Carrier Global (NYSE:CARR) Releases Earnings Results, Beats Expectations By $0.11 EPS

Carrier Global (NYSE:CARR) posted its quarterly earnings data on Thursday. The company reported $0.87 EPS for the quarter, topping the consensus estimate of $0.76 by $0.11, FiscalAI reports. Carrier Global had a return on equity of 14.68% and a net margin of 5.52%. The firm had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.09 billion. During the same period in the prior year, the business posted $0.67 EPS. Carrier Global’s revenue was up 12.3% on a year-over-year basis.

Here are the key takeaways from Carrier Global’s conference call:

• Strong Q3 execution: Organic sales grew 15%, adjusted operating profit rose about 35%, margins expanded 260 basis points, and adjusted EPS increased 30%, helped partly by $130 million of IEEPA refunds. Year-to-date free cash flow reached approximately $1.5 billion.
• Data center momentum remains exceptional. Global data center orders rose 300% in Q3, year-to-date orders exceeded $3 billion, and the company reported more than $8.5 billion of backlog; a newly signed hyperscaler agreement exceeds $3 billion and includes a significant minimum-volume commitment.
• Growth is broadening beyond data centers, with non-data-center commercial orders up 20%, CSA residential sales up more than 30%, European residential and light-commercial sales up 13%, and aftermarket revenue up 9%. Carrier expects its commercial HVAC and aftermarket businesses to be roughly twice their size at the 2020 spin-off by year-end.
• Input-cost and pricing pressures are weighing on profitability. Tariffs, commodities, and supply-chain inefficiencies are expected to create $550 million-$600 million of incremental 2026 headwinds, while CSA’s full-year operating-margin outlook was reduced to about 19%; management said it does not expect a first- or second-quarter 2027 margin snapback.
• Carrier raised its 2026 sales outlook to nearly $24 billion and expects roughly 10% organic growth, while maintaining adjusted EPS guidance of $2.85-$2.90 and reiterating its free-cash-flow outlook. Management is not issuing formal 2027 guidance yet but expects to enter the year with record backlog and is targeting another year of double-digit EPS growth.

Carrier Global Stock Down 1.5%

Shares of CARR opened at $55.43 on Friday. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.02 and a quick ratio of 0.72. The stock has a market capitalization of $45.69 billion, a price-to-earnings ratio of 38.49, a price-to-earnings-growth ratio of 1.92 and a beta of 1.29. Carrier Global has a 1 year low of $50.24 and a 1 year high of $76.76. The business’s 50 day simple moving average is $56.50 and its 200-day simple moving average is $61.72.

Carrier Global Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th. Stockholders of record on Thursday, October 29th will be issued a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, October 29th. Carrier Global’s dividend payout ratio is 66.67%.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Sanford C. Bernstein decreased their price objective on Carrier Global from $78.00 to $64.00 and set a “market perform” rating on the stock in a research note on Wednesday, October 7th. Royal Bank Of Canada reduced their target price on shares of Carrier Global from $82.00 to $72.00 and set an “outperform” rating for the company in a report on Wednesday, October 14th. Mizuho lowered their target price on shares of Carrier Global from $75.00 to $70.00 and set an “outperform” rating on the stock in a research note on Thursday, October 15th. The Goldman Sachs Group downgraded Carrier Global from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $74.00 to $61.00 in a research note on Wednesday, October 14th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Carrier Global from $71.00 to $64.00 and set a “hold” rating for the company in a report on Wednesday, September 30th. Eleven equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $70.43.

Key Headlines Impacting Carrier Global

Here are the key news stories impacting Carrier Global this week:

• Positive Sentiment: Carrier reported third-quarter adjusted EPS of $0.87, above the $0.76 consensus estimate, while revenue rose 12% year over year to $6.26 billion, exceeding expectations of $6.09 billion. Carrier Reports Third Quarter 2026 Results
• Positive Sentiment: Demand trends were especially strong: total orders increased about 35%, commercial HVAC orders climbed approximately 60%, and data-center orders surged roughly 300%. Carrier also reported a record backlog exceeding $8.5 billion and signed multibillion-dollar long-term agreements with minimum volume commitments. Carrier Q3 2026 Earnings Call Highlights
• Positive Sentiment: Management raised its 2026 sales outlook, supported by HVAC demand, the backlog and tariff refunds. Operating cash flow was $813 million, free cash flow was $674 million, and the company returned approximately $600 million to shareholders through dividends and repurchases. Carrier Q3 Earnings and Sales Beat
• Neutral Sentiment: Carrier announced a more than $600 million expansion, which could increase capacity for data-center and HVAC growth but may also require substantial near-term investment. Carrier Announces Expansion
• Negative Sentiment: GAAP EPS was a loss of $3.16, primarily reflecting a goodwill impairment charge. Although noncash, the charge can weigh on sentiment and highlights execution or asset-value concerns. Carrier Goodwill Impairment Charge
• Negative Sentiment: Unusually heavy put-option activity—18,275 contracts, about 189% above average—signals increased near-term hedging or bearish speculation. CARR also trades at a relatively high trailing P/E, while tariff and other cost pressures remain risks.

About Carrier Global

Carrier Global Corporation (NYSE:CARR) is a global provider of intelligent climate and energy solutions. The company develops and manufactures heating, ventilation and air-conditioning (HVAC) systems, refrigeration equipment, building automation technologies and related controls and services for residential, commercial and industrial customers.

Its offerings include air conditioners, heat pumps, furnaces, boilers, chillers, ventilation systems, refrigeration systems and building management solutions.