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Carrier Global Q4 Earnings & Revenues Miss Estimates, Stock Down
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Key Takeaways
CARR reported Q4 adjusted EPS of 34 cents as revenues fell 6% year over year.
CARR's Climate Solutions Americas sales dropped sharply, offsetting gains in Europe and Transportation.
CARR issued a flat 2026 sales outlook despite stronger cash flow and heavy shareholder returns.
Carrier Global (CARR - Free Report) reported fourth-quarter 2025 adjusted earnings of 34 cents per share, which missed the Zacks Consensus Estimate by 6.49%. However, it has declined 37% year over year.
Net sales of $4.83 billion missed the Zacks Consensus Estimate by 4.08% but decreased 6% year over year. Product sales (85.5% of net sales) of $4.13 billion decreased 8.7% year over year. Service sales (14.5% of net sales) of $699 million were up 13.1% year over year.
However, CARR shares declined 3.03% while writing this blog.
CARR’s Quarter in Detail
Climate Solutions Americas (CSA) revenues of $1.93 billion contributed 40% to net sales and declined 17.3% year over year. Sales decreased 17% organically. Commercial showed strong double-digit growth. However, this was more than offset by lower volumes in Residential, which fell about 38% year over year, and in Light Commercial, which decreased 20% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
Climate Solutions Europe’s revenues of $1.33 billion contributed 27.5% to net sales and increased 6.4% year over year. Organic sales declined 2% year over year, with Residential and Light Commercial down mid-single digits.
Climate Solutions Asia Pacific, Middle East & Africa revenues of $798 million contributed 16.5% to net sales and declined 8.7% year over year. Sales decreased 9% organically due to declines in Residential Light Commercial in China, partially offset by modest growth in the rest of Asia.
Climate Solutions Transportation revenues of $772 million contributed 16% to net sales and increased 13.4% year over year. The increase can be attributed to the impact of the divestiture of Commercial Refrigeration. Sales increased 10% organically, with 50% growth in Container and Global Truck and Trailer flat.
Research & development (R&D) expenses decreased 1.2% year over year to $160 million. As a percentage of revenues, R&D expenses declined 20 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses increased 7% year over year to $747 million. As a percentage of revenues, SG&A expenses expanded 20 bps year over year.
Adjusted operating margin contracted 380 bps on a year-over-year basis to 9.4%.
Adjusted operating margin in the Climate Solutions Americas segment contracted 990 bps year over year to 8.7%. The Climate Solutions Europe segment contracted 260 bps year over year to 9%. Climate Solutions Asia Pacific, Middle East & Africa segment contracted 100 bps year over year to 11.9%. Climate Solutions Transportation segment expanded 30 bps year over year to 14.5%.
CARR’s Balance Sheet
As of Dec. 31, 2025, Carrier had cash and cash equivalents of $1.55 billion compared with $1.42 billion as of Sept. 30, 2025.
Total debt (including the current portion) as of Dec. 31, 2025, was $11.83 billion compared with $11.91 billion as of Sept. 30, 2025.
The company generated $1.04 billion in cash from operations compared with $341 million in the previous quarter.
Free cash flow was $909 million compared with $224 million reported in the prior quarter.
In the fourth quarter of 2025, CARR repurchased $2.9 billion of its shares and paid $3.7 billion to shareholders.
Carrier Initiates Weak 2026 Outlook
For 2026, Carrier expects to achieve sales of $22 billion, reflecting flat organic growth.
Adjusted operating profit is expected to be $3.4 billion.
The company anticipates adjusted earnings of $2.80 per share.
Free cash flow is expected to be $2 billion.
Zacks Rank and Stocks to Consider
Currently, Carrier has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) , and Amkor Technology (AMKR - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 6.1% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12
Shares of Advanced Energy have surged 82.1% in the trailing six-month period. Advanced Energy is slated to report fourth-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 97.6% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.
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Carrier Global Q4 Earnings & Revenues Miss Estimates, Stock Down
Key Takeaways
Carrier Global (CARR - Free Report) reported fourth-quarter 2025 adjusted earnings of 34 cents per share, which missed the Zacks Consensus Estimate by 6.49%. However, it has declined 37% year over year.
Net sales of $4.83 billion missed the Zacks Consensus Estimate by 4.08% but decreased 6% year over year. Product sales (85.5% of net sales) of $4.13 billion decreased 8.7% year over year. Service sales (14.5% of net sales) of $699 million were up 13.1% year over year.
However, CARR shares declined 3.03% while writing this blog.
CARR’s Quarter in Detail
Climate Solutions Americas (CSA) revenues of $1.93 billion contributed 40% to net sales and declined 17.3% year over year. Sales decreased 17% organically. Commercial showed strong double-digit growth. However, this was more than offset by lower volumes in Residential, which fell about 38% year over year, and in Light Commercial, which decreased 20% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote
Climate Solutions Europe’s revenues of $1.33 billion contributed 27.5% to net sales and increased 6.4% year over year. Organic sales declined 2% year over year, with Residential and Light Commercial down mid-single digits.
Climate Solutions Asia Pacific, Middle East & Africa revenues of $798 million contributed 16.5% to net sales and declined 8.7% year over year. Sales decreased 9% organically due to declines in Residential Light Commercial in China, partially offset by modest growth in the rest of Asia.
Climate Solutions Transportation revenues of $772 million contributed 16% to net sales and increased 13.4% year over year. The increase can be attributed to the impact of the divestiture of Commercial Refrigeration. Sales increased 10% organically, with 50% growth in Container and Global Truck and Trailer flat.
Research & development (R&D) expenses decreased 1.2% year over year to $160 million. As a percentage of revenues, R&D expenses declined 20 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses increased 7% year over year to $747 million. As a percentage of revenues, SG&A expenses expanded 20 bps year over year.
Adjusted operating margin contracted 380 bps on a year-over-year basis to 9.4%.
Adjusted operating margin in the Climate Solutions Americas segment contracted 990 bps year over year to 8.7%. The Climate Solutions Europe segment contracted 260 bps year over year to 9%. Climate Solutions Asia Pacific, Middle East & Africa segment contracted 100 bps year over year to 11.9%. Climate Solutions Transportation segment expanded 30 bps year over year to 14.5%.
CARR’s Balance Sheet
As of Dec. 31, 2025, Carrier had cash and cash equivalents of $1.55 billion compared with $1.42 billion as of Sept. 30, 2025.
Total debt (including the current portion) as of Dec. 31, 2025, was $11.83 billion compared with $11.91 billion as of Sept. 30, 2025.
The company generated $1.04 billion in cash from operations compared with $341 million in the previous quarter.
Free cash flow was $909 million compared with $224 million reported in the prior quarter.
In the fourth quarter of 2025, CARR repurchased $2.9 billion of its shares and paid $3.7 billion to shareholders.
Carrier Initiates Weak 2026 Outlook
For 2026, Carrier expects to achieve sales of $22 billion, reflecting flat organic growth.
Adjusted operating profit is expected to be $3.4 billion.
The company anticipates adjusted earnings of $2.80 per share.
Free cash flow is expected to be $2 billion.
Zacks Rank and Stocks to Consider
Currently, Carrier has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) , and Amkor Technology (AMKR - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 6.1% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12
Shares of Advanced Energy have surged 82.1% in the trailing six-month period. Advanced Energy is slated to report fourth-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 97.6% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.