The beat-and-raise quarter with accelerating organic growth (10% vs 6% in Q2) and record backlog signals sustained demand momentum, particularly in data centers. Traders should watch for continued order conversion and margin expansion in Q4; the raised FY26 guidance provides a clear catalyst for upward estimate revisions.
Price Chart
Executive Summary
Johnson Controls reported strong fiscal Q3 2026 results, with adjusted EPS of $1.42 beating the $1.30 consensus by 9.2% and revenue of $6.614B exceeding the $6.46B estimate. The company raised its full-year adjusted EPS guidance to $5.05 (from $4.85) and organic sales growth to 8% (from 6%), driven by robust demand in data centers and other mission-critical environments, with orders up 27% organically and backlog reaching a record $21.0B. This marks a second consecutive quarter of raised guidance and accelerating organic growth, reinforcing the positive momentum in the business.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS of $1.42 beat consensus of $1.30 by 9.2%
- Q3 revenue of $6.614B grew 9% YoY (10% organic), above $6.46B consensus
- Full-year FY26 adjusted EPS guidance raised to $5.05 from $4.85; organic sales growth raised to 8% from 6%
- Q3 orders grew 27% organically YoY; backlog reached a record $21.0B, up 32% organically
- Americas segment adjusted EBITA margin expanded 260 bps to 21.1%; total company adjusted EBIT margin rose 260 bps to 16.9%
- Free cash flow was $1.194B in Q3, up 72% YoY; operating cash flow conversion was 172%
Financial Impact
Q3 adjusted EPS of $1.42 beat consensus by $0.12 (9.2%); full-year guidance raised by $0.20 to $5.05, implying ~7% YoY growth from FY25 adjusted EPS of $4.72 (calculated from prior guidance).
Risk Factors
- EMEA sales declined 1% YoY due to Middle East conflicts; organic growth was only 1%
- Restructuring and transformation costs totaled $80M in Q3, weighing on GAAP results
- Guidance assumes no further deterioration in EMEA or macroeconomic headwinds
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000833444-26-000083 |
| Document: jci-20260729.htm | 0000833444-26-000083 |
| Document: 0000833444-26-000083-index-headers.html | 0000833444-26-000083 |
| Document: 0000833444-26-000083-index.html | 0000833444-26-000083 |
| Document: 0000833444-26-000083.txt | 0000833444-26-000083 |
| 8-K Data (Synthetic) | 0000833444-26-000083 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 29, 2026 9w ago | 8-K | $139.42 $144.33 | ▲ +3.52% | ▼ −1.50% | $156.24 (+12.06%) |
Jun 3, 2026 17w ago | 8-K | $147.39 $140.76 | ▼ −4.50% | ▼ −2.87% | $156.24 (+6.01%) |
May 18, 2026 19w ago | Insider Cluster | $137.22 $146.06 | ▲ +6.44% | ▲ +4.25% | $156.24 (+13.86%) |
May 13, 2026 20w ago | 8-K | $144.99 $144.96 | ▼ −0.02% | ▲ +0.84% | $156.24 (+7.76%) |
May 4, 2026 21w ago | 8-K | $144.54 $141.99 | ▼ −1.76% | ▼ −6.72% | $156.24 (+8.10%) |
Mar 31, 2026 26w ago | Court Ruling | $130.95 $141.35 | ▲ +7.94% | ▼ −1.47% | $156.24 (+19.31%) |
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