Otis Worldwide Corporation · OTIS · FY2024 Q3 · Calendar Q4 2024

Otis: Service Growth Offsets China New-Equipment Weakness

The supplied analysis supports a mixed earnings-growth case: resilient service and modernization demand, pricing, and productivity initiatives are constructive, but China New Equipment weakness, stimulus uncertainty, and cash-flow pressure temper the outlook.

Reported Before market openNYSEIndustrials $28.61B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.96 Consensus $0.97
EPS surprise -1.0% Reported versus consensus
Reported revenue $3.55B Consensus $3.59B
Revenue surprise -1.2% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -3.0% Event window
SPY move -0.3% Same window
Abnormal move -2.7% Stock minus SPY
Volume 2.0× Versus trailing sessions
Subsequent drift +4.3% Up to 20 sessions
OTISSPY benchmark

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Transcript intelligence

What changed

Relative to the prior quarter, the service-led thesis strengthened: service growth was high-single-digit versus the prior quarter's mid-single-digit growth, while modernization backlog growth moderated from 17% to 12%. The key negative change was a lowered 2024 sales outlook tied to weaker New Equipment demand, particularly in China.

Guidance delta

Lowered: management revised down the 2024 sales outlook while retaining an adjusted EPS target of $3.85.

Key takeaways

  • Service delivered high-single-digit growth and 60 basis points of margin expansion, supporting profitability.
  • Modernization backlog increased 12%, providing a stated source of future top-line support.
  • New Equipment orders weakened, especially in China; management highlighted stimulus uncertainty and pricing pressure.

Management priorities

  • Expand the Bengaluru elevator and escalator manufacturing facility.
  • Grow the service portfolio toward 2.4 million units by year-end.
  • Execute the modernization backlog, pursue 10% medium-term modernization margins, and continue Uplift productivity efforts.

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Earnings History

Estimate Beat Miss Match
OTIS REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $3B Q1 '24 actual $3B, miss Q2 '24 estimate $4B Q2 '24 actual $4B, miss Q3 '24 estimate $4B Q3 '24 actual $4B, miss Q2 '25 estimate $4B Q2 '25 actual $4B, miss Q3 '25 estimate $4B Q3 '25 actual $4B, beat Q4 '25 estimate $4B Q4 '25 actual $4B, miss Q1 '26 estimate $4B Q1 '26 actual $4B, beat Q2 '26 estimate $4B Q2 '26 actual $4B, beat Q3 '26 estimate $4B Q4 '26 estimate $4B Q1 '27 estimate $4B Q2 '27 estimate $4B
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Analyst Consensus ?

ConsensusHold15 ratings
Bullish746.7%
Neutral746.7%
Bearish16.6%

Analyst 52W Price Targets

$75.15Current
$75Low
$92.94Average
$119High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 25, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Evercore ISI Group Outperform OutperformMaintainJul 23, 2026
Bernstein Outperform OutperformMaintainJul 23, 2026
RBC Capital Outperform OutperformMaintainApr 23, 2026
Barclays Underweight UnderweightMaintainApr 23, 2026
Wolfe Research Peer Perform OutperformDowngradeApr 8, 2026
Show 10 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $75.15. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Wells FargoAnalyst unavailable$77$66.68 +2.5%Sep 24, 2026
Morgan StanleyAnalyst unavailable$75$72.58 -0.2%Aug 10, 2026
RBC CapitalAnalyst unavailable$90$73.19 +19.8%Jul 28, 2026
Evercore ISIAlexander Virgo$95$69.92 +26.4%Jul 23, 2026
BernsteinAnalyst unavailable$90$70.41 +19.8%Jul 23, 2026
See 26 more

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Company context

Snapshot as of publication

Otis Worldwide Corporation is a global leader specializing in the manufacturing, installation, and servicing of elevators and escalators, with significant operations in the United States, China, and numerous other international markets. The company's business is organized into two primary divisions: New Equipment and Service. Its New Equipment segment is responsible for the design, fabrication, sale, and fitting of a diverse array of passenger and freight elevators, escalators, and moving walkways, catering to residential and commercial properties, as well as large-scale infrastructure endeavors. Conversely, the Service segment offers extensive maintenance, repair, and modernization services aimed at upgrading existing elevator and escalator systems. Otis maintains a substantial global service footprint, employing approximately 34,000 service technicians across roughly 1,400 branches and offices. The company, established in 1853, is headquartered in Farmington, Connecticut.

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2024-11-10T18:38:36.707185+00:00
  3. Polygon adjusted daily market bars · 2026-10-25T01:30:41.625582+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-25T01:30:41.622931+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-25. For educational purposes only; not investment advice.