ROK · 10-K · 2026A · Full report

Operating Margin Drivers

ROCKWELL AUTOMATION, INC · 2026-11-12 · Importance 47 · Surprise 48 · No source text

Enterprise operating profit increased to $1.997 billion from $1.578 billion, and Enterprise operating margin rose to 22.2% from 18.9% in fiscal 2025. Growth in sales volume, pricing, favorable mix, productivity, and the net impact of IEEPA tariff-refund items drove the improvement, partly offset by higher compensation. Intelligent Devices margin rose to 20.0% from 18.0% and Software & Control margin rose to 33.8% from 29.7%, mainly on volume and productivity in the former and higher volume in the latter. Lifecycle Services margin increased to 15.1% from 14.5%, reflecting project execution and the Sensia dissolution benefit, partly offset by compensation.

Key facts

• Rockwell Automation’s Software & Control segment operating earnings increased 34 percent year over year in fiscal 2026; margin rose to 33.8 percent from 29.7 percent, primarily due to higher sales volume, partly offset by higher compensation. source
• Rockwell Automation’s income before income taxes increased to $1,685 million in fiscal 2026 from $917 million in fiscal 2025; pre-tax margin was 18.7 percent versus 11.0 percent. source
• Rockwell Automation’s fiscal 2026 Net income attributable to Rockwell Automation was $1,409 million, or $12.54 per share, compared with $869 million, or $7.67 per share, in fiscal 2025. source
• Rockwell Automation’s Enterprise operating profit increased to $1,997 million in fiscal 2026 from $1,578 million in 2025, and Enterprise operating margin increased to 22.2 percent from 18.9 percent. source
• Rockwell Automation’s Intelligent Devices segment operating earnings increased 24 percent year over year in fiscal 2026; segment operating margin rose to 20.0 percent from 18.0 percent, primarily due to higher volume, productivity, and favorable mix, partly offset by higher compensation. source
• Rockwell Automation’s Lifecycle Services segment operating earnings decreased 2 percent year over year in fiscal 2026; margin rose to 15.1 percent from 14.5 percent due primarily to strong project execution and the Sensia dissolution margin benefit, partly offset by higher compensation. source
• Rockwell Automation expects inflationary pressures and geopolitical volatility could adversely affect costs, particularly electronic components, commodities, energy, and freight. source
• Rockwell Automation’s Adjusted EPS was $13.42 in fiscal 2026, up 27 percent from $10.53 in fiscal 2025, primarily due to higher Enterprise operating profit. source

Impact estimates