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Barclays notes that Emerson Electric (NYSE:EMR) and Rockwell Automation (NYSE:ROK) are well-positioned against AI disruption due to their competitive advantages in software. Emerson's software business has a $1.6 billion annual contract value and features three key protections: industry-specific software, critical applications in regulated sectors, and non-user-based pricing.

It reported a 9% annual growth in contract value for Q1 and anticipates over 10% growth by 2026. Rockwell stated that its recurring software revenue accounts for less than 10% of total sales, with limited AI applications due to hardware integration.

Rockwell reported impressive Q1 results for fiscal 2026, with earnings per share of $2.75, exceeding expectations. Goldman Sachs raised Rockwell's price target to $458, citing conservative guidance.