Otis Worldwide (OTIS) Q1 2026 earnings summary

Executive summary

• Net sales grew 6% year-over-year to $3.6 billion in Q1 2026, driven by 11% Service sales growth and favorable foreign currency, while New Equipment sales declined, and repair sales rose 16%.

• Organic sales increased 1%, with Service up 5% and Modernization orders up 11%; backlog rose 30% at constant currency.

• Adjusted free cash flow reached $272 million, up 46% year-over-year; operating cash flow was $413 million.

• Net income attributable to shareholders increased 40% to $340 million; GAAP EPS rose 43% to $0.87, while adjusted EPS declined 3% to $0.89.

• $400 million in share repurchases completed; majority investment in WeMaintain to enhance digital and AI-enabled service capabilities.

Financial highlights

• Net sales were $3.6 billion, with organic sales up 1% year-over-year.

• Adjusted operating profit was $550 million, down $10 million year-over-year; margin declined 130 bps to 15.4%.

• Service segment operating profit rose $19 million to $556 million, margin contracted 160 bps to 23.0%.

• New Equipment segment operating profit fell $28 million to $38 million, margin contracted 240 bps to 3.3%.

• Adjusted EPS was $0.89, down from $0.92 in Q1 2025.

Outlook and guidance

• 2026 net sales expected at $15.1–$15.3 billion, with low- to mid-single-digit organic growth.

• Adjusted operating profit forecasted at ~$2.5 billion, up $20–$60 million at constant currency.

• Adjusted EPS guided to $4.20–$4.24, a mid-single-digit increase over 2025.

• Adjusted free cash flow expected at $1.6–$1.65 billion; $800 million in share repurchases targeted for the year.

• Service organic sales growth anticipated at mid- to high-single digits; repair and modernization to drive sequential acceleration.