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CARR to Report Q3 Earnings: What's in Store for the Stock?

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Key Takeaways

  • Carrier Global expects Q3 adjusted EPS of $0.80 and sales near $6B with mid-single-digit organic growth.
  • Strong HVAC demand, aftermarket gains, and Viessmann integration likely boosted CARR's Q3 revenues.
  • Weak Americas and China residential demand and European mix might have pressured CARR's quarterly margins.

Carrier Global (CARR - Free Report) is scheduled to report third-quarter 2025 results on Oct. 28.

Carrier Global anticipates adjusted EPS to be approximately $0.80 in the quarter, with sales of about $6 billion and mid-single-digit organic growth year over year.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 55 cents per share, down 14% over the past 30 days, suggesting a year-over-year decline of 33.73%.

The Zacks Consensus Estimate for revenues is pegged at $5.53 billion, indicating a 7.62% year-over-year decline.

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation price-eps-surprise | Carrier Global Corporation Quote

Carrier Global’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.38%.

Let’s see how things might have shaped up for CARR prior to the announcement.

Factors Likely to Have Influenced CARR’s Q3 Performance

Carrier Global’s strong momentum in Heating, Ventilating, and Air Conditioning (“HVAC”) and aftermarket services is expected to have driven revenue growth in the third quarter. Rising demand for heating and cooling systems across residential and commercial applications likely continued to drive performance in the HVAC segment.

The company’s integration of Viessmann Climate Solutions is expected to have boosted heat pump volumes and expanded its reach in sustainable energy solutions.

Aftermarket services, which involve the repair, maintenance, and replacement of equipment, have been seeing double-digit growth for several years now. This trend is likely to have continued in the to-be-reported quarter as well.

Currency movements are also expected to have provided a financial tailwind in the to-be-reported quarter. CARR projects roughly $200 million of year-over-year benefit from foreign currency translation, which will likely boost sales. Similarly, tariff-related pricing adjustments are expected to contribute another $200 million to revenues, as CARR continues to price effectively to neutralize tariff costs. 

However, CARR’s third-quarter performance is expected to have faced challenges from declining residential sales in the Americas due to weaker consumer demand and elevated inventory levels, as well as continued softness in residential sales in China. Additionally, unfavorable product and regional mix in Europe and tariff-related margin headwinds may further impact results.

What Our Model Says for CARR

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Carrier Global has an Earnings ESP of +1.72% and a Zacks Rank #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Corning (GLW - Free Report) presently has an Earnings ESP of +1.90% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corning shares have jumped 80.6% year to date. Corning is scheduled to release third-quarter 2025 results on Oct. 28.

InterDigital (IDCC - Free Report) currently has an Earnings ESP of +17.32% and a Zacks Rank #1.

InterDigital shares have surged 93.2% year to date. InterDigital is scheduled to release third-quarter 2025 results on Oct. 30.

Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #2 at present. 

Cognizant’s shares have lost 11.6% year to date. The company is set to report third-quarter 2025 results on Oct. 29.

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