Rockwell Automation surges as manufacturing AI and ARR gains fuel profit growth

Rockwell Automation (NYSE:ROK) reported significant top- and bottom-line growth for its fiscal second quarter, as the company’s pivot toward software-driven industrial solutions and smart manufacturing hardware continues to gain traction globally.

The Milwaukee-based industrial giant reported a 12% increase in reported sales compared to the prior year, with organic sales rising 9%.

This growth was amplified by a 6% year-over-year increase in Total Annual Recurring Revenue (ARR), a key metric reflecting the company’s success in transitioning customers to subscription-based automation software and lifecycle services.

Profitability outperformed expectations, with diluted EPS rising 40% to $3.10.

On an adjusted basis, EPS reached $3.30, a 32% increase over the same period last year.

Reflecting the solid performance in the first half of the fiscal year, Rockwell updated its full-year fiscal 2026 guidance.

The company now expects reported and organic sales growth in the range of 5% to 9%.

The guidance for diluted EPS was narrowed to $11.88–$12.48, while the adjusted EPS range was set at $12.50–$13.10.