Q1 2026 Rockwell Automation Inc Earnings Call Transcript
Key Points
- Rockwell Automation Inc (ROK) reported double-digit year-over-year growth in both reported and organic sales for Q1 2026.
- The company achieved a 7% growth in annual recurring revenue, with strong performance in recurring software across automotive, life sciences, and energy verticals.
- Intelligent Devices segment saw a 16% increase in organic sales year-over-year, with strong performance in drives and motion.
- Software & Control segment experienced a 17% growth in organic sales, driven by strong momentum in Logix and new product introductions.
- The company reported a total segment margin of 20.7% and an adjusted EPS of $2.75, both exceeding expectations due to higher volume, favorable mix, and strong productivity.
- The macro environment remains fluid with heightened geopolitical uncertainty, impacting trade, regional conflict, and supply chain risk.
- Life Cycle Services segment experienced a 6% decline in organic sales year-over-year, with customers delaying and narrowing the scope of larger projects.
- Despite positive sentiment, there is a cautious approach to capital expenditure, with large CapEx investments still on hold for many customers.
- The company faces challenges from tariffs, which had a neutral impact on Q1 earnings but were a drag on segment margins year-over-year.
- Free cash flow in Q1 was $170 million, lower than the prior year due to changes in working capital and incentive compensation payments.
Thank you for holding, and welcome to Rockwell Automation's quarterly conference call. I need to remind everyone that today's conference call is being recorded. (Operator Instructions).
At this time, I would like to turn the call over to Aijana Zellner, Head of Investor Relations and Market Strategy. Ms. Aijana, please go ahead.
Thank you, Julianne. Good morning, and thank you for joining us for Rockwell Automation's First Quarter Fiscal 2026 Earnings Release Conference Call. With me today is Blake Moret, our Chairman and CEO; and Christian Rothe, our CFO. . Our results were released earlier this morning, and the press recent charts are available on our website.
These materials as well as our remarks today will reference non-GAAP measures. Reconciliations of these non-GAAP measures are included in both the press recent charts. A replay of today's webcast and a transcript of our prepared remarks will be available on our website at the conclusion of today
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