported sales growth range of 3% - 7%

• Rockwell Automation expects gradual improvement throughout fiscal 2026 despite market volatility

Result Drivers

• DEMAND IN KEY MARKETS - Strong demand across key markets drove double-digit sales growth, particularly in Intelligent Devices and Software & Control segments, per CEO Blake Moret

• MARGIN EXPANSION - Meaningful margin expansion due to higher sales volume, positive price/cost, and productivity, partially offset by higher compensation

• LIFECYCLE SERVICES DECLINE - Lifecycle Services segment sales decreased 4%, but margin improved due to productivity and project execution

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 16 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Rockwell Automation Inc is $420.00, about 2.3% below its February 4 closing price of $429.84

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBwc4KwKka

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