CORRECTED-Johnson Controls beats Q1 EPS estimates; ups FY profit view

Corrects net income to $524 mln from $555 mln in Key Details table

Overview

• Ireland-based energy solutions provider's Q1 sales rose 7% but missed analyst expectations

• Adjusted EPS of $0.89 for Q1 beat analyst expectations

• Company raised FY26 adjusted EPS guidance to $4.70 from $4.55

Outlook

• Johnson Controls raises FY26 adjusted EPS guidance to $4.70 from $4.55

• Company expects Q2 adjusted EPS of ~$1.11

• Johnson Controls maintains FY26 organic sales growth forecast at mid-single digits

Result Drivers

• ORDER GROWTH - Orders increased 39% organically year-over-year, reflecting strong customer demand in core markets

• BACKLOG INCREASE - Backlog rose 20% organically year-over-year, driven by accelerated investments in data center projects

• MARGIN EXPANSION - Margin expansion attributed to improved execution and operational efficiency across the enterprise

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Johnson Controls International PLC is $132.50, about 6.8% above its February 3 closing price of $124.01

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn9KmRkMa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)