Carrier Global (NYSE:CARR) Posts Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• Q1 beat and guidance: Carrier reported adjusted EPS of $0.57 (vs. $0.50 consensus) on $5.34B revenue and reaffirmed FY2026 targets of roughly $22B in revenue and ~$2.80 adjusted EPS.
• Data‑center demand is a growth driver: Data‑center HVAC orders jumped >500% and the current backlog fully covers the company's $1.5B 2026 data‑center sales target, underpinning Commercial HVAC momentum.
• Near‑term margin and cash pressures: GAAP EPS declined to $0.28 year‑over‑year and free cash flow was about ‑$15M, with China and short‑cycle weakness plus higher input costs offset only partially by added pricing and cost actions.

Carrier Global (NYSE:CARR - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07, FiscalAI reports. Carrier Global had a net margin of 6.82% and a return on equity of 15.30%. The business had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $4.99 billion. During the same period in the prior year, the firm earned $0.65 EPS. Carrier Global's quarterly revenue was up 2.4% compared to the same quarter last year. Carrier Global updated its FY 2026 guidance to 2.800-2.800 EPS.

Here are the key takeaways from Carrier Global's conference call:

• Orders and data-center backlog accelerated: Company orders were up 11% in Q1 (global HVAC +35%) with global data center orders >500%, and the current data‑center backlog fully covers the targeted $1.5 billion of data‑center sales this year (the company says it is targeting to exceed that number).
• Management reaffirmed its full‑year guide (≈$22B revenue, adjusted EPS ≈$2.80) while noting higher input costs from new tariffs, fuel and raw materials and announcing an additional ~2 points of pricing to be offset by supply‑chain actions and cost reductions.
• Aftermarket and digital momentum: connected devices in the field rose >25% in the quarter, the company expects a sixth consecutive year of double‑digit aftermarket growth, and transportation link subscriptions (~240k) are targeted to roughly triple over the next few years.
• Product and systems differentiation driving share and margin gains: investments in CDUs, maglev chillers, controls and the QuantumLeap integrated offering (plus the Viessmann and ZutaCore partnerships) supported strong Commercial HVAC performance—Carrier says global CHVAC sales are up 80% since the spin, backlog +130% and margins ~3x higher.
• Short‑cycle and China weaknesses persist: CSA residential movement and field inventories (down ~35% YoY) pressured absorption and margins, while CSAME saw China sales down low‑teens (RLC ~‑25%), contributing to a year‑over‑year EPS decline and segment margin headwinds.

Carrier Global Stock Performance

Shares of CARR stock traded up $5.34 during midday trading on Thursday, hitting $67.08. 15,772,156 shares of the company were exchanged, compared to its average volume of 6,274,086. The firm has a market capitalization of $56.04 billion, a P/E ratio of 39.23, a PEG ratio of 2.52 and a beta of 1.32. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.85 and a current ratio of 1.20. Carrier Global has a 52 week low of $50.24 and a 52 week high of $81.09. The firm's 50 day moving average price is $59.74 and its two-hundred day moving average price is $57.72.

Carrier Global Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 4th will be given a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Monday, May 4th. Carrier Global's payout ratio is 56.14%.

Carrier Global News Roundup

Here are the key news stories impacting Carrier Global this week:

• Positive Sentiment: Q1 results topped consensus: adjusted EPS $0.57 (beat) on $5.34B revenue (beat), signaling stronger near‑term profitability than analysts expected. Carrier Reports First Quarter 2026 Results
• Positive Sentiment: Data‑center HVAC demand is a clear driver: management said data‑center orders jumped over 500% and backlog fully covers expected 2026 data‑center sales — a high‑growth end market driving Commercial HVAC momentum. Carrier shares surge after revenue beat driven by data center HVAC demand
• Positive Sentiment: Company reaffirmed FY‑2026 targets (roughly $22B revenue, $2.80 adj. EPS) — guidance slightly above Street consensus and management emphasized targeted ~$1.5B in data‑center sales for the year. That reduces execution risk for the year. Carrier reaffirms ~$22b 2026 sales outlook and projects ~$2.80 adjusted EPS while targeting $1.5b
• Positive Sentiment: Active capital returns: Carrier repurchased stock and paid dividends totaling roughly $500M in the quarter, supporting EPS per share and shareholder confidence. Carrier (CARR) jumps 9.5% as Q1 results beat expectations and data-center HVAC demand surges
• Positive Sentiment: Strategic tech exposure: Carrier Ventures expanded its investment in ZutaCore to scale liquid‑cooling for AI/data centers — a long‑term growth/investment angle in high‑value end markets. Carrier Ventures Expands Investment in ZutaCore
• Neutral Sentiment: Revenue mix is mixed: total net sales were up ~2% but organic sales declined about 1% year‑over‑year — underlying end‑market variability remains. Carrier 1Q Down, Backs 2026 Adjusted EPS View Amid Strong Data-Center Sales
• Negative Sentiment: GAAP EPS and cash metrics are softer: GAAP EPS fell vs. year‑ago ($0.28 vs $0.65) and free cash flow was negative (~$‑15M) this quarter, which could concern investors focused on cash conversion. Carrier Reports First Quarter 2026 Results

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on CARR shares. Rothschild & Co Redburn decreased their target price on Carrier Global from $67.00 to $61.00 and set a "neutral" rating on the stock in a research report on Wednesday, January 21st. Citigroup increased their target price on shares of Carrier Global from $70.00 to $72.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. CICC Research reduced their price objective on Carrier Global from $76.85 to $69.78 and set an "outperform" rating on the stock in a research note on Wednesday, February 11th. Morgan Stanley set a $55.00 price target on shares of Carrier Global in a research note on Thursday, January 8th. Finally, Royal Bank Of Canada lowered their target price on shares of Carrier Global from $74.00 to $68.00 and set an "outperform" rating for the company in a report on Wednesday, April 8th. Thirteen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, Carrier Global presently has a consensus rating of "Moderate Buy" and an average target price of $69.69.

Institutional Trading of Carrier Global

Several large investors have recently modified their holdings of the stock. Garton & Associates Financial Advisors LLC acquired a new stake in Carrier Global in the fourth quarter valued at approximately $33,000. Kelleher Financial Advisors bought a new stake in shares of Carrier Global in the 3rd quarter valued at $49,000. Transamerica Financial Advisors LLC grew its holdings in Carrier Global by 862.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,011 shares of the company's stock worth $53,000 after acquiring an additional 906 shares during the period. DV Equities LLC acquired a new stake in shares of Carrier Global during the 4th quarter worth approximately $58,000. Finally, EFG International AG bought a new stake in Carrier Global in the fourth quarter valued at $70,000. 91.00% of the stock is owned by institutional investors and hedge funds.

About Carrier Global

Carrier Global Corporation is a leading global provider of heating, ventilation and air conditioning (HVAC), refrigeration, fire and security, and building automation solutions. The company designs, manufactures and sells a broad portfolio of products that includes air conditioners, furnaces, heat pumps, chillers, rooftop units, commercial refrigeration systems, fire and smoke detection and suppression systems, security sensors and access controls, and a range of building controls and analytics software.

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