Ireland's Johnson Controls Q2 revenue misses estimates

Johnson Controls International

06/05/2026 12:06

Corrects Q2 sales amount to $6.14 bln from $4.12 bln in Key Details table, changes headline and text to say sales beat, not missed, estimates

Overview

Ireland building systems firm's fiscal Q2 revenue beat analyst expectations

Adjusted EPS for fiscal Q2 beat analyst expectations

Company raised full-year 2026 guidance for organic sales growth and adjusted EPS

Outlook

Johnson Controls raises FY26 organic sales growth outlook to ~6% from mid-single digits

Company lifts FY26 adjusted EPS guidance to ~$4.85 from ~$4.70

Johnson Controls expects Q3 organic sales growth of ~6% and adjusted EPS of ~$1.28

Result Drivers

ORDERS AND BACKLOG - Orders grew 30% organically and backlog reached a record $20 bln, driven by demand in data centers and technology-driven environments, per CEO Joakim Weidemanis

MARGIN EXPANSION - Margin increases were driven by favorable pricing, productivity improvements and higher volumes across regions

REGIONAL VARIATION - Americas growth was led by Applied HVAC and double-digit services growth; EMEA growth offset by Middle East conflicts and lower non-recurring services; APAC driven by over 20% growth in Applied HVAC

Company press release: ID:nPn1Yw14za

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$6.14 bln
$6.08 bln (16 Analysts)
Q2 Adjusted EPS
Beat
$1.19
$1.12 (18 Analysts)
Q2 EPS
$0.99


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for Johnson Controls International PLC is $147.00, about 1.5% above its May 5 closing price of $144.82

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)