Otis 3Q Net Up, Backs 2026 Growth Views on Strong Service Sales

What happened

Otis Worldwide reported third-quarter earnings of $414 million, or $1.08 a share, up from $374 million, or 95 cents a share, a year earlier. Sales rose 6% to $3.91 billion, and service sales rose 8% to $2.62 billion. Otis backed its 2026 growth projections.

Confirmed

Global impact / market context

Service contracts bring recurring revenue from maintaining installed elevators, which means steadier cash available than one-time equipment sales. That steadiness supports Otis's profit outlook even as new-equipment orders fall in China, a large construction market.

Analyst inference

Adjusted earnings of $1.05 a share beat the $1.01 analyst estimate, and sales topped the $3.85 billion target. Growth in service sales offset weaker Chinese demand for new equipment, while higher labor costs reduced profit per sale at the service unit.

Analyst inference

What to watch

1. Otis reiterated a 2026 adjusted earnings projection of $4.01 to $4.05 a share, while analysts expect $4.04, according to FactSet. Confirmed
2. The company backed its 2026 sales forecast of $15.1 billion to $15.3 billion, up from $14.4 billion in 2025, against analyst expectations of $15.27 billion. Confirmed
3. Watch whether new-equipment orders keep falling in China, which could pressure equipment revenue, and whether labor costs and contract mix continue to weigh on service operating profit margin. Analyst inference

Evidence

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