Is Rockwell Automation’s (ROK) Automation Push and Upbeat Outlook Shifting the Investment Case?

• Rockwell Automation recently reported earnings results for the fourth quarter and full year ended September 30, 2025, with quarterly sales rising to US$2.32 billion and full-year sales reaching US$8.34 billion, while issuing fiscal 2026 guidance for reported sales growth of 3% to 7% and diluted EPS of US$10.40 to US$11.40.
• The company also announced important product milestones, including the start of autonomous mobile robot production in Milwaukee and a new software launch, highlighting its ongoing focus on automation innovation and manufacturing resilience.
• We'll look at how Rockwell Automation's strong guidance and expanding automation initiatives may impact its future investment narrative.

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Rockwell Automation Investment Narrative Recap

To be a Rockwell Automation shareholder, you need to believe in the long-term growth of industrial automation and the company’s ability to expand its higher-margin software and digital solutions. The latest quarterly update shows strong sales growth and positive outlook for FY 2026, but a goodwill and intangible asset impairment and lower net income signal execution and margin risks remain present. For now, the earnings release does not materially change the near-term focus, customer CapEx project conversion remains the key catalyst, while ongoing project delays are the single biggest risk.

One recent announcement that stands out is Rockwell’s launch of production for autonomous mobile robots (AMRs) at its Milwaukee headquarters. This initiative brings its advanced automation technologies closer to core customers, tying directly to the rising demand for digitization and automation that underpins Rockwell’s growth story. If robust customer adoption of new products like AMRs continues, it could help offset the impact of slower project rollouts, but...

Read the full narrative on Rockwell Automation (it's free!)

Rockwell Automation's outlook anticipates $9.6 billion in revenue and $1.5 billion in earnings by 2028. This projection is based on a 6.2% annual revenue growth rate and a $533.8 million increase in earnings from the current level of $966.2 million.

Uncover how Rockwell Automation's forecasts yield a $355.84 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$232.74 to US$355.84, based on three analyses. Amid this broad span of views, ongoing customer CapEx delays remain an important factor influencing future performance, so explore several viewpoints before deciding where you stand.

Explore 3 other fair value estimates on Rockwell Automation - why the stock might be worth 38% less than the current price!

Build Your Own Rockwell Automation Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rockwell Automation research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Rockwell Automation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rockwell Automation's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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