Johnson Controls Reports Strong Q3 Results; Raises FY26 Guidance

Johnson Controls International plc has reported a 9% increase in sales for its fiscal third quarter of 2026, reaching $6.6 billion, with organic sales rising by 10%. The company's GAAP earnings per share (EPS) for the quarter stood at $1.23, while adjusted EPS was $1.42. Additionally, the company saw a year-over-year increase of 27% in orders and a backlog that grew organically by 32% to reach $21.0 billion.

For the quarter, Johnson Controls' net income from continuing operations attributable to the company was $749 million, compared to the previous year's figure. Adjusted net income from continuing operations was reported at $868 million. CEO Joakim Weidemanis stated that the quarter reflected strong organic revenue growth and sustained order momentum, contributing to the company's confidence in an improved full-year outlook.

In various segments, sales in the Americas increased by 11% to $4.5 billion, largely driven by the demand for Applied HVAC. Meanwhile, the EMEA region saw a slight decline, with sales of $1.3 billion, attributed to ongoing regional challenges due to conflicts in the Middle East. However, the APAC region reported a sales increase of 15%, totaling $846 million, supported by strong demand for Products and Systems.

The company is projecting an organic sales growth of 9% to 10% for the fourth quarter of fiscal 2026, alongside expectations for an adjusted EPS of approximately $1.55. Additionally, full-year guidance has been raised, with organic sales growth now expected to be around 8%, up from a prior estimate of 6%.