Carrier Global (NYSE:CARR) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Carrier Global (NYSE:CARR) announced its earnings results on Thursday. The company reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.11, FiscalAI reports. Carrier Global had a positive return on equity of 16.99% and a negative net margin of 7.90%. The firm had revenue of $6.26 billion during the quarter, compared to the consensus estimate of $6.09 billion. During the same quarter in the prior year, the company earned $0.67 EPS. The firm’s revenue for the quarter was up 12.3% compared to the same quarter last year.

Here are the key takeaways from Carrier Global’s conference call:

• Strong Q3 execution: Organic sales grew 15%, adjusted operating profit rose about 35%, margins expanded 260 basis points, and adjusted EPS increased 30%, helped partly by $130 million of IEEPA refunds. Year-to-date free cash flow reached approximately $1.5 billion.
• Data center momentum remains exceptional. Global data center orders rose 300% in Q3, year-to-date orders exceeded $3 billion, and the company reported more than $8.5 billion of backlog; a newly signed hyperscaler agreement exceeds $3 billion and includes a significant minimum-volume commitment.
• Growth is broadening beyond data centers, with non-data-center commercial orders up 20%, CSA residential sales up more than 30%, European residential and light-commercial sales up 13%, and aftermarket revenue up 9%. Carrier expects its commercial HVAC and aftermarket businesses to be roughly twice their size at the 2020 spin-off by year-end.
• Input-cost and pricing pressures are weighing on profitability. Tariffs, commodities, and supply-chain inefficiencies are expected to create $550 million-$600 million of incremental 2026 headwinds, while CSA’s full-year operating-margin outlook was reduced to about 19%; management said it does not expect a first- or second-quarter 2027 margin snapback.
• Carrier raised its 2026 sales outlook to nearly $24 billion and expects roughly 10% organic growth, while maintaining adjusted EPS guidance of $2.85-$2.90 and reiterating its free-cash-flow outlook. Management is not issuing formal 2027 guidance yet but expects to enter the year with record backlog and is targeting another year of double-digit EPS growth.

Carrier Global Price Performance

Shares of Carrier Global stock traded down $2.09 during mid-day trading on Friday, reaching $53.45. 9,822,210 shares of the stock were exchanged, compared to its average volume of 5,328,297. The company has a market cap of $44.06 billion, a price-to-earnings ratio of -24.07, a price-to-earnings-growth ratio of 1.89 and a beta of 1.29. The company has a current ratio of 1.00, a quick ratio of 0.72 and a debt-to-equity ratio of 0.96. The firm has a 50-day simple moving average of $56.37 and a 200 day simple moving average of $61.71. Carrier Global has a fifty-two week low of $50.24 and a fifty-two week high of $76.76.

Carrier Global Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 18th. Investors of record on Thursday, October 29th will be given a dividend of $0.24 per share. The ex-dividend date is Thursday, October 29th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.8%. Carrier Global’s dividend payout ratio (DPR) is -43.24%.

Analysts Set New Price Targets

Several research analysts recently issued reports on CARR shares. Royal Bank Of Canada dropped their price target on shares of Carrier Global from $72.00 to $70.00 and set an “outperform” rating for the company in a research report on Friday. Mizuho decreased their price objective on Carrier Global from $75.00 to $70.00 and set an “outperform” rating on the stock in a report on Thursday, October 15th. Citigroup decreased their price objective on Carrier Global from $80.00 to $71.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings reiterated a “hold (c)” rating on shares of Carrier Global in a research note on Friday, October 16th. Finally, Sanford C. Bernstein dropped their target price on Carrier Global from $78.00 to $64.00 and set a “market perform” rating for the company in a report on Wednesday, October 7th. Eleven research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Carrier Global presently has an average rating of “Moderate Buy” and a consensus target price of $69.54.

Key Headlines Impacting Carrier Global

Here are the key news stories impacting Carrier Global this week:

• Positive Sentiment: Q3 results exceeded expectations: Carrier reported adjusted EPS of $0.87, above the $0.76 consensus estimate, while revenue increased 12.3% year over year to $6.26 billion, topping expectations of $6.09 billion. Carrier Reports Third Quarter 2026 Results
• Positive Sentiment: Demand and backlog strengthened: Total orders rose approximately 35%, commercial HVAC orders increased about 60%, and data-center orders surged roughly 300%. Carrier also reported a record backlog exceeding $8.5 billion and signed long-term agreements worth multiple billions of dollars with minimum volume commitments. Carrier Global Q3 2026 Earnings Call Highlights
• Positive Sentiment: Full-year sales outlook improved: Management updated its 2026 guidance for higher sales, supported by HVAC demand, the backlog and tariff refunds. Operating cash flow was $813 million and free cash flow was $674 million; the company returned approximately $600 million to shareholders through dividends and repurchases. Carrier Q3 Earnings and Sales Beat
• Neutral Sentiment: Analysts remain broadly constructive, but targets were reduced: Citigroup cut its target to $71 while retaining a Buy rating; Wells Fargo lowered its target to $65 with an Overweight rating; RBC reduced its target to $70 with an Outperform rating; and BNP Paribas Exane cut its target to $60 while maintaining Neutral. The revisions still imply substantial potential upside, but signal more cautious valuation or earnings assumptions.
• Negative Sentiment: GAAP results were affected by an impairment charge: Carrier reported a goodwill impairment for the quarter, contributing to GAAP EPS of negative $3.16 despite positive adjusted earnings. Cost pressures and the lower analyst targets may be weighing on investor sentiment.
• Negative Sentiment: Bearish options activity increased: Traders purchased 18,275 put options, approximately 189% above typical daily put volume, indicating elevated demand for downside protection or speculative bearish positioning.

About Carrier Global

Carrier Global Corporation (NYSE:CARR) is a global provider of intelligent climate and energy solutions. The company develops and manufactures heating, ventilation and air-conditioning (HVAC) systems, refrigeration equipment, building automation technologies and related controls and services for residential, commercial and industrial customers.

Its offerings include air conditioners, heat pumps, furnaces, boilers, chillers, ventilation systems, refrigeration systems and building management solutions.