MILWAUKEE — Rockwell Automation, Inc. reported fiscal 2026 fourth quarter and full year results and introduced fiscal 2027 guidance.
“Rockwell delivered a strong finish to a great year, with broad-based topline growth, margin expansion, and double-digit earnings growth. Our results underscore the differentiation of our strategy and operating model, as we continue to gain share, strengthen our leadership in core markets, and expand our position in high-growth areas including semiconductor and data centers,” said Blake Moret, Chairman and CEO.
In the fourth quarter of fiscal 2026, the Company received $103 million of International Emergency Economic Powers Act tariff refunds (IEEPA tariff refunds) and $5 million of related interest, the benefits of which are reported as a reduction of Cost of sales and an increase in Interest income in our Consolidated Statement of Operations for the three and twelve months ended September 30, 2026. In addition, the Company approved and communicated a refund program for customers (customer tariff refund program) that paid price increases on purchases of products that were impacted by IEEPA tariffs. The Company recognized an accrual of $85 million for estimated refunds to be issued to customers as a reduction of sales in the Consolidated Statement of Operations for the three and twelve months ended September 30, 2026. The impacts on Sales and Cost of sales are reported as unallocated in the segment Sales and Earnings Information. The after-tax net impact of IEEPA tariff refunds, including interest, the customer tariff refund program, and related non-recurring charges reported in unallocated, of $0.11 is included in diluted EPS and Adjusted EPS.
Fiscal Q4 2026 Financial Results
Fiscal 2026 fourth quarter sales were $2,332 million, up 1% compared to $2,316 million in the fourth quarter of fiscal 2025. Organic sales increased 3%. Divestitures decreased sales by (2)%. Reported and Organic sales were reduced by ~(4) percentage points from the customer tariff refund program.
Income before income taxes was $433 million in the fourth quarter of fiscal 2026 compared to $63 million in the same period last year. Pre-tax margin was 18.6% in the fourth quarter of fiscal 2026 compared to 2.7% in the same period last year. The increase was primarily driven by the prior year non-cash impairment charge related to the Sensia joint venture and an accounting change and accrual increase for legacy asbestos liabilities, higher sales volume, the net impact of IEEPA tariff refund-related items, favorable mix, and the margin benefit of the Sensia joint venture dissolution, partially offset by a charitable contribution, higher compensation, and restructuring charges. Enterprise operating profit was $572 million in the fourth quarter of fiscal 2026, up 16% compared to $493 million in the same period of fiscal 2025. Enterprise operating margin was 24.5% in the fourth quarter compared to 21.3% a year ago. The increase in Enterprise operating margin was driven by higher sales volume, the net impact of IEEPA tariff refund-related items, favorable mix, and the margin benefit of the Sensia joint venture dissolution, partially offset by higher compensation.
Fiscal 2026 fourth quarter net income attributable to Rockwell Automation was $346 million or $3.11 per share, compared to $138 million or $1.23 per share in the fourth quarter of fiscal 2025. The increases in net income attributable to Rockwell Automation and diluted EPS were primarily due to higher pre-tax income. Fiscal 2026 fourth quarter Adjusted EPS was $3.88, up 16% compared to $3.34 in the fourth quarter of fiscal 2025, primarily due to higher sales volume and Enterprise operating profit.
Cash flow generated by operating activities in the fourth quarter of fiscal 2026 was $680 million, compared to $454 million in the fourth quarter of fiscal 2025. Free cash flow was $602 million, compared to $405 million in the fourth quarter of fiscal 2025. Increases in cash flow provided by operating activities and free cash flow were primarily due to higher pre-tax income and $108 million of tariff refunds and related interest income.
Fiscal 2026 Full Year Financial Results
Fiscal 2026 sales were $8,989 million, a reported and organic increase of 8% from $8,342 million in fiscal 2025. Divestitures decreased sales by (2)% and currency translation increased sales by 2%. Reported and Organic sales were reduced by (1) percentage point from the customer tariff refund program.
