AI Takeaway
Rockwell Automation delivered a strong Q1 FY2026, with revenue rising 11.9% YoY to $2.11B and net income surging 65.8% to $305M, driven by significant margin expansion across gross, operating, and net profit lines.
Revenue
$2.1B
++11.91% YoY
EPS (Basic)
$2.71
++67.28% YoY
Gross Margin
48.3%
++1.59% YoY
Operating Income
$435M
++35.51% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 11.9% YoY to $2.11B in Q1 FY2026 from $1.88B in Q1 FY2025, indicating a meaningful acceleration in demand for Rockwell's industrial automation and information solutions.
Source: Source: 10-Q Income Statement, Q1 FY2026
Gross margin improved 149 basis points to 48.3% while operating margin expanded 360 basis points to 20.7%, reflecting better operating leverage and disciplined cost management as SG&A grew only 0.4% YoY despite double-digit revenue growth.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Net income jumped 65.8% YoY to $305M and diluted EPS rose 67.1% to $2.69, significantly outpacing revenue growth and signaling strong bottom-line leverage in the business.
Source: Source: 10-Q Income Statement, Q1 FY2026
2 more insights available
Upgrade to unlockOperating cash flow declined sharply by 35.7% YoY to $234M despite a 65.8% surge in net income, creating a significant divergence between earnings and cash generation. This may indicate working capital headwinds such as rising receivables or inventory build. Sustained weakness in cash conversion could pressure future capital allocation flexibility.
Source: Source: 10-Q Cash Flow Statement, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.75 versus the $2.49 analyst consensus — a +10.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.1B | $1.88B | +11.91% |
Cost of Revenue | $1.09B | $1B | +8.57% |
Gross Profit | $1.02B | $878M | +15.72% |
Operating Income | $435M | $321M | +35.51% |
Net Income | $305M | $184M | +65.76% |
EPS (Basic) | $2.71 | $1.62 | +67.28% |
EPS (Diluted) | $2.69 | $1.61 | +67.08% |
R&D Expense | $172M | $156M | +10.26% |
SG&A Expense | $478M | $476M | +0.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.23B | $10.94B | +2.61% |
Current Assets | $3.99B | $3.75B | +6.43% |
Current Liabilities | $3.45B | $3.48B | -0.69% |
Stockholders' Equity | $3.75B | $3.38B | +10.66% |
Cash & Equivalents | $444M | $471M | -5.73% |
Long-Term Debt | $2.57B | $2.56B | +0.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $234M | $364M | -35.71% |
Investing Cash Flow | $-69M | $-83M | +16.87% |
Financing Cash Flow | $-153M | $-254M | +39.76% |
Dividends Paid | $156M | $149M | +4.70% |
Share Buybacks | $153M | $100M | +53.00% |
D&A | $79M | $78M | +1.28% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 48.3% | 46.7% | +1.59% |
Operating Margin | 20.7% | 17.1% | +3.60% |
Net Margin | 14.5% | — | — |
ROE | 8.1% | — | — |
ROA | 2.7% | — | — |
Current Ratio | $1.156 | — | — |
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Based on the filing data, Rockwell Automation reported diluted EPS of $2.69 in Q1 FY2026, up 67.1% from $1.61 in Q1 FY2025. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the 10-Q filing itself.
The standout results were a 65.8% surge in net income to $305M and a 35.5% jump in operating income to $435M, both driven by 11.9% revenue growth to $2.11B and tight cost control. However, operating cash flow declined sharply by 35.7% YoY to $234M, a potential concern despite strong reported earnings.
Rockwell Automation's revenue grew 11.9% YoY to $2.11B in Q1 FY2026, up from $1.88B in Q1 FY2025. This growth was accompanied by gross margin expansion to 48.3% and operating margin improvement to 20.7%, indicating both top-line and profitability gains.
The most notable financial risk visible in the Q1 FY2026 data is the sharp 35.7% decline in operating cash flow to $234M despite strong earnings, suggesting potential working capital pressures. Additionally, Rockwell carries $2.57B in long-term debt against only $444M in cash, creating a net debt position of approximately $2.13B that could be a concern if revenue growth slows.
Rockwell Automation's financial health appears solid on an earnings basis, with net income of $305M, gross margin of 48.3%, and operating margin of 20.7%, but the current ratio of only 1.16 and the significant decline in operating cash flow to $234M suggest some near-term liquidity tightness. The company returned $309M to shareholders via dividends and buybacks, which is a positive signal of management confidence but also reduces cash reserves.