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

Otis Worldwide (NYSE:OTIS) announced its quarterly earnings data on Wednesday. The company reported $1.03 EPS for the quarter, meeting analysts’ consensus estimates of $1.03, FiscalAI reports. The firm had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.88 billion. Otis Worldwide had a net margin of 9.59% and a negative return on equity of 30.42%. The firm’s revenue was up 3.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.93 earnings per share.

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 $1.87 during midday trading on Friday, hitting $85.29. 1,180,959 shares of the company’s stock traded hands, compared to its average volume of 3,181,524. The firm’s fifty day moving average price is $88.45 and its two-hundred day moving average price is $89.43. Otis Worldwide has a twelve month low of $84.00 and a twelve month high of $106.83. The company has a market cap of $33.24 billion, a PE ratio of 24.45, a P/E/G ratio of 2.56 and a beta of 1.02.

Otis Worldwide Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Friday, February 13th will be issued a dividend of $0.42 per share. The ex-dividend date is Friday, February 13th. This represents a $1.68 annualized dividend and a dividend yield of 2.0%. Otis Worldwide’s payout ratio is presently 49.56%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on OTIS shares. Wells Fargo & Company lowered their price objective on shares of Otis Worldwide from $95.00 to $92.00 and set an “equal weight” rating on the stock in a research note on Monday, December 15th. Weiss Ratings restated a “hold (c)” rating on shares of Otis Worldwide in a research report on Monday, December 29th. BNP Paribas Exane raised Otis Worldwide from a “neutral” rating to an “outperform” rating and set a $105.00 price target for the company in a research report on Tuesday, December 9th. Barclays increased their price objective on Otis Worldwide from $90.00 to $92.00 and gave the company an “underweight” rating in a research note on Thursday, October 30th. Finally, Wolfe Research set a $109.00 target price on shares of Otis Worldwide and gave the company an “outperform” rating in a report on Wednesday, October 8th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $104.13.

Insider Buying and Selling

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

Hedge Funds Weigh In On Otis Worldwide

Several hedge funds and other institutional investors have recently bought and sold shares of OTIS. MUFG Securities EMEA plc purchased a new stake in shares of Otis Worldwide during the second quarter valued at approximately $116,000. Diversify Advisory Services LLC acquired a new position in Otis Worldwide in the 3rd quarter worth $202,000. Boothbay Fund Management LLC purchased a new position in Otis Worldwide in the 2nd quarter valued at about $208,000. Geneos Wealth Management Inc. grew its stake in shares of Otis Worldwide by 38.5% during the second quarter. Geneos Wealth Management Inc. now owns 2,097 shares of the company’s stock valued at $208,000 after acquiring an additional 583 shares in the last quarter. Finally, Nicolet Advisory Services LLC purchased a new stake in shares of Otis Worldwide during the third quarter worth about $228,000. 88.03% of the stock is owned by institutional investors and hedge funds.

Otis Worldwide Company Profile

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.