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Otis Worldwide to Report Q1 Earnings: Here's What You Need to Know
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Key Takeaways
Otis Q1 EPS estimate cut to $0.92 from $0.95 in 30 days; sales seen at $3.51B, up 4.7% YoY.
OTIS Service segment drives growth via maintenance, repair and modernization, with repair nearing 10% growth.
OTIS Service segment drives growth via maintenance, repair and modernization, with repair nearing 10% growth.
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report first-quarter 2026 results on April 22, 2026, before the opening bell.
In the last reported quarter, the company’s adjusted earnings came in line with the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both top and bottom lines grew 3.3% and 10.8%, respectively.
OTIS’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.3%.
Trend in Otis’ Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended downward to 92 cents from 95 cents in the past 30 days. The estimated figure remains flat year over year.
The consensus mark for net sales is pegged at $3.51 billion, indicating 4.7% growth from the year-ago figure of $3.35 billion.
Key Factors to Note for OTIS’ Q1 Earnings
Net Sales
Otis’ first-quarter net sales are likely to have increased year over year, supported by robust operational growth in the Service segment (which contributed 65.4% of 2025 net sales). Service organic sales growth is expected to have been supported by solid execution in maintenance and repair, along with steady modernization activity backed by a strong backlog. Repair activity is likely to have shown acceleration, with management expecting growth to move toward 10% or higher, supported by rising demand linked to an aging installed base and improving execution in the field.
Modernization revenues are also expected to have contributed, driven by backlog conversion and sustained demand trends across regions. However, the pace of conversion might vary due to project timing and execution cycles, particularly in larger or multi-year projects.
In contrast, New Equipment sales (which contributed 34.6% of 2025 net sales) are expected to have remained under pressure. The segment is likely to have declined year over year, broadly in line with recent trends, as continued weakness in China offsets growth across other regions. While orders and backlog trends outside China remain supportive, lower volumes and pricing pressure in China are expected to have weighed on overall performance.
Overall, sales growth is expected to have remained modest, with service-driven expansion partially offset by continued softness in New Equipment.
For the first quarter, our model predicts the Service segment’s net sales to increase year over year by 10.2% to $2.41 billion, with the New Equipment segment’s net sales declining 5% to $1.1 billion.
Margins
On the margin front, service mix is expected to have remained as a key support. Higher service volumes, pricing actions and productivity initiatives are likely to have supported margins, even as continued investments in service excellence and field resources limit near-term expansion.
Repair growth is expected to have supported profitability given its higher-margin nature, while modernization margins have been improving with scale. The mix between repair and modernization might have influenced overall margin performance in the quarter.
New Equipment margins are expected to have remained a headwind due to lower volumes, pricing pressure in China and tariff impacts, with only partial support from productivity and restructuring benefits.
Overall, earnings are expected to remain broadly flat year over year, reflecting steady service-driven support offset by continued pressure in New Equipment and ongoing investments.
We expect the adjusted operating margin in the New Equipment segment to decrease year over year to 5.1% from 5.7%, while the same for the Service segment is anticipated to grow 100 basis points to 25.6%.
Our model predicts adjusted EBITDA during the quarter to be up year over year by 0.8% to $606.5 million, with the adjusted EBITDA margin to contract 70 bps to 17.8%.
What Our Model Unveils for OTIS
Our proven model does not predict an earnings beat for Otis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
OTIS’ Earnings ESP: OTIS has an Earnings ESP of -1.01%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of Otis: Currently, the company carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Industrial Products sector, which, per our model, have the right combination of elements to deliver an earnings beat this time around.
The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 9.7%. In the to-be-reported quarter, ATS Corporation’s earnings are expected to register a 14.3% year-over-year increase.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +6.24% and a Zacks Rank of 3.
The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 11.3%. In the to-be-reported quarter, Deere’s earnings are expected to register a 12.7% year-over-year decrease.
Kennametal (KMT - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank of 1.
