Otis Worldwide (OTIS) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 6% to $3.914B, with organic sales up 6%; Service grew 7% and Modernization 20%.

• Adjusted EPS was flat at $1.05; adjusted operating margin fell 110 bps to 16.0%, while Service margin improved 100 bps sequentially to 24.2%.

• New Equipment returned to organic growth, but profit and margin declined amid a greater than 20% sales drop in China.

Financial highlights

• Q3 GAAP operating profit was $620M; adjusted operating profit was $626M, down $6M reported and $3M at constant currency.

• Q3 GAAP net income was $426M, including $414M attributable to common shareholders; diluted EPS was $1.08 and adjusted EPS was $1.05.

• Nine-month sales rose 7% to $11.339B; GAAP operating profit was $1.734B and adjusted operating profit was $1.763B.

• Nine-month diluted EPS was $3.07 and adjusted EPS was $2.96; operating cash flow was $1.017B and adjusted free cash flow was $834M.

• Q3 adjusted free cash flow was $272M; Q3 adjusted EPS was flat as share-count and minority-interest benefits were offset by tax, interest and FX headwinds.

Outlook and guidance

• FY26 net sales guidance remained $15.1B–$15.3B, with organic growth in the low- to mid-single digits; Service is expected up mid- to high-single digits and New Equipment down low-single digits to flat.

• Adjusted operating profit outlook is down $30M to flat at actual currency and down $45M to $15M at constant currency; adjusted EPS is $4.01–$4.05.

• Adjusted free cash flow outlook is $1.5B; capital expenditures are expected near $160M.

• Modernization markets are expected to grow at a double-digit rate on a dollar basis; global New Equipment markets are expected to stabilize as China declines moderate.