Air conditioner maker Carrier Q3 revenue rises on data center demand, raises FY outlook

By Reuters News


Overview

  • Climate and energy solutions firm's Q3 revenue rose 12% and organic sales grew 15% yr/yr

  • Adjusted EPS for Q3 rose 30% yr/yr

  • GAAP loss driven by $3.1 bln goodwill impairment charge in Europe unit


Outlook

  • Carrier raises 2026 sales guidance to $23.8-$24.0 bln from about $23 bln

  • Carrier expects 2026 adjusted EPS of $2.85 to $2.90

  • Company says macro pressures, including tariffs and input costs, remain a concern


Result Drivers

  • STRONG DEMAND - Carrier said Q3 results were driven by robust demand, especially in data centers, leading to a record backlog

  • VOLUME AND PRICING - Co attributed margin expansion to higher volumes and improved pricing, partly offset by increased input costs and tariffs

  • OPERATING PROFIT AND SHARE COUNT - Carrier said higher operating profit and a reduced share count contributed to adjusted EPS growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$6.30 bln

Q3 Adjusted EPS

$0.87

Q3 Loss Per Share

$3.16

Q3 Adjusted Operating Income

$1.09 bln

Q3 Free Cash Flow

$674 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Carrier Global Corporation is $73.56, about 30.7% above its October 28 closing price of $56.27

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 24 three months ago


Reuters Recommended Reads

  • Oct 28 - Vertiv beats Q3 revenue, profit estimates; raises FY guidance

  • Oct 27 - Watsco Q3 revenue slightly beats on acquisition boost

  • Oct 28 - Lennox Q3 revenue misses on competitive pressure, inflation


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.)

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