Johnson Controls plc 8-K
PositiveEarningsGuidance raised
Americas and APAC demand drives growth as FY2026 sales and EPS outlooks rise; Middle East conflicts constrain EMEA.
Filed 2026-07-29 06:57 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 FY2026 results with updated FY2026 guidance. Johnson Controls reported 9% sales growth and 10% organic sales growth, with adjusted EPS of $1.42. Strong demand in the Americas and APAC helped lift results; EMEA organic growth was constrained by continued pressure from Middle East conflicts.
Key Figures
| Metric | Q3 2026 | Q3 2025 | Y/Y |
|---|---|---|---|
| Net sales | $6.61B | $6.05B | 9% |
| EBIT | $988M | $782M | 26% |
| Adjusted EBIT (non-GAAP) | $1.12B | $865M | 30% |
| Net income from continuing operations attributable to JCI | $749M | $618M | 21% |
| Adjusted net income from continuing operations attributable to JCI (non-GAAP) | $868M | $693M | 25% |
| Diluted EPS from continuing operations | $1.23 | $0.94 | 31% |
| Adjusted diluted EPS (non-GAAP) | $1.42 | $1.05 | 35% |
| Operating cash flow from continuing operations | $1.29B | $787M | 64% |
| Free cash flow (non-GAAP) | $1.19B | $693M | 72% |
| Adjusted free cash flow (non-GAAP) | $1.18B | $725M | 63% |
- Orders rose 27% organically and backlog reached $21.0B, up 32% organically. Americas sales grew 11% and APAC sales 15%; EMEA sales declined 1%, with regional organic growth constrained by Middle East conflicts.
- Q3 stock repurchases were $635M vs $310M a year earlier; diluted weighted-average shares fell to 610M from 657M. Cash and equivalents were $641M; total debt was $9.48B, and net debt to adjusted EBITDA was 1.9x vs 2.5x a year earlier.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic sales growth (non-GAAP) | Q4 FY2026 | 9%-10% | — | Initiated |
| Operating leverage (non-GAAP) | Q4 FY2026 | 45%-50% | — | Initiated |
| Adjusted EPS (non-GAAP) | Q4 FY2026 | ≈$1.55 | — | Initiated |
| Organic sales growth (non-GAAP) | FY2026 | ≈8% | Up ≈6% | Raised |
| Operating leverage (non-GAAP) | FY2026 | 45%-50% | ≈50% | Lowered |
| Adjusted EPS (non-GAAP) | FY2026 | ≈$5.05 | ≈$4.85 | Raised |
| Adjusted free cash flow conversion (non-GAAP) | FY2026 | ≈100% | ≈100% | Reaffirmed |
Investor Takeaways
- Q4 results versus the initiated organic sales growth, operating leverage and adjusted EPS ranges will test whether Q3 momentum carries through.
- Watch whether strong orders and backlog convert into sales, particularly in the Americas and APAC, while EMEA remains pressured.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3