Otis reported second quarter 2026 net sales of $3.9 billion, a 7% increase year-over-year, and adjusted EPS of $1.01, slightly ahead of consensus. The results were driven by strong performance in the Service segment, which offset continued weakness in New Equipment. The company revised its full-year 2026 outlook for adjusted EPS to a range of $4.01 to $4.05.
Key Highlights
- Service segment organic sales grew 9% year-over-year, matching its highest level since the company's spin-off, and was led by a 24% surge in organic modernization sales.
- Modernization backlog grew 26% at constant currency, providing strong visibility for future revenue conversion in the high-margin business line.
- The New Equipment segment remained a headwind, with organic sales declining 1% and segment operating profit margin contracting 220 basis points to 3.1%, impacted by a high teens sales decline in China.