Our actual results may differ materially due to a wide range of risks and uncertainties described in our earnings release and SEC filings. Rockwell delivered especially strong operating performance this quarter, with sales, margins, and EPS all coming in above our expectations. Double-digit year-over-year growth in orders, sales, and earnings reflects our strong market position led by North America and the team's continued focus and execution in a dynamic global environment. We saw an improvement in customer demand across a broader range of industries in Q2, such as e-commerce, warehouse automation, data center, semiconductor, and energy.
Persistent trade volatility and geopolitical uncertainty continued to delay large capital investments in other industries, including automotive and consumer packaged goods. We're doing a good job of managing cost increases in areas affected by tariffs, demand for memory, and fuel. Q2 sales were above our expectations, with organic sales growing 9% year-over-year. Reported sales were up 12%, with favorable currency contributing 3 points of growth.
Intelligent Devices organic sales were up 9% versus prior year, with strong growth in our motion, I/O, and safety and sensing businesses. In our Software & Control segment, organic sales were up 17% year-over-year and well above our expectations, driven by continued double-digit sales growth of Logix, especially in North America. Our Logix growth was broad-based in the quarter, and we saw a particularly strong performance with our data center customers, where we continue to see increasing demand for our industrial-grade controllers. Christian and I will cover the expected impact on full year fiscal 2026 financials later on the call.
| Metric | Period | Current guidance |
|---|---|---|
| Reported/organic sales growth | FY2026 | 5%-9% (7% midpoint) (up 3 points at midpoint) |
| Reported sales | FY2026 | $8.9B (midpoint) (+$100M (+$200M organic, -$100M Sensia)) |
| Adjusted EPS | FY2026 | $12.50-$13.10 ($12.80 midpoint) (+$1.00 at midpoint) |
| Total price | FY2026 | 250 bps (150 underlying + 100 tariff) (+50 bps, all underlying) |
| Incremental margin | FY2026 | above 50% (raised above 50%) |
| Adjusted ETR | FY2026 | 19.5% (unchanged) |
| Adjusted EPS | Q3 FY2026 | up ~$0.05 sequentially; up mid-to-high teens YoY |
| Share repurchases | FY2026 | ~$850M |
| Metric | YoY | Note |
|---|---|---|
| Organic sales | +9% | broad-based demand improvement led by North America |
| Software & Control organic sales | +17% | continued double-digit Logix growth, especially North America and data center |
| Intelligent Devices organic sales | +9% | strong growth in motion, I/O, and safety and sensing businesses |
| Lifecycle Services organic sales | -1% | customers deferring larger projects, prioritizing smaller modernization scope |
| Data center sales | more than doubled | customers prioritizing speed to capacity, resilience, and energy optimization |
| Discrete industries sales | mid-teens | better-than-expected automotive, e-com/warehouse, and semiconductor |
| E-commerce and warehouse automation sales | +30%+ | customers prioritizing upgrades and retrofits over new greenfield builds |
| Adjusted EPS | +30%+ ($3.30) | higher volume, positive price cost, favorable mix, productivity |
| Enterprise operating margin | +350 bps (22.5%) | volume growth, positive price cost, favorable mix, partly offset by higher comp |
| Annual recurring revenue | +6%+ | high-single-digit software ARR growth, mid-single-digit recurring services |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center demand | low single digits of revenue, growing | sales more than doubled YoY, one of strongest end markets | Accelerating |
| Tariffs and price-cost | minimal net tariff impact, pricing to recover costs | managing tariff/memory/fuel cost increases; pricing to fully recover tariff costs | Intensifying cost pressure, managed to earnings neutrality |
| Large-project CapEx unlock | delays, customers prioritizing productivity/modernization | broadening unlock in semicon, energy, e-com/warehouse, data center; automotive and CPG still delayed | Improving but uneven |
| Productivity and incremental margins | ~40% incrementals guided for FY2026 | above 50% incrementals; productivity program expanding | Improving |
| Sensia JV | dissolution planned | dissolution complete (April 1); lowers reported revenue, raises Lifecycle/Rockwell margin, EPS neutral | Executed |
| Book-to-bill | around 1.0 historical corridor | slightly above historical average (Lifecycle 1.07); corridor 0.95-1.1 | Improving |