ROK · 8-K · 20260804PR000028
Operating Margin Drivers
ROCKWELL AUTOMATION, INC · 2026-08-04 · Importance 59 · Surprise 48 · No source text
Enterprise operating profit increased 23% to $516 million, and Enterprise operating margin expanded to 22.3% from 19.5%. Pre-tax margin increased to 20.3% from 16.0%, while income before taxes rose to $470 million from $342 million. Management attributed the margin expansion to higher sales volume, favorable mix, and the margin benefit of the Sensia joint venture dissolution, partly offset by negative price/cost. Segment operating margins increased to 20.0% for Intelligent Devices, 34.8% for Software & Control, and 15.1% for Lifecycle Services.
Key facts
- Enterprise operating profit was $516 million in the third quarter of fiscal 2026, up 23% from $418 million in the same period of fiscal 2025. source
- Income before income taxes was $470 million in the third quarter of fiscal 2026 compared to $342 million in the same period last year. source
- Fiscal 2026 third quarter Adjusted EPS was $3.49, up 22% compared to $2.85 in the third quarter of fiscal 2025. source
- Net Income was $408 million for the three months ended June 30, 2026, compared to $293 million for the three months ended June 30, 2025. source
- Adjusted EBITDA was $565 million for the three months ended June 30, 2026, compared to $461 million for the three months ended June 30, 2025. source
- ROIC on a GAAP basis was 18.4% for the twelve months ended June 30, 2026, compared to 16.3% for the twelve months ended June 30, 2025. source
- Adjusted ROIC was 18.8% for the twelve months ended June 30, 2026, compared to 15.0% for the twelve months ended June 30, 2025. source
- Pre-tax margin was 20.3% in the third quarter of fiscal 2026 compared to 16.0% in the same period last year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +5.5% | Income before income taxes was $470 million in the third quarter of fiscal 2026 compared to $342 million in the same period last year. |
| net_income | positive | realized | +5.0% | Net Income was $408 million for the three months ended June 30, 2026, compared to $293 million for the three months ended June 30, 2025. |
| operating_income | positive | realized | +4.5% | Adjusted EBITDA was $565 million for the three months ended June 30, 2026, compared to $461 million for the three months ended June 30,… |
| margin | positive | realized | +4.3% | Pre-tax margin was 20.3% in the third quarter of fiscal 2026 compared to 16.0% in the same period last year. |
| operating_income | positive | realized | +4.2% | Enterprise operating profit was $516 million in the third quarter of fiscal 2026, up 23% from $418 million in the same period of fiscal… |
| margin | positive | realized | +2.8% | Enterprise operating margin was 22.3% in the third quarter of fiscal 2026 compared to 19.5% a year ago. |
| margin | positive | realized | +2.0% | SG&A as percent of sales was 21.2% for the three months ended June 30, 2026 compared to 23.2% for the three months ended June 30, 2025. |
| net_income | positive | realized | — | Fiscal 2026 third quarter Adjusted EPS was $3.49, up 22% compared to $2.85 in the third quarter of fiscal 2025. |