Carrier Q2 FY2026: sales up 4%, EPS beat, full-year outlook raised
Carrier beat on adjusted EPS and raised its full-year outlook, but the profit engine is getting less efficient: sales rose 4.0% while adjusted operating margin fell to 17.2% from 19.1%. Orders up about 40% and data-center demand up more than 300% are the reason to keep reading. The quarter is a demand story with a margin problem, and both show up in the numbers below.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $0.60 fell 14% year over year and adjusted EPS of $0.86 fell 7%, yet adjusted EPS beat the $0.8303 consensus estimate by about $0.03. The gap between the two figures is largely $213 million of acquired-intangible amortization plus $8 million of restructuring costs and a $46 million Riello impairment. Higher input costs, unfavorable mix and a higher tax rate explain the decline, and management notes a lower share count partly offset it.
Revenue came in at $6.35 billion, up 4.0% from $6.11 billion a year earlier, with organic sales up 3.0% and currency adding about 1.0%. Service revenue was $717 million against $5.63 billion of product sales, so this is still overwhelmingly an equipment business. Growth was uneven: CSA organic sales rose 4.0% and Climate Solutions Transportation organic sales were flat.
Carrier raised full-year sales guidance to about $23 billion from about $22 billion, adjusted operating profit to about $3.5 billion from about $3.4 billion, and adjusted EPS to about $2.90 from about $2.80. The new sales number carries roughly $225 million of headwind from the Riello exit and $125 million from the NORESCO exit, so the underlying raise is bigger than the headline. The adjusted EPS target also absorbs about $0.05 of NORESCO exit and new U.S. factory costs.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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