Otis Worldwide (OTIS) Q2 2026 Earnings Report

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Previous Report: Q1 2026

OTIS Q2 2026 EPS Results

Actual EPS$1.01

Consensus EPS$1.01

Beat/MissBeat by +<$0.01

One Year Ago EPS$1.05

OTIS Q2 2026 Revenue Results

Actual Revenue$3.86B

Expected Revenue$3.76B

Beat/MissBeat by +$97.43M

YoY Revenue Growth+7.34%

Earnings Announcement Details

QuarterQ2 2026

Date07/22/2026

TimeBefore Open

Conference CallWednesday, July 22, 2026

OTIS Upcoming Earnings

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

Q2 2026 Earnings Call Audio

OTIS 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.

OTIS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 28, 2026	2026 (Q3)	1.00 / -	1.05	―
Jul 22, 2026	2026 (Q2)	1.01 / 1.01	1.05	-3.81% (-0.04)
Apr 22, 2026	2026 (Q1)	0.90 / 0.89	0.92	-3.26% (-0.03)
Jan 28, 2026	2025 (Q4)	1.04 / 1.03	0.93	10.75% (+0.10)
Oct 29, 2025	2025 (Q3)	1.01 / 1.05	0.96	9.38% (+0.09)
Jul 23, 2025	2025 (Q2)	1.03 / 1.05	1.06	-0.94% (-0.01)
Apr 23, 2025	2025 (Q1)	0.90 / 0.92	0.88	4.55% (+0.04)
Jan 29, 2025	2024 (Q4)	0.96 / 0.93	0.87	6.90% (+0.06)
Oct 30, 2024	2024 (Q3)	0.97 / 0.96	0.95	1.05% (+0.01)
Jul 24, 2024	2024 (Q2)	1.02 / 1.06	0.92	15.22% (+0.14)

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