Analyst Consensus ?
ConsensusHold15 ratings
Bullish746.7%
Neutral746.7%
Bearish16.6%
Otis Worldwide Corporation · OTIS · FY2026 Q2 · Calendar Q3 2026
Otis Q2 2026: Service Growth Accelerates to 9%, but Operating Profit Guidance Lowered
Otis is mid-cycle in a deliberate service-investment program: the company is spending $50 million annually on field resources, a new service operating model across 1,400 territories, and AI micro-pricing tools. In Q2 this produced accelerating organic service growth of 9% (up from 5% in Q1) and a modernization backlog up 26% year over year, but it also drove a guidance reduction -- adjusted operating profit is now expected to be down $30 million to flat at constant currency. The 2.6% revenue beat and in-line EPS were overshadowed by the margin narrative. The stock fell 2% on the report with 2.4x normal volume before drifting slightly positive over subsequent sessions, suggesting investors are weighing near-term margin compression against an improving service growth trajectory and continued shareholder returns ($800M in buybacks plus a 5% dividend increase).
Reported Before market openNYSEIndustrials
$27.93B market cap
100quality score
Company context
Snapshot as of publicationOtis 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.
Earnings scorecard
Reported versus consensus
Reported EPS
$1.01
Consensus $1
EPS surprise
0.0%
Reported versus consensus
Reported revenue
$3.86B
Consensus $3.76B
Revenue surprise
+2.6%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$71.25Current
$77Low
$94Average
$119High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 30, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Evercore ISI Group | Outperform | Outperform | Maintain | Jul 23, 2026 |
| Bernstein | Outperform | Outperform | Maintain | Jul 23, 2026 |
| RBC Capital | Outperform | Outperform | Maintain | Apr 23, 2026 |
| Barclays | Underweight | Underweight | Maintain | Apr 23, 2026 |
| Wolfe Research | Peer Perform | Outperform | Downgrade | Apr 8, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Apr 1, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Jan 16, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Jul 8, 2025 |
| Argus Research | Buy | Buy | Maintain | May 13, 2024 |
| UBS | Neutral | Neutral | Maintain | Feb 16, 2024 |
| Vertical Research | Hold | Buy | Downgrade | Jan 2, 2024 |
| HSBC | Hold | Hold | Maintain | Apr 19, 2023 |
| Cowen & Co. | Outperform | Outperform | Maintain | Feb 2, 2023 |
| Credit Suisse | Neutral | Neutral | Maintain | Oct 27, 2022 |
| Berenberg | Buy | Buy | Maintain | Jun 22, 2022 |
Named analyst price targets
Upside is calculated against the persisted current price $71.24. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| RBC Capital | Analyst unavailable | $90 | $73.19 | +26.3% | Jul 28, 2026 |
| Evercore ISI | Alexander Virgo | $95 | $69.92 | +33.3% | Jul 23, 2026 |
| Bernstein | Analyst unavailable | $90 | $70.41 | +26.3% | Jul 23, 2026 |
| Bernstein | Analyst unavailable | $97 | $71.27 | +36.1% | Jun 9, 2026 |
| Morgan Stanley | Analyst unavailable | $88 | $79.52 | +23.5% | Apr 24, 2026 |
| UBS | Analyst unavailable | $105 | $80.87 | +47.4% | Apr 23, 2026 |
| Barclays | Julian Mitchell | $77 | $77.88 | +8.1% | Apr 23, 2026 |
| New Street | Analyst unavailable | $98 | $84.58 | +37.6% | Jan 30, 2026 |
| Wells Fargo | Joseph O'Dea | $92 | $88.14 | +29.1% | Dec 15, 2025 |
| Barclays | Analyst unavailable | $92 | $93.38 | +29.1% | Oct 30, 2025 |
| Wolfe Research | Analyst unavailable | $109 | $90.4 | +53.0% | Oct 8, 2025 |
| Barclays | Julian Mitchell | $91 | $92.12 | +27.7% | Jan 8, 2025 |
| Wells Fargo | Joseph O'Dea | $100 | $92.12 | +40.4% | Jan 7, 2025 |
| Morgan Stanley | Chris Snyder | $97 | $92.43 | +36.1% | Sep 6, 2024 |
| Wells Fargo | Joseph O'Dea | $95 | $91.43 | +33.3% | Jul 25, 2024 |
| Argus Research | John Eade | $108 | $96.21 | +51.6% | May 13, 2024 |
| Melius Research | Rob Wertheimer | $119 | $98.57 | +67.0% | Apr 2, 2024 |
| Barclays | Julian Mitchell | $90 | $98.57 | +26.3% | Apr 2, 2024 |
