Strong Order Surge and Data Center Demand Drive Upward Revision to Annual Guidance for Carrier

Carrier Global Corporation, a provider of intelligent climate and energy solutions, has raised its full-year financial outlook following a second-quarter earnings report that surpassed market expectations.

The company's net sales for the second quarter reached $6.35 billion, a 4% increase year-over-year and exceeding analyst forecasts of $6.01 billion. Adjusted earnings per share (EPS) came in at $0.86, above the anticipated range of $0.82 to $0.83, though this represents a 7% decline from the $0.92 reported in the same period last year. On a GAAP basis, EPS was $0.60, down from $0.70 in the prior year. Free cash flow for the quarter was a robust $0.81 billion, reflecting a more than 40% improvement year-over-year.

A standout factor in the quarterly results was the surge in order volume. Driven heavily by data center demand, total orders rose by approximately 40% year-over-year. Within this, commercial HVAC orders grew by about 65%, while data center-specific orders skyrocketed by over 300%. The company's backlog swelled to more than $8 billion, an increase of roughly 40% compared to the previous year.

In response to this performance, Carrier has revised its full-year guidance for 2026 upward. The company now projects annual sales of approximately $23 billion, an increase from the prior estimate of $22 billion. Adjusted operating profit is expected to be around $3.5 billion, and adjusted EPS is forecast at approximately $2.90, up from the previous guidance of $2.80. Notably, the revenue outlook for the data center segment has been raised from $1.5 billion to roughly $2 billion.

The company's Chairman and CEO attributed the decision to raise the annual outlook to a stronger-than-expected second quarter, which concluded the first half of the year on a high note. This was supported by record backlog levels and better-than-anticipated results in the first half. However, the adjusted operating margin narrowed to 17.2% from 19.1% in the year-ago period, a compression attributed to the impact of tariffs, changes in product mix, and higher input costs.