Otis Worldwide Corp is expected to release its Q3 2026 10-Q filing in the upcoming earnings season. Last quarter: Otis delivered 7.3% year-over-year revenue growth to $3.859B and 8.9% net-income growth to $428M in Q2 FY2026, driven by Service growth, but gross and operating margins declined amid higher labor, material, and organizational costs. Source: 10-Q Item 2 MD&A, pp.33-40.
Drawn from management commentary in the Q2 2026 10-Q:
Service revenue increased 11% year over year to $2.580B, with 9% organic growth led by 6% maintenance-and-repair growth and 24% modernization growth. In contrast, New Equipment revenue was essentially flat at $1.279B, while its operating profit fell $28M to $40M and its operating margin contracted to 3.1% from 5.3%, reflecting lower volume, unfavorable price and mix, and organizational costs.
Cost of products and services sold increased 9% to $2.723B, faster than the 7% increase in net sales. Management attributed the increase primarily to sales volume, higher labor costs—including costs supporting operational execution and productivity—and higher material costs; consequently, gross margin declined 90 basis points to 29.4%.
Otis stated that UpLift had generated approximately $200M of run-rate savings as of December 31, 2025. Approved UpLift restructuring actions generated approximately $103M of annual recurring savings by the end of 2025, with $51M realized in the first six months of 2026; however, $86M of cash payments remained to complete announced restructuring actions as of June 30, 2026.
Revenue
$3.86B
++7.34% YoY
EPS (Basic)
$1.12
++12.00% YoY
Operating Income
$575M
++5.12% YoY
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