Earnings Preview: What to Expect From Otis Worldwide's Report

Farmington, Connecticut-based Otis Worldwide Corporation (OTIS) manufactures, installs, and services building systems. Valued at $30.6 billion by market cap, the company offers elevators, escalators, and other moving products. The elevator giantis expected to announce its fiscal first-quarter earnings for 2026 in the near term.

Ahead of the event, analysts expect OTIS to report a profit of $0.95 per share on a diluted basis, up 3.3% from $0.92 per share in the year-ago quarter. The company has consistently surpassed or met Wall Street’s EPS estimates in its last four quarterly reports.

For the full year, analysts expect OTIS to report EPS of $4.33, up 6.9% from $4.05 in fiscal 2025. Its EPS is expected to rise 11.8% year over year to $4.84 in fiscal 2027. 

OTIS stock has underperformed the S&P 500 Index’s ($SPX) 13.4% gains over the past 52 weeks, with shares down 24.6% during this period. Similarly, it notably underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 20.7% gains over the same time frame.

OTIS underperformed due to weak new equipment sales, especially in China and the Americas, and slower service repair growth. Looking ahead, the company expects new equipment sales to stabilise or dip. China remains tough, but they're focusing on high-value service contracts.

On Jan. 28, OTIS shares closed down more than 2% after reporting its Q4 results. Its adjusted EPS of $1.03 met Wall Street expectations. The company’s revenue was $3.8 billion, missing Wall Street forecasts of $3.9 billion. OTIS expects full-year revenue in the range of $15 billion to $15.3 billion.

Analysts’ consensus opinion on OTIS stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, four advise a “Strong Buy” rating, one suggests a “Moderate Buy,” seven give a “Hold,” and one recommends a “Strong Sell.” OTIS’ average analyst price target is $100.83, indicating a notable potential upside of 30.2% from the current levels.