Rockwell Automation Guides for 6-9% Organic Growth in FY2027 Amid Record Orders
Rockwell Automation CEO Blake Moret stated at a Baird event that the company expects 6-9% organic growth in fiscal 2027, driven by automation demand, pricing, and potential acquisitions, with record US plant-capacity orders in fiscal 2026.
Rockwell Automation (NYSE: ROK), a leading US industrial automation company, expects organic growth of 6% to 9% in fiscal 2027, according to Chairman and CEO Blake Moret speaking at a Baird investor conference. The outlook is supported by strong demand for automation equipment, higher prices, and potential acquisitions.
Moret noted that demand from data centers, semiconductors, automotive, and life sciences exceeded expectations in fiscal 2026. The automotive sector, accounting for about 10% of revenue, strengthened particularly in the latter part of the year. Pharmaceutical demand was partly supported by GLP-1 drug production, though Moret described the strength across life sciences as broad-based.
Order momentum underpins this positive outlook. Moret reported that fiscal 2026 orders for new US physical plant capacity were the highest in the company's history, and the pipeline entering fiscal 2027 was larger than a year earlier. Fourth-quarter orders grew at a mid-teens rate, with the first quarter starting well.
Regarding pricing, the fiscal 2027 guidance includes three percentage points of price contribution but excludes a planned December price increase. Moret identified memory cost inflation as a key driver for higher prices, although the company has largely managed supply shortages. Logix control products saw 25% growth in Q4, attributed to underlying demand and pricing rather than customer restocking.
Software and AI strategy also contribute to growth. The company targets 7% growth in annual recurring revenue (ARR) in fiscal 2027 and plans to launch FactoryTalk Conductor, a new software offering using agents to speed up control system integration. Analyst Quinn Fredrickson noted the guidance implies about 80 basis points of enterprise operating margin expansion. Moret added that Rockwell expects inorganic growth to return, prioritizing profitable hardware businesses that can increase share in Europe or Asia and fit its US distribution network.