Johnson Controls reported first-quarter 2026 adjusted earnings per share of $1.06, topping consensus by $0.08 and representing a 12% increase year over year. Revenue rose 7% to $6.2 billion, driven by double-digit growth in Asia Pacific and solid mid-single-digit gains in North America and Europe. Gross margin expanded by 110 basis points to 28.4%, reflecting favorable product mix in building automation and security solutions. Selling, general and administrative expenses declined by $45 million versus the prior year period, contributing an additional 60 basis points of margin expansion. Free cash flow improved by 18% to $650 million, supported by disciplined working-capital management and lower restructuring outlays.

To bolster its data center portfolio, Johnson Controls unveiled the YORK YDAM air-cooled magnetic bearing chiller, offering up to 3.5 MW of cooling capacity in a footprint that is 20% more compact than competing units. The chiller’s magnetic bearing technology enables warm-water setpoints up to 45°C, catering to the latest generation of AI and high-performance computing racks while reducing pump energy by an estimated 15%. Shipments are slated to begin in late 2026, with pilot installations demonstrating the potential to cut on-site chiller counts by half and lower total installed cost by over 10%. The product underscores the company’s strategy to capitalize on accelerating demand for sustainable, high-density thermal solutions.