Rockwell Automation (NYSE: ROK) predicted fiscal 2027 organic sales growth between 6% and 9% and adjusted earnings ranging from $14.50 to $15.50 per share, anticipating continued expansion fueled by demand for data center, semiconductor, and manufacturing technology. This projection comes after a fiscal 2026 where core sales grew 9% and adjusted earnings per share surged 27% to $13.42, and the company’s full-year enterprise operating margin expanded 330 basis points to reach 22.2%.
Sales Growth Boosted by Tariff Refunds
For the fourth quarter, reported sales rose 1%, while organic sales increased 3%. Core sales, which exclude tariff refunds and the dissolution of the Sensia joint venture, grew 7%. Adjusted earnings rose 16% to $3.88 per share. The quarter included a net $0.11-per-share benefit from tariff refund-related items. CFO Christian Rothe stated that Rockwell secured $103 million in refunds from the U.S. government for tariffs paid under the International Emergency Economic Powers Act, along with $5 million in associated interest. The company also launched a customer refund program for previous price increases, recording an $85 million reduction to sales based on its estimated redemption rate, along with an $8 million nonrecurring charge and taxes.
Discrete Industries Drive Sales Increase
Sales to discrete industries climbed 20% in the fourth quarter, propelled by semiconductor, data center, and automotive demand. Semiconductor sales jumped nearly 50%, whereas automotive sales rose 15% and hit a two-year high for a single quarter. Starting in fiscal 2027, Rockwell intends to report semiconductor and data center sales as a combined vertical, accounting for roughly 10% of revenue with mid-teens growth anticipated. Software & Control organic sales gained 15%, including a 25% increase in Logix sales, which Moret projects will match the segment’s high-single-digit forecast for fiscal 2027. Intelligent Devices organic sales advanced 5%, with its OTTO autonomous mobile robot business becoming profitable.
Rockwell Forecasts Organic Sales Growth
At the midpoint of its fiscal 2027 forecast, Rockwell anticipates organic sales growth of 7.5%, reported sales growth of approximately 6%, an enterprise operating margin of 23%, and adjusted earnings of $15 per share. The organic growth outlook incorporates a one-percentage-point benefit from the prior-year customer tariff refund accrual and a 1.5-percentage-point reduction from the Sensia dissolution, which will cut revenue by $100 million. Rothe mentioned the company expects roughly 3 percentage points of underlying price realization, along with productivity improvements, to counteract inflation.
