Otis Q3 sales slightly beat estimates on service revenue growth

Overview

• U.S. elevator maker's Q3 sales rose 6%, slightly beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations, remaining flat year-over-year

• Company saw strong service revenue growth and sequential service margin improvement

Outlook

• Otis broadly maintains its full-year 2026 outlook

• Company says Service margin improvement and growth initiatives support confidence in sustained growth

Result Drivers

• SERVICE REVENUE GROWTH - Co said Q3 service net sales rose 8% with organic sales up 7%, driven by growth across all lines of business

• MODERNIZATION SALES - Co said organic modernization sales increased 20% in Q3, contributing to service segment growth

• ABSENCE OF NON-RECURRING COSTS - Co said GAAP operating profit and EPS rose due to absence of UpLift transformation costs, separation-related adjustments, and other non-recurring items

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the heavy electrical equipment peer group is "buy."

• Wall Street's median 12-month price target for Otis Worldwide Corporation is $84.50, about 13.9% above its October 27 closing price of $74.19

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)