Otis Q2 2026: Service sales up 11%, New Equipment profit collapses
Otis beat on revenue and GAAP EPS but missed on adjusted EPS, so this quarter reads Neutral: Service grew 11.0% while New Equipment profit collapsed to $40 million. Read the scorecard as two businesses — a high-margin Service annuity carrying an equipment arm that is barely profitable right now. The adjusted numbers, not the GAAP jump, tell you what actually changed in the underlying business.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $1.12 rose 13.0% year over year, but adjusted EPS of $1.01 fell 4.0% and landed about $0.02 below the $1.0317 consensus. The gap is the story: last year carried UpLift transformation costs, separation-related adjustments and other non-recurring items that did not repeat. Adjusted EPS also absorbed higher interest and a higher adjusted tax rate, partly offset by foreign exchange, a lower share count and lower noncontrolling interest.
Second quarter net sales of $3.859 billion rose 7.0% from $3.595 billion a year ago, with 6.0% of that organic. Service did the work at $2.580 billion, up 11.0%, while New Equipment of $1.279 billion was flat on the surface and down 1.0% organically. Gross margin came in at 29.4%.
Otis kept the full-year sales midpoint at $15.2 billion, guiding to $15.1 to $15.3 billion, and set adjusted EPS of $4.01 to $4.05. Adjusted operating profit is targeted at approximately $2.4 billion, down $30 million to flat at actual currency, with adjusted free cash flow of $1.50 to $1.55 billion. In short, the sales guide is steady while the profit guide leans heavily on the second half.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
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
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.