Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Carrier Global (CARR) reported FY2025 revenue of $21.7B (down 3.3% YoY) and net income of $1.5B (down 73.5% YoY), with the sharp earnings decline largely reflecting prior-year gains from divestitures, while operating cash flow surged 346% to $2.5B signaling strong underlying cash generation.
Revenue
$21.75B
-3.29% YoY
EPS (Diluted)
$1.72
-72.03% YoY
Operating Income
$2.17B
-17.91% YoY
Source: SEC XBRL
Carrier Global (CARR) reported FY2025 revenue of $21.75B, down 3.3% year over year. Operating margin was 10.0%, down 1.8 points from 11.8% a year earlier. Operating cash flow was $2.51B, up 346.4% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.86 | 0.83 | Beat +3.6% |
| Mar 2026 | 0.57 | 0.52 | Beat +9.8% |
| Dec 2025This filing | 0.34 | 0.38 | Miss -10.4% |
| Sep 2025 | 0.67 | 0.58 | Beat +15.3% |
Reported EPS of $0.34 versus the $0.38 analyst consensus — a -10.4% miss for Dec 2025.
Compiled by AI from this SEC filing
Total revenue fell 3.3% YoY to $21.7B in FY2025 from $22.5B in FY2024, consistent with Carrier's ongoing portfolio transformation including divestitures of non-core businesses that reduced the revenue base.
Source: 10-K Income Statement (XBRL Financial Data)
Operating income declined 17.9% YoY to $2.2B, with operating margin contracting approximately 178 basis points to 10.0% from 11.8%, reflecting higher SG&A costs relative to the reduced revenue base and integration-related expenses.
Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Net income dropped 73.5% YoY to $1.5B from $5.6B, with the prior year benefiting from significant one-time gains on asset sales; the FY2025 figure better reflects normalized ongoing earnings power.
Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow improved dramatically to $2.5B in FY2025 from just $563M in FY2024, indicating strong working capital management and cash conversion from core operations, even as net income declined.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Carrier repurchased $2.9B in shares in FY2025, up 48.8% from $1.9B in FY2024, reflecting management's confidence in the business and commitment to returning capital, funded in part by the strong operating cash flow.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Cash and equivalents fell 60.8% YoY to $1.6B from $4.0B, while long-term debt increased 3.1% to $11.4B. This tighter liquidity position, combined with elevated debt, reduces financial flexibility for acquisitions or downturns. The current ratio of 1.20 provides only modest short-term cushion.
Source: 10-K Balance Sheet (XBRL Financial Data)
Operating margin contracted from 11.8% to 10.0% YoY, and SG&A expenses of $3.1B remain elevated relative to revenue. If revenue growth does not recover, further margin compression could pressure profitability and investor confidence.
Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
With revenue declining 3.3% to $21.7B following portfolio divestitures, Carrier must demonstrate organic growth from its remaining core HVAC and refrigeration businesses. Failure to grow the slimmed-down portfolio organically poses a risk to long-term revenue trajectory.
Source: 10-K Income Statement (XBRL Financial Data)
R&D spending fell 8.9% YoY to $625M, which could impair Carrier's ability to innovate in competitive HVAC and climate control markets, particularly as energy efficiency and smart building technologies evolve rapidly.
Source: 10-K Income Statement (XBRL Financial Data)
Carrier spent $2.9B on share repurchases in FY2025, financed partly by drawing down cash reserves (cash fell by ~$2.4B). Sustaining this pace of buybacks without proportional cash generation growth could strain the balance sheet over time.
Source: 10-K Cash Flow Statement & Balance Sheet (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 21.75 $B | 22.49 $B | -3.29% |
Operating Income $B | 2.17 $B | 2.65 $B | -17.91% |
Net Income $B | 1.48 $B | 5.60 $B | -73.52% |
EPS (Basic) $ | 1.74 $ | 6.24 $ | -72.12% |
EPS (Diluted) $ | 1.72 $ | 6.15 $ | -72.03% |
R&D Expense $M | 625.00 $M | 686.00 $M | -8.89% |
SG&A Expense $B | 3.09 $B | 3.20 $B | -3.28% |
Answers draw on this SEC filing and the data on this page
CARR reported 2026-Q2 net sales of $6.4B, up 4% year over year, but gross margin fell 170 basis points and net earnings attributable to common shareowners declined 15% to $501M as higher input costs, tariffs, unfavorable mix, higher interest expense and a $46M Riello impairment outweighed volume growth. Source: 10-Q Item 2 MD&A, pp.28-30
CARR reported Q1 FY2026 revenue of $5.34B (+2.4% YoY), but operating income collapsed 58.8% to $259M and operating cash flow plunged 83.6% to $79M, reflecting a sharp margin compression driven by an 18.1% surge in SG&A expenses.
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