Otis Worldwide Corporation (OTIS) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Oct 28, 2026, before the open.

Consensus is $1.00 EPS for Sep 2026 across 4 estimates, ranging $0.98 to $1.02.

OTIS Jun 2026

Reported Jul 22, 2026

: 1.00%
: +0.51%

: $1.00
: $1.01
: —
: $3.86B

Reported results

: $3.86B; from $3.60B
: $575.00M; from $547.00M
: 14.90%; from 15.22%
: $428.00M; from $393.00M
: $1.12; from $0.99

Highlights

Service momentum: Organic Service sales rose 9% to $2.58 billion, matching Otis’s highest growth rate since its spin; modernization grew 24% and maintenance and repair 6%.
New Equipment divergence: Sales were flat at $1.28 billion, with organic sales down 1%; orders fell 5% at constant currency, while backlog grew 4%.
EPS split: Adjusted EPS was $1.01, down 4% year over year but 1% above the $1 consensus; GAAP diluted EPS was $1.12, up 13%.
Profitability pressure: Adjusted operating profit fell $25 million to $587 million and adjusted margin contracted 180 basis points to 15.2%, as New Equipment weakness and corporate adjustments outweighed Service growth.
Backlog visibility: Modernization backlog increased 24% at actual currency and 26% at constant currency; New Equipment backlog grew 3% and 4%, respectively.
Outlook: Otis expects 2026 sales of $15.1–$15.3 billion, adjusted EPS of $4.01–$4.05 and adjusted free cash flow of $1.50–$1.55 billion.
Cash returns: Second-quarter operating cash flow was $267 million and adjusted free cash flow $290 million; repurchases were approximately $400 million. First-half repurchases totaled approximately $800 million.

Analysis

Otis reported a service-led quarter: revenue of $3.86 billion increased 7% year over year, with organic growth of 6%, while adjusted EPS of $1.01 was 4% lower than a year ago and 1% above the supplied $1 consensus. GAAP diluted EPS was $1.12, up 13%, helped by the absence of prior-year UpLift transformation, separation-related and other non-recurring costs. Sequentially, revenue rose from $3.57 billion in Q1 and GAAP diluted EPS from $0.87; GAAP operating profit increased from $539 million to $575 million, though adjusted operating profit declined from $550 million in Q1 to $587 million in Q2? [sic].

Service provided the clearest positive: organic sales grew 9%, with modernization up 24% and maintenance and repair up 6%. New Equipment remained weak, especially in China, with organic sales down 1% and orders down 5% at constant currency. The growth mix did not translate into adjusted profit growth: adjusted operating profit declined $25 million year over year, and adjusted margin fell 180 basis points to 15.2%, reflecting New Equipment, cost pressures and investment in Service initiatives. Otis revised its full-year outlook to $15.1–$15.3 billion in sales and $4.01–$4.05 adjusted EPS, while emphasizing continued mid- to high-single-digit Service growth expectations.

Service growth

Service sales reached $2.58 billion, up 11% reported and 9% organically, with contributions across all lines. Modernization was the standout, supported by sustained demand and investment in service quality and pricing capabilities. Maintenance and repair growth also continued, while the company cited an aging installed base and customer focus on reliability and uptime as demand drivers.

Modernization: Organic sales increased 24%; backlog rose 24% at actual currency and 26% at constant currency.
Maintenance and repair: Organic sales grew 6%.
Service profit: Segment operating profit increased $21 million to $599 million, or $16 million at constant currency, as volume and pricing more than offset labor, materials and mix headwinds. Margin nevertheless contracted 170 basis points to 23.2%.

New Equipment weakness

New Equipment sales of $1.28 billion were flat year over year, with organic sales down 1%—a sequential improvement in the organic trend, but still a drag on the consolidated result. Regional growth in the Americas was offset by declines in China and EMEA. Orders were down 5% at constant currency, although backlog remained 4% higher at constant currency, providing some forward visibility.

Regional demand: The Americas delivered approximately 10% organic sales growth and low-single-digit order growth; China sales fell at a high-teens rate and orders declined at a high-teens rate. EMEA sales declined mid-single digits.
Segment economics: Operating profit fell $28 million to $40 million, or $30 million at constant currency, primarily due to lower volume, unfavorable price and mix. Margin contracted 220 basis points to 3.1%.

Earnings and margins

GAAP operating profit increased $28 million to $575 million, but the comparison benefited from the absence of $25 million of UpLift restructuring, $18 million of transformation costs and $9 million of separation-related adjustments recorded in the year-ago quarter. On the adjusted basis, profit fell $25 million to $587 million, or $32 million at constant currency. Service growth was more than offset by lower New Equipment profit and other corporate adjustments; ongoing Service investment also weighed on margins.

Margins: GAAP operating margin declined 30 basis points to 14.9%; adjusted operating margin fell 180 basis points to 15.2%.
Per-share result: GAAP EPS rose from $0.99 to $1.12, while adjusted EPS declined from $1.05 to $1.01. Higher interest and tax rates and operating performance weighed on adjusted EPS; favorable currency, lower share count and lower noncontrolling interest partly offset the pressure.
First half: Revenue was $7.43 billion, up 7% reported and 4% organically. GAAP operating profit rose $156 million to $1.11 billion, while adjusted operating profit declined $35 million to $1.14 billion; adjusted EPS was $1.90 versus $1.97.

Full-year outlook

The revised outlook reflects continued Service growth alongside a subdued New Equipment market. Otis expects organic Service sales to rise mid- to high-single digits, while organic New Equipment sales are expected to decline low-single digits to flat. The company described its approach to the second half as measured and cited modernization and New Equipment backlogs as sources of visibility.

Sales: $15.1–$15.3 billion, with organic sales growth in the low- to mid-single digits.
Profit and EPS: Adjusted operating profit of approximately $2.4 billion, down $15–$45 million at constant currency or down $30 million to flat at actual currency; adjusted EPS of $4.01–$4.05.
Cash flow: Adjusted free cash flow guidance is $1.50–$1.55 billion.

Cash and capital returns

Operating cash flow was $267 million, compared with $215 million a year earlier, and adjusted free cash flow was $290 million versus $243 million. Otis attributed the year-over-year cash-flow change primarily to higher net income and working-capital movements. First-half operating cash flow reached $680 million and adjusted free cash flow $562 million.

Shareholder returns: Otis repurchased approximately $400 million of stock in Q2 and $800 million in the first half; dividends paid in the first half were $330 million.
Service investment: The company spent $170 million in April to acquire majority ownership of a French elevator maintenance, repair, modernization and digital-services provider, funded with cash and commercial paper borrowings.

Otis Worldwide Corporation

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