Otis Worldwide (NYSE:OTIS) Issues Earnings Results

Otis Worldwide (NYSE:OTIS) announced its earnings results on Wednesday. The company reported $1.05 earnings per share 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 business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm posted $1.05 earnings per share.

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 Stock Down 1.5%

OTIS traded down $1.13 during midday trading on Wednesday, reaching $73.06. The company had a trading volume of 2,988,049 shares, compared to its average volume of 3,919,473. Otis Worldwide has a 1 year low of $63.58 and a 1 year high of $94.57. The company has a market cap of $27.81 billion, a P/E ratio of 18.82, a P/E/G ratio of 2.64 and a beta of 0.87. The business has a 50-day moving average of $69.50 and a two-hundred day moving average of $76.66.

Otis Worldwide News Summary

Here are the key news stories impacting Otis Worldwide this week:

• Positive Sentiment: Third-quarter adjusted earnings were $1.05 per share, exceeding the $1.01 consensus estimate, while revenue increased 6% year over year to approximately $3.9 billion. Otis Worldwide Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The higher-margin Service business remained the main growth engine: service sales rose 8%, organic service sales increased 7%, and service operating margin improved sequentially by 100 basis points to 24.2%. Otis Reports Third Quarter 2026 Results
• Positive Sentiment: Modernization orders increased 10% at constant currency, and backlog rose 20%, supporting future revenue visibility. Otis also returned approximately $1.3 billion to shareholders through buybacks and dividends during the first nine months. Otis Worldwide Third-Quarter and Nine-Month Results
• Neutral Sentiment: Management broadly maintained its full-year 2026 outlook, reducing the risk of an earnings-related guidance cut. Year-to-date sales were up 7%, while adjusted free cash flow reached $834 million. Otis Third-Quarter Net Income and 2026 Outlook
• Negative Sentiment: Adjusted operating profit declined $6 million in the quarter and $41 million year to date, despite revenue growth. New Equipment sales rose only 3%, and China-related weakness continues to weigh on that business. Otis Beats Estimates as Service Growth Offsets China Weakness

Analyst Ratings Changes

Several brokerages recently commented on OTIS. Royal Bank Of Canada set a $90.00 price objective on Otis Worldwide in a report on Tuesday, July 28th. Evercore reissued an “outperform” rating and issued a $95.00 target price on shares of Otis Worldwide in a research report on Thursday, July 23rd. Wells Fargo & Company began coverage on Otis Worldwide in a research note on Thursday, September 24th. They set an “underweight” rating and a $77.00 price target for the company. Sanford C. Bernstein restated an “outperform” rating on shares of Otis Worldwide in a research note on Monday, September 21st. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Otis Worldwide in a research note on Wednesday, August 12th. Four investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $91.00.

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.