Rockwell Automation, Inc. Q4 2026 Earnings Recap

Rockwell shares fell 14.2% after earnings, with the transcript pointing to slowing core sales growth and annual recurring revenue growth below management’s expectations as likely concerns. Core sales grew 7% year over year, versus double-digit growth in the year-ago quarter, while ARR rose 5%.

Key Takeaways

• Q4 core sales grew 7%, excluding tariff refunds and the Sensia joint venture dissolution; management said sales across all three segments were largely in line with expectations.
• Organic ARR increased 5% year over year, with high-single-digit software growth and low-single-digit Lifecycle Services growth. Management said ARR growth did not meet expectations, though renewals remained strong.
• Adjusted EPS was $3.88, up 16% year over year. Enterprise operating margin expanded 320 basis points to 24.5%, including more than one point of benefit from tariff refunds.
• Segment results were mixed: Software & Control organic sales grew 15%, Intelligent Devices grew 5%, and Lifecycle Services grew 2%.
• Semiconductor sales rose almost 50%, while automotive sales grew 15%; e-commerce and warehouse automation were up high single digits against a difficult comparison.