| Argus Research | John Eade | $102 | $92.41 | +43.2% | Feb 22, 2024 |
| Cowen & Co. | Analyst unavailable | $95 | $84.86 | +33.3% | Feb 2, 2023 |
| Barclays | Analyst unavailable | $81 | $84.56 | +13.7% | Feb 2, 2023 |
| Morgan Stanley | Analyst unavailable | $89 | $84.56 | +24.9% | Feb 2, 2023 |
| Wells Fargo | Analyst unavailable | $82 | $84.56 | +15.1% | Feb 2, 2023 |
| Wells Fargo | Analyst unavailable | $71 | $80.25 | -0.3% | Jan 5, 2023 |
| BNP Paribas | Miguel Borrega | $80 | $71.9 | +12.3% | Jul 4, 2022 |
| RBC Capital | Analyst unavailable | $98 | $73.32 | +37.6% | May 4, 2022 |
| Cowen & Co. | Analyst unavailable | $85 | $72.3 | +19.3% | Apr 26, 2022 |
| Barclays | Analyst unavailable | $80 | $73.75 | +12.3% | Apr 26, 2022 |
| Credit Suisse | Analyst unavailable | $81 | $74.6 | +13.7% | Apr 26, 2022 |
Track every rating change on OTIS the moment it posts. Free to start.
Start freeMarket reaction
prior-close to event-session close
Stock move
-2.1%
Event window
SPY move
-0.1%
Same window
Abnormal move
-2.0%
Stock minus SPY
Volume
2.4×
Versus trailing sessions
Subsequent drift
+0.5%
Up to 20 sessions
OTISSPY benchmark
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What changed
From Q1 to Q2, organic service growth accelerated from 5% to 9%, driven by double-digit modernization growth and strong repair momentum. New equipment sales improved sequentially, declining 1% versus a 5% decline in Q1, with backlog growth supporting future stability. The most significant change was the guidance cut: Q1's maintained outlook shifted to a lowered adjusted operating profit range (down $30M to flat at constant currency). Management also disclosed a service quality index improvement of seven points in targeted territories and began rolling out the new service operating model across all 1,400 field territories. The WeMaintain majority stake acquisition, first mentioned in Q1, continued as a strategic priority for digital service capabilities.
Guidance delta
Adjusted operating profit guidance was lowered to down $30M to flat at constant currency for FY2026, a shift from the maintained outlook in Q1. Management attributed the reduction to temporary productivity headwinds from onboarding new mechanics and rolling out the service operating model, while reiterating that margins are expected to improve in the second half. Whether FY2026 net sales ($15.1–$15.3B) and adjusted EPS ($4.20–$4.24) ranges from Q1 were formally reconfirmed is not clear from the available transcript analysis.
Key takeaways
- Organic service sales grew 9%, accelerating from 5% in Q1, with double-digit modernization growth and strong repair momentum.
- Revenue of $3.86B beat consensus by 2.6%; EPS of $1.01 was in line with estimates.
- Adjusted operating profit guidance lowered to down $30M to flat at constant currency, reflecting productivity headwinds from new mechanic onboarding and service model rollout.
- Modernization backlog grew 26% YoY, providing revenue visibility for future quarters.
- Shareholder returns continued with $800M in share repurchases and a 5% dividend increase.
- WeMaintain majority stake acquisition strengthens digital and AI-enabled service capabilities.
Management priorities
- Roll out the new service operating model across all 1,400 field territories
- Continue the $50M annual investment in service excellence and AI micro-pricing initiatives
- Expand AI micro-pricing while balancing retention considerations
- Target mid-single-digit service revenue growth in H2 2026
- Convert growing new equipment backlog into sales in the second half
- Complete the $800M share repurchase program
Related earnings events
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Sources
- Earnings call transcript and parsed analysis · 2026-07-22T17:02:56.621027+00:00
- FN2 earnings calendar · 2026-07-30T01:23:13.872335+00:00
- Polygon adjusted daily market bars · 2026-07-30T15:23:26.178668+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-30T15:23:26.176037+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 . For educational purposes only; not investment advice.