The EPS beat and data center order surge are positive, but YoY declines in adjusted EPS, operating profit, and free cash flow are concerning. The reaffirmed guidance provides stability. Watch for the Riello divestiture close and any updates on residential market recovery in the next quarter.
Price Chart
Executive Summary
Carrier reported Q1 2026 adjusted EPS of $0.57, beating consensus of $0.51 by 12.1%, on revenue of $5.34B vs $5.01B consensus. However, GAAP EPS fell 40% YoY to $0.28, adjusted EPS fell 12% YoY, and free cash flow was negative $15M. The company reaffirmed full-year 2026 guidance for adjusted EPS of $2.80 and sales of $22B, with data center orders surging over 500% and total company orders up 11%.
Key Financial Metrics
Key Facts
- Q1 2026 adjusted EPS $0.57 vs consensus $0.51 (12.1% beat)
- Q1 2026 revenue $5.34B vs consensus $5.01B (6.6% beat)
- GAAP EPS $0.28, down 40% YoY; adjusted EPS $0.57, down 12% YoY
- Organic sales declined 1% YoY; total sales up 2% on FX tailwind
- Free cash flow negative $15M vs positive $420M in prior year quarter
- Data center orders up over 500%; total company orders up 11%
- Full-year 2026 guidance reaffirmed: adjusted EPS $2.80, sales $22B, FCF $2B
- Riello divestiture now expected to close by end of Q2 2026 (vs prior Q1 assumption)
Financial Impact
Adjusted EPS beat consensus by $0.06 (12.1%), revenue beat by $330M (6.6%)
Risk Factors
- Continued weakness in CSA Residential (down ~12%) and China RLC
- Negative free cash flow of $15M vs $420M last year
- Riello divestiture timing uncertainty (now Q2 vs prior Q1 close)
- Tariff and trade policy impacts on global operations
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001783180-26-000023 |
| Document: carr-20260430.htm | 0001783180-26-000023 |
| Document: 0001783180-26-000023-index-headers.html | 0001783180-26-000023 |
| Document: 0001783180-26-000023-index.html | 0001783180-26-000023 |
| Document: 0001783180-26-000023.txt | 0001783180-26-000023 |
| 8-K Data (Synthetic) | 0001783180-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 30, 2026 9w ago | Press Release | $61.39 $58.84 | ▲ +4.15% | ▲ +8.12% | $55.31 (+9.91%) |
Jul 28, 2026 9w ago | S-3ASR | $59.92 $58.74 | ▼ −1.97% | ▼ −6.99% | $55.31 (−7.70%) |
Jul 28, 2026 9w ago | 8-K | $63.16 $58.52 | ▼ −7.35% | ▼ −10.73% | $55.31 (−12.44%) |
Jul 27, 2026 9w ago | Press Release | $69.33 $59.97 | ▼ −13.50% | ▼ −16.80% | $55.31 (−20.23%) |
Apr 30, 2026 22w ago | 8-K | $66.97 $63.85 | ▼ −4.66% | ▼ −9.88% | $55.31 (−17.41%) |
Mar 3, 2026 30w ago | DEFA14A | $61.16 $56.28 | ▼ −7.98% | ▼ −3.58% | $55.31 (−9.57%) |
Feb 28, 2026 30w ago | Institutional Cluster | $63.83 $54.35 | ▼ −14.85% | ▼ −6.91% | $55.31 (−13.35%) |
US Market Status
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