ROK US S&P 500Russell 1000 Earnings call
Rockwell Automation (ROK) · Q2 2026 results and valuation
Share price: $406.19 · 2026-11-11
Rockwell Automation provides industrial automation, software, and lifecycle services. The company serves customers in the discrete, hybrid, and process manufacturing sectors, including the automotive, food and beverage, and energy industries. It operates globally in more than 100 countries. Source: 10-K annual report (2025-11-12)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 4 Aug 2026 and 5 May 2026
Net income up 16.6% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+16.6%
Net income vs Q1 2026
Outlook given
Net income 408.0M vs 350.0M
Revenue +3.3%
Against the same quarter last year (Q2 2025) it is +38.3%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 77% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Rockwell Automation expects approximately $850 million in repurchases for the year.
Valuation
Is Rockwell Automation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.4% growth a year (3-year revenue growth), the model's fair value is $110.34 a share — the stock trades 268% above it. Today's price assumes 18.6% growth a year.
Current price
$406.19
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.6% for 10 yrs
Fair value / share
$110.34
Buy below
$82.75
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +8.5% · from the Q2 2026 report: “The company updated its annual guidance to expect both reported and organic sales growth to be in the 7.5% to 9.5% range for the year.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The company updated its annual guidance to expect both reported and organic sales growth to be in the 7.5% to 9.5% range for the year.
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Figure
Software & Control organic sales increased 18% over the prior year, driven by double-digit growth in Logix.
Source quote
“Software & Control organic sales were up 18% versus prior year, driven by another quarter of strong double-digit growth in Logix.”
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Figure
Rockwell Automation reported sales increased by 8% and organic sales rose by 10% because the Sensia dissolution decreased sales by 3% while currency contributed 1% of growth.
Source quote
“Reported sales were up 8% and organic sales were up 10% with the impact of the Sensia dissolution decreasing sales by 3% and currency contributing about 1% of growth.”
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Figure
Enterprise operating margin of 22.3% and adjusted EPS of $3.49 increased double digits over the prior year due to strong volume and favorable mix.
Source quote
“Enterprise operating margin of 22.3% and adjusted EPS of $3.49 were up double digits versus prior year, led by strong volume and favorable mix.”
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Figure
E-commerce and Warehouse Automation sales rose 30% year-over-year due to performance across various regions and customer segments.
Source quote
“E-commerce & Warehouse Automation sales were up 30% year-over-year with continued strong performance across regions and customer segments.”
4 more
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Guidance
ROK expects approximately $850 million in repurchases for the year.
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Key theme
Organic annual recurring revenue grew 6% in the quarter, which was below the company's expectations.
Source quote
“Organic annual recurring revenue grew 6% in the quarter, below our expectations.”
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Guidance
The company expects the total segment operating margin for Software & Control to reach the low 30s for the full year 2026.
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Key theme
The company expects a positive area for Q4, but this growth faces the headwind of rising inflation.
Source quote
“We do expect that's going to be an area that should be positive for us in Q4, but it is against a rising inflation.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Another notable win in Q3 was with a large automotive brand owner, where Rockwell's end-to-end automation portfolio was selected to improve operational efficiency and accelerate the launch of future vehicle...”
“This sustained momentum underscores Rockwell's strong position in North America and growing penetration in new end markets, an accelerated pace of new product introduction, our unmatched partner ecosystem and the...”
“I think you can look at additional share growth in the data center applications on top of a continually strong growing fundamental in terms of overall data center opportunities.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.31B | 2.24B | +3.3% | 2.14B | +7.9% |
| Gross profit | 1.14B | 1.12B | +1.7% | 1.05B | +9.4% |
| Operating income | 550.0M | 530.0M | +3.8% | 454.0M | +21.1% |
| Net income | 408.0M | 350.0M | +16.6% | 295.0M | +38.3% |
| EPS | 3.65 | 3.10 | +17.7% | 2.60 | +40.4% |
| P/E today 35.2 | 46.4 | 37.3 | +9.1 | 39.0 | +7.4 |
Topics
Most discussed now
- Plex continues to add new logos, automotive tier suppliers, consumer, which at the very beginning, that was one of the...
- This sustained momentum underscores Rockwell's strong position in North America and growing penetration in new end markets, an accelerated…
- Labor costs and shortages are going to continue to drive customer investment in automation...
- On the book-to-bill question, Rockwell Automation called it out last quarter because it was just slightly above its normal corridor.
- They have done a really good job of putting us in a good spot to be able to continue to...
Faded since Q1 2026
- Dropped Rockwell Automation is doing everything from starting to build its own automated final assembly stations.
- Fading That's exactly what the operations should be doing in a continuous improvement environment, but it's beyond that also.
- Fading They're making investments in hybrid, and there's some in battery electric, but I'd say, hybrid has been a more recent...
- Fading Rockwell Automation had a number of things that converged all quite nicely for it, and that's everything from the volume increase...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
Scott A. Genereux notified the company of his decision to retire on December 31, 2026, and he will cease serving as Chief Revenue Officer effective September 30, 2026.
- Results of operations · SEC 8-K
Rockwell Automation reported third-quarter fiscal 2026 sales of $2,313 million, up 8% from $2,144 million in the third quarter of fiscal 2025, with diluted EPS of $3.65, up 40% year over year.
- Results of operations · SEC 8-K
Rockwell Automation reported second-quarter fiscal 2026 sales of $2,239 million, up 12% from $2,001 million in the same period of the previous year.
- Director or officer change · SEC 8-K
Rockwell Automation announced the election of David A. Zapico to its board of directors, effective April 16, 2026.
- Director or officer change · SEC 8-K
On February 10, 2026, Rockwell Automation, Inc. shareowners approved the 2026 Long-Term Incentives Plan for various equity-based awards.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Rockwell Automation reported first-quarter fiscal 2026 sales of $2,105 million, up 12% from $1,881 million in the first quarter of fiscal 2025.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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full year fiscal 2026
North America as the fastest-growing region
Source quote
“North America was our strongest region in the quarter with 12% year-over-year growth, and we continue to expect it to be our fastest-growing region for the full year fiscal 2026.”
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the year
reported and organic sales growth in the 7.5% to 9.5% range
Source quote
“We now expect both our reported and organic sales growth to be in the 7.5% to 9.5% range for the year.”
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Q4
modest sequential growth in Lifecycle Services and Intelligent Devices
Source quote
“Our full year sales midpoint of 8.5% assumes modest sequential growth in Q4 driven by the typical seasonal uptick in our longer-cycle businesses within Lifecycle Services and Intelligent Devices.”
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not specified
organic annual recurring revenue growth
Source quote
“We expect organic annual recurring revenue to grow mid-single digits.”
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not specified
enterprise operating margin of 21.5%
Source quote
“We continue to expect our enterprise operating margin to be 21.5%, up 260 basis points from last year.”