Otis Worldwide reported third-quarter 2026 sales growth led by its service business, alongside higher GAAP earnings but flat adjusted earnings per share. The elevator and escalator maker also reported stronger modernization orders and backlog, while saying it is broadly maintaining its full-year outlook.
Service continued to outpace new equipment sales. Otis said its investments in field capability and AI-enabled pricing, together with attention to service quality and cost control, supported service growth and a sequential improvement in the business’s operating margin.
Key details
- Third-quarter sales: Net sales were $3.9 billion, up 6% from a year earlier; organic sales also increased 6%.
- Service and equipment: Service net sales rose 8% as reported and 7% organically. New Equipment sales increased 3% on both bases.
- Profit and earnings: GAAP operating profit increased by $34 million, while adjusted operating profit declined by $6 million. GAAP earnings per share rose 14% to $1.08; adjusted earnings per share was $1.05, unchanged from a year earlier.
- Service margins: Service operating profit margin improved by 100 basis points from the prior quarter to 24.2%.
- Modernization: Orders rose 10% at constant currency, and the modernization backlog grew 20% both at actual and constant currency.
- Cash flow: Otis generated $337 million in operating cash flow and $272 million in adjusted free cash flow during the quarter.
- Year-to-date performance: Through the first nine months, net sales were up 7% and organic sales up 4%. Service net sales rose 10% as reported and 7% organically.
- Year-to-date profit and cash flow: GAAP operating profit increased $190 million, while adjusted operating profit fell $41 million. Operating cash flow was $1.0 billion and adjusted free cash flow was $834 million.
- Capital returned to shareholders: Otis repurchased about $800 million of shares and paid about $500 million in dividends year to date, returning roughly $1.3 billion in total.
- Full-year outlook: The company said it is broadly maintaining its outlook; no specific revised guidance figures were included in the material provided.
What it means
The results show service as the main source of sales growth, while new equipment also expanded modestly. The quarter’s higher GAAP earnings alongside flat adjusted EPS reflects a difference between the two measures; adjusted operating profit was slightly lower year over year. Otis also continued substantial shareholder returns, with year-to-date buybacks and dividends totaling about $1.3 billion.