Carrier Global (NYSE:CARR) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Carrier Global beat quarterly expectations, reporting $0.86 in EPS versus the $0.82 consensus and revenue of $6.35 billion versus estimates of $6.02 billion.
• The company raised its 2026 outlook to approximately $23 billion in sales, $3.5 billion in adjusted operating profit, and $2.90 in adjusted EPS. Orders rose about 40%, driven by a fourfold increase in data-center orders, while backlog exceeded $8 billion.
• Despite strong demand, quarterly margins declined year over year because of unfavorable mix, higher costs, tariffs and increased investment; management expects third-quarter operating margin to fall sequentially to roughly 16.5%.

Carrier Global (NYSE:CARR - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.86 EPS for the quarter, topping analysts' consensus estimates of $0.82 by $0.04, FiscalAI reports. The business had revenue of $6.35 billion for the quarter, compared to analyst estimates of $6.02 billion. Carrier Global had a return on equity of 14.81% and a net margin of 5.99%. Carrier Global updated its FY 2026 guidance to 2.900-2.900 EPS.

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

• Carrier raised its 2026 outlook, now expecting approximately $23 billion in sales, $3.5 billion in adjusted operating profit, and $2.90 in adjusted EPS, supported by stronger-than-expected first-half results.
• Orders increased about 40% in the quarter, with commercial HVAC orders up 65% and data-center orders up fourfold; total backlog exceeded $8 billion, providing strong visibility into second-half growth and 2027 demand.
• Carrier raised its 2026 data-center sales forecast to approximately $2 billion, with $1.5 billion expected in the second half, and plans a new U.S. facility to expand capacity for continued hyperscaler and colocation demand.
• Second-quarter margins declined year over year due to unfavorable business mix, higher input costs, tariff timing, lower joint-venture income, and increased investments; management expects third-quarter operating margin to fall sequentially to about 16.5%.
• Residential and light-commercial markets improved, with North American residential sales up 9% and European heat-pump sales up 20%; Carrier also completed the Riello divestiture, announced the NORESCO sale, and acquired 75F to expand its cloud-native, AI-enabled building-management platform.

Carrier Global Stock Performance

Shares of CARR opened at $69.43 on Tuesday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.75 and a current ratio of 1.05. The stock has a market capitalization of $57.67 billion, a price-to-earnings ratio of 45.68, a price-to-earnings-growth ratio of 2.76 and a beta of 1.31. Carrier Global has a 52-week low of $50.24 and a 52-week high of $81.09. The stock's 50-day simple moving average is $68.60 and its 200 day simple moving average is $63.33.

Carrier Global Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 10th. Investors of record on Tuesday, July 21st will be issued a dividend of $0.24 per share. The ex-dividend date of this dividend is Tuesday, July 21st. This represents a $0.96 dividend on an annualized basis and a yield of 1.4%. Carrier Global's dividend payout ratio is 63.16%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on CARR. The Goldman Sachs Group lifted their target price on Carrier Global from $74.00 to $80.00 in a research note on Friday, May 1st. Citigroup lifted their price target on shares of Carrier Global from $79.00 to $80.00 and gave the stock a "buy" rating in a report on Monday, July 13th. Zacks Research raised Carrier Global from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Carrier Global in a research report on Monday, July 20th. Finally, Wells Fargo & Company lifted their price objective on Carrier Global from $58.00 to $71.00 in a report on Friday, May 1st. Twelve investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $73.51.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Invesco Ltd. boosted its position in shares of Carrier Global by 17.3% during the 4th quarter. Invesco Ltd. now owns 4,871,584 shares of the company's stock valued at $257,415,000 after acquiring an additional 716,812 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in Carrier Global by 12.1% during the 4th quarter. Corient Private Wealth LLC now owns 447,054 shares of the company's stock valued at $23,627,000 after acquiring an additional 48,419 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in shares of Carrier Global by 15.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 153,856 shares of the company's stock worth $7,790,000 after purchasing an additional 20,905 shares during the last quarter. Virtue Capital Management LLC raised its holdings in Carrier Global by 438.7% during the 4th quarter. Virtue Capital Management LLC now owns 5,802 shares of the company's stock valued at $311,000 after buying an additional 4,725 shares during the last quarter. Finally, Vident Advisory LLC boosted its position in Carrier Global by 23.4% during the 4th quarter. Vident Advisory LLC now owns 818,398 shares of the company's stock valued at $43,244,000 after buying an additional 154,977 shares during the period. 91.00% of the stock is currently owned by hedge funds and other institutional investors.

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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