Rockwell Automation raises quarterly dividend to $1.45 per share from $1.38
Key Facts
Rockwell Automation raised its quarterly cash dividend to $1.45 per share from $1.38 in the previous quarter, according to an announcement by its board on October 30. The company said the increase reflects continued strength in its operating performance and underscores its commitment to returning cash to shareholders. The new dividend replaces the level announced by the board in April, when it decided to pay $1.38 per share. The new dividend is payable on December 10, 2026, to shareholders of record as of the close of business on November 16. The decision comes ahead of the company’s fourth-quarter and fiscal 2026 results on November 5.
The company’s sales were $2.313 billion in the third quarter of fiscal 2026, up 8% from $2.144 billion in the same period a year earlier. Organic sales rose 10%, while divestitures reduced sales by 3% and currency translation added 1%. The company attributed the increases in net income and diluted earnings per share mainly to a higher pretax margin. It said sales volume growth, an improved product mix and the incremental effect of resolving its Sensia joint venture contributed to higher margins. The pretax margin rose to 20.3% from 16.0% a year earlier, while segment operating income increased 23% to $516 million.
Net income attributable to the company was $408 million, or $3.65 per share, compared with $295 million and $2.60 per share in the third quarter of fiscal 2025. Adjusted earnings per share were $3.49, up 22% from $2.85 a year earlier. Free cash flow was $654 million, compared with $489 million in the year-earlier period. The company said the increase in operating and free cash flow was mainly due to higher pretax income. The financial indicators show an improvement in earnings and liquidity alongside sales growth during the quarter.
The company’s businesses delivered mixed results in the third quarter: sales in the Software and Control segment rose 19%, including 18% organic growth, while Intelligent Devices sales increased 12%, including 10% organic growth. By contrast, Lifecycle Services sales fell 12%, or 2% on an organic basis. Chief Executive Blake Moret said growth reflected healthy customer demand and continued strength in semiconductors, data centers and warehouse automation. He added that activity in automotive and life sciences had begun to improve. The variation in segment performance provides context for the dividend increase and investors’ assessment of the durability of operating performance.
In August, Rockwell raised its fiscal 2026 guidance for reported and organic sales growth to a range of 7.5%–9.5%, from a previous range of 5%–9%. It also increased its adjusted earnings-per-share forecast to $13.00–$13.30 from $12.50–$13.10. The company is scheduled to report fourth-quarter and fiscal 2026 results before the market opens on November 5, along with fiscal 2027 guidance. Its conference call will be held the same day at 7:30 a.m. Central time. The company’s shares closed at $451.40 on October 29, according to EL7 data.