Rockwell Automation falls 14.2% after quarterly results and guidance

What happened

Rockwell Automation (ROK) fell 14.2% on November 5, 2026, because of its fiscal 2026 fourth-quarter results and fiscal 2027 guidance. The company reported Q4 diluted EPS of $3.88 against $3.69 expected, 5.1% above estimates, and disclosed net income of $346 million, or $3.11 a share, in Q4 versus $138 million, or $1.23 a share, a year earlier. Rockwell said it delivered broad-based revenue growth, margin expansion and double-digit earnings growth, and characterized the prior year as a strong finish while citing continued differentiation of its strategy and operating model as supporting its outlook.

How big was the move

The stock closed at $381.05, and trading volume was 3.1 times its 20-day average. The decline was 5.9 times a typical daily move for this stock. Over the last five sessions the stock fell 15.6%, while the S&P 500 fell 4.7% over five sessions and the Industrials sector median fell 4.7% on the day, leaving the stock 9.4 percentage points worse than the sector median. The S&P 500 fell 4.4% on the session.

The technical picture

The stock was 11.6% below its 20-day moving average, 11.5% below its 50-day moving average and 10.8% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend. The Relative Strength Index (14 days) was 30, in the neutral range between 30 and 70. The stock was 23.4% below the 52-week high and had fallen 13.8% over one month and 13.6% over three months. Volatility was 38% annualized over 60 days, higher than 83% of its own readings over five years.

Taken together, the technicals show a sharp, concentrated sell-off that pushed the stock well below short- and medium-term averages, yet left the longer-term trend intact because the 50-day average remained above the 200-day average. The elevated volatility suggests investors expect larger swings than in recent history.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $8.99 billion, which grew 7.7% from a year earlier, and diluted earnings per share were $12.52, which rose 63.4% from a year earlier. Gross margin was 50.0% versus 48.0% a year earlier, and operating margin was 21.6% versus 18.4% a year earlier. Free-cash-flow margin was 18.9% and return on invested capital was 19.7%. The balance sheet shows net debt of 1.3 times EBITDA, and share count over one year decreased by 1.7%.

Valuation metrics show a price to trailing earnings of 30.4 times trailing earnings and price to forward earnings of 25.6 times expected earnings. Free-cash-flow yield was 3.5%. The current price to trailing earnings was lower than 71% of its own readings over the past five years, where the five-year median was 33.5 times earnings. That combination — improving margins and strong cash generation alongside a valuation below most of its recent history — frames why some investors may see value even after the sell-off.

Earnings and analyst expectations

Rockwell reported on November 5, 2026, with Q4 diluted EPS of $3.88 per share compared with $3.34 a year ago, topping consensus estimates. The company has posted consecutive quarters beating estimates for 11 quarters, and the average surprise over the last four reports was 8.6% above estimates. Historically, the typical two-day reaction after recent reports was that the stock rose 0.5%.

Analysts’ consensus price target was $485.44, which was 27.4% above the closing price. Forty-one analysts had a rating on the stock and the consensus rating was Hold; 27% of those ratings were Buy or Strong Buy. The next report was scheduled for February 4, 2027.

PromtFinance scores give additional context: Quality was 96 (Exceptional), while Value and Growth were 39 and 42 respectively, both Weak. Momentum and Revisions were Neutral at 51 and 56, and Stability was Positive at 68. Those scores underscore that Rockwell’s operating performance ranks highly for quality, even as value and growth metrics look less compelling relative to peers.

What to watch

• November 5, 2026: earnings per share of $3.88 against $3.69 expected, 5.1% above estimates
• The company’s fiscal 2027 guidance announced alongside the Q4 results
• Price to trailing earnings of 30.4 times trailing earnings and price to forward earnings of 25.6 times expected earnings
• Net debt of 1.3 times EBITDA and free-cash-flow margin of 18.9%
• Next report on February 4, 2027