Otis Worldwide Corporation · OTIS · FY2024 Q4 · Calendar Q1 2025

Otis: Service and modernization offset China equipment weakness

The supplied analysis supports a cautiously constructive operating thesis: service growth, modernization backlog, and productivity initiatives provide offsets to weak China New Equipment demand. The key test is whether management can convert these drivers into sustained margins and cash flow while executing the China transition.

Reported Before market openNYSEIndustrials $25.11B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $0.95
EPS surprise — Reported versus consensus
Reported revenue — Consensus $3.68B
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -1.3% Event window
SPY move -0.4% Same window
Abnormal move -0.8% Stock minus SPY
Volume 2.0× Versus trailing sessions
Subsequent drift +3.6% Up to 20 sessions
OTISSPY benchmark

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Transcript intelligence

What changed

The current analysis places greater emphasis on the service-led model and China transformation. Service growth and modernization order momentum were strong, while management raised its guidance sentiment and outlined UpLift savings, restructuring, digital-platform launches, and targeted acquisitions.

Guidance delta

Management's guidance sentiment was raised. The supplied analysis cites 2025 targets of $14.1–$14.4 billion in sales, $4–$4.10 EPS, and $1.6 billion of free cash flow, versus the prior quarter's 2024 adjusted EPS target of $3.85.

Key takeaways

  • Service delivered 7.8% organic sales growth and drove margin expansion.
  • Modernization orders rose 18% year over year, with backlog up 13%.
  • China New Equipment demand remained weak, while management emphasized a shift toward Service and Modernization.

Management priorities

  • Continue transforming China toward Service and Modernization.
  • Execute UpLift savings and cost restructuring while expanding the service portfolio.
  • Launch Gen3 across Asia Pacific, roll out Compass 360, and pursue $100 million of bolt-on acquisitions.

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Earnings History

Estimate Beat Miss Match
OTIS EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q4 '23 estimate $0.86 Q4 '23 actual $0.87, match Q1 '24 estimate $0.87 Q1 '24 actual $0.88, match Q2 '24 estimate $1.03 Q2 '24 actual $1.06, beat Q3 '24 estimate $0.97 Q3 '24 actual $0.96, match Q2 '25 estimate $1.03 Q2 '25 actual $1.05, beat Q3 '25 estimate $1.01 Q3 '25 actual $1.05, beat Q4 '25 estimate $1.04 Q4 '25 actual $1.03, match Q1 '26 estimate $0.90 Q1 '26 actual $0.89, match Q2 '26 estimate $1.01 Q2 '26 actual $1.01, match Q3 '26 estimate $1.01 Q4 '26 estimate $1.14 Q1 '27 estimate $0.99 Q2 '27 estimate $1.09
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Analyst Consensus ?

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

Analyst 52W Price Targets

$65.95Previous close
$75Low
$92.94Average
$119High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 12, 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 previous close $65.95. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Wells FargoAnalyst unavailable$77$66.68 +16.8%Sep 24, 2026
Morgan StanleyAnalyst unavailable$75$72.58 +13.7%Aug 10, 2026
RBC CapitalAnalyst unavailable$90$73.19 +36.5%Jul 28, 2026
Evercore ISIAlexander Virgo$95$69.92 +44.0%Jul 23, 2026
BernsteinAnalyst unavailable$90$70.41 +36.5%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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Industrials peers this season

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Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-01-15T00:03:22.707476+00:00
  3. Polygon adjusted daily market bars · 2026-10-12T05:20:42.374828+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-12T05:20:42.372089+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 2026-10-12. For educational purposes only; not investment advice.