A week ago, Rockwell Automation, Inc. (NYSE:ROK) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Rockwell Automation beat earnings, with revenues hitting US$2.2b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following last week's earnings report, Rockwell Automation's 26 analysts are forecasting 2026 revenues to be US$8.95b, approximately in line with the last 12 months. Per-share earnings are expected to surge 27% to US$12.31. Before this earnings report, the analysts had been forecasting revenues of US$8.88b and earnings per share (EPS) of US$11.38 in 2026. So the consensus seems to have become somewhat more optimistic on Rockwell Automation's earnings potential following these results.

The consensus price target rose 8.5% to US$458, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Rockwell Automation at US$525 per share, while the most bearish prices it at US$282. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Rockwell Automation's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 4.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Rockwell Automation.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Rockwell Automation following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Rockwell Automation going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Rockwell Automation has 1 warning sign we think you should be aware of.

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.