Otis Worldwide (NYSE:OTIS – Get Free Report) posted its earnings results on Wednesday. The company reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.04, Zacks reports. Otis Worldwide had a net margin of 10.17% and a negative return on equity of 28.50%. The firm had revenue of $3.91 billion during the quarter, compared to analyst estimates of $3.85 billion. During the same period in the previous year, the business posted $1.05 EPS. Otis Worldwide’s revenue was up 6.1% on a year-over-year basis.
Here are the key takeaways from Otis Worldwide’s conference call:
- Organic sales increased 6%, led by 7% service growth and the first increase in new-equipment sales since 2023. Service momentum was supported by 20% modernization sales growth and 9% repair growth.
- Modernization orders rose 10% and backlog grew 20% at constant currency, with strong contributions from all regions and particularly China. Management expects the aging installed base and customer demand to support a multiyear modernization opportunity.
- North American new-equipment orders increased for the ninth consecutive quarter, driving 13% regional sales growth and providing visibility through a 14% backlog increase. Management cited strength in data centers, hospitals, industrial facilities, and other higher-value projects.
- Adjusted operating margin contracted 110 basis points to 16%, while adjusted EPS was flat year over year. New-equipment operating profit declined 22% at constant currency, and China new-equipment sales fell more than 20% amid continued market weakness.
- Otis maintained its 2026 outlook, including $15.1 billion–$15.3 billion in sales, adjusted EPS of $4.01–$4.05, and approximately $1.5 billion of adjusted free cash flow. The company still expects service investments, higher modernization mix, and new-equipment weakness to weigh on profit growth.
Otis Worldwide Trading Up 1.2%
OTIS stock traded up $0.88 during mid-day trading on Thursday, reaching $73.75. 1,496,593 shares of the stock traded hands, compared to its average volume of 3,924,018. Otis Worldwide has a 52-week low of $63.58 and a 52-week high of $94.57. The stock’s fifty day moving average is $69.55 and its 200-day moving average is $76.58. The company has a market cap of $28.07 billion, a P/E ratio of 18.99, a P/E/G ratio of 2.64 and a beta of 0.87.
Analyst Upgrades and Downgrades
OTIS has been the subject of several analyst reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of Otis Worldwide in a research report on Wednesday, August 12th. Morgan Stanley set a $75.00 target price on Otis Worldwide in a research report on Monday, August 10th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $94.00 target price on shares of Otis Worldwide in a research note on Thursday. Wells Fargo & Company reduced their price target on Otis Worldwide from $77.00 to $75.00 and set an “underweight” rating for the company in a research report on Thursday. Finally, Evercore reissued an “outperform” rating and issued a $95.00 price target on shares of Otis Worldwide in a research note on Thursday, July 23rd. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $91.20.
View Our Latest Report on OTIS
Otis Worldwide News Summary
Here are the key news stories impacting Otis Worldwide this week:
- Positive Sentiment: Third-quarter results exceeded expectations. Otis reported adjusted EPS of $1.05 versus the $1.01 analyst consensus and revenue of approximately $3.9 billion versus expectations of $3.85 billion. Revenue increased 6% year over year. Otis Worldwide third-quarter earnings report
- Positive Sentiment: Service and modernization demand remained strong. Service sales rose 8%, with organic growth of 7%, while modernization orders increased 10% at constant currency and backlog grew 20%. Service operating margin improved sequentially by 100 basis points to 24.2%. Otis reports third-quarter 2026 results
- Positive Sentiment: Shareholder returns and cash generation support the investment case. Otis generated $337 million in third-quarter operating cash flow and returned approximately $1.3 billion to shareholders through share repurchases and dividends year to date.
- Neutral Sentiment: Management broadly maintained its full-year 2026 outlook. The unchanged guidance reduces the risk of a major estimate reset, although it also provides limited upside surprise following the earnings beat. Otis third-quarter outlook
- Negative Sentiment: Profitability remains a concern. Adjusted operating profit declined $6 million despite higher sales, as New Equipment margins contracted. Coverage also highlighted weakness in China, creating a margin and growth overhang beneath the headline revenue growth. Otis Q3 earnings margin analysis
- Negative Sentiment: Wells Fargo reduced its price target from $77 to $75 and assigned an “underweight” rating. The revision signals limited upside and may restrain the stock’s reaction to the earnings beat. Wells Fargo Otis rating update
Otis Worldwide Company Profile
Otis Worldwide Corporation (NYSE: OTIS) is a global manufacturer and service provider for the elevator and escalator industry. The company designs, manufactures, installs, modernizes and maintains elevators, escalators and moving walkways for commercial buildings, residential developments, transportation hubs and other infrastructure projects.
Otis provides equipment for new construction as well as maintenance, repair and modernization services for existing systems. Its service operations support equipment from Otis and other manufacturers, helping building owners and operators manage the safety, performance and lifecycle of vertical transportation systems.
The company traces its history to 1853, when Elisha Otis demonstrated a safety device for elevators.
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