Otis Worldwide (NYSE:OTIS) Releases Earnings Results, Meets Estimates

Otis Worldwide (NYSE:OTIS) released its earnings results on Wednesday. The company reported $1.01 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.01, FiscalAI reports. Otis Worldwide had a negative return on equity of 29.39% and a net margin of 10.11%.The company had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.76 billion. During the same period in the prior year, the company posted $1.05 earnings per share. Otis Worldwide’s quarterly revenue was up 7.3% on a year-over-year basis. Otis Worldwide updated its FY 2026 guidance to 4.010-4.050 EPS.

Here are the key takeaways from Otis Worldwide’s conference call:

• Otis posted a solid quarter with 6% organic sales growth, led by a strong acceleration in its service business and improving trends in new equipment.
• Service remained the main growth engine, with 9% organic sales growth, including 24% modernization growth, 12% repair growth, and improving maintenance trends.
• Cash generation stayed strong, as adjusted free cash flow rose 19% year over year to $290 million, supporting continued buybacks, dividends, and strategic investment activity.
• Margins came under pressure in the quarter, with service margin down 170 bps and total adjusted operating margin down 180 bps, as labor, material, mix, and productivity headwinds offset pricing gains.
• Otis trimmed its full-year outlook, citing slower-than-expected retention improvement, tempered maintenance micro-pricing, and higher productivity/cost headwinds; adjusted EPS is now expected at $4.01 to $4.05.

Otis Worldwide Price Performance

NYSE OTIS opened at $70.49 on Thursday. The company’s 50 day simple moving average is $71.98 and its two-hundred day simple moving average is $80.15. Otis Worldwide has a 1 year low of $69.16 and a 1 year high of $94.57. The stock has a market capitalization of $27.05 billion, a PE ratio of 18.75, a P/E/G ratio of 2.58 and a beta of 0.90.

Analysts Set New Price Targets

OTIS has been the subject of several research reports. Wolfe Research lowered Otis Worldwide from an “outperform” rating to a “peer perform” rating in a report on Wednesday, April 8th. Morgan Stanley set a $88.00 price objective on Otis Worldwide in a report on Friday, April 24th. Sanford C. Bernstein started coverage on shares of Otis Worldwide in a research report on Tuesday, June 9th. They set an “outperform” rating and a $97.00 target price for the company. UBS Group set a $105.00 price target on shares of Otis Worldwide in a research note on Thursday, April 23rd. Finally, Wells Fargo & Company dropped their target price on Otis Worldwide from $92.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 1st. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $96.55.

Institutional Trading of Otis Worldwide

Hedge funds have recently bought and sold shares of the company. Pinnacle Financial Partners Inc. boosted its stake in shares of Otis Worldwide by 19.6% in the 3rd quarter. Pinnacle Financial Partners Inc. now owns 77,492 shares of the company’s stock valued at $7,085,000 after purchasing an additional 12,721 shares in the last quarter. Smartleaf Asset Management LLC lifted its stake in Otis Worldwide by 5.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,295 shares of the company’s stock worth $202,000 after purchasing an additional 123 shares during the last quarter. Burke & Herbert Bank & Trust Co. purchased a new stake in Otis Worldwide during the fourth quarter valued at about $231,000. Woodline Partners LP bought a new position in shares of Otis Worldwide during the third quarter valued at about $231,000. Finally, Nicolet Advisory Services LLC bought a new position in shares of Otis Worldwide during the third quarter valued at about $228,000. Institutional investors own 88.03% of the company’s stock.

Otis Worldwide News Summary

Here are the key news stories impacting Otis Worldwide this week:

• Positive Sentiment: Q2 earnings of $1.01 per share matched estimates, while revenue of $3.86 billion came in above expectations, helped by 9% organic Service sales growth and 11% Service net sales growth. OTIS REPORTS SECOND QUARTER 2026 RESULTS
• Positive Sentiment: Modernization orders rose 9% and backlog increased 24% (26% at constant currency), signaling continued demand for service and upgrade work. OTIS REPORTS SECOND QUARTER 2026 RESULTS
• Positive Sentiment: The company continued generating strong cash flow and returned capital through about $400 million of share repurchases in the quarter, which can support the stock. OTIS REPORTS SECOND QUARTER 2026 RESULTS
• Neutral Sentiment: Management raised its 2026 sales outlook to $15.1 billion-$15.3 billion, suggesting top-line stability despite a tougher operating backdrop. Otis forecasts 2026 adjusted EPS $4.01-$4.05 while targeting $15.1B-$15.3B sales amid service cost headwinds
• Negative Sentiment: Otis cut its 2026 adjusted EPS guidance to $4.01-$4.05, below Wall Street expectations, citing rising service costs, global weakness, and a Middle East hit that may pressure margins. Otis cuts full-year profit outlook on global weakness
• Negative Sentiment: Adjusted operating profit declined in the quarter, underscoring that strong service revenue has not yet fully offset higher costs and weakness in new equipment. OTIS REPORTS SECOND QUARTER 2026 RESULTS

About Otis Worldwide

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis’s business derives from long-term service contracts and responsive maintenance work.