Johnson Controls Q1 Earnings & Revenues Top Estimates, Increase Y/Y

Johnson Controls International plc JCI reported first-quarter fiscal 2026 (ended December 2025) adjusted earnings of 89 cents per share, which beat the Zacks Consensus Estimate of 84 cents. The bottom line increased 39% year over year.Total revenues (continuing operations) of $5.80 billion surpassed the consensus estimate of $5.66 billion in the quarter. The top line increased 7% year over year, whereas organic revenues increased 6%.Q1 Segmental ResultsEffective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.Americas: Revenues were $3.84 billion, up 6% year over year. Organic sales also increased 6%, driven by the strong performance of the applied heating, ventilation and air conditioning (HVAC) and controls businesses.  Adjusted EBITA increased 7% year over year to $632 million.EMEA: Revenues totaled $1.26 billion, up 9% year over year. Organic sales rose 4% due to strong growth in the service business. Adjusted EBITA was $164 million, up 21% year over year.APAC: Revenues increased 8% to $693 million. Sales rose 8% organically, due to strength in Products and Systems. Adjusted EBITA was $117 million, up 30% year over year.Johnson Controls International plc Price, Consensus and EPS Surprise Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc QuoteMargin ProfileIn the fiscal first quarter, Johnson Controls’ cost of sales increased 6.4% year over year to approximately $3.72 billion. Gross profit increased 7.7% year over year to $2.07 billion and the margin rose 30 basis points (bps) to 35.8%. Selling, general and administrative expenses were $1.22 billion, down 12.7% year over year.Financial PositionJohnson Controls had cash and cash equivalents of $552 million as of Dec. 31, 2025, compared with $379 million at the end of fiscal 2025 (ended Sept. 30, 2025). Long-term debt was $8.7 billion compared with $8.59 billion at the end of fiscal 2025.In the first three months of fiscal 2026, the company generated net cash of $611 million from operating activities compared with $249 million in the year-ago period. It reported a free cash flow (on an adjusted basis) of $428 million in the same period compared with $603 million in the year-ago period.The company paid dividends worth $245 million and did not repurchase any shares in the fiscal first quarter.Q2 GuidanceJohnson Controls anticipates organic revenue growth of approximately 5% from the year-ago level. Operating leverage is estimated to be approximately 45%. It expects adjusted earnings to be about $1.11 per share.FY26 GuidanceJohnson Controls anticipates organic revenue growth to be in the mid-single-digit range from the prior-year level. Operating leverage is expected to be about 50%. It expects adjusted earnings per share to be approximately $4.70. It expects adjusted free cash flow conversion of about 100%.JCI’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks from the same space are discussed below:Nordson Corporation NDSN currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.Flowserve Corporation FLS presently carries a Zacks Rank of 2. Flowserve’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has been stable.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson Controls International plc (JCI): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Nordson Corporation (NDSN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks