Otis Worldwide (OTIS) Q3 2026 Earnings Report
MX:OTIS Q3 2026 EPS Results
- Actual EPS
- MXN 19.83
- Consensus EPS
- MXN 19.09
- Beat/Miss
- Beat by +MXN 0.74
- One Year Ago EPS
- MXN 19.83
MX:OTIS Q3 2026 Revenue Results
- Actual Revenue
- MXN 73.90B
- Expected Revenue
- MXN 72.75B
- Beat/Miss
- Beat by +MXN 1.16B
- YoY Revenue Growth
- +6.07%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
Otis Worldwide's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was broadly positive. Otis reported its strongest organic sales growth in 13 quarters, continued strong service and modernization momentum, improving sequential service margins, robust orders and backlog outside China, growing free cash flow, and early benefits from service, digital, and workforce investments. These positives outweighed the key challenges of China new equipment weakness, declining new equipment profitability, year-over-year service margin pressure, slower maintenance growth, churn, and unfavorable mix.
For 2026, Otis expects net sales of $15.1 billion to $15.3 billion with low- to mid-single-digit organic sales growth, organic service sales to grow mid to high single digits, and new equipment down low single digits to flat; adjusted operating profit is expected in the range of down $30 million to flat on an actual currency basis and down $45 million to down $15 million at constant currency, adjusted free cash flow is around $1.5 billion, and adjusted EPS is expected in the range of $4.10 to $4.05. The global new equipment market is expected to stabilize with growth across all regions except China, where declines are moderating, while modernization is expected to expand at a double digit rate on a dollar basis with growth across all regions. Q4 service ROS is expected to be probably in line with Q3, assuming the current productivity and churn levels remain stable, with a significant step up on service ROS in the second half of the year compared to the first half.
- Strong Third-Quarter Organic Sales GrowthNet sales were $3.9 billion, with organic sales increasing 6%, the strongest organic sales growth performance in 13 quarters. Growth was led by service, which increased 7%, and new equipment, which increased 3%.
- Service Growth and Sequential Margin ImprovementService organic sales increased 7% with broad-based growth. Service operating profit was $633 million, increasing $20 million at constant currency. Service operating margin was 24.2%, improving 100 basis points sequentially, driven by repair pricing, operating leverage from modernization and repair volumes, and lower SG&A, including one-time benefits.
- Modernization Remained a Major Growth EngineModernization organic sales increased approximately 20%, orders increased 10%, and backlog grew 20% at constant currency. Growth was supported by strong execution, conversion of a robust backlog, standard packages, and healthy customer demand across regions and end markets.
- Maintenance, Repair and Pricing ProgressMaintenance and repair organic sales increased 4%, with maintenance increasing 2% and repair sales increasing 9% in the quarter. Maintenance growth reflected 3% portfolio growth and 3% pricing, while Otis said its micro-pricing strategy was flowing through in repair as anticipated.
- New Equipment Sales Returned to GrowthNew equipment organic sales increased 3% for the first time since 2023. The Americas increased 13%, EMEA increased 6%, and Asia Pacific increased at a high single-digit rate, supported by India and partially offset by weakness in Korea and Australasia.
- Strong Americas Order MomentumNew equipment orders in the Americas grew at a low-teens rate, with North America delivering order growth for the ninth consecutive quarter. North American new equipment sales increased 13%, supported by strong backlog conversion, and North America new equipment backlog was up 14%.
- Healthy Orders and Backlog Outside ChinaCombined new equipment and modernization orders increased 4%, while total backlog grew 7%. Excluding China, backlog increased 10% at constant currency, new equipment orders increased 5%, and new equipment backlog increased 8% at constant currency.
- Modernization Momentum Across Regions and ChinaModernization orders increased 10%, led by China, where orders increased more than 20%. EMEA modernization orders increased in the mid-teens, the Americas increased approximately 10%, and modernization backlog increased 20% at constant currency.
- China Service Strategy Gaining TractionChina modernization orders increased more than 20%, with modernization revenue and backlog increasing by even more than that according to management. China service represented 51% of China sales, and management said the strategic pivot toward service, particularly modernization, was working.
- Free Cash Flow GrowthAdjusted free cash flow reached $272 million in the quarter and $834 million through the first nine months, an increase of 9% compared with the prior-year-to-date period.
- Service Investments Showing Early ResultsOtis continued investing in field capabilities, pricing capabilities, service quality, and workforce expansion. Management said service quality had reached target levels, the service quality index was up 7 points, and the improvement had been sustained.
- AI and Digital Tools ExpandedOtis continued deploying AI-enabled and digital initiatives, including a data-intelligence tool that identifies repair and modernization opportunities, AI-enabled micro-pricing capabilities, and field-service tools for scheduling, dispatch, and mechanic-route optimization.
- Field Workforce Ramp-UpThe company said additional maintenance technicians were ramping up in high-value markets, including Europe, Japan, and North America. Newer employees had completed training in many cases, and management said the ramp-up was beginning to show in productivity, service quality, and execution.
- Operating Leverage Opportunity in ModernizationManagement reported a significant sequential improvement in modernization margins and said the quarter was the closest Otis had been in a while to its 10% modernization operating-margin goal. Future opportunities cited included volume leverage, supply-chain efficiencies, productivity in installation, and new modernization packages.
- Customer and Infrastructure Contract WinsOtis secured or expanded projects with Rutgers University, China's Line 11 transportation system, 99 City Road in London, and UOB Plaza in Jakarta. The projects included new equipment, modernization, escalators, elevators, destination dispatch, monitoring, IoT, and other digital technologies.
- Positive External RecognitionOtis was named among Time's World's Best Companies and was recognized for the fifth consecutive year as one of Forbes' World's Best Employers.
- Full-Year Outlook ReaffirmedThe company maintained its outlook for net sales of $15.1 billion to $15.3 billion, low- to mid-single-digit organic sales growth, adjusted free cash flow around $1.5 billion, adjusted operating profit down $30 million to flat on an actual-currency basis, down $45 million to down $15 million at constant currency, and adjusted EPS in the range of $4.10 to $4.05.
- Constructive Market ExpectationsOtis expects the global new equipment market to stabilize with growth across all regions except China, while modernization is expected to expand at a double-digit rate on a dollar basis across all regions.
MX:OTIS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 20.83- | 19.45 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 19.0919.83 | 19.83 | 0.00% (+0.00) | |
| Jul 22, 2026 | 2026 (Q2) | 19.0519.07 | 19.83 | -3.81% (-0.76) | |
| Apr 22, 2026 | 2026 (Q1) | 16.9216.81 | 17.37 | -3.26% (-0.57) | |
| Jan 28, 2026 | 2025 (Q4) | 19.6819.45 | 17.56 | 10.75% (+1.89) | |
| Oct 29, 2025 | 2025 (Q3) | 19.0319.83 | 18.13 | 9.38% (+1.70) | |
| Jul 23, 2025 | 2025 (Q2) | 19.4919.83 | 20.02 | -0.94% (-0.19) | |
| Apr 23, 2025 | 2025 (Q1) | 16.9217.37 | 16.62 | 4.55% (+0.76) | |
| Jan 29, 2025 | 2024 (Q4) | 18.0717.56 | 16.43 | 6.90% (+1.13) | |
| Oct 30, 2024 | 2024 (Q3) | 18.3218.13 | 17.94 | 1.05% (+0.19) |
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.