Rockwell Automation Q3 Earnings Call Highlights

Rockwell Automation exceeded expectations in Q3 fiscal 2026 , with reported sales up 8%, organic sales up 10%, adjusted EPS rising more than 20% to $3.49, and enterprise operating margin expanding to 22.3%. Demand was strongest in semiconductors, data centers, e-commerce and warehouse automation . Software & Control organic sales grew 18%, while e-commerce and warehouse automation sales increased 30%; broader capital-spending recovery in food and beverage and some process industries remains limited. The company raised its full-year outlook for sales growth to 7.5%–9.5% and adjusted EPS to $13.00–$13.30, while maintaining its 21.5% operating-margin and 100% free-cash-flow-conversion targets. Inflation, memory costs and delayed large capital projects remain key risks.

Rockwell Automation NYSE: ROK reported third-quarter fiscal 2026 results that exceeded its expectations, supported by double-digit organic sales growth, stronger earnings and broad demand in several automation markets. The company also raised its full-year sales and adjusted earnings outlook. Chairman and CEO Blake Moret said reported sales increased 8% from a year earlier, while organic sales rose 10%. The dissolution of Sensia reduced sales by 3%, while currency added roughly one percentage point of growth. Adjusted earnings per share were $3.49, up more than 20% year over year, and enterprise operating margin reached 22.3%.

“We delivered a strong quarter with double-digit year-over-year growth in sales and earnings exceeding our expectations,” Moret said. He cited Rockwell’s North American position, growing exposure to new end markets, product launches, partner network and operational execution.

Rockwell said products outperformed its longer-cycle solutions businesses during the quarter, as smaller modernization projects supported growth across most industries. The company continues to see strong demand in semiconductor, data center, e-commerce and warehouse automation, while it has yet to see a broader recovery in capital spending across food and beverage and parts of process industries.

Intelligent Devices organic sales increased 10%, with growth across all product lines. Moret said newer products, including PointMax I/O, PowerFlex drives and FLEXLINE motor control centers, have seen strong adoption in e-commerce, warehouse automation and process applications. Software & Control organic sales rose 18%, driven by another quarter of double-digit growth in Logix. Lifecycle Services organic sales declined 2%, generally in line with management’s expectations, as the segment remained constrained by the absence of a broader capital-spending recovery in food and beverage and certain process markets. Organic annual recurring revenue increased 6%, below Rockwell’s expectations. High-single-digit software growth was partly offset by slower recurring Lifecycle Services growth. Moret pointed to an expanded cybersecurity engagement with Unilever as an example of an ARR win, combining Rockwell’s threat detection and secure remote-access software with managed cybersecurity services.

Discrete sales grew by the high teens year over year. E-commerce and warehouse automation sales increased 30%. Automotive sales rose by the low double digits. Life sciences sales increased 10%. Process sales increased by the high single digits, led by energy, metals and chemicals. North America grew 12% and was Rockw...