Johnson Controls International earnings: fourth quarter 2026

Johnson Controls International, which makes heating, cooling and building systems, closed its 2026 financial year with a fourth quarter of fast profit growth and a surge in new orders. Sales grew 12% on an organic basis, and adjusted profit per share rose about 32%. Orders rose far faster still, led by its data center business. It also gave its first forecasts for 2027. ¹

Against what analysts expected

Analysts' average forecast, as compiled by Nasdaq's earnings calendar from six estimates, was $1.58 a share. The company came in above it on both measures: $1.66 on its adjusted figure and $1.60 as reported. ¹²

The strong points

• Profit per share, on the company's adjusted measure that leaves out one-off items, rose to $1.66 from $1.26 a year ago. ¹
• New orders rose 44% organically, and its biggest business, driven by data center demand, saw orders up 58%. ¹
• Free cash flow, the cash left after running and investing in the business, reached $3.4 billion for the year, up from $2.1 billion. ¹

The weak points

• Part of the year's cash came from paying suppliers and taxes later and from customer prepayments, which can reverse. ¹
• The tax rate on adjusted profit rose to about 17% from about 12%. ¹

What the company expects

• For the 2027 financial year, the company expects adjusted profit per share of $6.15 to $6.30, its first forecast for the year. ¹
• It expects organic sales growth of 11% to 12% for the year, a touch slower than the 12% to 14% it expects for the first quarter. ¹

Our verdict on the quarter

A strong report. Profit per share rose by about a third and came in above analysts' forecasts, while orders grew far faster than sales; the only soft spots are cash flattered by payment timing and a higher tax rate, and the 2027 outlook is new, so it neither raised nor cut an earlier forecast.

The results as published

• The results release itself
• The filing it came with (SEC)

Notes

1. Johnson Controls International's results release, 27 October 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 27 October 2026. ↩