May 5th, 2026

The call conveyed a predominantly positive operational and financial performance in Q2 with strong top-line growth, substantial margin expansion, robust free cash flow and raised guidance for sales and EPS. Software & Control and Intelligent Devices led outperformance, data center demand accelerated, and recurring revenue grew. Offsetting risks include softer Lifecycle Services, the Sensia dissolution lowering reported revenue, tariff and memory cost pressures expected in H2, and geopolitical/trade uncertainty that is delaying some large capital projects. Overall, the positives (broader demand, margin leverage, cash generation and raised guidance) meaningfully outweigh the headwinds.

Company Guidance

Rockwell raised its fiscal 2026 guide to reported and organic sales growth of 5%–9% (7% midpoint), with reported sales now guided to about $8.9B (up ~$100M vs prior midpoint after ~+$200M organic and ~–$100M from the Sensia dissolution) and an assumed +1.5 points currency tailwind; organic ARR is expected to grow high single digits. Management increased the enterprise operating margin outlook to 21.5% (from ~20%), raised adjusted EPS guidance to $12.50–$13.10 (midpoint $12.80, +$1 vs prior), now expects full‑year incrementals above 50% (vs an initial ~40%), and continues to target 100% free cash flow conversion and ~3% of sales for CapEx. They forecast 250 basis points of total price realization (150 bps underlying, 100 bps tariff), corporate & other expense of ~$110M, net interest of ~$120M, ~112.1M diluted shares, ~ $850M total buybacks for the year, and note a double‑digit million memory headwind in H2. For Q3 specifically they expect reported sales roughly flat sequentially (losing ~$50M sales from Sensia), flat enterprise margin, and Q3 adjusted EPS up about $0.05 sequentially (mid‑to‑high teens YoY).