Carrier Global (NYSE:CARR) Releases Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Carrier Global beat third-quarter expectations: Adjusted EPS was $0.87 versus the $0.76 consensus, while revenue rose 12.3% year over year to $6.26 billion.
• Demand remains especially strong in data centers: Data-center orders surged roughly 300%, total backlog exceeded $8.5 billion, and commercial HVAC orders also grew significantly.
• Cost pressures remain a concern: Tariffs, commodities and supply-chain issues are expected to create $550 million–$600 million in 2026 headwinds; Carrier raised its sales outlook but maintained adjusted EPS guidance of $2.85–$2.90.

Carrier Global (NYSE:CARR - Get Free Report) released its earnings results on Thursday. The company reported $0.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.11, FiscalAI reports. The business had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.09 billion. Carrier Global had a net margin of 5.52% and a return on equity of 14.68%. The company's revenue for the quarter was up 12.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.67 earnings per share.

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

• Strong Q3 execution: Organic sales grew 15%, adjusted operating profit rose about 35%, margins expanded 260 basis points, and adjusted EPS increased 30%, helped partly by $130 million of IEEPA refunds. Year-to-date free cash flow reached approximately $1.5 billion.
• Data center momentum remains exceptional. Global data center orders rose 300% in Q3, year-to-date orders exceeded $3 billion, and the company reported more than $8.5 billion of backlog; a newly signed hyperscaler agreement exceeds $3 billion and includes a significant minimum-volume commitment.
• Growth is broadening beyond data centers, with non-data-center commercial orders up 20%, CSA residential sales up more than 30%, European residential and light-commercial sales up 13%, and aftermarket revenue up 9%. Carrier expects its commercial HVAC and aftermarket businesses to be roughly twice their size at the 2020 spin-off by year-end.
• Input-cost and pricing pressures are weighing on profitability. Tariffs, commodities, and supply-chain inefficiencies are expected to create $550 million-$600 million of incremental 2026 headwinds, while CSA’s full-year operating-margin outlook was reduced to about 19%; management said it does not expect a first- or second-quarter 2027 margin snapback.
• Carrier raised its 2026 sales outlook to nearly $24 billion and expects roughly 10% organic growth, while maintaining adjusted EPS guidance of $2.85-$2.90 and reiterating its free-cash-flow outlook. Management is not issuing formal 2027 guidance yet but expects to enter the year with record backlog and is targeting another year of double-digit EPS growth.

Carrier Global Stock Down 2.1%

CARR stock traded down $1.18 during mid-day trading on Thursday, reaching $55.09. The company had a trading volume of 7,454,051 shares, compared to its average volume of 6,698,289. The firm has a fifty day simple moving average of $56.62 and a 200 day simple moving average of $61.72. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.72 and a current ratio of 1.02. The company has a market capitalization of $45.42 billion, a price-to-earnings ratio of 38.17, a price-to-earnings-growth ratio of 1.92 and a beta of 1.29. Carrier Global has a fifty-two week low of $50.24 and a fifty-two week high of $76.76.

Carrier Global Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Thursday, October 29th will be given a $0.24 dividend. The ex-dividend date of this dividend is Thursday, October 29th. This represents a $0.96 dividend on an annualized basis and a yield of 1.7%. Carrier Global's dividend payout ratio (DPR) is currently 66.67%.

Carrier Global News Roundup

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

• Positive Sentiment: Carrier reported third-quarter adjusted EPS of $0.87, above consensus estimates, while revenue rose 12.3% year over year to $6.26 billion and exceeded expectations. Carrier Reports Third Quarter 2026 Results
• Positive Sentiment: Demand indicators were strong: total orders increased approximately 35%, commercial HVAC orders rose about 60%, and data-center orders surged roughly 300%. The company also reported a record backlog above $8.5 billion and signed multibillion-dollar long-term agreements with minimum volume commitments. Carrier Q3 Earnings and Sales Beat
• Positive Sentiment: Carrier maintained a constructive outlook for 2026 sales, supported by HVAC demand, backlog conversion and tariff refunds. Operating cash flow was $813 million, free cash flow was $674 million, and approximately $600 million was returned to shareholders through dividends and buybacks. Carrier Q3 Sales and Guidance
• Neutral Sentiment: Carrier plans to invest more than $600 million in a new Fort Worth campus, an expansion that could increase long-term capacity but also raises near-term capital spending. Carrier Fort Worth Investment
• Negative Sentiment: GAAP EPS was negative $3.16, contrasting with adjusted EPS of $0.87. Investors may also be concerned that tariff refunds and other benefits could be temporary, while management cited ongoing cost pressures. Carrier Earnings Results
• Negative Sentiment: Unusually heavy put-option activity—18,275 puts purchased versus typical daily volume of about 6,314—signals increased near-term hedging or bearish speculation and may be adding pressure to CARR.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Mizuho cut their price objective on shares of Carrier Global from $75.00 to $70.00 and set an "outperform" rating for the company in a report on Thursday, October 15th. Royal Bank Of Canada dropped their price target on Carrier Global from $82.00 to $72.00 and set an "outperform" rating for the company in a research report on Wednesday, October 14th. Sanford C. Bernstein cut their price target on Carrier Global from $78.00 to $64.00 and set a "market perform" rating for the company in a report on Wednesday, October 7th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Carrier Global from $71.00 to $64.00 and set a "hold" rating on the stock in a research report on Wednesday, September 30th. Finally, Citigroup raised their target price on Carrier Global from $79.00 to $80.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Eleven research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $70.43.

Carrier Global Company Profile

Carrier Global Corporation NYSE: CARR is a global provider of intelligent climate and energy solutions. The company develops and manufactures heating, ventilation and air-conditioning (HVAC) systems, refrigeration equipment, building automation technologies and related controls and services for residential, commercial and industrial customers.

Its offerings include air conditioners, heat pumps, furnaces, boilers, chillers, ventilation systems, refrigeration systems and building management solutions.

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