Otis Worldwide (NYSE:OTIS) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Otis Worldwide (NYSE:OTIS) released its quarterly earnings data on Wednesday. The company reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.04, Zacks reports. Otis Worldwide had a net margin of 10.28% and a negative return on equity of 28.45%. The business had revenue of $3.91 billion during the quarter, compared to analyst estimates of $3.85 billion. During the same period in the previous year, the business earned $1.05 EPS. Otis Worldwide’s revenue was up 6.1% compared to the same quarter last year.

Here are the key takeaways from Otis Worldwide’s conference call:

• Organic sales increased 6%, led by 7% service growth and the first increase in new-equipment sales since 2023. Service momentum was supported by 20% modernization sales growth and 9% repair growth.
• Modernization orders rose 10% and backlog grew 20% at constant currency, with strong contributions from all regions and particularly China. Management expects the aging installed base and customer demand to support a multiyear modernization opportunity.
• North American new-equipment orders increased for the ninth consecutive quarter, driving 13% regional sales growth and providing visibility through a 14% backlog increase. Management cited strength in data centers, hospitals, industrial facilities, and other higher-value projects.
• Adjusted operating margin contracted 110 basis points to 16%, while adjusted EPS was flat year over year. New-equipment operating profit declined 22% at constant currency, and China new-equipment sales fell more than 20% amid continued market weakness.
• Otis maintained its 2026 outlook, including $15.1 billion–$15.3 billion in sales, adjusted EPS of $4.01–$4.05, and approximately $1.5 billion of adjusted free cash flow. The company still expects service investments, higher modernization mix, and new-equipment weakness to weigh on profit growth.

Otis Worldwide Price Performance

NYSE:OTIS traded up $0.84 during trading hours on Friday, hitting $75.45. The stock had a trading volume of 1,143,621 shares, compared to its average volume of 3,928,292. The company has a 50 day simple moving average of $69.60 and a two-hundred day simple moving average of $76.50. The firm has a market capitalization of $28.72 billion, a price-to-earnings ratio of 18.76, a P/E/G ratio of 2.56 and a beta of 0.87. Otis Worldwide has a one year low of $63.58 and a one year high of $94.57.

Otis Worldwide Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Friday, November 13th will be issued a $0.44 dividend. This represents a $1.76 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Friday, November 13th. Otis Worldwide’s dividend payout ratio (DPR) is presently 45.24%.

Trending Headlines about Otis Worldwide

Here are the key news stories impacting Otis Worldwide this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Otis reported adjusted EPS of $1.05 versus the $1.01 consensus and revenue of $3.91 billion versus $3.85 billion. Service and modernization growth helped offset weakness in China and lower New Equipment margins. OTIS Q3 Earnings and Revenues Beat Estimates on Strong Service Growth
• Positive Sentiment: Otis declared its quarterly dividend of $0.44 per share. The payment is scheduled for December 11 for shareholders of record on November 13, representing an annualized dividend of $1.76 and an indicated yield of approximately 2.4%. Otis Declares Quarterly Dividend of $0.44 per Share
• Positive Sentiment: BNP Paribas raised its price target to $90 from $86, indicating improved expectations despite the quarter’s operational challenges. BNP Paribas Adjusts Price Target on Otis Worldwide
• Neutral Sentiment: Analysts continue to assess Otis against industrial peers. A comparison with Albany International provides context on valuation, profitability and business quality but does not represent a direct change to Otis’s outlook. Head-to-Head Contrast: Otis Worldwide and Albany International
• Negative Sentiment: Fiscal 2026 guidance is cautious. EPS guidance of $4.01-$4.05 brackets the $4.04 consensus, but revenue guidance of $15.1-$15.3 billion has a midpoint below the $15.3 billion consensus. Investors may view this as limited growth momentum.
• Negative Sentiment: Margin pressure remains a concern. New Equipment margins contracted, while China weakness persists, creating risk that service growth will not fully offset weaker lower-margin operations. Otis Beats Estimates as Elevator Service Growth Offsets China Weakness
• Negative Sentiment: Some analysts reduced their outlook. Evercore ISI cut its target to $95 from $100, while Wells Fargo lowered its target to $75 from $77 and maintained an Underweight rating. Evercore ISI Adjusts Price Target on Otis Worldwide

Analysts Set New Price Targets

Several research firms have issued reports on OTIS. Evercore restated an “outperform” rating and set a $95.00 target price on shares of Otis Worldwide in a research report on Thursday, July 23rd. Morgan Stanley set a $75.00 price target on Otis Worldwide in a research report on Monday, August 10th. Wells Fargo & Company reduced their price target on Otis Worldwide from $77.00 to $75.00 and set an “underweight” rating for the company in a research report on Thursday. Sanford C. Bernstein boosted their price objective on Otis Worldwide from $90.00 to $94.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Otis Worldwide in a report on Wednesday, August 12th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Otis Worldwide presently has an average rating of “Hold” and an average price target of $91.20.

About Otis Worldwide

Otis Worldwide Corporation (NYSE: OTIS) is a global manufacturer and service provider for the elevator and escalator industry. The company designs, manufactures, installs, modernizes and maintains elevators, escalators and moving walkways for commercial buildings, residential developments, transportation hubs and other infrastructure projects.

Otis provides equipment for new construction as well as maintenance, repair and modernization services for existing systems. Its service operations support equipment from Otis and other manufacturers, helping building owners and operators manage the safety, performance and lifecycle of vertical transportation systems.

The company traces its history to 1853, when Elisha Otis demonstrated a safety device for elevators.