The record $8.5B backlog, 35% order growth and raised sales guidance point to sustained momentum into 2027, particularly from data center demand. However, the $3.1B goodwill impairment in Europe and narrowed EPS guidance warrant monitoring for margin pressure from tariffs and input costs. Watch the Q4 earnings call for updates on LTA conversion and tariff mitigation.
Price Chart
Executive Summary
Carrier reported Q3 2026 adjusted EPS of $0.87, beating the $0.77 consensus by 13.0%, on revenue of $6.26B, above the $6.10B consensus. Organic sales surged 15% and adjusted operating profit rose 33% YoY, driven by data center demand and IEEPA refunds. The company raised its full-year sales guidance to $23.8-$24.0 billion (from $23B) but narrowed adjusted EPS guidance to $2.85-$2.90 (from $2.90), while recording a $3.1B non-cash goodwill impairment in its European segment.
Key Financial Metrics
Key Facts
- Q3 2026 net sales $6.26B, up 12% YoY; organic sales up 15%
- Adjusted EPS $0.87, up 30% YoY; GAAP EPS ($3.16) due to $3.1B goodwill impairment
- Adjusted operating profit $1.09B, up 33% YoY; adjusted operating margin 17.4%, up 260 bps
- Record backlog of $8.5B, up 60% YoY; total company orders up 35%, data center orders up 300%
- Full-year 2026 guidance: sales raised to $23.8-$24.0B (from $23B); adjusted EPS narrowed to $2.85-$2.90 (from $2.90)
- Free cash flow $674M in Q3, $1.47B year-to-date; returned $600M to shareholders in Q3
- Non-cash goodwill impairment of $3.1B in Climate Solutions Europe reporting unit
- IEEPA refunds contributed approximately $130M to operating profit in Q3
Financial Impact
Q3 revenue $6.26B vs consensus $6.10B; adjusted EPS $0.87 vs consensus $0.77; full-year sales guidance raised to $23.8-$24.0B; adjusted EPS guidance narrowed to $2.85-$2.90
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Climate Solutions Americas | $3.4B | +24.0% |
| Climate Solutions Europe | $1.3B | +3.0% |
| Climate Solutions Asia Pacific, Middle East Africa | $848.0M | +2.0% |
| Climate Solutions Transportation | $726.0M | -3.0% |
Risk Factors
- $3.1B non-cash goodwill impairment in Climate Solutions Europe signals potential structural weakness in that segment
- Narrowed adjusted EPS guidance range ($2.85-$2.90 vs prior $2.90) suggests limited upside to the bottom line despite higher sales
- Tariffs and increasing input costs remain headwinds; IEEPA refunds ($130M in Q3) may not recur
- CST segment organic sales declined 3% YoY, indicating weakness in Truck and Trailer markets
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001783180-26-000035 |
| Document: carr-20261029.htm | 0001783180-26-000035 |
| Document: 0001783180-26-000035-index-headers.html | 0001783180-26-000035 |
| Document: 0001783180-26-000035-index.html | 0001783180-26-000035 |
| Document: 0001783180-26-000035.txt | 0001783180-26-000035 |
| 8-K Data (Synthetic) | 0001783180-26-000035 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $55.54 $53.63 | ▼ −3.44% | ▼ −1.67% | $53.63 (−3.44%) |
Oct 23, 2026 9d ago | Institutional Cluster | $56.24 $56.44 | ▲ +0.36% | ▼ −0.35% | $53.63 (−4.64%) |
Jul 28, 2026 13w ago | S-3ASR | $59.92 $61.39 | ▲ +2.45% | ▲ +0.78% | $53.63 (−10.50%) |
Jul 28, 2026 13w ago | 8-K | $63.16 $59.92 | ▼ −5.13% | ▼ −3.59% | $53.63 (−15.09%) |
Jul 27, 2026 13w ago | Press Release | $69.33 $63.16 | ▼ −8.90% | ▼ −9.14% | $53.63 (−22.65%) |
Apr 30, 2026 26w ago | 8-K | $66.97 $67.63 | ▲ +0.99% | ▲ +0.77% | $53.63 (−19.92%) |
Mar 3, 2026 34w ago | DEFA14A | $61.16 $61.04 | ▼ −0.20% | ▼ −0.96% | $53.63 (−12.31%) |
Feb 28, 2026 35w ago | Institutional Cluster | $63.83 $61.16 | ▼ −4.18% | ▼ −3.27% | $53.63 (−15.98%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers