$CARR · CARRIER GLOBAL Corp
Carrier Global reported Q3 2026 results with net sales of $6.263B, up 12% year-over-year, and organic sales growth of 15%. GAAP EPS was ($3.16), dragged by a $3.1B non-cash goodwill impairment in Climate Solutions Europe. Adjusted EPS of $0.87 rose 30% from $0.67 a year ago, while free cash flow reached $674M and backlog hit a record >$8.5B.
- GAAP EPS of ($3.16) includes a $3.1B non-cash goodwill impairment charge tied to the Climate Solutions Europe reporting unit.
- Adjusted EPS of $0.87 beat prior-year $0.67 by 30%, including a ~$0.10 benefit from IEEPA refunds.
- Organic sales grew 15% year-over-year; total orders up ~35%, with data center orders surging ~300%.
- Record backlog exceeded $8.5B, up 60% versus last year, with multi-billion-dollar LTAs adding minimum volume commitments.
- Free cash flow was $674M for the quarter; FY2026 adjusted EPS guidance narrowed to $2.85–$2.90 on ~$24B sales.
Markets closed — no regular-session reaction yet; extended-hours move not captured here.
A $3.1B impairment alongside 30% adjusted EPS growth and a 60% backlog surge creates a stark GAAP-vs-adjusted divergence that demands investor scrutiny of underlying quality.
Carrier's ~300% data center order growth and record $8.5B backlog mirror the HVAC sector's secular tailwind from AI-driven data center buildout, positioning it alongside peers benefiting from cooling infrastructure demand.
The $3.1B goodwill impairment in Climate Solutions Europe signals deteriorating expectations for that unit's future cash flows. Tariffs and rising input costs remain headwinds, partially offsetting volume/price gains.