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    Does AI-Driven Recurring Software Demand and 2026 EPS Guidance Change The Bull Case For Rockwell (ROK)?

    Simply Wall St·01/05/2026 07:17:38
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    • Recently, Rockwell Automation highlighted robust recurring software demand from AI-enabled factory projects across automotive, semiconductor, and warehousing customers, alongside management guidance for fiscal 2026 earnings per share of US$11.20 to US$12.20.
    • This reinforces Rockwell’s role as a quieter but important way to gain exposure to AI-driven industrial automation and digital transformation, away from highly speculative AI names.
    • Next, we’ll examine how accelerating AI-driven software demand could shape Rockwell Automation’s existing investment narrative around automation and recurring revenue.

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    Rockwell Automation Investment Narrative Recap

    To own Rockwell Automation, you need to believe that industrial customers will keep investing in factory automation and software, even through macro and policy noise. The latest update on strong recurring AI-driven software demand and fiscal 2026 EPS guidance of US$11.20 to US$12.20 supports the near term earnings catalyst, but does not remove the key risk that large customer CapEx projects or services spending could still be delayed if uncertainty lingers.

    Within recent announcements, the company’s fiscal 2026 outlook stands out as most relevant, because it explicitly ties expected earnings to industrial trends like AI-enabled automation and onshoring. That guidance, together with solid FY2025 results, sharpens the focus on whether Rockwell can convert growing AI-related interest into durable recurring software and services revenue without being derailed by prolonged CapEx hesitation or rising tax burdens.

    Yet even as AI-enabled software demand builds, investors should be aware that prolonged customer CapEx delays and services softness could...

    Read the full narrative on Rockwell Automation (it's free!)

    Rockwell Automation's narrative projects $9.6 billion revenue and $1.5 billion earnings by 2028. This requires 6.2% yearly revenue growth and an earnings increase of about $0.5 billion from $966.2 million today.

    Uncover how Rockwell Automation's forecasts yield a $400.23 fair value, in line with its current price.

    Exploring Other Perspectives

    ROK 1-Year Stock Price Chart
    ROK 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community span roughly US$267.62 to US$400.23 per share, highlighting very different expectations. Set against Rockwell’s AI driven software momentum, this spread underlines how differently investors weigh the risk that long cycle CapEx and services projects could still be pushed out, with real implications for how you think about the company’s future performance.

    Explore 4 other fair value estimates on Rockwell Automation - why the stock might be worth as much as $400.23!

    Build Your Own Rockwell Automation Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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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.