Rockwell Automation (NYSE:ROK) saw its shares jump over 10% intra-day today after delivering stronger-than-expected first-quarter earnings, driven by improved margins and disciplined cost management. Despite a revenue decline, the company’s operational efficiency helped offset macroeconomic headwinds.
For Q1/2025, Rockwell reported adjusted earnings per share of $1.83, well above analysts’ expectations of $1.57. Revenue came in at $1.88 billion, slightly missing the $1.89 billion consensus estimate and reflecting an 8.4% year-over-year decline. However, the company’s focus on cost controls and margin expansion allowed it to deliver a more profitable quarter than anticipated.
Order growth provided a positive signal, rising approximately 10% year-over-year and showing mid-single-digit sequential improvement, suggesting that demand trends may be stabilizing.
Rockwell reaffirmed its fiscal 2025 adjusted EPS guidance of $8.60 to $9.80, aligning with analyst expectations of $9.26. However, the company revised its full-year sales growth outlook to a range of -5.5% to 0.5%, down from its previous forecast of -4% to 2%, citing a 1.5% drag from foreign exchange fluctuations.
A key highlight was the 11% year-over-year increase in Annual Recurring Revenue (ARR), underscoring the strength of Rockwell’s software and services business. The company also reported robust order activity, particularly in the U.S., where demand remains resilient despite ongoing economic uncertainty.