Rockwell Automation reported a fiscal fourth quarter adjusted EPS of $3.88, surpassing expectations, while revenue of $2.33 billion fell short of the $2.41 billion analyst consensus. Results were notably impacted by a $85 million accrual for a customer tariff refund program, which created a 4-percentage-point headwind for both reported and organic sales during the quarter. Despite the topline miss, the company saw significant margin expansion and robust growth in its Software & Control segment.
Key Highlights
- Organic sales growth of 3% in the fourth quarter missed the 5.8% expectation, though Software & Control sales grew 15% organically.
- Enterprise operating margin expanded to 24.5% from 21.3% a year ago, driven by higher volume, favorable mix, and the Sensia joint venture dissolution.
- Initial fiscal 2027 guidance forecasts organic sales growth of 6% to 9% and Adjusted EPS in the range of $14.50 to $15.50.
- Annual Recurring Revenue (ARR) grew 5% organically, with software-specific ARR increasing in the high single digits.