Income before income taxes was $1,685 million in fiscal 2026, compared to $917 million in fiscal 2025. Pre-tax margin was 18.7% in fiscal 2026, compared to 11.0% in fiscal 2025. The increase was primarily due to the prior year non-cash impairment charge related to the Sensia joint venture and an accounting change and accrual increase for legacy asbestos liabilities, higher sales volume, price realization, favorable mix, productivity, and the net impact of IEEPA tariff refund-related items, partially offset by higher compensation, a charitable contribution, and restructuring charges. Enterprise operating profit was $1,997 million in fiscal 2026, up 27% from $1,578 million in fiscal 2025. Enterprise operating margin was 22.2% compared to 18.9% a year ago. The increase was due to higher sales volume, price realization, favorable mix, productivity, and the net impact of IEEPA tariff refund-related items, partially offset by higher compensation.
Fiscal 2026 net income attributable to Rockwell Automation was $1,409 million or $12.54 per share, compared to $869 million or $7.67 per share in fiscal 2025. The increases in net income attributable to Rockwell Automation and diluted EPS were primarily due to higher pre-tax income. Fiscal 2026 Adjusted EPS was $13.42, up 27% compared to $10.53 in fiscal 2025. The increase in Adjusted EPS was primarily due to higher Enterprise operating profit.
Cash flow generated by operating activities in fiscal year 2026 was $1,958 million, compared to $1,544 million in fiscal 2025. Free cash flow was $1,701 million compared to $1,358 million last year. Increases in cash flow provided by operating activities and free cash flow were driven by higher pre-tax income and $108 million of tariff refunds and related interest income.
Fiscal Year 2027 Outlook
The table below provides guidance for sales growth and earnings per share for fiscal 2027.
“We enter fiscal 2027 from a position of strength, with healthy customer demand and significant new product releases. As industrial operations become increasingly AI-enabled and autonomous, Rockwell is uniquely positioned to orchestrate plant-wide workflows. We are committed to growing customer value, increasing market share, and expanding margins,” Moret continued.
Following is a discussion of quarter and full year results for our business segments.
Intelligent Devices
Intelligent Devices fiscal 2026 fourth quarter sales were $1,144 million, a reported and organic increase of 5% compared to $1,086 million in the same period last year. Segment operating earnings were $247 million in the fourth quarter of fiscal 2026 compared to $215 million in the same period last year. Segment operating margin increased to 21.6% in the fourth quarter of fiscal 2026 from 19.8% a year ago driven by higher sales volume, favorable currency, positive price/cost, and favorable mix, partially offset by higher compensation.
Intelligent Devices fiscal 2026 sales were $4,185 million, an increase of 11% from $3,756 million last year. Organic sales increased 10% and currency translation increased sales by 1%. Segment operating earnings were $839 million in fiscal 2026 compared to $676 million in fiscal 2025. Segment operating margin increased to 20.0% in fiscal 2026 from 18.0% a year ago driven by higher sales volume, productivity, and favorable mix, partially offset by higher compensation.
Software & Control
Software & Control fiscal 2026 fourth quarter sales were $754 million, a reported and organic increase of 15% compared to $657 million in the same period last year. Segment operating earnings were $256 million in the fourth quarter of fiscal 2026 compared to $205 million in the same period last year. Segment operating margin increased to 34.0% in the fourth quarter of fiscal 2026 from 31.2% a year ago driven by higher sales volume.
Software & Control fiscal 2026 sales were $2,818 million, an increase of 18% from $2,383 million last year. Organic sales increased 17% and currency translation increased sales by 1%. Segment operating earnings were $952 million in fiscal 2026 compared to $708 million in fiscal 2025. Segment operating margin increased to 33.8% in fiscal 2026 from 29.7% a year ago driven by higher sales volume, partially offset by higher compensation.
Lifecycle Services
Lifecycle Services fiscal 2026 fourth quarter sales were $519 million, a decrease of (9)% compared to $573 million in the same period last year. Organic sales increased 2%. Divestitures decreased sales by (11)%. Segment operating earnings were $85 million in the fourth quarter of fiscal 2026 compared to $100 million in the same period last year. Segment operating margin decreased to 16.4% in the fourth quarter of fiscal 2026 from 17.5% a year ago due to higher compensation and unfavorable project mix, partially offset by the margin benefit from the Sensia joint venture dissolution and higher sales volume.
