ROK · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

ROCKWELL AUTOMATION, INC · 2026-08-04 · Importance 48 · Surprise 40

Enterprise operating margin increased from 19.5% to 22.3% in the quarter and from 18.0% to 21.4% for the nine months ended June 30, 2026. Quarterly segment margins increased to 20.0% for Intelligent Devices, 34.8% for Software & Control, and 15.1% for Lifecycle Services, compared with 18.8%, 31.6%, and 13.3%, respectively, in the prior-year quarter. Margin expansion reflected higher sales volume, favorable mix, productivity, strong project execution, and the Sensia dissolution benefit, while input costs exceeding price realization and higher compensation partially offset gains. Nine-month Software & Control margin increased 4.6 percentage points to 33.7%, primarily from higher volume, partly offset by higher compensation, input-cost pressure, and unfavorable mix.

Key facts

• Software & Control segment operating earnings increased 31% year over year in the three months ended June 30, 2026 and 38% year over year in the nine months ended June 30, 2026. source
• Intelligent Devices segment operating earnings increased 28% year over year in the nine months ended June 30, 2026. source
• Intelligent Devices segment operating earnings increased 19% year over year in the three months ended June 30, 2026. source
• Lifecycle Services segment operating margin increased to 15.1% in the three months ended June 30, 2026, primarily due to strong project execution and the margin benefit from the Sensia joint venture dissolution, partially offset by lower sales volume. source
• The amortization expense for internally developed intangible amortization was $2 million and $8 million for the three and nine months ended June 30, 2026, respectively. source
• Three months ended June 30, 2026 pre-tax margin: 20.3%. source
• Nine months ended June 30, 2026 pre-tax margin: 18.8%. source
• Three months ended June 30, 2026 Enterprise operating margin: 22.3%. source