Rockwell Automation Raises Annual Profit Outlook After Margin Gains, Shares Surge 8%
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:
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Adjusted EPS of $2.45, surpassing analyst expectations of $2.09 (LSEG data)
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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.
