Vendor Insights
We distill the latest vendor releases and combine them with our own insights to give system integrators clear, actionable perspective on what’s shaping the market.
Latest Vendor Releases
Heathy Demand, Selective Expansion, and Productivity‑Driven, Targeted Growth
In its fiscal Q1 2026 results, Rockwell Automation reported a solid start to the year, with sales up 12% year over year (10% organic) and earnings significantly higher, driven by margin expansion and productivity improvements. The company noted that demand across key end markets remains healthy and reaffirmed its full-year guidance for 3%–7% reported sales growth and 2%–6% organic growth, signaling expectations for steady — but not accelerating — market conditions.
Segment performance highlights where growth is occurring:
- Intelligent Devices sales increased 18% year over year.
- Software & Control sales increased 19%, with strong margin expansion.
- Lifecycle Services sales declined 4%, though margins improved due to productivity and execution.
Rockwell also reported total annual recurring revenue (ARR) up 7%, reflecting continued emphasis on software, digital, and recurring revenue models.
Leadership commentary reinforced a consistent theme: customers continue investing in automation, digital transformation, and productivity initiatives, even amid broader volatility.
Key Takeaways for System Integrators:
- End-market demand remains healthy, supporting steady automation investment.
- Growth is strongest in hardware platforms and software, reinforcing the continued shift toward digital and control-layer value.
- Lifecycle services remain uneven, reflecting variability in project timing and customer spending cycles.
- Productivity and margin improvement remain vendor priorities, aligning with customers’ focus on ROI-driven projects rather than large capacity expansions.
Steady Growth and Expanding Margins Driven by Operational Focus and Targeted Automation
In its fiscal 2025 results and initial 2026 outlook, Emerson Electric Co. reported net sales of $18.0B for FY2025, up about 3% year over year, with underlying sales growth also in the low-single-digit range. Orders continued to grow at a moderate pace, and margins improved significantly, reflecting productivity initiatives and portfolio focus.
Management highlighted that underlying orders have grown at mid-single-digit rates for three consecutive quarters, supporting expectations for continued growth into 2026.
Looking ahead, Emerson’s initial 2026 outlook calls for:
- ~5.5% net sales growth
- ~4% underlying sales growth
- Continued strong cash generation and operational discipline
Leadership commentary emphasized alignment with long-term automation and digitalization trends, as well as ongoing integration work and productivity improvements across the portfolio.
Segment results also reflected steady but measured growth across core automation businesses, reinforcing a pattern of incremental expansion rather than rapid acceleration.
Key Takeaways for System Integrators:
- Automation demand remains stable, with low- to mid-single-digit growth expectations for 2026.
- Orders are growing steadily but not rapidly, reinforcing a gradual recovery rather than a surge.
- Margin expansion and productivity remain vendor priorities, signaling continued customer focus on efficiency and ROI.
- Portfolio integration and digital capabilities remain central themes, pointing to continued vendor investment in software, analytics, and lifecycle value.
New Avenues for System Integrators: Enhanced Growth, Efficiency, and Digital Value
Siemens reported a strong start to fiscal 2026, with growth across its industrial businesses and improved profitability. Orders rose 10% on a comparable basis and revenue increased 8%, supported by broad-based demand in Digital Industries and Smart Infrastructure. Profitability improved as automation, software, and electrification businesses performed strongly. Siemens also raised its full-year outlook, expecting 6–8% comparable revenue growth and continued expansion in its core industrial segments.
Growth was particularly strong in Digital Industries, where both automation and software contributed to double-digit increases in orders and revenue, and in Smart Infrastructure, which recorded record-high orders driven partly by large data-center electrification projects.
Overall, Siemens’ results reinforce the broader pattern seen across the industrial sector: improving demand, strong backlog, and continued investment in productivity, electrification, and digitalization rather than broad capacity expansion.
Key Takeaways for System Integrators:
- Industrial demand is improving, though growth remains measured.
- Automation and software continue to drive sector growth.
- Electrification and infrastructure projects are increasingly gaining momentum.
- Maintaining backlog and ensuring strong execution are critical priorities.
- Market outlook points to gradual expansion, rather than rapid growth.
(coming soon)