Johnson Controls International (JCI) Q2 2026 earnings summary

Executive summary

• Q2 sales rose 8% to $6.14B, with organic sales up 6% year-over-year, driven by strong demand in data centers and advanced manufacturing, especially in the Americas.

• Orders increased 30% year-over-year, with backlog up 26% to a record $20B, supporting future revenue visibility.

• Adjusted EPS grew 45% year-over-year to $1.19, exceeding guidance; GAAP EPS was $0.99.

• Business system initiatives engaged over 1,400 colleagues, driving operational improvements and scaling best practices.

• Continued innovation in proprietary chiller subsystems and digital platforms enabled high-performance, energy-efficient solutions for mission-critical environments.

Financial highlights

• Q2 net sales reached $6.14B, up 8% year-over-year; gross profit was $2.26B with a 36.8% margin.

• Adjusted EBIT margin expanded to 15.5%, up 310 basis points year-over-year.

• Adjusted net income attributable to shareholders was $734M; adjusted free cash flow for Q2 was $526M.

• Diluted EPS from continuing operations was $0.99; adjusted EPS was $1.19, up 45% year-over-year.

• Cash provided by operating activities for six months was $1.28B, up from $799M year-over-year.

Outlook and guidance

• Full-year FY26 organic sales growth guidance raised to ~6%; adjusted EPS outlook increased to ~$4.85 (up ~30% year-over-year).

• Q3 guidance: organic sales growth ~6%, operating leverage ~45–50%, adjusted EPS ~$1.28.

• Adjusted free cash flow conversion expected at ~100% for the year.

• Restructuring plan targets $400M in one-time costs and $500M in annual cost savings by fiscal 2027.

• Full-year adjusted corporate expense projected at ~$390M, amortization expense at ~$345M, and tax rate at ~17%.