Otis Guides 2026 Sales of $15–15.3B, Sees Service Sales Up Mid-High Single Digits
Otis Worldwide shares have climbed 4.9% since its Q4 2025 report, which delivered adjusted EPS of $1.03 in line with estimates and net sales of $3.8 billion, a 2.7% shortfall. The company guided 2026 net sales of $15–15.3 billion for 4.2%–6.3% growth and projected mid-to-high single-digit adjusted EPS expansion.
1. Q4 2025 Results
Otis delivered adjusted EPS of $1.03, matching consensus and up 10.8% year over year, while net sales reached $3.8 billion, up 3.3% but missing estimates by 2.7%. Adjusted operating margin expanded 70 basis points to 16.6%.
2. Segment Highlights
Service net sales rose 8% to $2.5 billion driven by 5% organic growth and a 3% foreign exchange tailwind, with modernization backlog up 30%. New Equipment sales fell 5% to $1.29 billion, though backlog increased 6% amid regional mix shifts.
3. 2026 Financial Guidance
The company projects net sales of $15 billion to $15.3 billion for 4.2%–6.3% growth, adjusted operating profit of $2.5 billion to $2.6 billion, free cash flow of $1.6 billion to $1.7 billion, and adjusted EPS growth in the mid-to-high single-digit range.
4. Share Performance and Estimate Trends
Shares have gained 4.9% since the Q4 release. Analyst estimates have trended downward over the past month, contributing to an aggregate VGM score of C with a Growth grade of A and Momentum grade of F.