Rockwell Automation (NYSE:ROK) misses Q3 CY2026 sales expectations
Industrial automation company Rockwell (NYSE:ROK) missed Wall Street’s revenue expectations in calendar Q3 2026 (fiscal Q4 2026), with revenue flat year on year at $2.33 billion. Its non-GAAP profit of $3.88 per share was 5.1% above analysts’ consensus estimates.
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Rockwell Automation (ROK) Q3 CY2026 highlights:
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Revenue $2.33 billion vs S&P analysts’ consensus estimates of $2.42 billion (flat year on year, 3.7% miss)
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Adjusted EPS $3.88 vs S&P analysts’ consensus estimates of $3.69 (5.1% beat)
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Adjusted EBITDA $620 million vs analysts’ consensus estimates of $610.3 million (26.6% margin, 1.6% beat)
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Adjusted EPS guidance $15 at the midpoint for fiscal 2027, beating analysts’ consensus estimates by 0.6%
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Operating margin 24.5%, up from 19.8% in the same quarter last year
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Free cash flow margin 25.8%, up from 17.5% in the same quarter last year
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Organic revenue rose 3% year on year (miss)
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Market capitalization $49.29 billion
“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.
Revenue growth
A company’s long-term revenue performance can indicate its overall quality. Even a weak business can perform well for one or two quarters, but a top-tier one grows for years. Rockwell Automation’s revenue grew at a tepid 5.1% compounded annual growth rate over the last five years, falling short of the industrials sector standard.
Long-term growth matters most, but within industrials, a half-decade historical view may miss cycles, industry trends or a company capitalizing on catalysts such as a new contract win or a successful product line. Rockwell Automation’s annualized revenue growth of 4.3% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.
Organic revenue offers a closer look at the company’s revenue dynamics by stripping out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Rockwell Automation’s organic revenue averaged 4.7% year-on-year growth. This was in line with its two-year revenue growth, indicating that core operations, rather than acquisitions and divestitures, drove most of its results.
