Otis Worldwide Corporation (OTIS) Q3 Sales Up 6%, GAAP EPS $1.08; Adjusted EPS Flat

What happened

Otis reported third-quarter 2026 net sales of $3.9B, up 6% from a year earlier. GAAP earnings per share were $1.08, up 14%, while adjusted earnings per share were $1.05, flat. Service organic sales rose 7%, with modernization up 20%, and New Equipment organic sales rose 3%.

Confirmed

Global impact / market context

Service work, such as maintenance, tends to earn more profit per sale than new equipment, so its 7% growth helps Otis offset weaker new equipment demand in China. Flat adjusted earnings per share show higher taxes and interest costs absorbed those operating gains.

Analyst inference

Otis kept its 2026 outlook, which suggests management expects sales and profit to hold near current levels. The main uncertainty is new equipment in China, down more than 20%, where price pressure keeps profit per sale thin.

Analyst inference

What to watch

1. Modernization orders and service organic sales will show whether the high-profit service business can keep offsetting equipment weakness in China. Confirmed
2. A clearer rebound in New Equipment profit per sale and sustained Service profit gains would strengthen the case that earnings growth is returning. Proposed
3. Higher taxes and interest costs offset operating gains, so watch whether these pressures ease and let adjusted earnings per share grow again. Analyst inference

Evidence

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