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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%.
Effective 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-eps-surprise-chart | Johnson Controls International plc Quote
In 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.
Johnson 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.
Johnson 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.
Johnson 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%.
The 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.
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This article originally published on Zacks Investment Research (zacks.com).
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