Rockwell Automation : Q2 FY26 Earnings Conference Call Presentation >>

Published: 2026-05-05 10:35:10 ET ROK

Published on 05/05/2026 at 10:35 am EDT

May 5, 2026

PUBLIC 1

This presentation includes statements related to the expected future results of the company and are therefore forward-looking statements. Actual results may differ materially from those projections due to a wide range of risks and uncertainties, including those that are listed in our SEC filings.

This presentation also contains non-GAAP financial information and reconciliations to GAAP are included in the appendix. All information should be read in conjunction with our historical financial statements.

Q2 FY26 Results Highlights

▶ Reported sales up 12% YOY; organic sales up 9%

▶ Currency increased sales ~3 pts YOY

▶ Total Annual Recurring Revenue (ARR) up 6% YOY, with software ARR up high single digits

▶ GAAP measures: pretax margin of 19.7% and diluted EPS of $3.10

▶ Enterprise operating margin(1) of 22.5%, up 350 bps YOY; Adjusted EPS of $3.30, up 32% YOY

▶ Both Enterprise operating margin and Adjusted EPS were above expectations

(1) New performance measure, see page 15.

Double-digit year-over-year growth in sales and earnings; improving customer demand across a broader range of industries

Q2 FY26 Organic Industry Segment Performance

D I S C R E T E

Up mid teens

Automotive up mid teens

Semiconductor up high teens

e-Commerce & Warehouse Automation up ~30%

H Y B R I D

Up high single digits

Food & Beverage up high single digits

Home & Personal Care up low single digits

Life Sciences up low single digits

P R O C E S S

Up mid single digits

Energy up mid single digits

Mining flat

Chemicals up mid single digits

Note: Organic sales growth rates depicted above exclude the impact of acquisitions and currency. Arrows reflect positive/negative directional growth vs prior year.

Q2 FY26

vs. Q2 FY25

Q2 FY26

vs. Q2 FY25

Q2 FY26 Year-Over-Year Organic Sales Growth

(1)%

10%

% of Reported Sales

Expect North America to be the strongest region in FY26

Full Year Outlook Update

▶ Raising reported and organic sales growth range to 5% - 9% YOY

▶ Organic Annual Recurring Revenue (ARR) expected to grow high single digits

▶ Expect Enterprise operating margin of ~21.5%, up from ~20% in the prior guide(1)

▶ Raising Adjusted EPS range to $12.50 - $13.10, up ~22% YOY at the midpoint

▶ Expect Free Cash Flow conversion of ~100%

Note: Updated Guidance as of May 5, 2026; does not include sales, earnings, or cash flows related to the divested businesses of the Sensia joint venture in the second half of fiscal 2026.

(1) New performance measure, see page 15. Prior Segment Operating Margin Guidance adjusted to include ~(1.5) pts of Corporate and Other expenses.

Higher outlook for sales, margin, and earnings driven by broadening demand and strong execution

Q2 FY26 Key Financial Information

($ in millions, except per share amounts)

Q2 FY26

Q2 FY25

YOY B/(W)

Sales

$2,239

$2,001

Organic Growth 9 %

Inorganic Growth - %

Currency Translation +3 %

Reported Growth +12 %

Enterprise operating margin (1)

22.5%

19.0%

350 bps

Corporate and Other

$26

$27

Adjusted EPS

$3.30

$2.50

32%

Adjusted Effective Tax Rate

20.6%

17.7%

(2.9) pts

Free Cash Flow

$275

$171

$104

(1) New performance measure, see page 15.

Q2 FY26 Segment Results

Sales ($ in millions; YOY growth %)

Q Segment Operating Margin Segment Highlights

1 FY23

Organic +9 %

Inorganic - %

Currency +4 %

Reported 13 %

+320 bps YOY

Higher segment margin YOY driven by positive price/cost inclusive of productivity, higher sales volume, and favorable mix, partially offset by higher compensation

Software & Control

$684M

Organic +17 %

Inorganic - %

Currency +3 %

Reported +20 %

34.9%

+480 bps YOY

Higher segment margin YOY driven by higher sales volume and positive price/cost inclusive of productivity, partially offset by higher compensation

Lifecycle Services

$547M

Organic (1)%

Inorganic - %

Currency +3 %

Reported +2 %

14.6%

+10 bps YOY

Book-to-bill of 1.07

Segment margin flat YOY with strong project execution and productivity offset by higher compensation

Q2 FY25 to Q2 FY26 Adjusted EPS Walk

~ $0.80 ~ $0.15 ~ $(0.15) ~ $0.00

$2.50

$3.30

Q2 FY25 Core FX Tax Rate All Other(1)

Q2 FY26

(1) All Other includes: Corp Items, Interest Expense, Non-Controlling Interest, and Shares.

