Zacks Research Predicts Lower Earnings for Otis Worldwide

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Otis Worldwide to $1.02 from $1.06, signaling weaker near-term earnings expectations. The firm also lowered several longer-dated forecasts, including FY2027 and FY2028.
• Otis recently missed quarterly expectations, posting EPS of $0.89 versus the $0.91 consensus and revenue of $3.57 billion versus the expected $3.77 billion. The company also maintained FY2026 guidance of $4.20-$4.24 per share.
• Analyst sentiment remains mixed, with the stock carrying an average “Hold” rating and a consensus price target of $97.64. Otis also boosted its quarterly dividend to $0.44 per share, up from $0.42.

Otis Worldwide Corporation (NYSE:OTIS - Free Report) - Investment analysts at Zacks Research decreased their Q2 2026 earnings estimates for Otis Worldwide in a research note issued to investors on Wednesday, May 13th. Zacks Research analyst Team now forecasts that the company will earn $1.02 per share for the quarter, down from their previous forecast of $1.06. The consensus estimate for Otis Worldwide's current full-year earnings is $4.18 per share. Zacks Research also issued estimates for Otis Worldwide's Q3 2026 earnings at $1.14 EPS, Q4 2026 earnings at $1.18 EPS, FY2026 earnings at $4.22 EPS, Q1 2027 earnings at $1.05 EPS, Q2 2027 earnings at $1.16 EPS, Q3 2027 earnings at $1.21 EPS, Q4 2027 earnings at $1.24 EPS, FY2027 earnings at $4.67 EPS, Q1 2028 earnings at $1.19 EPS and FY2028 earnings at $5.23 EPS.

Otis Worldwide (NYSE:OTIS - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The company reported $0.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.02). Otis Worldwide had a net margin of 10.11% and a negative return on equity of 29.39%. The company had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.77 billion. During the same quarter in the prior year, the company earned $0.92 EPS. The business's revenue was up 6.4% on a year-over-year basis. Otis Worldwide has set its FY 2026 guidance at 4.200-4.240 EPS.

Other equities analysts also recently issued research reports about the stock. Weiss Ratings restated a "hold (c)" rating on shares of Otis Worldwide in a research note on Friday, March 27th. Evercore began coverage on shares of Otis Worldwide in a research note on Monday, April 13th. They issued an "outperform" rating and a $100.00 price objective for the company. Barclays decreased their price objective on shares of Otis Worldwide from $80.00 to $77.00 and set an "underweight" rating for the company in a research note on Thursday, April 23rd. Wolfe Research downgraded shares of Otis Worldwide from an "outperform" rating to a "peer perform" rating in a research note on Wednesday, April 8th. Finally, JPMorgan Chase & Co. downgraded shares of Otis Worldwide from an "overweight" rating to a "neutral" rating and set a $98.00 target price for the company. in a research note on Friday, January 30th. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Otis Worldwide has an average rating of "Hold" and a consensus price target of $97.64.

Otis Worldwide Price Performance

NYSE OTIS opened at $73.02 on Friday. Otis Worldwide has a 1 year low of $72.51 and a 1 year high of $101.42. The company has a market capitalization of $28.02 billion, a PE ratio of 19.42, a P/E/G ratio of 2.40 and a beta of 0.95. The company has a fifty day moving average of $79.67 and a two-hundred day moving average of $85.93.

Institutional Investors Weigh In On Otis Worldwide

Several hedge funds have recently made changes to their positions in OTIS. Jones Financial Companies Lllp boosted its stake in shares of Otis Worldwide by 3.4% during the first quarter. Jones Financial Companies Lllp now owns 9,199 shares of the company's stock worth $949,000 after buying an additional 304 shares during the period. Empowered Funds LLC lifted its position in Otis Worldwide by 10.5% in the first quarter. Empowered Funds LLC now owns 8,988 shares of the company's stock valued at $928,000 after purchasing an additional 857 shares during the period. Acadian Asset Management LLC lifted its position in Otis Worldwide by 63.7% in the first quarter. Acadian Asset Management LLC now owns 4,045 shares of the company's stock valued at $417,000 after purchasing an additional 1,574 shares during the period. Baird Financial Group Inc. lifted its position in Otis Worldwide by 7.1% in the second quarter. Baird Financial Group Inc. now owns 32,245 shares of the company's stock valued at $3,193,000 after purchasing an additional 2,132 shares during the period. Finally, NewEdge Advisors LLC lifted its position in Otis Worldwide by 13.3% in the second quarter. NewEdge Advisors LLC now owns 10,222 shares of the company's stock valued at $1,012,000 after purchasing an additional 1,196 shares during the period. Institutional investors and hedge funds own 88.03% of the company's stock.

Otis Worldwide Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 15th will be paid a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a dividend yield of 2.4%. This is a positive change from Otis Worldwide's previous quarterly dividend of $0.42. The ex-dividend date is Friday, May 15th. Otis Worldwide's payout ratio is currently 44.68%.

Key Headlines Impacting Otis Worldwide

Here are the key news stories impacting Otis Worldwide this week:

• Positive Sentiment: Zacks Research slightly raised its Q3 2026 EPS estimate to $1.14 from $1.13 and increased its Q4 2026 EPS estimate to $1.18 from $1.17, suggesting some near-term earnings stability.
• Positive Sentiment: The firm’s FY2026 EPS estimate of $4.22 is still above the current consensus of $4.18, which may help support the longer-term outlook.
• Neutral Sentiment: Zacks Research left some forward estimates unchanged, including FY2027 at $4.67 and FY2028 at $5.23, indicating the longer-run growth view remains broadly intact.
• Negative Sentiment: Analysts cut several earnings forecasts, including Q2 2026 to $1.02 from $1.06, Q1 2027 to $1.05 from $1.07, Q2 2027 to $1.16 from $1.22, Q3 2027 to $1.21 from $1.25, Q4 2027 to $1.24 from $1.27, FY2027 to $4.67 from $4.81, and FY2028 to $5.23 from $5.39.
• Negative Sentiment: The broad pattern of downward revisions suggests softer expected profitability ahead, which is likely weighing on sentiment for OTIS today.

About Otis Worldwide

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis's business derives from long-term service contracts and responsive maintenance work.

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