Otis Worldwide (OTIS)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$71.21-0.38%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
Warn: Primary pillar under pressure — EPS near $4.22 per share in fiscal 2026: EPS guidance $4.01-$4.05 vs $4.22 target; trip <$4.00.
Otis grows sales about 6% a year to $15.1-$15.3 billion in 2026. Profit margins stay stable with EPS around $4.22 per share. Free cash flow is solid near $1.62 billion. New product upgrades could boost future sales growth.
Sales growth slows below 5.6% expected by analysts. Profit margins shrink and EPS falls below $4. Free cash flow weakens. Recent guidance cuts and mixed results may signal tougher demand.
The stock trades about 33% below our valuation level and about 20% above the Street median. Analysts expect roughly 6% revenue growth. Our view aligns with moderate growth but sees risk from recent guidance cuts.
Breaks if: EPS falls below $4.0 per share in FY26
Breaks if: free cash flow falls below $1.5 billion in FY26
Breaks if: no meaningful sales growth from Otis Link MOD upgrades within 12 months
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a durable compounder with a stable management team. The current thesis is intact, supported by recent earnings performance and management's clear priorities for growth.
The market seems to have priced in a low level of execution quality, reflecting a cheap valuation compared to peers. There is an expectations gap, indicating that the market may not fully anticipate the potential for future growth.
Management is on track to meet its sales and earnings targets, which suggests that fundamentals could improve over the multi-year horizon. However, there is a moderate risk due to the company's recent history of earnings misses.
The long-term thesis hinges on sector performance, particularly the results and guidance from key industry players. Any changes in guidance from these bellwethers could significantly impact OTIS's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: annual revenue falls below $15.1 billion in FY26
Overall, OTIS appears to be in a stable position with a focus on growth, but it faces risks from sector dynamics. Not investment advice.