FY26 Guidance

~ $8.9B 5% - 9%

~ (1.5)%

~ 1.5%

Updated Guidance Prior Guidance

Reported Sales Midpoint

~ 19.5%

~ 21.5%

Organic Growth Divestiture

~ $8.8B 2% - 6%

~ 0%

Currency Translation

Enterprise Operating Margin (1) Adjusted Effective Tax Rate Adjusted EPS Range

Free Cash Flow Conversion

~ 1%

~ 20.0%

~ 19.5%

$12.50 - $13.10

$11.40 - $12.20

~ 100%

Note: Updated Guidance as of May 5, 2026; Prior Guidance as of February 5, 2026. Updated Guidance does not include sales, earnings, or cash flows related to the divested businesses of the Sensia joint venture in the second half of fiscal 2026.

(1) New performance measure, see page 15; Prior Segment Operating Margin Guidance adjusted to include ~(1.5) pts of Corporate and other expenses.

FY26 Updated vs Prior Guidance Adjusted EPS Walk

~ $1.00 ~ $0.10 ~ $(0.10)

$11.80

$12.80

FY26 Prior Guidance

Midpoint

Core FX All Other (1)

FY26 Updated Guidance

Midpoint

Note: Guidance as of May 5, 2026; Prior Guidance as February 5, 2026. Updated Guidance does not include sales, earnings, or cash flows related to the divested businesses of the Sensia joint venture in the second half of fiscal 2026.

(1) All Other includes: Operating impact from Sensia dissolution, Corp Items, Interest Expense, Tax Rate, and Shares.

Appendix

FY26 Organic Industry Segment Outlook

D I S C R E T E

Up ~10%

Automotive up mid single digits

Semiconductor up ~10%

e-Commerce & Warehouse Automation up ~20%

H Y B R I D

Up mid single digits

Food & Beverage up mid single digits

Life Sciences up mid single digits

Home & Personal Care up low single digits

P R O C E S S

Up mid single digits

Energy up high single digits

Mining up low single digits

Chemicals up mid single digits

Note: Guidance as of May 5, 2026; Organic sales growth rates depicted above exclude the impact of acquisitions, divestitures, and currency. Arrows reflect positive/negative directional growth vs prior year.

FY26

vs. FY25

Assumptions at

Guidance Midpoint

Industry Segmentation

% of FY25 Sales

of sales

~10% Automotive

~5% Semiconductor

~5% e-Commerce & Warehouse Automation

~5% General Industries

~20% Food & Beverage

~5% Life Sciences

~5% Household & Personal Care

~5% Tire

~15% Energy

~5% Mining

~5% Metals

~5% Chemicals

~5% Water / Wastewater

~5% Pulp & Paper

▶ Marine

▶ Mass Transit

▶ Glass

▶ Fibers & Textiles

▶ Entertainment

▶ Airports

▶ Aerospace

▶ Print & Publishing

Enterprise Operating Profit and Enterprise Operating Margin

Recast of Historical Periods

($ in millions)

Fiscal

2026

Fiscal 2025

Fiscal 2024

Q1 Q2

Q3 Q4 Full Year

Q1 Q2

Q3 Q4

Full Year

Segment operating earnings

Intelligent Devices

165

211

120 159

182 215 676

150 161

193 196

700

Software & Control

196

239

133 171

199 205 708

151 146

121 112

530

Lifecycle Services

68 78

73 100 319

55 97

112 101

365

Segment operating earnings, as reported

435

530

321 408

454 520 1,703

356 404

426 409

1,595

Corporate and other

(30)

(26)

(35) (27)

(36) (27) (125)

(35) (25)

(25) (29)

(114)

Enterprise operating profit (1)

$ 405

$ 504

$ 286 $ 381

$ 418 $ 493 $ 1,578

$ 321 $ 379

$ 401 $ 380

$ 1,481

Intelligent Devices segment operating margin

17.3 %

20.9 %

14.9 %

17.7 %

18.8 %

19.8 %

18.0 %

16.2 %

16.5 %

20.2 %

20.7 %

18.4 %

Software & Control segment operating margin

31.2 %

34.9 %

25.1 %

30.1 %

31.6 %

31.2 %

29.7 %

25.0 %

25.7 %

23.6 %

22.4 %

24.2 %

Lifecycle Services segment operating margin

14.1 %

14.6 %

12.5 %

14.5 %

13.3 %

17.5 %

14.5 %

10.6 %

16.6 %

19.3 %

17.2 %

16.1 %

Segment operating margin, as reported

20.7 %

23.7 %

17.1 %

20.4 %

21.2 %

22.5 %

20.4 %

17.3 %

19.0 %

20.8 %

20.1 %

19.3 %

Corporate and other

(1.4)%

(1.2)%

(1.9)%

(1.3)%

(1.7)%

(1.2)%

(1.5)%

(1.7)%

(1.2)%

(1.4)%

Enterprise operating margin (1)

