OTIS 2Q26: Beat topline but margins weaker than expected (likely due to investments) and EPS guidance cut

研报英文原文证据摘录

OTIS 2Q26: Beat topline but margins weaker than expected (likely due to investments) and EPS guidance cut

NSTEIN FLASHMAIL

22 July 2026

Varun Govindaraj

+1 917 344 8543

U.S. Multi Industry & Electrical Equipment varun.govindaraj@bernsteinsg.com

Specialist SalesOtis Worldwide Corporation

Rating Steve Song

+1 917 344 8401

steve.song@bernsteinsg.comOutperform

Price Target

OTIS 97.00 USD

OTIS 2Q26: Beat topline but margins weaker than expected (likely

due to investments) and EPS guidance cut

Otis has had a rough quarter; while they beat the topline and largely met EPS expectations, operating margins (which the street was

keenly looking at) missed expectations (15.2% reported vs. 15.9% expected). Revenue grew 6% organic (vs. 3% expected), with

service up 9% organic (vs. 6% expected). EPS was in line at $1.01 for the quarter.

Operating margins were the real issue; we think this reflects the investments management had highlighted on earlier calls, but the

magnitude of the impact is clearly higher than what the street expected (15.2% reported vs. 15.9% VA consensus). Service segment

margins came in lighter than expected by ~100 bps, driving the underperformance.

The company re-affirmed topline guidance for the year at $15.1B - $15.3B, but EPS has been cut by around ~20 cents (down to

$4.03 at the midpoint vs. $4.22). While the market was expecting a cut, we expect reactions will lean negative given it could re-inforce

concerns around a deterioration in the quality of the service business. At the time of writing this, the stock is down ~2% premarket.

EXPECTED CHANGE TO CONSENSUS EARNINGS

>-10% -7% -5% -3% NA +3% +5% +7% >+10%

Numbers: Revenue of $3,859 million beat consensus of approximately $3,743 million by 3.1%, representing 7% YoY growth versus $3,595

million in 2Q'25.