$OTIS · Otis Worldwide Corp
Otis Worldwide reported Q3 2026 results via 8-K: net sales of $3.914B (+6% YoY), GAAP EPS of $1.08 (+14%), and adjusted EPS of $1.05 (flat). Service revenue grew 8% to $2.6B with organic growth of 7%, while New Equipment revenue rose 3% to $1.3B. The company maintained its full-year outlook for sales of $15.1–$15.3B and adjusted EPS of $4.01–$4.05, but narrowed adjusted free cash flow guidance to ~$1.5B from the prior $1.50–$1.55B range.
- Q3 net sales of $3.914B, up 6% YoY; organic sales up 6%
- GAAP EPS of $1.08, up 14% YoY; adjusted EPS of $1.05, flat vs prior year
- Service operating profit margin improved 100 bps sequentially to 24.2%
- New Equipment segment operating profit fell $17M to $42M; margin contracted 150 bps to 3.2%
- Adjusted free cash flow guidance narrowed to ~$1.5B from prior $1.50–$1.55B range
Markets closed — no regular-session reaction yet; extended-hours move not captured here.
Flat adjusted EPS on 6% organic growth reveals margin pressure in New Equipment and China headwinds offsetting strong Service momentum, with free cash flow guidance quietly trimmed.
Otis's Service flywheel strategy continues to offset New Equipment weakness, with modernization orders up 10% and backlog up 20% at constant currency. The sequential Service margin improvement to 24.2% supports the thesis that pricing and cost actions are gaining traction.
China New Equipment orders declined low teens at constant currency, with net sales down over 20% in the region — a persistent drag on the New Equipment segment. Adjusted free cash flow guidance was trimmed to ~$1.5B from $1.50–$1.55B.