Rockwell shares jump after strong Q4 earnings Defeats expectations, focused by higher margins and strong software growth despite one-time charges.

Rockwell, the industrial automation company, revealed fourth-quarter profit that exceeded analyst estimates, powered by strong margin rises in spite of one-time charges and high organic sales growth. Following the results, the company's shares gained 5.07% in early trading.

Rockwell revealed adjusted earnings per share for the fourth quarter of $3.34, up 32% each year, on sales of $2.32 billion, up 14% from the same period the previous year. Also, sales of organic products increased by 13% over the previous year. With one-time costs, such as accounting adjustments for legacy asbestos liabilities and a damage charge connected with the planned conclusion of its Sensia joint venture, which reduced diluted EPS by $1.88.

Blake Moret, chairman and CEO, stated the company entered fiscal 2025 with a clear view of the challenges to come, and they delivered. Rockwell finished the year with rising sales and adjusted earnings, strong revenue, and continued margin growth. As well, sales rising 31% to $657 million and operating margin increasing to 31.2% from 22.4% a year earlier.

According to Rockwell, $8.34 billion in revenue for the entire fiscal year 2025, a 1% increase in both reported and organic sales. The annual adjusted EPS gained 7% from fiscal 2024 to $10.53. Rockwell planned and revealed sales growth of 3% to 7% and organic sales growth of 2% to 6% for the fiscal year 2026. The company expects adjusted EPS between $11.20 and $12.20 and diluted EPS between $10.40 and $11.40.

Even in the face of ongoing macro and geopolitical concerns. Rockwell remains confident about the company's capacity to grow market share and revenue margins as they progress to fiscal 2026. Also, the company announced plans to end its joint venture with SLB on Sensia, with Rockwell taking over ownership of the process automation business to which it originally contributed. The first part of fiscal 2026 is expected to see the end of the deal.