Otis Slashes 2026 Profit Outlook by 4.5% on Rising Costs, China Weakness
OTIS is trading near its 52-week low of $69.16 (2.5% above the low).
Summary
Otis cut its full-year adjusted EPS guidance to $4.01–$4.05 from $4.20–$4.24, a 4.5% reduction at the midpoint, citing rising labor costs and productivity pressures. The company added $50 million to its cost forecast as it invests in service quality to capture a multi-year repair and modernization boom. New equipment sales in China fell by high teens, while the Middle East conflict caused project delays, though higher pricing broadly offset the impact. Q2 revenue of $3.86B beat estimates, but the margin miss and guidance cut overshadowed the beat. Shares fell 2%, trading near the 52-week low. This follows the Q2 8-K filed earlier today and adds analyst reaction and regional detail.
At the time of this announcement, OTIS was trading at $70.90 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $27.2B. The 52-week trading range was $69.16 to $101.15. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.