19.2 %

22.5 %

15.2 %

19.0 %

19.5 %

21.3 %

18.9 %

15.6 %

17.8 %

19.6 %

18.7 %

17.9 %

(1) Enterprise operating profit and Enterprise operating margin are non-GAAP financial measures. We exclude from income before income taxes and pre-tax margin amortization of acquisition-related intangible assets, impairment, non-operating pension and postretirement benefit credit, net legacy asbestos and environmental charges, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, cost associated with dissolution of Sensia, and interest expense, net because we do not consider these items to be directly related to the operating performance of our segments. We believe Enterprise operating profit and Enterprise operating margin are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our operating segments. Our measures of Enterprise operating profit and Enterprise operating margin may be different from measures used by other companies.

Sensia Dissolution: Estimated Sales Impact

($ in millions)

Three Months Ended March 31, 2026 Three Months Ended December 31, 2025 1H Three Months Ended September 30, 2025 Three Months Ended June 30, 2025 2H

Q2 FY26

Q1 FY26

FY26

Q4 FY25

Q3 FY25

FY25

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Divestiture (1)

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Divestiture (1)

North America

$ 1,412

$ (27)

$ 1,385

$ 1,339

$ (25)

$ 1,314

$ (52)

$ 1,478

$ (32)

$ 1,446

$ 1,354

$ (34)

$ 1,320

$ (66)

EMEA

430

(22)

408

372

(26)

346

(48)

406

(34)

372

392

(28)

364

(62)

Asia Pacific

257

255

280

266

Latin America

140

139

152

132

Total

$ 2,239

$ (49)

$ 2,190

$ 2,105

$ (51)

$ 2,054

$ (100)

$ 2,316

$ (66)

$ 2,250

$ 2,144

$ (62)

$ 2,082

$ (128)

($ in millions)

Three Months Ended March 31, 2026 Three Months Ended December 31, 2025 1H Three Months Ended September 30, 2025 Three Months Ended June 30, 2025 2H

Q2 FY26

Q1 FY26

FY26

Q4 FY25

Q3 FY25

FY25

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Divestiture (1)

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Reported Sales

Divestiture (1)

Sales Excluding Divestiture

Divestiture (1)

Intelligent Devices

$ 1,008

$ -

$ 1,008

$ 953

$ -

$ 953

$ -

$ 1,086

$ -

$ 1,086

$ 968

$ -

$ 968

$ -

Software & Control

684

629

657

629

Lifecycle Services

547

(49)

498

523

(51)

472

(100)

573

(66)

507

547

(62)

485

(128)

Total

$ 2,239

$ (49)

$ 2,190

$ 2,105

$ (51)

$ 2,054

$ (100)

$ 2,316

$ (66)

$ 2,250

$ 2,144

$ (62)

$ 2,082

$ (128)

(1) Estimated sales from the now divested businesses.

Q2 FY26 Results: Summary

Three Months Ended

Financial Summary March 31,

($ in millions, except per share amounts)

2026

2025

Total sales

$ 2,239

$ 2,001

Enterprise operating profit (1)

$ 504

$ 381

Amortization of acquisition-related intangible assets

(29)

(36)

Non-operating pension and postretirement benefit credit

Net legacy asbestos and environmental charges (2)

(1)

(6)

Cost associated with dissolution of Sensia

(4)

Change in fair value of investments

(3)

Interest expense, net

(33)

(37)

Income tax provision

(89)

(51)

Net income

$ 351

$ 248

Net income (loss) attributable to noncontrolling interests

(4)

Net income attributable to Rockwell Automation

$ 350

$ 252

Adjustments

Non-operating pension and postretirement benefit credit, net of tax

$ (3)

$ -

Amortization of acquisition-related intangible assets attributable to Rockwell Automation, net of tax

Net legacy asbestos and environmental charges, net of tax

Cost, net of tax, and tax items associated with dissolution of Sensia attributable to Rockwell Automation

Change in fair value of investments, net of tax

Adjusted Income

$ 373

$ 284

Adjusted EPS

$ 3.30

$ 2.50

Average diluted shares

112.6

113.3

(1) New performance measure, see page 15.

