Otis Worldwide (NYSE:OTIS) Issues Earnings Results, Meets Expectations

Otis Worldwide (NYSE:OTIS) released its quarterly earnings data on Wednesday. The company reported $1.03 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.03, FiscalAI reports. The company had revenue of $3.80 billion during the quarter, compared to analysts’ expectations of $3.88 billion. Otis Worldwide had a net margin of 9.41% and a negative return on equity of 30.67%. The firm’s quarterly revenue was up 3.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.93 EPS.

Here are the key takeaways from Otis Worldwide’s conference call:

• Otis emphasized the strength of its service business — organic service sales +5% in Q4, maintenance portfolio ~2.5 million units (up 4%), service margin +100 bps, ~1.1M connected Otis ONE units and subscription revenue +35%.
• Modernization surged — Q4 modernization orders +43% and backlog up ~30% (constant currency), driven by industrialized manufacturing/installation, new Gen3/Mod products and large wins like Transport for London.
• Cash generation and capital return were strong — Q4 adjusted free cash flow a record $817 million and FY adjusted FCF ~$1.6 billion, with ~$1.5 billion returned to shareholders and a 2026 FCF target of $1.6–$1.7 billion plus ~$800 million planned buybacks.
• China remains a headwind for new equipment — China new‑equipment volumes and backlog are down, conversion and retention are structurally weaker there, and China’s slowdown will weigh on early‑2026 sales despite signs of improvement.
• 2026 guidance calls for low‑ to mid‑single‑digit organic sales growth (service mid‑ to high‑single digits), new equipment down low‑single digits to flat, and mid‑ to high‑single‑digit adjusted EPS growth with adjusted operating profit +$60–$100 million at constant currency.

Otis Worldwide Stock Performance

OTIS traded down $2.88 on Wednesday, hitting $87.67. The company had a trading volume of 2,230,868 shares, compared to its average volume of 2,889,513. The stock has a market capitalization of $34.17 billion, a price-to-earnings ratio of 25.80, a P/E/G ratio of 2.62 and a beta of 1.02. The stock has a fifty day moving average price of $88.41 and a 200-day moving average price of $89.46. Otis Worldwide has a 12-month low of $84.00 and a 12-month high of $106.83.

Otis Worldwide Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 5th. Shareholders of record on Friday, November 14th were paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.9%. The ex-dividend date was Friday, November 14th. Otis Worldwide’s payout ratio is 49.56%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on OTIS shares. Wolfe Research set a $109.00 price target on Otis Worldwide and gave the company an “outperform” rating in a report on Wednesday, October 8th. Wells Fargo & Company decreased their target price on Otis Worldwide from $95.00 to $92.00 and set an “equal weight” rating for the company in a research report on Monday, December 15th. Weiss Ratings reissued a “hold (c)” rating on shares of Otis Worldwide in a research report on Monday, December 29th. Wall Street Zen lowered Otis Worldwide from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. Finally, Zacks Research raised shares of Otis Worldwide from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 14th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $104.13.

Insider Buying and Selling at Otis Worldwide

In related news, CAO Michael Patrick Ryan sold 3,028 shares of the stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $91.69, for a total transaction of $277,637.32. Following the completion of the sale, the chief accounting officer owned 2,628 shares of the company’s stock, valued at $240,961.32. This represents a 53.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On Otis Worldwide

A number of large investors have recently made changes to their positions in the business. AQR Capital Management LLC lifted its holdings in shares of Otis Worldwide by 125.7% during the 3rd quarter. AQR Capital Management LLC now owns 2,596,355 shares of the company’s stock valued at $236,891,000 after purchasing an additional 1,445,904 shares during the last quarter. Scharf Investments LLC acquired a new position in Otis Worldwide during the 3rd quarter valued at about $73,200,000. Balyasny Asset Management L.P. purchased a new stake in Otis Worldwide in the third quarter valued at about $59,127,000. Worldquant Millennium Advisors LLC purchased a new stake in Otis Worldwide in the second quarter valued at about $59,621,000. Finally, Wellington Management Group LLP boosted its holdings in Otis Worldwide by 15.3% in the third quarter. Wellington Management Group LLP now owns 3,529,185 shares of the company’s stock worth $322,673,000 after acquiring an additional 468,184 shares in the last quarter. 88.03% of the stock is owned by institutional investors and hedge funds.

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.