Otis Q3 FY2026: sales up 6.1%, GAAP EPS $1.08, outlook unchanged
Otis grew third-quarter sales 6.1% to $3.91 billion and held its full-year outlook, but profit quality is uneven: Service margin improved sequentially while New Equipment profit nearly halved year over year. Adjusted EPS of $1.05 was flat and essentially matched the $1.0467 consensus. Read the top line as genuinely strong, and the profit mix beneath it as still under repair.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $1.08 rose 14.0% from $0.95, but the gain came mostly from the absence of prior-year UpLift transformation and separation costs, not from operations. Adjusted EPS was $1.05, flat year over year and barely above the $1.0467 consensus. A higher adjusted tax rate of 25.7% versus 24.5%, plus higher interest and unfavorable FX, offset the benefit of a smaller share count.
Sales rose 6.1% to $3.91 billion from $3.69 billion, and organic growth of 6.0% did all of the work, with no currency or deal help. Service contributed $2.62 billion, up 8.0%, and New Equipment $1.30 billion, up 3.0%. Inside Service, modernization organic sales rose 20.0% while maintenance and repair rose 4.0%.
Management kept full-year net sales at $15.1 to $15.3 billion, adjusted operating profit at roughly $2.4 billion and adjusted EPS at $4.01 to $4.05. The one real change is adjusted free cash flow, now about $1.5 billion versus the prior $1.50 to $1.55 billion range. The $15.2 billion sales midpoint has not moved since the FY26 Q1 guide, so this is a hold, not a raise.
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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 2026-11-03
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