Johnson Controls lifts 2026 profit forecast on AI-driven demand for cooling equipment (updated)

Johnson Controls International

04/02/2026 15:26

Updates shares in paragraph 2, adds CEO comment in paragraph 7

By Abhinav Parmar and Aishwarya Jain

Feb 4 (Reuters) - Johnson Controls International JCI.N forecast 2026 profit above Wall Street expectations on Wednesday, anticipating sustained demand for its thermal management and cooling equipment used in data centers.

U.S.-listed shares of the Cork, Ireland-based company rose 9% in early trading. They had gained 51.7% in 2025.

The industrial supplier, whose portfolio spans IT cooling, security, and fire systems, is benefiting from AI-driven data-center expansion amid a broader upswing for industrial firms supplying the infrastructure behind the boom.

With more AI computing coming online, demand for cooling infrastructure is climbing and customers are prioritizing robust, energy-efficient thermal management.

"As rack densities rise and hardware content per rack increases, the thermal load moves higher, ultimately driving greater spending on cooling infrastructure," Jefferies analyst Stephen Volkmann wrote in a note.

     The company raised its full-year adjusted profit forecast to $4.70 per share from $4.55, topping analysts' average estimate of $4.61, according to data compiled by LSEG.

"Our data center momentum reflects not only strong demand from existing customers, but also success in reaching new customers," CEO Joakim Weidemanis said on a post-earnings conference call. "In addition to the data centers, we see similar demands for energy efficiency, precision and across other mission-critical sectors."

Johnson Controls caters to companies in the aerospace manufacturing, healthcare and commercial construction industries. Its products include heating, ventilation and air conditioning (HVAC) systems, security, fire systems and refrigeration equipment.

The company's second-quarter adjusted profit forecast of $1.11 per share also came in above analysts' average estimates of $1.05 per share.

It reported an adjusted profit of 89 cents per share for the quarter ended December 31, compared with 64 cents a year earlier.

Revenue in the first quarter was $5.79 billion, above $5.43 billion a year earlier.

 (Reporting by Abhinav Parmar and Aishwarya Jain in Bengaluru; Editing by Sahal Muhammed and Maju Samuel)

 ((Aishwarya.Jain@thomsonreuters.com;))