Rockwell Automation (ROK) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Strategic positioning and business model

• Increased resilience through diversification across verticals, with process now 40% of business.

• Profitable annual recurring revenue (ARR) exceeds 10% of business, driven by software and high-value services.

• Focused on operational excellence, margin expansion, and productivity through AI and disciplined cost control.

• Targeting 5%-8% organic growth long-term, with a prudent approach for the current year but expecting to be within range.

• $2 billion investment planned in plants, talent, and digital infrastructure to expand market share and margins.

Market trends and growth drivers

• Positive sentiment in automation, with strong product sales and cautious CapEx in most verticals except data centers and pharmaceuticals.

• North America is the strongest region, with Asia (notably India, Southeast Asia, Taiwan) also showing good growth.

• EMEA and Asia Pacific have turned positive; Latin America is weaker, mainly due to Mexico.

• Share gains driven by strong North American presence, expansion into mobile robots, and integration of hardware/software.

Innovation and technology strategy

• Emphasis on software-defined automation, AI integration, and robotics, including Clearpath acquisition and partnerships.

• Digital twin technology (Emulate3D) and partnerships with NVIDIA, Ansys, and others support advanced simulation and commissioning.

• Plex platform delivers record new bookings, leveraging vast data for competitive advantage.

• AI seen as an enabler for automation, with mission-critical software deeply integrated with physical systems, reducing disruption risk.