Otis Worldwide Corporation · OTIS · FY2025 Q3 · Calendar Q4 2025

Otis Q3 2025: Service Growth Supports Raised Outlook

The quarter provided evidence for a service- and modernization-led growth case: service organic sales grew 6%, modernization orders rose 27%, and management raised full-year guidance. The case remains conditional because New Equipment is still pressured in China, service retention is below its historic level, and tariff and margin risks remain.

Reported Before market openNYSEIndustrials $24.38B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.05 Consensus $1.01
EPS surprise +4.0% Reported versus consensus
Reported revenue $3.69B Consensus $3.66B
Revenue surprise +0.8% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +2.3% Event window
SPY move +0.0% Same window
Abnormal move +2.2% Stock minus SPY
Volume 1.9× Versus trailing sessions
Subsequent drift -5.2% Up to 20 sessions
OTISSPY benchmark

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What changed

Compared with the prior quarter, management's stance improved from lowered to raised guidance. Service growth strengthened, modernization orders accelerated from 22% to 27%, and the company reported $100 million-plus of bolt-on M&A through Q3 while continuing China transformation and retention initiatives.

Guidance delta

Raised: full-year EPS guidance was $4.04-$4.08, with low-single-digit growth expected in the Americas and a modest global decline.

Key takeaways

  • Service remained the primary growth engine, with 6% organic sales growth and margin expansion.
  • Modernization orders rose 27% and backlog grew 22%, supporting a multiyear demand case.
  • New Equipment remained pressured in China, while the Americas backlog improved.

Management priorities

  • Scale Otis Arise MOD across EMEA and other regions.
  • Reach 2.5 million service units by year-end and add maintenance density through bolt-on acquisitions.
  • Invest in service excellence, retention programs, dispatch technology, and China transformation savings.

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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

$64.05Current
$75Low
$92.94Average
$119High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 4, 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 current price $64.05. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Wells FargoAnalyst unavailable$77$66.68 +20.2%Sep 24, 2026
Morgan StanleyAnalyst unavailable$75$72.58 +17.1%Aug 10, 2026
RBC CapitalAnalyst unavailable$90$73.19 +40.5%Jul 28, 2026
Evercore ISIAlexander Virgo$95$69.92 +48.3%Jul 23, 2026
BernsteinAnalyst unavailable$90$70.41 +40.5%Jul 23, 2026
BernsteinAnalyst unavailable$97$71.27 +51.4%Jun 9, 2026
Morgan StanleyAnalyst unavailable$88$79.52 +37.4%Apr 24, 2026
UBSAnalyst unavailable$105$80.87 +63.9%Apr 23, 2026
BarclaysJulian Mitchell$77$77.88 +20.2%Apr 23, 2026
New StreetAnalyst unavailable$98$84.58 +53.0%Jan 30, 2026
Wells FargoJoseph O'Dea$92$88.14 +43.6%Dec 15, 2025
BarclaysAnalyst unavailable$92$93.38 +43.6%Oct 30, 2025
Wolfe ResearchAnalyst unavailable$109$90.4 +70.2%Oct 8, 2025
BarclaysJulian Mitchell$91$92.12 +42.1%Jan 8, 2025
Wells FargoJoseph O'Dea$100$92.12 +56.1%Jan 7, 2025
Morgan StanleyChris Snyder$97$92.43 +51.4%Sep 6, 2024
Wells FargoJoseph O'Dea$95$91.43 +48.3%Jul 25, 2024
Argus ResearchJohn Eade$108$96.21 +68.6%May 13, 2024
Melius ResearchRob Wertheimer$119$98.57 +85.8%Apr 2, 2024
BarclaysJulian Mitchell$90$98.57 +40.5%Apr 2, 2024
Argus ResearchJohn Eade$102$92.41 +59.3%Feb 22, 2024
Cowen & Co.Analyst unavailable$95$84.86 +48.3%Feb 2, 2023
BarclaysAnalyst unavailable$81$84.56 +26.5%Feb 2, 2023
Morgan StanleyAnalyst unavailable$89$84.56 +39.0%Feb 2, 2023
Wells FargoAnalyst unavailable$82$84.56 +28.0%Feb 2, 2023
Wells FargoAnalyst unavailable$71$80.25 +10.9%Jan 5, 2023
BNP ParibasMiguel Borrega$80$71.9 +24.9%Jul 4, 2022
RBC CapitalAnalyst unavailable$98$73.32 +53.0%May 4, 2022
Cowen & Co.Analyst unavailable$85$72.3 +32.7%Apr 26, 2022
BarclaysAnalyst unavailable$80$73.75 +24.9%Apr 26, 2022
Credit SuisseAnalyst unavailable$81$74.6 +26.5%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 · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-03T23:00:40.984394+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-03T23:00:40.981660+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 2026-10-03. For educational purposes only; not investment advice.