Rockwell Automation stock jumps on earnings beat

Published 10/02/2025, 13:30
© Reuters.

Investing.com -- Rockwell Automation, Inc. reported better-than-expected first-quarter fiscal 2025 earnings, sending its shares up over 8% in early trading.

The industrial automation company posted adjusted earnings per share of $1.83, surpassing analyst estimates of $1.57. Revenue for the quarter came in at $1.88 billion, slightly below the consensus estimate of $1.89 billion and down 8.4% YoY.

Despite the revenue decline, Rockwell’s focus on operational excellence and cost discipline yielded stronger margins and earnings than anticipated. Orders grew approximately 10% YoY and increased mid-single digits sequentially, indicating improving demand trends.

"Q1 margins and EPS came in well above our expectations this quarter, reflecting some early benefits of Rockwell’s renewed focus on operational excellence and cost discipline," said Blake Moret, Chairman and CEO.

The company reaffirmed its fiscal 2025 adjusted EPS guidance range of $8.60 to $9.80, compared to analyst expectations of $9.26. However, Rockwell updated its fiscal 2025 reported sales growth range to -5.5% to 0.5%, down from previous guidance of -4% to 2%, due to a 1.5% negative impact from foreign exchange.

Rockwell’s total Annual Recurring Revenue (ARR) grew 11% YoY, highlighting strength in its software and services offerings. The company also reported encouraging order trends across key industries, particularly in the U.S. market.

While macroeconomic uncertainty continues to impact customer capital expenditure plans, Rockwell said its cost reduction efforts and margin expansion initiatives appear to be gaining traction. 

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