Otis Worldwide (NYSE:OTIS) Announces Earnings Results, Beats Estimates By $0.04 EPS

Otis Worldwide (NYSE:OTIS) issued its quarterly earnings results on Wednesday. The company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.04, Zacks reports. During the same period in the previous year, the company posted $1.05 earnings per share. Otis Worldwide’s quarterly revenue was up 6.1% on a year-over-year basis.

Here are the key takeaways from Otis Worldwide’s conference call:

• Organic sales increased 6%, led by 7% service growth and the first increase in new-equipment sales since 2023. Service momentum was supported by 20% modernization sales growth and 9% repair growth.
• Modernization orders rose 10% and backlog grew 20% at constant currency, with strong contributions from all regions and particularly China. Management expects the aging installed base and customer demand to support a multiyear modernization opportunity.
• North American new-equipment orders increased for the ninth consecutive quarter, driving 13% regional sales growth and providing visibility through a 14% backlog increase. Management cited strength in data centers, hospitals, industrial facilities, and other higher-value projects.
• Adjusted operating margin contracted 110 basis points to 16%, while adjusted EPS was flat year over year. New-equipment operating profit declined 22% at constant currency, and China new-equipment sales fell more than 20% amid continued market weakness.
• Otis maintained its 2026 outlook, including $15.1 billion–$15.3 billion in sales, adjusted EPS of $4.01–$4.05, and approximately $1.5 billion of adjusted free cash flow. The company still expects service investments, higher modernization mix, and new-equipment weakness to weigh on profit growth.

Otis Worldwide Trading Down 1.0%

Otis Worldwide stock traded down $0.77 during midday trading on Wednesday, reaching $73.42. 1,889,286 shares of the stock traded hands, compared to its average volume of 3,913,158. Otis Worldwide has a fifty-two week low of $63.58 and a fifty-two week high of $94.57. The firm has a fifty day moving average price of $69.50 and a two-hundred day moving average price of $76.66.

Wall Street Analysts Forecast Growth

OTIS has been the topic of a number of recent research reports. Evercore restated an “outperform” rating and issued a $95.00 price target on shares of Otis Worldwide in a research report on Thursday, July 23rd. Wells Fargo & Company initiated coverage on shares of Otis Worldwide in a research report on Thursday, September 24th. They set an “underweight” rating and a $77.00 price objective for the company. Royal Bank Of Canada set a $90.00 price objective on shares of Otis Worldwide in a research note on Tuesday, July 28th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Otis Worldwide in a research note on Monday, September 21st. Finally, Morgan Stanley set a $75.00 target price on shares of Otis Worldwide in a report on Monday, August 10th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $91.00.

About Otis Worldwide

Otis Worldwide Corporation (NYSE: OTIS) is a global manufacturer and service provider for the elevator and escalator industry. The company designs, manufactures, installs, modernizes and maintains elevators, escalators and moving walkways for commercial buildings, residential developments, transportation hubs and other infrastructure projects.

Otis provides equipment for new construction as well as maintenance, repair and modernization services for existing systems. Its service operations support equipment from Otis and other manufacturers, helping building owners and operators manage the safety, performance and lifecycle of vertical transportation systems.

The company traces its history to 1853, when Elisha Otis demonstrated a safety device for elevators.