Otis Worldwide (NYSE:OTIS) Releases Quarterly Earnings Results, Meets Estimates

Otis Worldwide (NYSE:OTIS) posted its earnings results on Wednesday. The company reported $1.01 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $1.01, FiscalAI reports. Otis Worldwide had a net margin of 10.17% and a negative return on equity of 28.50%. The company had revenue of $3.86 billion during the quarter, compared to analysts’ expectations of $3.76 billion. During the same quarter last year, the company posted $1.05 EPS. Otis Worldwide’s quarterly revenue was up 7.3% compared to the same quarter last year. Otis Worldwide updated its FY 2026 guidance to 4.010-4.050 EPS.

Here are the key takeaways from Otis Worldwide’s conference call:

• Otis posted a solid quarter with 6% organic sales growth, led by a strong acceleration in its service business and improving trends in new equipment.
• Service remained the main growth engine, with 9% organic sales growth, including 24% modernization growth, 12% repair growth, and improving maintenance trends.
• Cash generation stayed strong, as adjusted free cash flow rose 19% year over year to $290 million, supporting continued buybacks, dividends, and strategic investment activity.
• Margins came under pressure in the quarter, with service margin down 170 bps and total adjusted operating margin down 180 bps, as labor, material, mix, and productivity headwinds offset pricing gains.
• Otis trimmed its full-year outlook, citing slower-than-expected retention improvement, tempered maintenance micro-pricing, and higher productivity/cost headwinds; adjusted EPS is now expected at $4.01 to $4.05.

Otis Worldwide Price Performance

Otis Worldwide stock opened at $70.87 on Friday. The stock’s fifty day moving average price is $71.94 and its two-hundred day moving average price is $80.02. Otis Worldwide has a one year low of $69.16 and a one year high of $94.57. The firm has a market cap of $27.20 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 2.61 and a beta of 0.90.

Otis Worldwide Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 14th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.76 dividend on an annualized basis and a yield of 2.5%. Otis Worldwide’s dividend payout ratio is currently 46.81%.

Institutional Trading of Otis Worldwide

A number of institutional investors have recently modified their holdings of OTIS. Jones Financial Companies Lllp grew its stake in Otis Worldwide by 3.4% during the first quarter. Jones Financial Companies Lllp now owns 9,199 shares of the company’s stock worth $949,000 after buying an additional 304 shares in the last quarter. Empowered Funds LLC increased its holdings in Otis Worldwide by 10.5% in the 1st quarter. Empowered Funds LLC now owns 8,988 shares of the company’s stock valued at $928,000 after buying an additional 857 shares during the period. Acadian Asset Management LLC raised its position in shares of Otis Worldwide by 63.7% in the 1st quarter. Acadian Asset Management LLC now owns 4,045 shares of the company’s stock valued at $417,000 after buying an additional 1,574 shares in the last quarter. Baird Financial Group Inc. raised its position in shares of Otis Worldwide by 7.1% in the 2nd quarter. Baird Financial Group Inc. now owns 32,245 shares of the company’s stock valued at $3,193,000 after buying an additional 2,132 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in shares of Otis Worldwide by 13.3% during the 2nd quarter. NewEdge Advisors LLC now owns 10,222 shares of the company’s stock worth $1,012,000 after acquiring an additional 1,196 shares during the period. 88.03% of the stock is currently owned by institutional investors.

Key Otis Worldwide News

Here are the key news stories impacting Otis Worldwide this week:

• Positive Sentiment: Otis beat Q2 estimates, with EPS of $1.01 matching consensus and revenue of $3.86 billion coming in above forecasts. Article Title
• Positive Sentiment: Service sales remained a bright spot, rising 11% in the quarter, while modernization orders increased and backlog grew 24% year over year, supporting longer-term demand visibility. Article Title
• Positive Sentiment: The board declared a quarterly dividend of $0.44 per share, reinforcing shareholder returns. Article Title
• Neutral Sentiment: Otis raised its full-year revenue outlook to about $15.1 billion-$15.3 billion, but management’s new EPS guidance of $4.01-$4.05 was below prior expectations, limiting enthusiasm. Article Title
• Negative Sentiment: The market is reacting to another guidance cut, which points to margin strain and cost pressures even as sales improved. Article Title
• Negative Sentiment: New Equipment weakness and lower adjusted operating profit suggest the turnaround is still incomplete, weighing on investor sentiment. Article Title

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Sanford C. Bernstein lowered their price target on shares of Otis Worldwide from $97.00 to $90.00 and set an “outperform” rating on the stock in a report on Thursday. Wells Fargo & Company dropped their price target on Otis Worldwide from $92.00 to $80.00 and set an “equal weight” rating for the company in a report on Wednesday, April 1st. Barclays reduced their price target on Otis Worldwide from $80.00 to $77.00 and set an “underweight” rating for the company in a research note on Thursday, April 23rd. Weiss Ratings lowered Otis Worldwide from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, May 15th. Finally, Evercore reiterated an “outperform” rating and set a $95.00 price objective on shares of Otis Worldwide in a research report on Thursday. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $95.45.

Otis Worldwide Company Profile

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis’s business derives from long-term service contracts and responsive maintenance work.