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Here's What Investors Must Know Ahead of Carrier's Q3 Earnings

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Key Takeaways

  • Carrier's Q3 EPS is estimated to rise 20.9%, while sales are projected to grow 8.9% to $6.08 billion.
  • Climate Solutions Americas revenue is expected to jump to $3.31 billion, driven by data-center demand.
  • Europe and Asia Pacific sales may each decline 2%, while tariffs and input costs threaten earnings.

Carrier Global Corporation (CARR - Free Report) is scheduled to report its third-quarter 2026 results on Oct. 29, before the opening bell.

In the last reported quarter, the company’s adjusted earnings per share (EPS) and net sales topped the Zacks Consensus Estimate by 3.6% and 5.5%, respectively. Year over year, the bottom line declined 7% while the top line grew 4%.

CARR’s earnings surpassed estimates in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 8.5%.

How are Estimates Placed for CARR Stock?

The Zacks Consensus Estimate for third-quarter EPS has declined to 81 cents from 83 cents over the past 60 days. However, the estimated figure indicates 20.9% growth from the year-ago quarter’s earnings of 67 cents per share.

The consensus estimate for net sales is pegged at $6.08 billion, indicating an increase of 8.9% from the prior-year quarter’s level.

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation Price and EPS Surprise

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

Factors at Play for Carrier’s Q3 Results

Sales Trend

The top-line performance of Carrier is expected to have benefited from continued growth in data centers, resulting in increasing orders. The company is likely seeing strong demand for its differentiated commercial solutions, with residential business normalizing in a comparable way. Due to these market tailwinds, CARR’s Climate Solutions Americas (contributed 53.1% to second-quarter 2026 sales) segment is expected to have contributed more in the third quarter.

Also, strong container sales volume, due to ongoing end-market demand and improved volumes in the truck and trailer business across Asia, is expected to have benefited CARR’s Climate Solutions Transportation (contributed 11.6% to second-quarter 2026 sales) segment.

However, softness in the light commercial businesses across Asia Pacific, Middle East & Africa, and Europe is likely to have somewhat offset the sales growth in the third quarter for Carrier. This weakness is expected to reflect through lower contributions from the Climate Solutions Europe (contributed 20.8% to second-quarter 2026 sales) and Climate Solutions Asia Pacific, Middle East & Africa (contributed 14.4% to second-quarter 2026 sales) segments. Besides, the ongoing geopolitical uncertainties, tariff-related risks and other macro concerns are additionally restricting global sales growth for Carrier.

For the third quarter, the Zacks Consensus Estimate for net sales from Americas and Transportation business segments under Climate Solutions is pegged at $3.31 billion and $757 million, reflecting year-over-year growth of 21.9% and1.6%, respectively. On the other hand, we expect net sales from Europe and Asia Pacific, Middle East & Africa segments under Climate Solutions to decline year over year by 2% to $1.26 billion and 2% to $816 million, respectively.

Earnings

Carrier is expected to report a year-over-year bottom-line improvement in the third quarter, driven by increased leverage from top-line growth, favorable productivity initiatives, improved pricing and higher volumes in certain end markets. However, higher input costs, including the impact of tariffs and unfavorable product mix, and increased selling, general and administrative expenses are likely to have been a threat to the growing bottom line to some extent.

What the Zacks Model Indicates for Carrier

Our proven model does not predict an earnings beat for Carrier 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. However, it is not the case this time around.

CARR’s Earnings ESP: The company has an Earnings ESP of -7.26%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

CARR’s Zacks Rank: The stock currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat.

Sterling Infrastructure, Inc. (STRL - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank of 2 at present. 

Sterling’s earnings beat estimates in each of the last four quarters, the average surprise being 27.2%. The company’s earnings for the third quarter of 2026 are expected to grow 74.4% year over year.

AAON, Inc. (AAON - Free Report) currently has an Earnings ESP of +2.66% and a Zacks Rank of 3.

AAON’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion, the average surprise being 21.6%. The company’s earnings for the third quarter of 2026 are expected to increase 54.1% year over year.

Argan, Inc. (AGX - Free Report) has an Earnings ESP of +4.79% and a Zacks Rank of 3.

Argan’s earnings beat estimates in each of the last four quarters, the average surprise being 44.2%. The company’s earnings for the third quarter of fiscal 2027 are expected to increase 53.9% year over year.

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