Rockwell Automation, Inc. reported first quarter fiscal 2026 results.
"I'm pleased with Rockwell's start to fiscal 2026, with sales, margins, and earnings all exceeding our expectations. Demand across our key end markets remained healthy, driving double-digit sales growth and continued momentum in our product and software businesses. Meaningful margin expansion this quarter reflects the strength of our portfolio, the discipline of our operating model, and our team’s continued focus on structural productivity," said Blake Moret, Chairman and CEO.
Fiscal Q1 2026 Financial Results
Fiscal 2026 first quarter reported sales were $2,105 million, up 12% from $1,881 million in the first quarter of fiscal 2025. Organic sales increased 10% and currency translation increased sales by 2%.
Income before income taxes was $342 million in the first quarter of fiscal 2026 compared to $213 million in the same period last year. Pre-tax margin was 16.2% in the first quarter of fiscal 2026 compared to 11.3% in the same period last year. Total segment operating earnings were $435 million in the first quarter of fiscal 2026, up 36% from $321 million in the same period of fiscal 2025. Total segment operating margin was 20.7% compared to 17.1% a year ago. The increase in pre-tax margin and segment operating margin was primarily due to higher sales volume, positive price/cost, inclusive of productivity, and favorable mix, partially offset by higher compensation.
Fiscal 2026 first quarter Net income attributable to Rockwell Automation was $305 million or $2.69 per share, compared to $184 million or $1.61 per share in the first quarter of fiscal 2025. The increases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to higher pre-tax margin and a lower effective tax rate. Fiscal 2026 first quarter Adjusted EPS was $2.75, up 49% compared to $1.85 in the first quarter of fiscal 2025 primarily due to higher segment operating margin.
Cash flow generated by operating activities in the first quarter of fiscal 2026 was $234 million, compared to $364 million in the first quarter of fiscal 2025. Free cash flow in the first quarter of fiscal 2026 was $170 million, compared to $293 million in the same period last year. Decreases in cash flow provided by operating activities and free cash flow were primarily due to the payout of incentive compensation in the first quarter of fiscal 2026 related to fiscal 2025 performance while no incentive compensation was paid in fiscal 2025 related to fiscal 2024 performance, and increases in working capital, partially offset by higher pre-tax income.
Fiscal Year 2026 Outlook
The table below provides updated guidance for fiscal 2026.
|
Updated Guidance(1) |
Prior Guidance(1) |
|
|
Reported sales midpoint |
~$8.8B |
~$8.8B |
|
Reported sales growth |
3% - 7% |
3% - 7% |
|
Organic sales growth(2) |
2% - 6% |
2% - 6% |
|
Inorganic sales growth |
~ 0% |
~ 0% |
|
Currency translation |
~ 1% |
~ 1% |
|
Diluted EPS |
$10.75 - $11.55 |
$10.40 - $11.40 |
|
Adjusted EPS(2) |
$11.40 - $12.20 |
$11.20 - $12.20 |
|
(1) Updated guidance as of February 5, 2026; Prior guidance as of November 6, 2025; sales growth and Adjusted EPS guidance do not include the impact of the anticipated dissolution of the Sensia joint venture. |
|
(2) Organic sales growth and Adjusted EPS are non-GAAP measures. See Organic Sales, Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate for more information on these non-GAAP measures. |
"We are pleased with the start to the year and continue to expect gradual sequential improvement as we move through this fiscal year. Despite ongoing volatility in the broader environment, we are confident in our ability to gain share, execute, and deliver on our commitments. Customers continue to invest in automation, digital transformation, and productivity, and Rockwell is uniquely positioned to help accelerate their Factory of the Future initiatives,” Moret continued.
Following is a discussion of first quarter results for our business segments.
Intelligent Devices
Intelligent Devices first quarter fiscal 2026 sales were $953 million, an increase of 18% compared to $806 million in the same period last year. Organic sales increased 16% and currency translation increased sales by 2%. Segment operating earnings were $165 million compared to $120 million in the same period last year. Segment operating margin increased to 17.3% from 14.9% a year ago. The increase from prior year was driven by higher sales volume, partially offset by the effects of currency and higher compensation.
Software & Control
Software & Control first quarter fiscal 2026 sales were $629 million, an increase of 19% compared to $529 million in the same period last year. Organic sales increased 17% and currency translation increased sales by 2%. Segment operating earnings were $196 million compared to $133 million in the same period last year. Segment operating margin increased to 31.2% from 25.1% a year ago driven by higher sales volume, partially offset by higher compensation.
Lifecycle Services
Lifecycle Services first quarter fiscal 2026 sales were $523 million, a decrease of (4)% compared to $546 million in the same period last year. Organic sales decreased (6)% and currency translation increased sales by 2%. Segment operating earnings were $74 million compared to $68 million in the same period last year. Segment operating margin was 14.1% compared to 12.5% a year ago driven by productivity and project execution, partially offset by lower sales volume and higher compensation.
Supplemental Information
ARR - Total ARR grew 7% compared to the end of the first quarter of fiscal 2025.
Corporate and other - Fiscal 2026 first quarter Corporate and other expense was $30 million compared to $35 million in the first quarter of fiscal 2025.
Purchase accounting depreciation and amortization - Fiscal 2026 first quarter Purchase accounting depreciation and amortization expense was $32 million, compared to $35 million in the first quarter of fiscal 2025.
Tax - On a GAAP basis, the effective tax rate in the first quarter of fiscal 2026 was 11.7% compared to 16.4% in the first quarter of fiscal 2025. The decrease in the effective tax rate was primarily due to higher discrete tax benefits, including a tax benefit related to the anticipated dissolution of the Sensia joint venture, and excess income tax benefits on share-based compensation. The Adjusted Effective Tax Rate for the first quarter of fiscal 2026 was 17.3% compared to 17.7% in the prior year.
Share repurchases - During the first quarter of fiscal 2026, the Company repurchased approximately 0.4 million shares of its common stock at a cost of $154 million. At December 31, 2025, approximately $773 million remained available under our existing share repurchase authorization.
Return on Invested Capital (ROIC) - ROIC was 16.3% for the twelve months ended December 31, 2025, compared to 14.5% for the twelve months ended December 31, 2024.
Adjusted EBITDA - Adjusted EBITDA was $447 for the three months ended December 31, 2025, compared to $329 for the three months ended December 31, 2024. The increase was primarily driven by higher net income.
Conference Call
A conference call to discuss the quarterly results will be held at 8:30 a.m. Eastern Time on February 5, 2026. This call will be audio webcast and accessible on the Rockwell Automation website (https://www.rockwellautomation.com/en-us/company/investor-relations.html). Presentation materials will also be available on the website prior to the call.
Interested parties can access the conference call by using the following numbers: (888) 330-2022 in North America; (365) 977-0051 in Canada; +1 (646) 960-0690 for other countries. Use the following passcode: 5499533. Please call in 10 minutes prior to the start of the call.
A replay of the call will be available on the Investor Relations section of the Rockwell website through March 6, 2026.
