Otis Worldwide Corporation (NYSE:OTIS) filed an 8-K earnings release on October 28, 2026, reporting third quarter 2026 financial results for the period ended September 30, 2026, including net sales of $3.9 billion and sequential Service operating profit margin improvement of 100 basis points.

Key Highlights

  • Net sales of $3,914 million in Q3 2026, up 6% year-over-year, with organic sales also up 6% versus the prior year.
  • Service segment net sales of $2,616 million, up 8% reported and 7% organic, with organic modernization sales up 20%.
  • Service operating profit margin of 24.2%, contracting 130 basis points year-over-year but improving 100 basis points sequentially.
  • New Equipment segment net sales of $1,298 million, up 3% reported and 3% organic, with China down more than 20%.
  • GAAP EPS of $1.08, up 14% year-over-year; adjusted EPS of $1.05 was flat versus the prior year.
  • Q3 adjusted free cash flow of $272 million; year-to-date adjusted free cash flow of $834 million.
  • Full year 2026 net sales outlook maintained at $15.1 to $15.3 billion, with adjusted EPS of $4.01 to $4.05.

Otis Third Quarter 2026 Segment and Financial Results in Detail

According to the filing, Otis Worldwide Corporation reported Q3 2026 net sales of $3,914 million compared to $3,690 million in Q3 2025, a 6% increase at both actual and constant currency. GAAP operating profit of $620 million increased $34 million year-over-year, driven primarily, the company disclosed, by "the absence of UpLift transformation costs, separation-related adjustments, and other non-recurring items in the prior year." Adjusted operating profit of $626 million declined $6 million at actual currency. GAAP operating profit margin contracted 10 basis points to 15.8%, while adjusted operating profit margin declined 110 basis points to 16.0%.

The Service segment reported net sales of $2,616 million, up 8% year-over-year, with organic maintenance and repair sales up 4% and organic modernization sales up 20%, according to the filing. Service segment operating profit of $633 million increased $12 million at actual currency, with margin contracting 130 basis points year-over-year to 24.2% but improving 100 basis points from the prior quarter. The New Equipment segment reported net sales of $1,298 million, up 3%, with growth in the Americas, EMEA, and Asia Pacific partially offset by a decline of greater than 20% in China. New Equipment segment operating profit of $42 million declined $17 million at actual currency, and segment operating profit margin contracted 150 basis points to 3.2%.

For the nine months ended September 30, 2026, the filing reported net sales of $11,339 million, GAAP EPS of $3.07, and year-to-date operating cash flow of $1,017 million. The company also disclosed share repurchases of approximately $800 million and dividends of approximately $500 million year-to-date, returning approximately $1.3 billion to shareholders. The full year 2026 outlook, according to the filing, is maintained for net sales of $15.1 to $15.3 billion, adjusted EPS of $4.01 to $4.05, and adjusted free cash flow of approximately $1.5 billion.

What Was Disclosed

Otis Worldwide Corporation released Q3 2026 earnings showing 6% net sales growth, a sequential 100 basis point improvement in Service operating profit margin to 24.2%, and broadly maintained full year 2026 financial outlook, including net sales of $15.1 to $15.3 billion and adjusted EPS of $4.01 to $4.05.