Strong Revenue Growth
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: 10-Q Income Statement, Q1 FY2026
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
$2.69
+67.08% YoY
Gross Margin
48.3%
+1.6 pts YoY
Operating Income
$435M
+35.51% YoY
Source: SEC XBRL
Rockwell Automation (ROK) reported Q1 FY2026 revenue of $2.1B, up 11.9% year over year. Operating margin was 20.7%, up 3.6 points from 17.1% a year earlier. Operating cash flow was $234M, down 35.7% year over year. ROK's fiscal Q1 FY2026 corresponds to calendar Q4 2025.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.49 | 3.42 | Beat +2.1% |
| Mar 2026 | 3.30 | 2.92 | Beat +13.1% |
| Dec 2025This filing | 2.75 | 2.49 | Beat +10.5% |
| Sep 2025 | 3.34 | 2.96 | Beat +12.7% |
Adjusted (non-GAAP) EPS of $2.75 versus the $2.49 analyst consensus — a +10.5% beat for Dec 2025. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.69.
Compiled by AI from this SEC 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: 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: 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: 10-Q Income Statement, Q1 FY2026
Despite strong earnings, operating cash flow fell 35.7% YoY to $234M from $364M, suggesting a potential build-up in working capital or timing differences in cash collections that investors should monitor.
Source: 10-Q Cash Flow Statement, Q1 FY2026
Rockwell returned $309M to shareholders in Q1 FY2026 through dividends ($156M, up 4.7% YoY) and share buybacks ($153M, up 53.0% YoY), demonstrating confidence in its financial position.
Source: 10-Q Cash Flow Statement, Q1 FY2026
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Operating 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: 10-Q Cash Flow Statement, Q1 FY2026
Long-term debt stands at $2.57B while cash and equivalents declined 5.7% YoY to $444M, resulting in a net debt position of approximately $2.13B. The current ratio of 1.16 provides only modest liquidity cushion. Rising interest rates or a revenue slowdown could strain debt servicing capacity.
Source: 10-Q Balance Sheet, Q1 FY2026
R&D expenses grew 10.3% YoY to $172M, broadly in line with revenue growth, but the industrial automation sector requires continuous innovation to maintain competitive positioning. Any reduction in R&D investment to protect margins could erode Rockwell's long-term technological edge.
Source: 10-Q Income Statement, Q1 FY2026
Share buybacks accelerated 53.0% YoY to $153M in Q1 FY2026, even as cash balances declined and operating cash flow fell sharply. Aggressive capital returns while cash generation weakens could limit financial flexibility if business conditions deteriorate.
Source: 10-Q Cash Flow Statement, Q1 FY2026
Despite strong net income growth, ROA stands at only 2.7% and ROE at 8.1%, suggesting that asset and equity bases are large relative to current earnings power. This may reflect prior acquisitions or goodwill that have yet to generate commensurate returns.
Source: 10-Q Key Ratios, Q1 FY2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.11 $B | 1.88 $B | +11.91% |
Cost of Revenue $B | 1.09 $B | 1.00 $B | +8.57% |
Gross Profit $B | 1.02 $B | 0.88 $B | +15.72% |
Operating Income $M | 435.00 $M | 321.00 $M | +35.51% |
Net Income $M | 305.00 $M | 184.00 $M | +65.76% |
EPS (Basic) $ | 2.71 $ | 1.62 $ | +67.28% |
EPS (Diluted) $ | 2.69 $ | 1.61 $ | +67.08% |
R&D Expense $M | 172.00 $M | 156.00 $M | +10.26% |
SG&A Expense $M | 478.00 $M | 476.00 $M | +0.42% |
Answers draw on this SEC filing and the data on this page
Rockwell Automation's Q3 FY2026 net income surged 38% on organic growth in Software & Control and margin expansion, aided by the Sensia joint venture dissolution.
ROK reported strong financial performance in Q2 FY2026, with significant growth in revenue, operating income, and net income, driven by improved margins and increased efficiency.
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