Industrial automation company Rockwell (ROK) has joined Project Glasswing, Anthropic’s initiative focused on using advanced artificial intelligence (AI) to improve cybersecurity across critical infrastructure. For Rockwell, this is especially relevant because its systems sit inside factories, warehouses, semiconductor plants, and other industrial operations.
The timing also matters. ROK stock has already had a strong run this year, while its latest results showed solid demand and expanding margins. But shares have pulled back from their June 52-week high of $497.36. That leaves investors asking whether Project Glasswing can become another growth driver or simply adds another layer to Rockwell’s long-term technology story.
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The answer likely depends on execution. Project Glasswing does not immediately change Rockwell’s revenue outlook, but it could strengthen the company’s cybersecurity offering as connected factories face more digital threats.
ROK Stock Has Had a Strong Run
Rockwell shares are up roughly 19% over the past year.
Strong earnings have been a major catalyst. Rockwell’s second-quarter report showed sales rising 12% and adjusted EPS climbing 32% year-over-year (YOY), helping push shares higher. The company also authorized a new $1 billion share repurchase program in June. More recently, investors have taken profits as industrial stocks have cooled and concerns about the pace of AI spending has weighed on markets.
www.barchart.com Project Glasswing Gives Rockwell an AI Cybersecurity Angle
This is where the latest headline becomes interesting.
Rockwell’s participation in Project Glasswing allows it to apply Anthropic’s advanced AI capabilities in a controlled defensive setting to help identify and address software vulnerabilities faster. Rockwell says the effort should support more resilient products and stronger security across connected industrial systems.
That could matter as factories become more connected. A cyberattack on an industrial control system can create operational problems, not just data-security issues. Rockwell already has cybersecurity services, so Glasswing fits naturally with an existing business rather than creating an entirely new one.
The company is also expanding AI-enabled support. In August, Rockwell launched TechConnectIQ, which uses tools such as AI search, augmented-reality guidance, and digital resources to help manufacturers resolve problems faster.
Latest Quarter Shows Why the AI Story Has Some Support
Rockwell’s latest quarter was Q3 fiscal 2026, reported on Aug. 4. Sales reached $2.31 billion, up 8% YOY, while organic sales increased 10% YOY. Software and Control was the standout segment with revenue jumping 19% YOY to $751 million. Intelligent Devices revenue rose 12% to $1.08 billion, while Lifecycle Services revenue fell 12% to $482 million, partly because of divestitures.
Net income rose to $408 million from $295 million a year earlier. Adjusted EPS climbed 22% to $3.49 from $2.85. Free cash flow reached $654 million in Q3 2026, up from $489 million in Q3 2025, while cash and cash equivalents stood at $479 million.
CEO Blake Moret said the quarter reflected healthy customer demand, particularly in semiconductors, data centers, and warehouse automation. Moret also pointed to improving automotive and life sciences activity.
Rockwell raised its fiscal 2026 outlook. The company now expects both reported and organic sales growth of 7.5% to 9.5% and adjusted EPS of $13 to $13.30. Wall Street currently expects about $13.24 in fiscal 2026 EPS, with revenue expectations centered around the company’s roughly $9 billion sales outlook.
Analysts See More Upside, But Expectations Are Already High
Wall Street’s latest targets offer a wide range of opinions. Morgan Stanley recently maintained a “Buy” rating and raised its target to $545 from $525. Citi also has a “Buy” rating on ROK stock with a $536 price target. Meanwhile, Bernstein has a “Hold” rating on Rockwell with a $514 target, while DA Davidson has a “Hold” rating with a $490 target. These views suggest analysts see continued growth, but they differ on how much of that growth is already reflected in the stock.
Overall, ROK stock has a consensus "Moderate Buy" rating from 25 analysts with coverage. The average price target of $485.22 implies potential upside of about 18% from current levels.
For investors, Project Glasswing adds an interesting layer to an already strong automation story. The bigger test will be whether Rockwell can turn AI, cybersecurity, and factory digitization into sustained revenue and profit growth.
www.barchart.com On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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