Ireland's Johnson Controls Q3 sales beat on data center demand; raises outlook

Johnson Controls International

29/07/2026 12:05

Overview
Ireland building systems firm's fiscal Q3 sales rose 9%, beating analyst expectations
Adjusted EPS for fiscal Q3 was $1.42, beating analyst expectations
Company raised full-year 2026 guidance for organic sales growth and adjusted EPS

Outlook
Johnson Controls raises FY26 organic sales growth guidance to ~8% from ~6%
Company now expects FY26 adjusted EPS of ~$5.05, up from ~$4.85
Johnson Controls sees Q4 organic sales growth of 9% to 10% and adjusted EPS of ~$1.55

Result Drivers
DATA CENTER DEMAND - Co said sustained demand from data centers and other mission-critical environments supported higher orders and backlog
OPERATING LEVERAGE - Margin expansion in Americas attributed to strong operating leverage on higher revenue
PRODUCTIVITY & PRICING - EMEA margin gains driven by favorable pricing and productivity improvements, partially offset by divestitures

Company press release: ID:nPn695JCCa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$6.60 bln
$6.47 bln (15 Analysts)
Q3 Adjusted EPS
Beat
$1.42
$1.30 (16 Analysts)
Q3 EPS
 
$1.23
 
Q3 Net Income
 
$749 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Johnson Controls International PLC is $160.00, about 14.1% above its July 28 closing price of $140.28
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

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July 28 - Carrier raises annual earnings forecast on air conditioning demand

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(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.)