$CARR · CARRIER GLOBAL Corp
Carrier Global reported Q3 2026 results with revenue of $6.263B (+12.3% YoY) and a GAAP net loss of $(2.593B) attributable to common shareowners, or $(3.16) per share. The loss was driven by a $3.1B non-cash goodwill impairment charge in the Climate Solutions Europe reporting unit. Excluding the impairment, organic sales grew 15% and gross margin expanded to 26.9% from 26.0% a year ago.
- Q3 2026 GAAP EPS was $(3.16) vs. $0.50 in Q3 2025, driven by a $3.1B goodwill impairment charge.
- Revenue rose 12.3% YoY to $6.263B, with organic sales growth of 15% led by Climate Solutions Americas.
- Operating margin swung to -36.3% from a prior-year profit; gross margin expanded 220 bps to 26.9%.
- The company repurchased $1.144B of common stock in the first nine months of 2026, reducing shares outstanding.
- Completed the sale of Riello on July 1, 2026 for $438M cash proceeds, recognizing a $48M gross loss.
CARR shares fell 2.26% to $54.77 in the regular session following the filing. The $3.1B goodwill impairment and net loss of $(3.16) per share overshadowed the 12% revenue growth and 15% organic sales increase.
A $3.1B impairment at a $45B market-cap industrial signals the Viessmann acquisition is underperforming expectations, with further downside risk flagged in sensitivity disclosures.
The $3.1B goodwill impairment in Climate Solutions Europe echoes post-acquisition writedowns seen across HVAC peers who paid premium multiples for European assets during the 2023-2024 M&A wave.
The Climate Solutions Europe reporting unit is sensitive to discount rate and operating projections: a 50 bps increase in the discount rate would reduce fair value by ~$630M, and a 1% decline in long-term growth rate would reduce fair value by ~$750M, signaling potential for further goodwill impairment.