The guidance cut is the dominant signal — expect near-term selling pressure as the market reprices lower earnings expectations. The strong Service growth provides a valuation floor, but margin compression and New Equipment weakness are structural. Watch for further guidance revisions or cost-cutting announcements in the coming quarters.
Price Chart
Executive Summary
Otis reported Q2 2026 revenue of $3.86B (+7% YoY, +2.9% above consensus) driven by strong Service organic growth of 9%, but adjusted EPS of $1.01 was exactly in line and declined 4% YoY. Full-year guidance was cut meaningfully: adjusted EPS lowered from $4.20-$4.24 to $4.01-$4.05, adjusted operating profit reduced from ~$2.5B to ~$2.4B, and adjusted FCF trimmed from $1.60-$1.65B to $1.50-$1.55B, signaling persistent margin headwinds and a weaker profit outlook.
Key Financial Metrics
Key Facts
- Q2 2026 net sales $3.859B (+7% YoY, +6% organic), beating consensus of $3.75B
- GAAP EPS $1.12 (+13% YoY); adjusted EPS $1.01 (-4% YoY, in line with consensus)
- Service segment organic sales +9% (maintenance +6%, modernization +24%); New Equipment flat
- Adjusted operating profit $587M (-$25M YoY); margins contracted 180bps to 15.2%
- Full-year guidance lowered: adjusted EPS $4.01-$4.05 (from $4.20-$4.24), adjusted op profit ~$2.4B (from ~$2.5B), adjusted FCF $1.50-$1.55B (from $1.60-$1.65B)
- Share repurchases of ~$400M in Q2, ~$800M YTD
- Operating cash flow $267M; adjusted free cash flow $290M
Financial Impact
Guidance cut implies ~4.5% reduction in adjusted EPS midpoint ($4.13 to $4.03) and ~$100M reduction in adjusted operating profit
Risk Factors
- Further margin compression from labor and material cost headwinds
- Continued weakness in China New Equipment (high-teens decline)
- Tariff impacts and geopolitical disruptions in the Middle East
- Execution risk on pricing initiatives and cost efficiency programs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001781335-26-000110 |
| Document: otis-20260722.htm | 0001781335-26-000110 |
| Document: 0001781335-26-000110-index-headers.html | 0001781335-26-000110 |
| Document: 0001781335-26-000110-index.html | 0001781335-26-000110 |
| Document: 0001781335-26-000110.txt | 0001781335-26-000110 |
| 8-K Data (Synthetic) | 0001781335-26-000110 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | 8-K | $68.50 $68.52 | ▲ +0.03% | ▼ −0.79% | $63.94 (−6.66%) |
Jul 22, 2026 10w ago | 8-K | $70.41 $73.36 | ▼ −4.19% | ▼ −6.59% | $63.94 (+9.20%) |
Apr 22, 2026 23w ago | 8-K | $77.88 $76.44 | ▼ −1.85% | ▼ −1.90% | $63.94 (−17.90%) |
Apr 17, 2026 23w ago | DEFA14A | $80.66 $77.43 | ▼ −4.00% | ▼ −4.92% | $63.94 (−20.73%) |
Feb 28, 2026 30w ago | Institutional Cluster | $93.47 $87.56 | ▼ −6.32% | ▼ −5.12% | $63.94 (−31.60%) |
US Market Status
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