Rockwell Automation (ROK) Q3 2026 earnings summary

Executive summary

• Sales increased 8% year-over-year for the quarter and 10% for the nine months ended June 30, 2026, driven by strong performance in Intelligent Devices and Software & Control, with robust demand in semiconductor, data center, and warehouse automation, and improving trends in automotive and life sciences.

• Diluted EPS was $3.65, up 40% year-over-year; adjusted EPS rose 22% to $3.49, reflecting higher pre-tax margins and favorable tax items.

• Completed dissolution of the Sensia joint venture on April 1, resulting in a pre-tax gain and improved segment margins, especially in Lifecycle Services.

Financial highlights

• Quarterly sales were $2,313 million (up 8% year-over-year); net income attributable to shareholders was $408 million, up from $295 million.

• Enterprise operating margin expanded to 22.3%, up 280 basis points year-over-year; gross margin improved to 49.5%.

• Adjusted EPS was $3.49 for the quarter (up 22%); free cash flow was $654 million, up $165 million year-over-year.

• Adjusted effective tax rate increased to 19.2% from 15.3% due to BEPS Pillar Two rules.

Outlook and guidance

• Full-year reported and organic sales growth guidance raised to 7.5%-9.5%, with midpoint at 8.5%.

• Adjusted EPS guidance increased to $13.00-$13.30, midpoint $13.15, representing about 25% growth versus prior year.

• Enterprise operating margin expected at ~21.5%, up 260 basis points year-over-year; free cash flow conversion targeted at 100%.

• Guidance excludes Sensia joint venture results for the second half of FY26.