Johnson Controls plc 8-K
PositiveEarningsNew guidance
Data-center demand supports record $23.0B backlog as productivity lifts margins; FY2027 adjusted EPS guided to $6.15-$6.30.
Filed 2026-10-27 06:58 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results with initial FY2027 guidance. Q4 sales rose 10% (12% organically), adjusted EPS was $1.66, and orders increased 44% organically; backlog reached $23.0B, up 43%. Johnson Controls attributed its momentum to customer demand, including for data centers, and productivity and simplification improvements that expanded margins across all three segments.
Key Figures
| Metric | Q4 2026 | FY2026 |
|---|---|---|
| Revenue | $7.11B, +10% Y/Y | $25.7B, +9% Y/Y |
| Gross margin | 38.0%, vs 36.5% | 37.1%, vs 36.4% |
| EBIT | $1.15B, +166% Y/Y | $3.71B, +62% Y/Y |
| Net income from continuing operations attributable to JCI | $967M, +262% Y/Y | $2.88B, +67% Y/Y |
| Diluted EPS from continuing operations | $1.60, vs $0.42 | $4.72, +80% Y/Y |
| Adjusted diluted EPS, non-GAAP | $1.66, +32% Y/Y | $5.16, +37% Y/Y |
| Operating cash flow from continuing operations | $1.30B, +34% Y/Y | $3.87B, +52% Y/Y |
| Free cash flow, non-GAAP | $1.08B, +29% Y/Y | $3.41B, +61% Y/Y |
| Adjusted free cash flow, non-GAAP | $1.10B, +54% Y/Y | $3.23B, +29% Y/Y |
- Q4 organic sales rose 14% in the Americas, 3% in EMEA and 13% in APAC. Americas orders increased 58% and backlog was $17.8B, up 54%; the company cited sustained data-center demand and its technology and capabilities. Total backlog was $23.0B, up 43% organically.
- Segment margins expanded across the regions. Americas adjusted segment EBITA margin rose 210 bp to 22.0%, EMEA increased 80 bp to 16.4%, and APAC increased 110 bp to 18.9%; the company cited operating leverage, pricing and productivity, with EMEA also facing Middle East conflict-related pressure.
- Q4 share repurchases were $655M and dividends were $242M. Diluted weighted-average shares were 606M vs 633M a year earlier. At 9/30/2026, total debt was $9.28B, cash was $618M and net debt was $8.66B; net debt to adjusted EBITDA was 1.8x vs 2.4x a year earlier.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Adjusted EPS (non-GAAP) | Q4 FY2026 | ≈$1.55 | $1.66 | beat |
| Adjusted EPS (non-GAAP) | FY2026 | ≈$5.05 | $5.16 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic sales growth, non-GAAP | Q1 FY2027 | 12%-14% | — | Initiated |
| Operating leverage, non-GAAP | Q1 FY2027 | 30%-35% | — | Initiated |
| Adjusted EPS, non-GAAP | Q1 FY2027 | $1.15-$1.20 | — | Initiated |
| Organic sales growth, non-GAAP | FY2027 | 11%-12% | — | Initiated |
| Operating leverage, non-GAAP | FY2027 | 30%+ | — | Initiated |
| Adjusted EPS, non-GAAP | FY2027 | $6.15-$6.30 | — | Initiated |
| Adjusted free cash flow conversion, non-GAAP | FY2027 | ≈95% | — | Initiated |
Investor Takeaways
- Track Q1 organic sales growth, operating leverage and adjusted EPS against the initiated ranges to assess whether Q4 momentum carries into FY2027.
- Watch conversion of the record $23.0B backlog into sales, particularly as data-center demand supports orders; subsequent order and backlog trends will test whether that demand is sustained.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-27 14:41:23Z