Otis Worldwide (OTIS) Financials

Otis Worldwide showed a mixed but generally resilient operating profile over the last four years. Revenue has stayed fairly stable to modestly higher, margins have held up, and operating cash flow remains solid. That said, the balance sheet continues to carry negative common equity, and the company is still using a meaningful amount of cash for buybacks, dividends, and debt service.

In the most recent quarter, Q1 2026, revenue was $3.566 billion, up from $3.350 billion in Q1 2025. Operating income also improved slightly year over year to $539 million from $411 million, though this comparison is helped by a tougher prior-year quarter and does not show a major breakout. Net income came in at $353 million, or $0.87 diluted EPS.

Cash generation remains an important strength. Q1 2026 operating cash flow was $413 million, down from $690 million in Q4 2025 but still healthy for a quarter. Over multiple periods, Otis has consistently produced positive operating cash flow, which helps support dividends and share repurchases.

The biggest caution sign is the balance sheet. As of Q1 2026, Otis reported total liabilities of $15.98 billion versus total assets of $10.54 billion, resulting in negative total equity of $5.51 billion. That is not unusual for a heavily repurchased, dividend-paying industrial company, but it does mean leverage remains important to watch.

• Revenue has trended upward over the last year, with Q1 2026 revenue up about 6% from Q1 2025.
• Operating income stayed strong, with Q1 2026 operating margin around 15.1% ($539 million on $3.566 billion of revenue).
• Operating cash flow remains robust, generating $413 million in Q1 2026.
• Gross profit has held up well, suggesting the core service and equipment business remains profitable.
• Cash dividends continue, with Q1 2026 dividend per share at $0.42.
• Quarterly earnings have been relatively stable rather than explosive, indicating steady but not rapid growth.
• Otis continues to buy back stock, which supports EPS but also consumes cash.
• Net income attributable to common shareholders remains solid, but noncontrolling interests still take a modest share.
• Negative common equity persists, with shareholders’ equity at -$5.68 billion in Q1 2026.
• Debt remains elevated, including $6.88 billion of long-term debt and $939 million of short-term debt in Q1 2026.

Looking across the last four years, Otis appears to be a high-quality cash-generating business with fairly steady operating performance, but also one that is run with a capital structure that leaves little room for balance-sheet stress. For retail investors, the key questions are whether earnings and cash flow can keep outpacing debt costs and whether buybacks/dividends remain well covered by future free cash flow.