Otis Reports Solid Q4 and Full Year Results; 2026 Outlook Announced
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Service Sales Growth: In Q4 2025, service sales reached $2.5 billion, an 8% increase year-over-year with organic sales up 5%, driving overall performance and demonstrating the effectiveness of the service strategy.
- Surge in Modernization Orders: Modernization orders surged 43% in Q4, with backlog increasing by 34%, laying a solid foundation for growth in 2026 and beyond, reflecting strong market demand for upgrade services.
- Strong Cash Flow Performance: For the full year 2025, operating cash flow reached $1.6 billion, with adjusted free cash flow at $1.583 billion, showcasing successful capital management and enhancing shareholder return capabilities.
- Optimistic 2026 Outlook: The company anticipates organic sales growth in the low to mid-single digits and adjusted EPS growth in the mid to high single digits for 2026, reflecting confidence in future growth and ongoing strategic investments.
Analyst Views on OTIS
Wall Street analysts forecast OTIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OTIS is 100.67 USD with a low forecast of 92.00 USD and a high forecast of 111.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
3 Hold
1 Sell
Moderate Buy
Current: 90.580
Low
92.00
Averages
100.67
High
111.00
Current: 90.580
Low
92.00
Averages
100.67
High
111.00
About OTIS
Otis Worldwide Corporation is an elevator and escalator manufacturing, installation and service company. The Company’s segments include New Equipment and Service. The New Equipment segment designs, manufactures, sells and installs a range of passenger and freight elevators, and escalators and moving walkways for residential, commercial and infrastructure projects. Its elevator and escalator solutions include Gen2, Gen3, Gen360 and SkyRise. Through its Service segment, it performs maintenance and repair services, and modernization services to upgrade elevators and escalators. Through its network of service sales personnel, it sells its services directly to customers in all significant elevator and escalator verticals around the world. It serves customers in over 200 countries and territories around the world. The SkyRise advanced elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed-use skyscrapers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
