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JCI delivered third-quarter earnings and revenues above estimates, with organic revenues up 10%.
JCI saw strong Americas and APAC growth, led by applied HVAC demand and products and systems strength.
JCI raised fiscal 2026 organic revenue and adjusted earnings guidance following strong results.
Johnson Controls International plc (JCI - Free Report) reported third-quarter fiscal 2026 (ended June 2026) adjusted earnings of $1.42 per share, which beat the Zacks Consensus Estimate of $1.32. The bottom line increased 35.2% year over year.
Total revenues (continuing operations) of $6.61 billion surpassed the consensus estimate of $6.43 billion in the quarter. The top line increased 9.3% year over year, whereas organic revenues increased 10%.
Q3 Segmental Results
Effective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.
Americas: Revenues were $4.50 billion, up 11% year over year. The Zacks Consensus Estimate was pegged at $4.34 billion.
Organic sales also increased 11%, driven by continued strength across the applied heating, ventilation and air conditioning (HVAC) business. Adjusted segment EBITA increased 27% year over year to $951 million.
EMEA: Revenues totaled $1.26 billion, down 1% year over year. The Zacks Consensus Estimate was pegged at $1.25 billion.
Organic sales rose 1%, with both products and systems and services increasing 1%. Adjusted EBITA was $181 million, up 1% year over year.
APAC: Revenues increased 15% to $846 million. The Zacks Consensus Estimate was pegged at $777 million.
Sales rose 15% organically, driven by 20% growth in products and systems and continued strength in the applied HVAC business. Adjusted EBITA was $179 million, up 25% year over year.
Johnson Controls International plc Price, Consensus and EPS Surprise
In the fiscal third quarter, Johnson Controls’ cost of sales increased 8.8% year over year to approximately $4.14 billion. Gross profit increased 10.2% year over year to $2.47 billion and the margin rose 30 basis points (bps) to 37.4%. Selling, general and administrative expenses were $1.41 billion, down 0.7% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $641 million as of June 30, 2026, compared with $379 million at the end of fiscal 2025 (ended Sept. 30, 2025). Long-term debt was $8.30 billion compared with $8.59 billion at the end of fiscal 2025.
In the first nine months of fiscal 2026, the company generated net cash of $2.57 billion from operating activities compared with $1.59 billion in the year-ago period. It reported adjusted free cash flow of $2.13 billion in the same period compared with $1.79 billion in the prior-year period.
The company paid dividends worth $734 million and repurchased shares worth $850 million in the first nine months of fiscal 2026.
Q4 Guidance
Johnson Controls anticipates organic revenue growth of 9-10% from the year-ago level. Operating leverage is estimated to be 45-50%. It expects adjusted earnings to be about $1.55 per share.
FY26 Guidance
Johnson Controls currently anticipates organic revenue growth to be about 8% from the prior-year level compared with approximately 6% expected earlier. Operating leverage is expected to be 45-50% compared with approximately 50% projected previously. It expects adjusted earnings per share to be approximately $5.05, higher than $4.85 projected previously. It expects adjusted free cash flow conversion of about 100%.
JCI's Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
Constellium SE (CSTM - Free Report) came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.
Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.
Generac Holdings Inc. (GNRC - Free Report) came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.
Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.
Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.
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Johnson Controls Tops Q3 Earnings & Revenue Estimates, Raises FY26 View
Key Takeaways
Johnson Controls International plc (JCI - Free Report) reported third-quarter fiscal 2026 (ended June 2026) adjusted earnings of $1.42 per share, which beat the Zacks Consensus Estimate of $1.32. The bottom line increased 35.2% year over year.
Total revenues (continuing operations) of $6.61 billion surpassed the consensus estimate of $6.43 billion in the quarter. The top line increased 9.3% year over year, whereas organic revenues increased 10%.
Q3 Segmental Results
Effective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.
Americas: Revenues were $4.50 billion, up 11% year over year. The Zacks Consensus Estimate was pegged at $4.34 billion.
Organic sales also increased 11%, driven by continued strength across the applied heating, ventilation and air conditioning (HVAC) business. Adjusted segment EBITA increased 27% year over year to $951 million.
EMEA: Revenues totaled $1.26 billion, down 1% year over year. The Zacks Consensus Estimate was pegged at $1.25 billion.
Organic sales rose 1%, with both products and systems and services increasing 1%. Adjusted EBITA was $181 million, up 1% year over year.
APAC: Revenues increased 15% to $846 million. The Zacks Consensus Estimate was pegged at $777 million.
Sales rose 15% organically, driven by 20% growth in products and systems and continued strength in the applied HVAC business. Adjusted EBITA was $179 million, up 25% year over year.
Johnson Controls International plc Price, Consensus and EPS Surprise
Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc Quote
Margin Profile
In the fiscal third quarter, Johnson Controls’ cost of sales increased 8.8% year over year to approximately $4.14 billion. Gross profit increased 10.2% year over year to $2.47 billion and the margin rose 30 basis points (bps) to 37.4%. Selling, general and administrative expenses were $1.41 billion, down 0.7% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $641 million as of June 30, 2026, compared with $379 million at the end of fiscal 2025 (ended Sept. 30, 2025). Long-term debt was $8.30 billion compared with $8.59 billion at the end of fiscal 2025.
In the first nine months of fiscal 2026, the company generated net cash of $2.57 billion from operating activities compared with $1.59 billion in the year-ago period. It reported adjusted free cash flow of $2.13 billion in the same period compared with $1.79 billion in the prior-year period.
The company paid dividends worth $734 million and repurchased shares worth $850 million in the first nine months of fiscal 2026.
Q4 Guidance
Johnson Controls anticipates organic revenue growth of 9-10% from the year-ago level. Operating leverage is estimated to be 45-50%. It expects adjusted earnings to be about $1.55 per share.
FY26 Guidance
Johnson Controls currently anticipates organic revenue growth to be about 8% from the prior-year level compared with approximately 6% expected earlier. Operating leverage is expected to be 45-50% compared with approximately 50% projected previously. It expects adjusted earnings per share to be approximately $5.05, higher than $4.85 projected previously. It expects adjusted free cash flow conversion of about 100%.
JCI's Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Constellium SE (CSTM - Free Report) came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.
Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.
Generac Holdings Inc. (GNRC - Free Report) came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.
Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.
Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.