Lifecycle Services fiscal 2026 sales were $2,071 million, a decrease of (6)% from $2,203 million in fiscal 2025. Organic sales decreased by (2)%. Divestitures decreased sales by (6)% and currency translation increased sales by 2%. Segment operating earnings were $312 million in fiscal 2026 compared to $319 million in fiscal 2025. Segment operating margin increased to 15.1% in fiscal 2026 from 14.5% a year ago due to strong project execution and the margin benefit from the Sensia joint venture dissolution, partially offset by higher compensation.
Supplemental Information
ARR – Organic ARR grew 5% compared to the end of the fourth quarter of fiscal 2025.
Corporate and Other – Fiscal 2026 fourth quarter Corporate and other expense was $26 million compared to $27 million in the fourth quarter of 2025. Corporate and other expense was $116 million for the full fiscal year 2026 compared to $125 million in fiscal 2025.
Amortization of acquisition-related intangible assets – Fiscal 2026 fourth quarter Amortization of acquisition-related intangible assets expense was $29 million, down $6 million from the fourth quarter of fiscal 2025. Full year fiscal 2026 Amortization of acquisition-related intangible assets expense was $120 million, down $21 million from fiscal 2025. The decreases were primarily due to the dissolution of the Sensia joint venture.
Restructuring charges – Fiscal 2026 fourth quarter and full year restructuring charges were $25 million. Fiscal 2025 fourth quarter and full year included an accrual reversal of $5 million.
Charitable Contribution – In the fourth quarter of fiscal 2026 the Company made a $50 million contribution to the Rockwell Automation Charitable Corporation. The contribution optimizes tax benefits and provides funding for philanthropic priorities.
Tax – On a GAAP basis, the effective tax rate in the fourth quarter of fiscal 2026 was 20.1% compared to 52.4% in the fourth quarter of 2025. The effective tax rate for the full fiscal year 2026 was 16.5% compared to 18.3% in fiscal 2025. The Adjusted Effective Tax Rate for the fourth quarter of fiscal 2026 was 20.9% compared to 17.8% in the fourth quarter of 2025. The Adjusted Effective Tax Rate for the full fiscal year 2026 was 19.6% compared to 17.1% in fiscal 2025. The decreases in the GAAP effective tax rate for the fourth quarter and full year were primarily due to the absence of certain Sensia-related tax impacts from 2025 and higher discrete tax benefits in 2026, including a benefit related to the dissolution of the Sensia joint venture, partially offset by BEPS Pillar Two minimum taxes. The increases in the Adjusted Effective Tax Rate were primarily due to BEPS Pillar Two minimum taxes, partially offset by higher discrete tax benefits.
Share Repurchases – The Company repurchased approximately 1.2 million shares of its common stock at a cost of $500 million during the fourth quarter of fiscal 2026. For the full fiscal year 2026, the Company repurchased 3.1 million shares of its common stock at a cost of $1,254 million. At September 30, 2026, $673 million remained available under the existing share repurchase authorization.
Return on Invested Capital (ROIC) – On a GAAP basis, ROIC was 23.3% for the twelve months ended September 30, 2026, compared to 13.2% for the twelve months ended September 30, 2025. Adjusted ROIC was 20.4% for fiscal year 2026, compared to 14.6% for fiscal year 2025. The increase in ROIC and Adjusted ROIC was due to higher pre-tax income.
Net Income and Adjusted EBITDA – Net Income in the fourth quarter of fiscal 2026 was $346 million, compared to $30 million in the fourth quarter of 2025. Adjusted EBITDA in the fourth quarter of fiscal 2026 was $620 million, compared to $538 million in the fourth quarter of 2025. Net Income for fiscal year 2026 was $1,407 million, compared to $749 million for fiscal year 2025. Adjusted EBITDA was $2,182 million for fiscal year 2026, compared to $1,753 million for fiscal year 2025. The increase was primarily driven by higher net income.
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