Johnson Controls (1JCI) AI Stock Analysis

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Johnson Controls

(Milan:1JCI)

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Positive Factors

Strong cash generationJohnson Controls is converting earnings into substantial cash, providing funding for capacity expansion, innovation, restructuring, and shareholder returns. Strong conversion improves financial resilience and supports reinvestment in higher-growth building technology markets over the next several quarters.

Negative Factors

Sharp TTM revenue declineThe sharp TTM revenue contraction is a material counterweight to the more positive forward outlook. It indicates that reported growth has been uneven and that demand, portfolio changes, or mix may continue to complicate near-term execution and comparisons.

Johnson Controls (1JCI) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 84.40B
Dividend Yield: 1.12%
Average Volume (3M): 110
Price to Earnings (P/E): 29.7
Beta (1Y): 0.98
Revenue Growth: 3.61%
EPS Growth: -10.58%
Country: Italy
Employees: 87,000
Sector: Industrials
Sector Strength: 63
Industry: Construction Materials

Johnson Controls Business Overview & Revenue Model

Company Description

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The compa...

Johnson Controls Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q4-2026)|% Change Since:-5.23%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was strongly positive, with record orders and backlog, double-digit revenue growth, substantial margin and EPS expansion, strong cash generation, positive fiscal 2027 guidance, and significant opportunities in data centers and other mission-critical markets. The main challenges were customer power and infrastructure constraints, subdued security service growth, continued Middle East uncertainty, inflation-related margin dilution, upfront restructuring expense, and a modestly lower projected free cash flow conversion. Highlights significantly outweighed lowlights.

Positive Updates

Strong Fiscal 2026 Full-Year Performance

Johnson Controls exceeded both its initial fiscal 2026 guidance and the raised outlook provided during the year. Full-year organic revenue increased more than 8%, adjusted EPS increased 37%, and adjusted free cash flow conversion was 103%.

Negative Updates

Fiscal 2027 Free Cash Flow Conversion Expected to Decline

Adjusted free cash flow conversion is expected to be approximately 95% in fiscal 2027, below the 103% conversion achieved in fiscal 2026, as capital expenditures and restructuring investment increase.

Company Guidance

For fiscal 2027, Johnson Controls expects first-quarter organic revenue growth of 12%-14%, operating leverage of 30%-35%, and adjusted EPS of $1.15-$1.20; for the full year, it expects organic revenue growth of 11%-12%, ahead of the high single-digit growth in its long-term algorithm, operating leverage of greater than 30%, adjusted EPS of $6.15-$6.30, 21% EPS growth from fiscal 2026 at the midpoint, and adjusted free cash flow conversion of approximately 95%. The company expects approximately $900 million of capital expenditures in fiscal 2027, approximately $400 million of restructuring expense over fiscal 2027 and fiscal 2028, and approximately $600 million of gross annualized savings by fiscal 2029; it still anticipates 70%-80% of its $23 billion backlog converting into revenue over the next 12 months, while targeting a double-digit trajectory in 2027 and 2028.

Johnson Controls Risk Analysis

Johnson Controls disclosed 37 risk factors in its most recent earnings report. Johnson Controls reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Johnson Controls Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

IT:1JCI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSL	74Outperform	$15.17B	22.29	44.18%	1.15%	3.96%	0.55%
MAS	74Outperform	$16.29B	18.33	-298.23%	1.51%	0.95%	17.94%
CRH	70Outperform	$62.48B	16.43	15.08%	1.67%	5.58%	5.51%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OC	55Neutral	$9.06B	-21.47	-11.81%	2.73%	-10.64%	6.58%
BLDR	42Neutral	$6.47B	164.00	0.99%	―	-8.25%	-92.83%

* Industrials Sector Average

Performance Comparison

IT:1JCI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1JCI	Johnson Controls	125.00	24.13	23.92%
BLDR	Builders Firstsource	60.68	-38.74	-38.97%
CSL	Carlisle Companies	396.13	98.82	33.24%
MAS	Masco Corporation	84.68	26.34	45.14%
OC	Owens Corning	115.94	19.42	20.12%
CRH	CRH (CRH)	93.16	-14.05	-13.11%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Johnson Controls AI Stock Analysis