Otis's (NYSE:OTIS) Q3 2026: beats on revenue

What happened

Otis reported Q3 2026 revenue up 6.1% year on year to $3.91 billion, beating analysts' $3.86 billion estimate. Adjusted profit was $1.05 per share versus $1.01 expected. Full-year revenue guidance of $15.2 billion at the midpoint was 0.7% below consensus.

Confirmed

Global impact / market context

The quarter shows Otis selling more than expected, but its full-year revenue outlook sits slightly below what analysts wanted. That gap suggests growth may slow later this year, which matters for investors judging whether strong sales can continue.

Analyst inference

Free cash flow margin, the share of revenue left as cash after spending, fell to 7.6% from 9.1% a year earlier. Operating margin held at 15.8%, so profit per sale stayed stable even as cash generation weakened.

Analyst inference

What to watch

1. Management reiterated full-year adjusted profit guidance of $4.03 per share at the midpoint, so watch whether actual results land near that figure. Confirmed
2. Watch whether free cash flow margin recovers toward last year's 9.1%, since weaker cash generation can limit money available for investments or shareholder returns. Analyst inference
3. Track service and modernization growth, which management credited for the revenue beat, to see if those lines can offset slower new equipment demand. Analyst inference

Evidence

• stockstory.org