Otis Worldwide Corporation · OTIS · FY2025 Q2 · Calendar Q3 2025

Otis: Service growth and modernization offset weak equipment demand

Otis's service growth, modernization backlog, and cost programs provide support, but the lower sales outlook and weak New Equipment demand make the recovery uneven.

Reported Before market openNYSEIndustrials $25.03B market cap
90quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.05 Consensus $1.03
EPS surprise +1.9% Reported versus consensus
Reported revenue $3.60B Consensus $3.67B
Revenue surprise -2.0% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -12.4% Event window
SPY move +0.9% Same window
Abnormal move -13.2% Stock minus SPY
Volume 6.2× Versus trailing sessions
Subsequent drift +0.7% Up to 20 sessions
OTISSPY benchmark

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Transcript intelligence

What changed

Service momentum and modernization demand remained strong, while New Equipment sales weakened in China and the U.S. Management lowered full-year net-sales guidance and highlighted reduced but still material tariff exposure.

Guidance delta

Management modestly reduced full-year net-sales guidance; tariff exposure was estimated at a $25–$35 million negative impact for 2025.

Key takeaways

  • Service produced 4% organic growth and higher operating margin, driving most of the earnings performance.
  • Modernization orders rose 22% and backlog increased 16% at constant currency, supporting a multiyear opportunity.
  • New Equipment sales weakened, particularly in China and the U.S., prompting a modest reduction in full-year sales guidance.

Management priorities

  • Complete the UpLift program and deliver $200 million of run-rate savings by year-end.
  • Advance the China transformation program and improve the cost structure.
  • Expand global modernization activity while maintaining the share-repurchase program.

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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. 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

$66.11Previous close
$75Low
$92.94Average
$119High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 9, 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
Wells Fargo Equal Weight Equal WeightMaintainApr 1, 2026
JP Morgan Overweight OverweightMaintainJan 16, 2026
Morgan Stanley Equal Weight Equal WeightMaintainJul 8, 2025
Argus Research Buy BuyMaintainMay 13, 2024
UBS Neutral NeutralMaintainFeb 16, 2024
Vertical Research Hold BuyDowngradeJan 2, 2024
HSBC Hold HoldMaintainApr 19, 2023
Cowen & Co. Outperform OutperformMaintainFeb 2, 2023
Credit Suisse Neutral NeutralMaintainOct 27, 2022
Berenberg Buy BuyMaintainJun 22, 2022
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Named analyst price targets

Upside is calculated against the persisted previous close $66.11. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Wells FargoAnalyst unavailable$77$66.68 +16.5%Sep 24, 2026
Morgan StanleyAnalyst unavailable$75$72.58 +13.4%Aug 10, 2026
RBC CapitalAnalyst unavailable$90$73.19 +36.1%Jul 28, 2026
Evercore ISIAlexander Virgo$95$69.92 +43.7%Jul 23, 2026
BernsteinAnalyst unavailable$90$70.41 +36.1%Jul 23, 2026
BernsteinAnalyst unavailable$97$71.27 +46.7%Jun 9, 2026
Morgan StanleyAnalyst unavailable$88$79.52 +33.1%Apr 24, 2026
UBSAnalyst unavailable$105$80.87 +58.8%Apr 23, 2026
BarclaysJulian Mitchell$77$77.88 +16.5%Apr 23, 2026
New StreetAnalyst unavailable$98$84.58 +48.2%Jan 30, 2026
Wells FargoJoseph O'Dea$92$88.14 +39.2%Dec 15, 2025
BarclaysAnalyst unavailable$92$93.38 +39.2%Oct 30, 2025
Wolfe ResearchAnalyst unavailable$109$90.4 +64.9%Oct 8, 2025
BarclaysJulian Mitchell$91$92.12 +37.6%Jan 8, 2025
Wells FargoJoseph O'Dea$100$92.12 +51.3%Jan 7, 2025
Morgan StanleyChris Snyder$97$92.43 +46.7%Sep 6, 2024
Wells FargoJoseph O'Dea$95$91.43 +43.7%Jul 25, 2024
Argus ResearchJohn Eade$108$96.21 +63.4%May 13, 2024
Melius ResearchRob Wertheimer$119$98.57 +80.0%Apr 2, 2024
BarclaysJulian Mitchell$90$98.57 +36.1%Apr 2, 2024
Argus ResearchJohn Eade$102$92.41 +54.3%Feb 22, 2024
Cowen & Co.Analyst unavailable$95$84.86 +43.7%Feb 2, 2023
BarclaysAnalyst unavailable$81$84.56 +22.5%Feb 2, 2023
Morgan StanleyAnalyst unavailable$89$84.56 +34.6%Feb 2, 2023
Wells FargoAnalyst unavailable$82$84.56 +24.0%Feb 2, 2023
Wells FargoAnalyst unavailable$71$80.25 +7.4%Jan 5, 2023
BNP ParibasMiguel Borrega$80$71.9 +21.0%Jul 4, 2022
RBC CapitalAnalyst unavailable$98$73.32 +48.2%May 4, 2022
Cowen & Co.Analyst unavailable$85$72.3 +28.6%Apr 26, 2022
BarclaysAnalyst unavailable$80$73.75 +21.0%Apr 26, 2022
Credit SuisseAnalyst unavailable$81$74.6 +22.5%Apr 26, 2022
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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 · 2026-07-26T00:37:55.686058+00:00
  3. Polygon adjusted daily market bars · 2026-10-09T05:50:42.031701+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-09T05:50:42.028500+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 2026-10-09. For educational purposes only; not investment advice.