Johnson Controls International (JCI) Financials

Johnson Controls’ fiscal 2026 results show improving revenue, margins and cash generation. Revenue increased in each quarter, from $5.8 billion in Q1 to $7.1 billion in Q4. Comparisons with earlier periods should be viewed with care: the supplied statements include restatements, restructuring charges and discontinued-operation results that can affect reported earnings.

• Revenue growth continued. Fiscal 2026 revenue totaled about $25.7 billion, up roughly 9% from $23.6 billion in fiscal 2025. Q4 revenue of $7.1 billion was about 10% higher than a year earlier.
• Profitability improved through fiscal 2026. Gross margin rose from about 35.8% in Q1 to 38.0% in Q4, while operating margin increased from 13.2% to 16.0%. Annual operating income was about $3.7 billion, compared with $2.3 billion in fiscal 2025; the prior-year figure was weighed down by a $400 million Q4 restructuring charge.
• Recent cash generation was strong. Q4 operating cash flow was $1.3 billion. After $222 million of capital spending, estimated free cash flow was approximately $1.1 billion.
• Share count has declined. Weighted-average shares fell from about 612 million in Q1 2026 to 600 million in Q4. The reduction, alongside higher earnings, helped diluted EPS rise from $0.85 to $1.60 over those quarters.
• Debt has eased year over year. At June 30, 2026, short- and long-term debt totaled about $9.5 billion, down from roughly $10.3 billion at June 30, 2025. Debt remains substantial, and quarterly interest expense rose to $82 million in Q4 from $59 million in Q1.
• Prior-year earnings are a less straightforward comparison. Fiscal 2025 Q4 common-shareholder income included $1.5 billion from discontinued operations. Fiscal 2026 Q4 continuing-operations income was $970 million, so the prior-year headline EPS of $2.61 does not provide a clean comparison with Q4 2026 diluted EPS of $1.60.
• Cash declined slightly in Q4. Despite strong operating cash flow, cash and equivalents decreased by $28 million during the quarter. The company spent $655 million on share repurchases and $242 million on dividends, in addition to repaying $291 million of debt.
• Near-term liquidity is limited. The latest supplied balance sheet, dated June 30, 2026, shows $641 million in cash and about $11.3 billion each in current assets and current liabilities. The roughly 1.0 current ratio leaves little cushion, and much of current assets consists of receivables rather than cash.
• Intangible assets are a sizable part of the balance sheet. Goodwill and intangible assets totaled about $20.2 billion at June 30, 2026—more than half of total assets—making the balance sheet more exposed to potential impairment charges if business expectations weaken.