Otis Worldwide (NYSE:OTIS) Announces Earnings Results, Meets Estimates

Otis Worldwide (NYSE:OTIS) released its earnings results on Wednesday. The company reported $1.03 EPS for the quarter, meeting the consensus estimate of $1.03, FiscalAI reports. Otis Worldwide had a net margin of 9.41% and a negative return on equity of 30.67%. The firm had revenue of $3.80 billion during the quarter, compared to analysts’ expectations of $3.88 billion. During the same period in the prior year, the company earned $0.93 EPS. The business’s quarterly revenue was up 3.3% compared to the same quarter last year.

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

• Otis emphasized the strength of its service business — organic service sales +5% in Q4, maintenance portfolio ~2.5 million units (up 4%), service margin +100 bps, ~1.1M connected Otis ONE units and subscription revenue +35%.
• Modernization surged — Q4 modernization orders +43% and backlog up ~30% (constant currency), driven by industrialized manufacturing/installation, new Gen3/Mod products and large wins like Transport for London.
• Cash generation and capital return were strong — Q4 adjusted free cash flow a record $817 million and FY adjusted FCF ~$1.6 billion, with ~$1.5 billion returned to shareholders and a 2026 FCF target of $1.6–$1.7 billion plus ~$800 million planned buybacks.
• China remains a headwind for new equipment — China new?equipment volumes and backlog are down, conversion and retention are structurally weaker there, and China’s slowdown will weigh on early?2026 sales despite signs of improvement.
• 2026 guidance calls for low? to mid?single?digit organic sales growth (service mid? to high?single digits), new equipment down low?single digits to flat, and mid? to high?single?digit adjusted EPS growth with adjusted operating profit +$60–$100 million at constant currency.

Otis Worldwide Stock Performance

Shares of NYSE OTIS traded down $0.56 during midday trading on Thursday, reaching $88.04. 528,172 shares of the company traded hands, compared to its average volume of 3,000,938. Otis Worldwide has a 12 month low of $84.00 and a 12 month high of $106.83. The stock’s 50-day simple moving average is $88.44 and its 200-day simple moving average is $89.45. The firm has a market cap of $34.31 billion, a PE ratio of 25.97, a PEG ratio of 2.62 and a beta of 1.02.

Trending Headlines about Otis Worldwide

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

• Positive Sentiment: Service momentum — Service net sales grew ~8% (organic ~5%), maintenance & repair up ~7%, and service operating margin improved ~100 bps, supporting higher-margin recurring revenue. OTIS REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Modernization and backlog strength — Modernization orders rose ~43% (cc) and overall backlog increased ~34%, which supports future revenue and margin recovery. OTIS REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Strong cash flow & shareholder returns — Q4 operating cash flow and adjusted free cash flow were robust; FY cash flow ~ $1.6B and share repurchases ~ $800M, supporting capital return and valuation support. Q4 Highlights and Cash Flow
• Neutral Sentiment: EPS in line — GAAP/adjusted EPS of $1.03 met street estimates, and adjusted EPS showed year-over-year improvement, removing one immediate earnings surprise risk. Q4 Earnings Match Estimates
• Neutral Sentiment: 2026 outlook — Company guided to organic sales up low? to mid?single digits and adjusted EPS up mid? to high?single digits, and free cash flow target ~$1.6–1.7B; guidance is constructive but the revenue range is only modestly above consensus. FY2026 Outlook
• Negative Sentiment: Revenue miss and new equipment weakness — Q4 revenue of $3.80B missed consensus (~$3.88B); New Equipment and softer sales in China were called out as headwinds and prompted an immediate share reaction. Otis misses Q4 estimates, shares dip
• Negative Sentiment: Stock reaction drivers — Despite EPS beat/meet and healthy cash flow, the top?line miss, China softness and New Equipment uncertainty drove selling pressure as investors weigh near?term demand risk versus longer?term service tailwinds. Otis shares ease after Q4

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on OTIS. Wolfe Research set a $109.00 target price on Otis Worldwide and gave the stock an “outperform” rating in a research report on Wednesday, October 8th. Wells Fargo & Company decreased their price objective on Otis Worldwide from $95.00 to $92.00 and set an “equal weight” rating on the stock in a report on Monday, December 15th. Zacks Research upgraded Otis Worldwide from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 14th. BNP Paribas Exane upgraded shares of Otis Worldwide from a “neutral” rating to an “outperform” rating and set a $105.00 price target on the stock in a research note on Tuesday, December 9th. Finally, Barclays boosted their price target on shares of Otis Worldwide from $90.00 to $92.00 and gave the company an “underweight” rating in a report on Thursday, October 30th. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $104.13.

Insider Activity

In related news, CAO Michael Patrick Ryan sold 3,028 shares of Otis Worldwide stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $91.69, for a total transaction of $277,637.32. Following the completion of the transaction, the chief accounting officer directly owned 2,628 shares of the company’s stock, valued at $240,961.32. This trade represents a 53.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.23% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC increased its position in Otis Worldwide by 125.7% in the 3rd quarter. AQR Capital Management LLC now owns 2,596,355 shares of the company’s stock valued at $236,891,000 after acquiring an additional 1,445,904 shares in the last quarter. Scharf Investments LLC bought a new stake in shares of Otis Worldwide during the third quarter valued at approximately $73,200,000. Balyasny Asset Management L.P. acquired a new stake in shares of Otis Worldwide in the third quarter valued at approximately $59,127,000. Worldquant Millennium Advisors LLC bought a new position in Otis Worldwide in the 2nd quarter worth approximately $59,621,000. Finally, Wellington Management Group LLP lifted its holdings in Otis Worldwide by 15.3% during the 3rd quarter. Wellington Management Group LLP now owns 3,529,185 shares of the company’s stock worth $322,673,000 after buying an additional 468,184 shares in the last quarter. Institutional investors and hedge funds own 88.03% of the company’s stock.

About Otis Worldwide

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis’s business derives from long-term service contracts and responsive maintenance work.