Rockwell Automation Inc. (ROK) Raising estimates on improving growth outlook

Equity Research 4 August 2026 | 6:48PM EDT

Rockwell Automation Inc. (ROK) Raising estimates on improving growth outlook

ROK 12m Price Target: $510.00 Price: $445.23 Upside: 14.5% NEUTRAL Joe Ritchie Bottom line: Raising estimates on improving growth outlook. | Goldman Sachs & Co. LLC ROK reported a +3% segment EBIT beat vs. FactSet consensus, Ken Chen primarily driven by better results in Software & Control. FY26 | Goldman Sachs & Co. LLC organic sales expectations were revised upward to +7.5% to +9.5% (prior +5% to +9%) on a better outlook in discrete (up mid-teens vs. Luke McCollester, CFA | Goldman Sachs & Co. LLC prior +10%). ROK raised the FY26 EPS guide to $13.00-$13.30 (from $12.50-$13.10). ROK’s F3Q beat and stronger outlook reflected broad-based product growth, high demand in semiconductor, data Key Data _____________________________________ Market cap: $51.9bn center, e-commerce and warehouse automation, and sustained Enterprise value: $54.5bn 3m ADTV: $390.9mn incremental margins. F4Q margins are expected to be dampened by United States unfavorable mix/rising memory costs, particularly in Software & Americas Multi-Industry M&A Rank: 3 Control, although the late-F3Q price increase should return GS Forecast __________________________________ price-cost to positive, and we believe margin expectations will prove 9/25 9/26E 9/27E 9/28E

conservative. For FY27, management expects memory inflation to Revenue ($ mn) New Revenue ($ mn) Old 8,342.0 8,342.0 9,028.6 8,910.8 9,515.7 9,345.3 9,987.7 9,841.9 remain a headwind, but sees volume, productivity and additional EBITDA ($ mn) 1,918.0 2,309.0 2,549.1 2,771.6 EBIT ($ mn) 2,102.0 1,816.1 2,052.5 2,271.1 pricing supporting further margin improvement from the ~33% EPS ($) New FY26 Software & Control margin base. All-in, we raise our EPS ($) Old P/E (X) FY26/FY27/FY28 EPS to $13.30/$14.90/$16.60 to reflect a better Dividend yield (%) 1.8 1.2 1.2 1.2 growth outlook and increase our price target to $510. We remain Net debt/EBITDA (X) 1.4 1.1 0.7 0.2

Neutral, as we see better risk/reward across our coverage. 6/26 9/26E 12/26E 3/27E EPS ($) What happened. ROK reported F3Q26 adjusted EPS of $3.49. GS Factor Profile ______________________________ Segment EBIT was +3% vs. consensus expectations. Organic growth Growth

was +10%. By segment, Intelligent Devices +10%, Software & Financial Returns Control +18% and Life Cycle Services -2%. ROK updated FY26 Multiple adjusted EPS guidance to $13.00-$13.30 (prior $12.50-$13.10) on a better growth outlook and raised FY26 organic sales growth range Integrated

to +7.5% to +9.5% (from +5% to +9%). Percentile 20th 40th 60th 80th 100th

Valuation. We raise our FY26/F27/F28 EPS to ROK relative to Americas Coverage

$13.30/$14.90/$16.60 (from $12.90/$14.50/$16.20) to reflect a ROK relative to Americas Multi-Industry

better growth outlook. Our 12-month PT moves to $510 (from $487 Source: Company data, Goldman Sachs Research estimates. See disclosures for details. prior) as we roll our Q5-Q8 EBITDA methodology forward and maintain our Q5-Q8 target multiple of 22.0x.

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Goldman Sachs Rockwell Automation Inc. (ROK)

Rockwell Automation Inc. (ROK) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Dec 16, 2025 9/25 9/26E 9/27E 9/28E Cash & cash equivalents ,462.7 2,582.2 Accounts receivable 1,931.0 1,805.7 1,903.1 1,997.5 Inventory 1,247.0 1,354.3 1,237.0 1,198.5 Ratios & Valuation __________________________________________ Other current assets /25 9/26E 9/27E 9/28E Total current assets 3,911.0 4,070.9 4,891.9 6,067.3 P/E (X) Net PP&E EV/EBITDA (X) Net intangibles EV/sales (X) 4.1 5.4 5.0 4.6 Total investments 0.0…