Rockwell Automation (ROK) Q2 2026 earnings summary

Executive summary

• Sales increased 12% year-over-year in Q2 FY26 to $2,239 million, with organic sales up 9% and currency contributing 3 percentage points.

• Adjusted EPS rose 32% to $3.30, and diluted EPS increased to $3.10, both exceeding expectations.

• Strong demand in warehouse automation, data center, semiconductor, and energy sectors drove results, with double-digit growth in orders, sales, and earnings.

• Total annual recurring revenue (ARR) grew 6% year-over-year, with high single-digit growth in software ARR.

• Completed dissolution of the Sensia joint venture, impacting reported revenue and margins but EPS neutral.

Financial highlights

• Q2 FY26 sales reached $2,239 million, up from $2,001 million in Q2 FY25.

• Adjusted EPS was $3.30, up from $2.50 year-over-year; GAAP diluted EPS was $3.10.

• Free cash flow for the quarter was $275 million, up $104 million year-over-year.

• Gross margin expanded by 160 basis points to over 50%.

• Adjusted EBITDA reached $550 million, up from $425 million year-over-year.

Outlook and guidance

• Full-year reported and organic revenue growth guidance raised to 5%-9%, with midpoint at 7%.

• Adjusted EPS guidance increased to $12.50–$13.10, midpoint $12.80, up ~$1 from prior guide.

• Enterprise operating margin outlook increased to 21.5% for the year.

• Free cash flow conversion expected at 100% for fiscal 2026.

• Guidance excludes sales, earnings, and cash flows from the divested Sensia joint venture in the second half.