The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 35.4%. In the to-be-reported quarter, Kennametal’s earnings are expected to register a 44.7% year-over-year increase.
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Otis Worldwide to Report Q1 Earnings: Here's What You Need to Know
Key Takeaways
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report first-quarter 2026 results on April 22, 2026, before the opening bell.
In the last reported quarter, the company’s adjusted earnings came in line with the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both top and bottom lines grew 3.3% and 10.8%, respectively.
OTIS’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.3%.
Trend in Otis’ Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended downward to 92 cents from 95 cents in the past 30 days. The estimated figure remains flat year over year.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
The consensus mark for net sales is pegged at $3.51 billion, indicating 4.7% growth from the year-ago figure of $3.35 billion.
Key Factors to Note for OTIS’ Q1 Earnings
Net Sales
Otis’ first-quarter net sales are likely to have increased year over year, supported by robust operational growth in the Service segment (which contributed 65.4% of 2025 net sales). Service organic sales growth is expected to have been supported by solid execution in maintenance and repair, along with steady modernization activity backed by a strong backlog. Repair activity is likely to have shown acceleration, with management expecting growth to move toward 10% or higher, supported by rising demand linked to an aging installed base and improving execution in the field.
Modernization revenues are also expected to have contributed, driven by backlog conversion and sustained demand trends across regions. However, the pace of conversion might vary due to project timing and execution cycles, particularly in larger or multi-year projects.
In contrast, New Equipment sales (which contributed 34.6% of 2025 net sales) are expected to have remained under pressure. The segment is likely to have declined year over year, broadly in line with recent trends, as continued weakness in China offsets growth across other regions. While orders and backlog trends outside China remain supportive, lower volumes and pricing pressure in China are expected to have weighed on overall performance.
Overall, sales growth is expected to have remained modest, with service-driven expansion partially offset by continued softness in New Equipment.
For the first quarter, our model predicts the Service segment’s net sales to increase year over year by 10.2% to $2.41 billion, with the New Equipment segment’s net sales declining 5% to $1.1 billion.
Margins
On the margin front, service mix is expected to have remained as a key support. Higher service volumes, pricing actions and productivity initiatives are likely to have supported margins, even as continued investments in service excellence and field resources limit near-term expansion.
Repair growth is expected to have supported profitability given its higher-margin nature, while modernization margins have been improving with scale. The mix between repair and modernization might have influenced overall margin performance in the quarter.
New Equipment margins are expected to have remained a headwind due to lower volumes, pricing pressure in China and tariff impacts, with only partial support from productivity and restructuring benefits.
Overall, earnings are expected to remain broadly flat year over year, reflecting steady service-driven support offset by continued pressure in New Equipment and ongoing investments.
We expect the adjusted operating margin in the New Equipment segment to decrease year over year to 5.1% from 5.7%, while the same for the Service segment is anticipated to grow 100 basis points to 25.6%.
Our model predicts adjusted EBITDA during the quarter to be up year over year by 0.8% to $606.5 million, with the adjusted EBITDA margin to contract 70 bps to 17.8%.
What Our Model Unveils for OTIS
Our proven model does not predict an earnings beat for Otis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
OTIS’ Earnings ESP: OTIS has an Earnings ESP of -1.01%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of Otis: Currently, the company carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Industrial Products sector, which, per our model, have the right combination of elements to deliver an earnings beat this time around.
ATS Corporation (ATS - Free Report) currently has an Earnings ESP of +1.05% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 9.7%. In the to-be-reported quarter, ATS Corporation’s earnings are expected to register a 14.3% year-over-year increase.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +6.24% and a Zacks Rank of 3.
The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 11.3%. In the to-be-reported quarter, Deere’s earnings are expected to register a 12.7% year-over-year decrease.
Kennametal (KMT - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank of 1.
The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 35.4%. In the to-be-reported quarter, Kennametal’s earnings are expected to register a 44.7% year-over-year increase.