Rockwell Automation(US:ROK) ZACKS·2026-02-05 18:31Core Insights - Rockwell Automation Inc. (ROK) reported adjusted earnings per share (EPS) of $2.75 for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.54 and up from $1.85 in the prior-year quarter [1][2] - Total revenues reached $2.11 billion, an increase of 11.9% year over year, surpassing the Zacks Consensus Estimate of $2.09 billion, with organic sales growing by 10% [2][8] Financial Performance - Including one-time items, ROK's earnings were $2.69 per share, compared to $1.61 in the prior-year quarter [2] - The cost of sales increased by 8.6% year over year to $1.09 billion, while gross profit grew by 15.7% to $1.02 billion [3] - Selling, general and administrative expenses rose by 0.4% year over year to $478 million [3] Margin Analysis - Consolidated segment operating income totaled $435 million, up 36% from the prior-year quarter, with a total segment operating margin of 20.7%, an increase from 17.1% [4] - The margin improvement was driven by higher sales volume, positive pricing, and a favorable mix, partially offset by increased compensation costs [4] Segment Performance - Intelligent Devices: Net sales were $953 million, up 18% year over year, but below the estimate of $968 million. Operating earnings increased to $165 million from $120 million, with an operating margin of 17.3% [5] - Software & Control: Net sales grew by 19% to $629 million, exceeding the estimate of $568 million. Operating earnings rose by 47.4% to $196 million, with an operating margin of 31.2% [6] - Lifecycle Services: Net sales decreased by 4% to $523 million, slightly above the projected $521 million. Operating earnings totaled $74 million, up from $68 million, with an operating margin of 14.1% [7] Cash Position and Shareholder Returns - At the end of Q1 fiscal 2026, cash and cash equivalents were $444 million, down from $468 million at the end of fiscal 2025. Long-term debt was $2.57 billion, reduced from $2.61 billion [8][9] - Cash flow from operations was $234 million, down from $364 million in the prior-year quarter. The return on invested capital was 16.3% [9] Guidance - The company expects reported sales growth of 3-7% for fiscal 2026, with organic sales growth projected between 2% and 6%. Adjusted EPS guidance has been updated to $11.40-$12.20 for fiscal 2026 [10] Stock Performance - ROK shares have increased by 62.5% over the past year, outperforming the industry growth of 32.4% [13]