Johnson Controls raises FY2026 guidance following strong third-quarter performance

CORK, Ireland—Johnson Controls has reported strong fiscal third-quarter 2026 results, posting double-digit organic revenue growth, a sharp increase in orders and backlog, and raising its full-year earnings outlook.

The company reported third-quarter sales of $6.6 billion, up 9% from the prior-year period, while organic sales increased 10%. GAAP earnings per share were $1.23, and adjusted earnings per share reached $1.42.

Johnson Controls also reported strong demand across its business, with orders increasing 27% organically year over year and backlog rising 32% to $21 billion.

"We delivered another strong quarter, highlighted by 10% organic revenue growth, sustained order momentum, and continued margin expansion," said Joakim Weidemanis, CEO of Johnson Controls. "While we remain early in our journey deploying our proprietary business system, the progress we are seeing demonstrates the potential to further improve execution, productivity and customer outcomes. Our third-quarter performance and continued momentum give us confidence in our raised full-year outlook."

The Americas segment led growth during the quarter. Revenue increased 11% to $4.5 billion, driven by continued strength in applied HVAC offerings. Products and systems sales rose 12%, while services revenue increased 10%.

In the Americas, orders climbed 37% year over year and backlog increased 40% to $15.9 billion. Johnson Controls said demand from data centers and other mission-critical environments was a key driver of the increase.

The company's EMEA region reported sales of approximately $1.3 billion, down 1% from the prior-year quarter. Organic sales increased 1%, despite ongoing challenges tied to conflicts in the Middle East. Orders increased 6% and backlog rose 14% to $3.1 billion.

In the Asia-Pacific region, sales increased 15% to $846 million, with organic growth also reaching 15%. Orders grew 12% and backlog rose 12% to $2 billion. The company attributed performance to strong growth in products and systems and continued momentum in applied HVAC.

Johnson Controls generated $1.29 billion in operating cash flow during the quarter and $1.19 billion in free cash flow. The company also paid $245 million in dividends.

Based on its third-quarter performance, Johnson Controls raised its fiscal 2026 outlook. The company now expects approximately 8% organic sales growth for the year, up from previous guidance of about 6%, and increased its adjusted EPS outlook to approximately $5.05 from the prior forecast of about $4.85.

For the fourth quarter, Johnson Controls expects organic sales growth of 9% to 10% and adjusted EPS of approximately $1.55.

Related: Johnson Controls flags security services reset in Q2 2026

Photo courtesy of Johnson Controls