Rockwell Automation (ROK): Evaluating Valuation Following Q4 Beat and Upbeat 2026 Outlook
Rockwell Automation (ROK) has been on a strong run recently, outperforming the broader market after reporting Q4 fiscal 2025 results that topped expectations and issuing an upbeat outlook for fiscal 2026. The company's focus on digital solutions, automation, and strategic acquisitions keeps it in a compelling spot as demand for smart industrial technologies accelerates.
See our latest analysis for Rockwell Automation.
Momentum remains strong for Rockwell Automation, with its recent share price return of 7% over the past month and 40% year-to-date standing out amid a backdrop of ambitious expansion plans, a new Saudi manufacturing partnership, and a healthy $1.5 billion credit facility renewal. Both the short- and longer-term numbers underscore building confidence, as the company’s one-year total shareholder return has reached an impressive 36% and multi-year gains have compounded steadily, all reflecting optimism around its digital and automation strategy.
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But after this strong run and bullish future projections, is Rockwell Automation's stock still offering value for new investors? Or are shares already reflecting all the anticipated growth ahead?
Most Popular Narrative: Fairly Valued
With Rockwell Automation’s fair value narrative sitting just above its last close price, there is little daylight between analyst estimates and the market. The numbers suggest a tightly balanced scenario as expectations are recalibrated for the next growth phase.
Substantial investment of $2 billion over the next 5 years in plants, digital infrastructure, and talent is aimed at building competitive capacity, operational efficiency, and supporting higher-margin growth areas, laying the groundwork for future margin expansion and long-term EPS growth.
What’s behind the calculated optimism? One storyline dominates: an ambitious five-year plan and aggressive margin expansion goals set the stage for a potential profit leap. But are future projections as strong as they look?
Result: Fair Value of $389.08 (ABOUT RIGHT)
Have a read of the narrative in full and understand what's behind the forecasts.
However, ongoing delays in customer capital spending and macroeconomic uncertainty could limit Rockwell Automation's order intake and potential future revenue growth.
Find out about the key risks to this Rockwell Automation narrative.
Build Your Own Rockwell Automation Narrative
If you want to take a different perspective or dive deeper into Rockwell Automation’s story, you can easily build your own view from the data in just a few minutes. Do it your way
A great starting point for your Rockwell Automation research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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