Carrier Global Corporation filed its third-quarter 2026 earnings release on October 29, 2026, reporting net sales of $6,263 million, a GAAP operating loss driven by a $3.1 billion goodwill impairment charge, and adjusted EPS of $0.87 on NYSE:CARR.

Key Highlights

  • Net sales rose 12% to $6,263 million in Q3 2026, with organic sales up 15% year over year.
  • GAAP operating loss of ($2,273) million reflected a non-cash goodwill impairment charge of $3.1 billion related to the Climate Solutions Europe reporting unit.
  • Adjusted EPS of $0.87 compared to $0.67 in Q3 2025, a 30% increase, while GAAP diluted loss per share from continuing operations was ($3.16).
  • Total company orders up approximately 35% (excluding NORESCO), with data center orders up approximately 300%, producing a record backlog of over $8.5 billion.
  • Free cash flow of $674 million in the quarter, with operating cash flows of $813 million and capital expenditures of $139 million.
  • Approximately $600 million returned to shareowners through dividends and share repurchases in the quarter.
  • Full-year 2026 guidance updated to sales of $23.8 to $24.0 billion and adjusted EPS of $2.85 to $2.90, with organic growth of approximately 10%.

Carrier Global Q3 2026 Segment Results and Goodwill Impairment Details

According to the filing, Carrier Global's Climate Solutions Americas (CSA) segment was the strongest performer in the quarter, with net sales of $3,354 million, up 24%, and organic sales growth of 25%. CSA segment operating margin expanded 250 basis points to 22.2%, benefiting from approximately $120 million of IEEPA refunds alongside organic growth, partially offset by increased input costs and tariffs. Residential and Commercial sales within CSA grew over 30% and 25%, respectively (excluding NORESCO).

The Climate Solutions Europe (CSE) segment reported net sales of $1,335 million, up 3%, with organic sales growth of 12% offset by a 7% net headwind from divestitures and a 2% currency headwind. The filing notes that CSE segment operating margin expanded 330 basis points to 12.6%, including a approximately 100 basis point net benefit from the correction of a prior period item, though this was partially offset by increases in inventory-related reserves. The filing disclosed that during Q3, the company recorded a non-cash goodwill impairment charge of $3.1 billion related to its Climate Solutions Europe reporting unit, which drove the GAAP operating loss of ($2,273) million for the total company.

The Climate Solutions Asia Pacific, Middle East and Africa (CSAME) segment reported net sales of $848 million, up 2%, and organic sales growth of 3%, with Commercial up 10% partially offset by a mid-single-digit decline in RLC. The Climate Solutions Transportation (CST) segment posted net sales of $726 million, down 3%, as Container growth was more than offset by Truck and Trailer. The filing also noted approximately $130 million of total operating profit benefit from IEEPA refunds across the company. For the full year, the company disclosed that the Riello divestiture was completed on July 1 and the NORESCO divestiture on August 3, creating year-over-year revenue headwinds of approximately $225 million and approximately $125 million, respectively.

What Was Disclosed

Carrier Global reported Q3 2026 results including a $3.1 billion goodwill impairment charge in its Europe segment, adjusted EPS of $0.87, record backlog above $8.5 billion, and updated full-year 2026 guidance for sales of $23.8 to $24.0 billion and adjusted EPS of $2.85 to $2.90.