Rockwell Automation 2025 Q3 Earnings Beats Expectations as Net Income Rises 27%

Rockwell Automation (ROK) exceeded expectations in its fiscal 2025 Q3 earnings, reporting a 4.5% revenue increase to $2.14 billion and a 28.6% rise in EPS to $2.61. The company raised its fiscal 2025 guidance for both EPS and sales growth, underscoring its confidence in operational execution and margin expansion. CEO Blake Moret emphasized the firm’s proactive approach amid macroeconomic uncertainties.

Revenue
Rockwell Automation's total revenue for fiscal 2025 Q3 climbed to $2.14 billion, marking a 4.5% increase from $2.05 billion in the same period last year. The Intelligent Devices segment led with revenue of $968 million, while the Software & Control segment contributed $629 million, driven by a 23% year-over-year growth. The Lifecycle Services segment, however, saw a decline to $547 million. Organic sales growth was broad-based, with Software & Control posting the strongest performance at 22%, while Lifecycle Services faced a 6% decline. Currency translation and productivity factors further influenced the revenue dynamics across segments.

Earnings/Net Income
Rockwell Automation delivered a strong earnings performance, with diluted EPS rising 28.6% to $2.61, compared to $2.03 in 2024 Q3. Net income surged 26.8% to $293 million from $231 million in the prior year. The combination of productivity gains and pricing improvements fueled the growth, demonstrating the company’s effective cost management and operational efficiency. These results highlight Rockwell’s ability to deliver robust earnings despite macroeconomic headwinds.

Price Action
In the immediate aftermath of the earnings report, Rockwell Automation's stock experienced downward pressure. The stock dropped 1.07% on the latest trading day, 6.41% over the past week, and 3.03% month-to-date as of Aug 6, 2025. These price movements reflect investor caution in the face of near-term volatility, despite the company’s strong earnings.

Post-Earnings Price Action Review
A strategy of purchasing Rockwell Automation shares following a quarter with revenue growth and holding for 30 days has historically delivered impressive returns. Over the past three years, this approach generated a 73.66% return, outperforming the benchmark by 25.08%. The strategy achieved a CAGR of 20.99% with no maximum drawdown, underscoring its effectiveness in capturing value and managing risk.

CEO Commentary
Blake Moret, Chairman and CEO, praised the team's execution in Q3 and highlighted progress toward long-term margin expansion goals. He noted a return to year-over-year sales growth driven by customer wins in both brownfield and greenfield opportunities. Moret announced a $2 billion investment over the next five years in U.S.-based plants, talent, and digital infrastructure to support future growth. Despite macroeconomic uncertainty, he expressed optimism about Rockwell’s ability to deliver customer value and expand margins without waiting for broader economic improvements, emphasizing the company’s proactive approach to pricing, productivity, and operational efficiency.

Guidance
Rockwell Automation raised its fiscal 2025 adjusted EPS guidance to $9.80–$10.20 from $9.20–$10.20 and increased reported sales growth guidance to $8.1–$8.2 billion from $8.1 billion. Organic sales growth is now expected to range between -2% and 1%, while the company anticipates continued margin expansion and topline growth, slightly aided by tariff-based pricing and favorable currency. The updated guidance reflects confidence in maintaining productivity gains and addressing macroeconomic challenges through strategic execution.

Additional News
In the three weeks following Rockwell Automation’s Q3 earnings, the company announced the repurchase of 0.5 million shares of its common stock at a cost of $123 million, with $1.0 billion remaining under the share repurchase authorization. Additionally, the company reaffirmed its commitment to investing $2 billion in U.S. plants, talent, and digital infrastructure over the next five years, as highlighted by CEO Blake Moret. No significant mergers or acquisitions or C-level changes were reported in the period.