Rockwell Automation Earns $3.88 A Share Adjusted Despite $85 Million Customer Refund Charge
Software & Control sales grew 15%, while tariff-related items added $0.11 a share to quarterly earnings.
Rockwell Automation, which supplies manufacturers with automation hardware, software and services, earned an adjusted $3.88 a share in its fourth quarter, up 16% from a year earlier, according to results accompanying Thursday's SEC filing. An $85 million charge for planned customer tariff refunds trimmed sales growth, but tariff-related items still added a net $0.11 a share to earnings.
Refunds Cut Sales, Helped Earnings
Quarterly sales of $2,332 million were 1% higher as reported and 3% higher excluding currency changes and divestitures. The customer refund charge reduced both growth measures by approximately four percentage points.
Rockwell received $103 million in refunds of tariffs imposed under the International Emergency Economic Powers Act, plus $5 million in interest. The company set aside $85 million to reimburse customers who had paid tariff-related price increases; the net earnings benefit includes related non-recurring charges.
Higher sales volume helped adjusted earnings rise from $3.34 a share. Rockwell's adjusted operating profit reached $572 million, up 16%, with its margin increasing to 24.5% from 21.3%.
Standard-accounting earnings rose 153% to $3.11 a share from $1.23. That comparison also benefited from costs in the prior year: fiscal 2025 included a $224 million non-cash Sensia impairment and $154 million in net legacy asbestos and environmental charges.
Software Leads The Factory Business
Software & Control generated $754 million in quarterly sales, growing 15% on both reported and organic bases. Its operating margin reached 34.0%, versus 31.2% a year earlier, as higher volume lifted earnings.
Intelligent Devices sales reached $1,144 million, up 5% on both bases. Lifecycle Services sales declined 9% to $519 million: divestitures subtracted 11%, while sales excluding currency changes and divestitures grew 2%.
Those businesses cover different parts of factory operations. Intelligent Devices sells equipment including drives, sensors and motion products; Software & Control supplies control systems, visualization and simulation tools; Lifecycle Services provides consulting and recurring services such as cybersecurity and remote monitoring.
For fiscal 2026, sales reached $8,989 million, up 8% on reported and organic bases. Adjusted earnings increased 27% to $13.42 a share, and the annual contract value of recurring business grew 5% organically.
Cash Growth And Fiscal 2027 Targets
Full-year operating cash flow rose 27% to $1,958 million. Free cash flow—operating cash after capital spending—increased 25% to $1,701 million, including $108 million from tariff refunds and interest. Rockwell spent $1,254 million repurchasing 3.1 million shares during the year.
Rockwell expects fiscal 2027 sales growth of 4.5% to 7.5% as reported, or 6% to 9% excluding currency changes and divestitures. Both ranges include approximately one percentage point of benefit from the fiscal 2026 customer refund program's effect on the comparison.
Chairman and CEO Blake Moret described demand and product launches as support for the outlook: “We enter fiscal 2027 from a position of strength, with healthy customer demand and significant new product releases.”
ROK shares fell about 2% to $372.79 in Friday trading.
Rockwell forecasts fiscal 2027 earnings of $13.78 to $14.78 a share under standard accounting, or $14.50 to $15.50 on an adjusted basis.
Sources
- 8-K Filing — ROCKWELL AUTOMATION, INC (ROK) — SEC EDGAR
- Exhibit fy2026ex99.htm — ROCKWELL AUTOMATION, INC 8-K exhibit — SEC EDGAR
- We continue to expect growth in the data center, semiconductor spaces, says Rockwell CEO Blake Moret — CNBC
- Rockwell forecasts 6%-9% organic sales growth and $14.50-$15.50 adjusted EPS for fiscal 2027, as tariff refunds reshape Q4 results (NYSE:ROK) — seekingalpha.com
- Rockwell Automation Issues Fiscal 2027 Outlook — benzinga.com
- Rockwell Automation: Fiscal Q4 Earnings Snapshot — Associated Press
- Rockwell Automation Reports Fourth Quarter and Full Year 2026 Results; Introduces Fiscal 2027 Guidance — businesswire.com
