Revenue Growth Accelerates
JCI posted Q2 FY2026 revenue of $6.14B, up 8.2% from $5.68B in the prior-year period, reflecting solid demand across its building solutions and technology segments.
Source: 10-Q Financial Data (Income Statement)
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
JCI delivered strong Q2 FY2026 results with revenue rising 8.2% YoY to $6.14B and net income surging 28.2% to $613M, driven by gross margin expansion and disciplined SG&A cost control.
Revenue
$6.14B
+8.21% YoY
EPS (Diluted)
$1.00
+38.89% YoY
Gross Margin
36.8%
+0.4 pts YoY
Source: SEC XBRL
Johnson Controls International (JCI) reported Q2 FY2026 revenue of $6.14B, up 8.2% year over year. JCI's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.42 | 1.32 | Beat +7.9% |
| Mar 2026This filing | 1.19 | 1.13 | Beat +5.4% |
| Dec 2025 | 0.89 | 0.85 | Beat +4.9% |
| Sep 2025 | 1.26 | 1.21 | Beat +3.9% |
Adjusted (non-GAAP) EPS of $1.19 versus the $1.13 analyst consensus — a +5.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.00.
Compiled by AI from this SEC filing
JCI posted Q2 FY2026 revenue of $6.14B, up 8.2% from $5.68B in the prior-year period, reflecting solid demand across its building solutions and technology segments.
Source: 10-Q Financial Data (Income Statement)
Gross margin improved 37 basis points YoY to 36.83%, with gross profit growing 9.3% to $2.26B, outpacing revenue growth and indicating favorable product/service mix or pricing power.
Source: 10-Q Financial Data (Income Statement & Key Ratios)
SG&A expenses declined 1.8% YoY to $1.40B despite higher revenues, demonstrating meaningful operating leverage and management's focus on cost efficiency.
Source: 10-Q Financial Data (Income Statement)
Net income jumped 28.2% YoY to $613M, while diluted EPS rose 38.9% to $1.00 from $0.72, with EPS growth outpacing net income growth likely reflecting share count reduction from buyback activity.
Source: 10-Q Financial Data (Income Statement)
Total assets declined 9.5% YoY to $38.35B and stockholders' equity fell 14.5% to $13.52B, potentially reflecting divestitures, asset sales, or restructuring activities during the fiscal year.
Source: 10-Q Financial Data (Balance Sheet)
Compiled by AI from this SEC filing · 0 high, 3 medium, 2 low
Stockholders' equity fell 14.5% YoY to $13.52B, which could reflect share buybacks, goodwill impairments, or divestitures. A sustained decline in equity could pressure the company's financial flexibility and leverage ratios.
Source: 10-Q Financial Data (Balance Sheet)
Cash and equivalents stand at only $698M, down 12.2% YoY, against current liabilities of $10.61B. While the current ratio of 1.04 remains above 1.0, the thin liquidity buffer leaves limited room for unexpected cash needs.
Source: 10-Q Financial Data (Balance Sheet & Key Ratios)
Year-to-date share buybacks totaled $215M, a sharp 67.4% decline from $660M in the same prior-year period. This reduction may signal capital allocation shifts or constraints on free cash flow deployment.
Source: 10-Q Financial Data (Cash Flow)
The current ratio of 1.04 indicates that current assets barely exceed current liabilities, leaving JCI with limited short-term liquidity cushion. Any unexpected working capital pressure could strain near-term operations.
Source: 10-Q Financial Data (Key Ratios)
Return on equity of 4.53% and return on assets of 1.60% remain relatively modest, suggesting that despite improving profitability, the company's asset base and equity are not yet generating strong returns, which may reflect ongoing restructuring or portfolio transitions.
Source: 10-Q Financial Data (Key Ratios)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.14 $B | 5.68 $B | +8.21% |
Cost of Revenue $B | 3.88 $B | 3.61 $B | +7.57% |
Gross Profit $B | 2.26 $B | 2.07 $B | +9.33% |
Net Income $M | 613.00 $M | 478.00 $M | +28.24% |
EPS (Basic) $ | 1.01 $ | 0.73 $ | +38.36% |
EPS (Diluted) $ | 1.00 $ | 0.72 $ | +38.89% |
SG&A Expense $B | 1.40 $B | 1.43 $B | -1.82% |
Answers draw on this SEC filing and the data on this page
In 2026-Q2, Johnson Controls reported a 9% increase in net sales to $6,614M and a 27% surge in orders driven by strong demand for data center cooling and building efficiency solutions.
JCI delivered strong Q1 FY2026 results with revenue up 6.8% YoY to $5.80B and net income surging 25.1% to $524M, driven by gross margin expansion and a significant 12.7% reduction in SG&A expenses.
Other companies in Building Products