Vendor Insights

Rockwell Automation

Emerson

Schneider Electric

Siemens

Rockwell delivered a strong quarter with 5% sales growth and earnings that beat expectations. The Book-to-Bill was ~1.0, which means the backlog remained steady. Profitability improved across most segments, led by robust Software & Control performance and substantial free cash flow expansion. ARR climbed 7%, underlining continued traction in recurring digital and automation services. Rockwell’s bold $2 billion capital commitment over the next five years—and renewed message of ‘playing offense’ despite macro uncertainty—underscores its strategic leadership in automation transformation.

Rockwell’s strong performance, especially in Software & Control and ARR growth, signals continued customer investment in digital transformation, despite macro headwinds. For integrators, this suggests increased demand for smart machine design, system modernization, and connected services.

The $2 billion capital commitment is also noteworthy: expect Rockwell to double down on partner programs, digital tools, and U.S.-based manufacturing capabilities. Now’s the time for integrators to:

• Align with Rockwell’s software roadmap, especially in analytics, cloud, and lifecycle services.
• Position your firm as a digital transformation enabler, not just a project implementer.
• Keep an eye on pricing models, as growth in ARR may shift the way customers purchase automation solutions—more recurring, less capex-heavy.

Schneider Electric posted strong H1 momentum with 8% organic growth driven by data center and systems-led demand. Full-year targets were reaffirmed, although discrete automation remains sluggish. For integrators, opportunities are clustered around data center cooling and systems-led digital services offerings.

Emerson Electric delivered a beat on earnings and maintained revenue momentum in Intelligent Devices (+4%). While its full-year sales forecast was trimmed to +3.5%, continued strength in software and instrumentation positions integrators to tap into analytics, safety, and measurement deployments—especially in high-growth regions.

Siemens reported solid results with +6% comparable revenue growth in Digital Industries, led by continued demand for industrial automation, motion control, and factory digitalization. However, order intake was flat, signaling potential softness ahead. Siemens emphasized its Xcelerator portfolio and industrial AI capabilities, highlighting integrator opportunities in digital twin implementations, edge/AI systems, and smart manufacturing. Growth remained strongest in automotive and electronics verticals.

All three vendors are emphasizing systems-led solutions, data center infrastructure, and analytics-enabled automation—a signal that the market is favoring integrators who can go beyond component sales or panel builds.

For system integrators, key takeaways include:

• Shift toward systems thinking: Schneider and Siemens both saw growth in complex, system-level projects. Position yourself as a turnkey solutions partner, not a parts provider.
• Growth in digital & AI capabilities: Siemens and Emerson are pushing into AI/ML, digital twins, and performance optimization. SIs that can integrate or apply these tools within industrial settings will stand out.
• Software, services & instrumentation lead: Margins and growth are increasingly tied to non-product offerings—especially services, analytics, and smart instrumentation.
• Vertical focus matters: Siemens called out strength in automotive and electronics, while others leaned into data centers and infrastructure. Specializing in verticals with tech-heavy requirements could pay off.
• Emerging markets remain strong: Like Emerson and Schneider, Siemens noted regional growth outside mature economies. If you have global clients, look for pull-through demand abroad.