Otis Profit Climbs as Service Contracts Offset China Slump

Adjusted earnings reached $1.05 a share, comfortably clearing the $1.01 estimate set by analysts. While new-equipment sales grew 3% to $1.3 billion—buoyed by orders across the Americas, Europe, and the Middle East—the company faced a distinct contraction in China. This regional weakness was effectively masked by the service unit, where revenue climbed 8% to $2.62 billion, driven by higher volume and pricing strategies despite mounting labor costs.

Looking toward 2026, the company reaffirmed its financial roadmap, projecting adjusted earnings between $4.01 and $4.05 a share. Management expects total sales to reach a range of $15.1 billion to $15.3 billion, an increase from the $14.4 billion anticipated for 2025. These figures align closely with current analyst consensus, suggesting stability even as the company manages shifting global demand patterns.