Rockwell Automation, Inc. stock research
FY2026 Q1
Rockwell Automation (ROK) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased compared to the prior quarter, while gross profit and gross margin both declined. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q1
Revenue decreased compared to the prior quarter, while gross profit and gross margin both declined. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved.
- The strongest observable driver is the change in cost of revenue relative to revenue. Cost of revenue was higher than gross profit in the current quarter, whereas in the prior quarter it was much lower, indicating a shift in the relationship between these metrics.
- Compared to the immediately preceding quarter, gross margin weakened substantially. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.3%
Gross profit
$1.0B
Revenue
$2.1B
Cost of revenue
$1.1B
Quarter-over-quarter change
-21.2 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $2.0B | $972.0M | $1.0B | 48.6% |
| Jun 30, 2025 | $2.1B | $876.0M | $1.3B | 40.9% |
| Sep 30, 2025 | $2.3B | $1.6B | $708.0M | 69.4% |
| Dec 31, 2025 | $2.1B | $1.0B | $1.1B | 48.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-21.2 pts
Year-over-year change
Dec 31, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Cost of revenue was higher than gross profit in the current quarter, whereas in the prior quarter it was much lower, indicating a shift in the relationship between these metrics.
Compared to the immediately preceding quarter, gross margin weakened substantially. Compared to the same quarter one year earlier, gross margin improved.
Monitor the relationship between cost of revenue and revenue in subsequent quarters for stability.