Ireland's Johnson Controls Q3 sales beat on data center demand; raises outlook

Overview

• Ireland building systems firm's fiscal Q3 sales rose 9%, beating analyst expectations

• Adjusted EPS for fiscal Q3 was $1.42, beating analyst expectations

• Company raised full-year 2026 guidance for organic sales growth and adjusted EPS

Outlook

• Johnson Controls raises FY26 organic sales growth guidance to ~8% from ~6%

• Company now expects FY26 adjusted EPS of ~$5.05, up from ~$4.85

• Johnson Controls sees Q4 organic sales growth of 9% to 10% and adjusted EPS of ~$1.55

Result Drivers

• DATA CENTER DEMAND - Co said sustained demand from data centers and other mission-critical environments supported higher orders and backlog

• OPERATING LEVERAGE - Margin expansion in Americas attributed to strong operating leverage on higher revenue

• PRODUCTIVITY PRICING - EMEA margin gains driven by favorable pricing and productivity improvements, partially offset by divestitures

Company press release: ID:nPn695JCCa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Johnson Controls International PLC is $160.00, about 14.1% above its July 28 closing price of $140.28

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• July 29 - Vertiv Q2 profit beats estimates on AI demand, lifts 2026 outlook

• July 29 - Generac Q2 sales rise on data center demand

• July 28 - Carrier raises annual earnings forecast on air conditioning demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)