EarningsQ2 2026 Earnings Report

Otis Worldwide (4PG) Q2 2026 Earnings Report

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Previous Report: Q1 2026

DE:4PG Q2 2026 EPS Results

Actual EPS€0.90

Consensus EPS€0.90

Beat/MissBeat by +<€0.01

One Year Ago EPS€0.93

DE:4PG Q2 2026 Revenue Results

Actual Revenue€3.43B

Expected Revenue€3.34B

Beat/MissBeat by +€86.53M

YoY Revenue Growth+7.34%

Earnings Announcement Details

QuarterQ2 2026

Date07/22/2026

TimeBefore Open

Conference CallWednesday, July 22, 2026

DE:4PG Upcoming Earnings

Otis Worldwide's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

DE:4PG Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 22, 2026|

% Change Since:

Earnings Call Sentiment|Neutral

The call highlighted strong top-line momentum, especially in service (repair and modernization), robust cash generation, and early signs that targeted service-quality investments are improving customer metrics. However, these positives are balanced by near-term margin pressure from higher labor and material costs, onboarding/productivity headwinds, tempered micro-pricing to protect retention, and a modest revision to profit and EPS guidance. Management emphasized that many of the cost pressures are temporary and framed current reinvestments as positioning the company for multi-year growth.

Company Guidance

Otis reiterated 2026 revenue guidance of $15.1–$15.3 billion with organic sales growth of low- to mid-single digits and unchanged market expectations, and updated earnings and cash guidance: adjusted operating profit now expected to be down $30 million to flat on an actual‑currency basis (down $45 million to down $15 million at constant currency), adjusted free cash flow of $1.5–$1.55 billion, and adjusted EPS of $4.01–$4.05 (including a ~$0.04 FX headwind versus prior). Management expects service to remain the growth engine (Q2 service organic +9%, service expected ≈6% in H2 and mid-single-digit in Q3), service margins to improve from Q2’s 23.2% toward mid‑24% in Q3 and roughly ~25% exit in Q4 (full‑year service margin slightly below 24%), and new equipment to stabilize and return to sequential growth in H2 (Q2 new equipment backlog +4% y/y, +9% ex‑China; modernization backlog +26% y/y; modernization orders +9%). The revision factors include a ~$20 million hit versus prior outlook from tempered maintenance micro‑pricing, roughly $50 million incremental productivity/material headwind (≈$30M temporary ramp costs and $20M related to material/quality investments), and the planned $50 million service‑excellence program (≈$30M invested in H1, $20M to go).

Top-line growth and sales

Net sales of $3.9 billion in Q2 with organic sales up 6% year-over-year; company reiterates full-year net sales outlook of $15.1–$15.3 billion and organic growth of low- to mid-single digits.

Service segment outperformance

Service organic sales grew 9% (maintenance +3%, repair +12%, modernization +24%); maintenance saw 3% portfolio growth and 3% pricing contribution; service operating profit was $599 million, up $16 million at constant currency.

Modernization orders and backlog strength

Modernization orders increased 9% in the quarter and modernization backlog rose 26% year-over-year at constant currency, providing sizeable visibility into future revenue.

Repair momentum and micro-pricing effectiveness

Repair sales accelerated 12% (strongest in 10 quarters); AI-driven micro-pricing showed strong flow-through in repair and is expected to contribute ~$35 million of incremental pricing impact this year (repair portion unchanged).

Cash generation and shareholder returns

Adjusted free cash flow of $290 million in the quarter (up 19% year-over-year); returned over $1.1 billion to shareholders in H1 2026, including ~$800 million of share repurchases and a 5% dividend increase.

New equipment stabilization and backlog

New equipment organic sales decline narrowed to 1% (the lowest rate of decline in nine quarters); backlog increased 4% year-over-year at constant currency (9% excluding China) and Americas new equipment sales grew 10%.

Operational investments and early service quality gains

Company committed $50 million to service excellence and pricing initiatives (invested $30 million in H1); targeted operating territories saw a 7-point improvement in the service quality index and pockets of retention improvement.

Strategic acquisition

Acquisition of a majority stake in WeMaintain to augment service capabilities and growth.

DE:4PG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 28, 2026	2026 (Q3)	0.90 / -	0.933	―
Jul 22, 2026	2026 (Q2)	0.90 / 0.90	0.933	-3.81% (-0.04)
Apr 22, 2026	2026 (Q1)	0.80 / 0.79	0.817	-3.26% (-0.03)
Jan 28, 2026	2025 (Q4)	0.93 / 0.91	0.826	10.75% (+0.09)
Oct 29, 2025	2025 (Q3)	0.90 / 0.93	0.853	9.38% (+0.08)
Jul 23, 2025	2025 (Q2)	0.92 / 0.93	0.941	-0.94% (>-0.01)
Apr 23, 2025	2025 (Q1)	0.80 / 0.82	0.782	4.55% (+0.04)
Jan 29, 2025	2024 (Q4)	0.85 / 0.83	0.773	6.90% (+0.05)
Oct 30, 2024	2024 (Q3)	0.86 / 0.85	0.844	1.05% (<+0.01)
Jul 24, 2024	2024 (Q2)	0.91 / 0.94	0.817	15.22% (+0.12)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed