CNBC Television
Humanoid robots are 'overkill' for use in most factories, says Rockwell CEO Blake Moret
11/6/2025, 10:20:45 PM
Economic Summary
- Rockwell Automation (ROK) reported better-than-expected fiscal 2026 sales, earnings, and revenue, signaling expanding margins and a return to full-year top-line growth, which investors interpret as a positive sign for U.S. manufacturing demand.
- Order trends show growth in Rockwell’s product businesses, particularly brownfield expansions and modernizations; however, trade uncertainty is still suppressing larger CapEx projects, and greater trade stability would be required to unlock bigger investments.
- AI and automation are already impacting operations and customer value—improving coding efficiency, back-office tasks, simulation, scheduling, and maintenance—and mobile robots are being integrated alongside fixed automation to simplify factory workflows; Tesla (TSLA) robotics efforts are referenced as part of the broader robotics conversation.
- End-market strength is uneven: e-commerce and warehouse automation show the strongest year-over-year growth, automobile manufacturing saw activity in the fourth quarter, pharmaceuticals have notable manufacturing announcements, and food & beverage remains Rockwell’s single largest served industry.
- Rockwell announced it is dissolving its joint venture with SLB, a corporate action that could affect strategic partnerships and revenue streams for both companies.
Bullish
- Rockwell beat fiscal 2026 sales and earnings and guided to expanding margins.
- Leader in automation positioned to benefit from U.S. manufacturing reshoring.
- Strong demand in e-commerce and warehouse automation driving near-term growth.
- AI and mobile robots are improving factory efficiency and simplifying automation workflows.
Bearish
- Trade uncertainty continues to suppress large CapEx projects, limiting new factory investments.
- Growth is concentrated in brownfield expansions and modernizations, not major new plant builds.
- Dissolution of the joint venture with SLB introduces partnership and revenue uncertainty for Rockwell.
- Humanoid robots may be overkill for many factory applications, limiting industrial adoption.
Bullish tickers
ROKTSLA
Bearish tickers
ROKSLBTSLA
ROK
Bullish
Beat fiscal 2026 sales and earnings; expanding margins and return to top-line growth; leader in automation with strong demand in e-commerce, auto, pharma, and food & beverage.
Bearish
Trade uncertainty suppresses large CapEx; growth focused on brownfield expansions rather than big new projects; JV dissolution with SLB introduces partnership uncertainty.
SLB
Bullish
JV dissolution may let SLB refocus on core operations or pursue other partnerships that better fit its strategy.
Bearish
Dissolving the joint venture with Rockwell could reduce cooperative revenue streams and strategic synergies.
TSLA
Bullish
Tesla's robotics initiatives could spur innovation in automation and create competitive pressure in manufacturing robotics.
Bearish
Rockwell views humanoid robots as overkill for many factory applications, suggesting limited industrial adoption.
People mentioned
Blake Moret