Rockwell Automation Raises Annual Profit Outlook After Margin Gains, Shares Surge 8%

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Rockwell Automation (ROK.N) raised its annual profit forecast on Wednesday following cost-cutting measures that boosted margins in the second quarter, driving an 8% surge in premarket trading. Despite a broader slowdown in U.S. manufacturing activity triggered by President Donald Trump’s newly implemented global tariffs, Rockwell has seen resilient demand for industrial automation and software solutions.

The company now expects adjusted earnings per share (EPS) between $9.20 and $10.20, up from its earlier guidance of $8.60 to $9.80. In the second quarter, Rockwell reported:

  • Adjusted EPS of $2.45, surpassing analyst expectations of $2.09 (LSEG data)

  • Revenue of approximately $2 billion, a 6% year-over-year decline, but slightly above the $1.96 billion consensus estimate

Rockwell said it would offset current and future tariff impacts through a combination of price adjustments and supply chain optimizations, a strategy designed to safeguard profitability amid rising input costs.

The company’s outlook aligns with broader trends in the sector, as Emerson Electric (EMR.N) also raised its full-year earnings forecast on Wednesday, reflecting stable demand for industrial upgrades.

Corporate investment in factory automation and digital transformation continues to outpace expectations, as firms seek to improve productivity and cost efficiency, even in a challenging trade and economic environment.

AMD Warns of $1.5 Billion Revenue Hit from U.S. China Chip Export Curbs, But AI Demand Remains Strong

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Advanced Micro Devices (AMD) warned on Tuesday that new U.S. restrictions on AI chip exports to China will cost the company $1.5 billion in revenue for 2025, as Washington intensifies efforts to limit China’s access to advanced technology. Despite the projected hit, AMD’s second-quarter revenue forecast surpassed Wall Street expectations, buoyed by early chip purchases from customers bracing for trade disruptions.

The Biden and Trump administrations have both ramped up controls on exports of high-performance chips to China, citing national security risks related to AI capabilities. These measures now require chipmakers like AMD and Nvidia to obtain export licenses, effectively slowing or blocking shipments of advanced processors.

CEO Lisa Su said most of the export-related impact will be felt in Q2 and Q3, but expressed confidence in broader business strength. “It’s certainly a headwind, but one which we think is well contained,” Su said, noting that AI chip revenue in AMD’s data center segment is expected to grow by “strong double digits” this year.

China represents about 25% of AMD’s total revenue, and the export curbs are expected to shave nearly 5% off 2025 revenue projections, which currently sit at $31.03 billion, per LSEG data.

In Q1, AMD reported:

  • Total revenue of $7.44 billion, up 36% year-over-year, beating the estimate of $7.25 billion

  • Adjusted earnings of 96 cents per share, 2 cents above consensus

  • Data center revenue surged 57% to $3.7 billion, above the $3.62 billion estimate

For Q2, AMD expects revenue of $7.4 billion ± $300 million, also ahead of forecasts. However, the company is still absorbing an $800 million charge due to April’s newly enacted tariffs.

CFO Jean Hu confirmed the $1.5 billion forecasted revenue loss is tied directly to the latest April export controls. Analysts suggest the current surge in orders reflects “pre-buying behavior” from large cloud clients like Microsoft and Meta, who are stockpiling chips ahead of licensing uncertainty.

“Once those safety-stock closets are full, Q3 could feel like the morning after a Red Bull binge,”
warned Michael Schulman, CIO at Running Point Capital.

Meanwhile, rivals Marvell Technology and Super Micro both disappointed investors, citing economic uncertainty and reduced AI-related optimism. Their shares fell 4.5% and 5%, respectively, in after-hours trading.

AMD’s solid results highlight its growing role in powering AI infrastructure for hyperscalers, even as trade tensions and tariffs loom over the semiconductor industry.

Trimble Surpasses Q1 Revenue Estimates on Strong Product Demand Across Key Sectors

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Trimble Inc. (TRMB.O) beat Wall Street’s first-quarter revenue expectations, reporting $840.6 million in revenue—ahead of analysts’ forecast of $810.9 million, according to LSEG data. The solid performance was driven by sustained demand for the company’s navigation equipment, mapping tools, and software services, despite global economic uncertainty.

The company, whose solutions support industries such as agriculture, architecture, transportation, and design, continues to benefit from integrating artificial intelligence (AI) and machine learning into its products, enhancing their value and appeal to enterprise customers.

Trimble CEO Rob Painter acknowledged the challenging macroeconomic climate, including pressure from U.S. President Donald Trump’s newly imposed import tariffs, which are expected to raise the cost of consumer goods and dampen spending. Despite these headwinds, Painter said the company would maintain its full-year 2025 guidance.

Trimble posted adjusted earnings of 61 cents per share, exceeding the 59 cents forecasted by analysts. For the second quarter, the company expects revenue between $815 million and $845 million, with analysts anticipating $826.5 million.

The earnings report reflects continued strength in Trimble’s core sectors and its ability to weather market volatility through technological innovation and diversified demand.