(2) Legacy asbestos and environmental charges were previously included in Corporate and other. Three months ended March 31, 2025 has been recast to conform with current year presentation.

Free Cash Flow

Three Months Ended

Six Months Ended

($ in millions)

March 31,

Reconciliation to Non-GAAP Measures

2026

2025

2026

2025

Net income

351

248

653

426

Depreciation/Amortization

158

159

Change in fair value of investments

Retirement benefits expense

Receivables/Inventory/Payables

(68)

(93)

(113)

(18)

Compensation and benefits

(73)

Pension contributions

(1)

(3)

(6)

Income taxes

(87)

(111)

(82)

(119)

Other

(13)

Cash flow from operations

320

199

554

563

Capital expenditures

(45)

(28)

(109)

(99)

Free cash flow

$ 275

$ 171

$ 445

$ 464

Adjusted Income

$ 373

$ 284

$ 684

$ 495

Free cash flow conversion

94 %

Reconciliation to Non-GAAP Measures

Organic Sales

($ in millions)

Three Months Ended March 31,

2026

2025

Reported

Effect of Changes in

Organic

Reported

Reported Sales Growth

Effect of Changes in Currency

Organic Sales Growth

Sales(a)

Currency(d)

Sales(b)

Sales(c)

(a)/(c)

(d)/(c)

(b)/(c)

North America

$ 1,412

$ 1,407

$ 1,288

10%

EMEA

430

$ 390

358

20%

11%

Asia Pacific

257

$ 250

227

13%

10%

Latin America

140

$ 127

128

10%

(1)%

Total

$ 2,239

$ 2,174

$ 2,001

12%

Three Months Ended March 31,

2026

2025

Reported

Effect of Changes in

Organic

Reported

Reported Sales Growth

Effect of Changes in Currency

Organic Sales Growth

Sales(a)

Currency(d)

Sales(b)

Sales(c)

(a)/(c)

(d)/(c)

(b)/(c)

Intelligent Devices

$ 1,008

$ 979

$ 896

13%

Software & Control

684

665

568

20%

17%

Lifecycle Services

547

530

537

(1)%

Total

$ 2,239

$ 2,174

$ 2,001

12%

Reconciliation to Non-GAAP Measures

Enterprise Operating Profit and Enterprise Operating Margin

($ in millions) Three Months Ended

March 31,

2026 2025

Sales

Intelligent Devices (a)

1,008

896

Software & Control (b)

684

568

Lifecycle Services (c)

547 537

Total sales (d)

$ 2,239 $ 2,001

Segment operating earnings

Intelligent Devices (e)

211

159

Software & Control (f)

239

171

Lifecycle Services (g)

Corporate and other (1) (h) Enterprise operating profit (2) (i)

(26)

504

(27)

381

Amortization of acquisition-related intangible assets (3)

(29)

(36)

Non-operating pension and postretirement benefit credit

Net legacy asbestos and environmental charges (1)

(1)

(6)

Change in fair value of investments

(3)

Cost associated with dissolution of Sensia

(4)

Interest expense, net (33) (37)

Income before income taxes (j) $ 440 $ 299

Pretax margin (j/d)

19.7 %

14.9 %

Intelligent Devices (e/a)

20.9 %

17.7 %

Software & Control (f/b)

34.9 %

30.1 %

Lifecycle Services (g/c)

14.6 %

14.5 %

Corporate and other (1) (h/d)

(1.2)%

(1.3)%

Enterprise operating margin (2) (i/d)

22.5 %

19.0 %

(1) Legacy asbestos and environmental charges were previously included in Corporate and other. Three months ended March 31, 2025 has been recast to conform with current year presentation.

(2) Enterprise operating profit and Enterprise operating margin are non-GAAP financial measures. We exclude from income before income taxes and pre-tax margin amortization of acquisition-related intangible assets, impairment, non-operating pension and postretirement benefit credit, net legacy asbestos and environmental charges, cost associated with dissolution of Sensia, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and interest expense, net, because we do not consider these items to be directly related to the operating performance of our segments. We believe Enterprise operating profit and Enterprise operating margin are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our operating segments. Our measures of Enterprise operating profit and Enterprise operating margin may be different from measures used by other companies.

(3) Amortization of acquisition-related intangibles excludes amortization of internally developed and capitalized intangible assets.

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Disclaimer

Rockwell Automation Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 14:34 UTC.