Johnson Controls International plc (NYSE:JCI) reported fourth-quarter adjusted earnings and revenue above analyst expectations on Tuesday, supported by growth in its Americas business and demand from data center customers.
The building technology and equipment company recorded adjusted earnings per share of $1.66, exceeding the consensus estimate of $1.58. Revenue increased 10% year over year to $7.1 billion, above analysts’ expectations of $7.04 billion.
Johnson Controls also issued fiscal 2027 earnings guidance above market forecasts, with the company projecting continued organic sales growth during the coming year.
Shares advanced approximately 2.37% in premarket trading following the announcement.
Johnson Controls posted adjusted earnings of $1.66 per share for the fourth quarter of fiscal 2026, exceeding the analyst consensus estimate of $1.58 by $0.08.
Quarterly revenue reached $7.1 billion, compared with market expectations of $7.04 billion.
Revenue increased 10% compared with the corresponding quarter of the previous year, while organic sales grew 12%.
The company attributed its quarterly performance partly to demand associated with data centers and its building technology products and services.
Reported earnings under generally accepted accounting principles totaled $1.60 per share.
Johnson Controls identified continued demand from data center customers as a contributor to its fourth-quarter sales performance.
The company reported organic revenue growth of 12% during the quarter, compared with total reported revenue growth of 10%.
Its technology offerings and building systems supported sales activity across the business.
The results also reflected growth in orders and backlog, particularly in the Americas.
These developments accompanied the company’s decision to provide fiscal 2027 revenue and earnings forecasts above analyst expectations.
Johnson Controls reported a 14% increase in Americas segment revenue to $4.9 billion during the fourth quarter.
Organic sales in the region also increased 14% year over year.
The segment recorded a 58% increase in orders on an organic basis, while backlog reached $17.8 billion, representing growth of 54% compared with the previous year.
The figures reflected increased order activity and the volume of contracted work awaiting completion within the Americas business.
Adjusted segment EBITA margin reached 22.0%, an improvement of 210 basis points year over year.
The Americas segment accounted for the largest reported contribution to the company’s quarterly revenue.
Johnson Controls also recorded organic revenue growth in its EMEA and Asia-Pacific operations.
EMEA, covering Europe, the Middle East and Africa, reported organic sales growth of 3% despite regional operating pressures.
The Asia-Pacific segment recorded a 13% increase in organic sales.
Adjusted segment EBITA margins expanded across all three geographic operating segments during the quarter.
The regional results contributed to the company’s consolidated organic sales growth of 12%.
Joakim Weidemanis, Chief Executive Officer of Johnson Controls, commented on the company’s financial performance for the fiscal year.
“We finished fiscal 2026 with significant momentum, delivering more than 8% organic revenue growth, double-digit adjusted EPS growth and strong free cash flow conversion,” Weidemanis said.
The statement reflected management’s assessment of the company’s annual performance, including organic revenue growth, adjusted earnings and cash generation.
Johnson Controls also reported higher quarterly revenue and adjusted earnings, alongside growth in its order backlog.
For fiscal 2027, Johnson Controls expects adjusted earnings per share of between $6.15 and $6.30.
The midpoint of the range is approximately $6.23, compared with the analyst consensus estimate of $6.13.
The company also forecasts full-year organic sales growth of 11% to 12%.
The projections reflect management’s expectations for continued revenue expansion and adjusted earnings growth during the new fiscal year.
Johnson Controls additionally expects adjusted free cash flow conversion of approximately 95% for fiscal 2027.
For the first quarter of fiscal 2027, Johnson Controls projects adjusted earnings per share of between $1.15 and $1.20.
The midpoint of the range is approximately $1.18, exceeding the analyst consensus estimate of $1.13.
The company expects organic sales growth of between 12% and 14% during the quarter.
The forecasts indicate that management anticipates continued growth in organic revenue during the opening three months of fiscal 2027.
These expectations accompany the company’s full-year guidance for adjusted earnings per share of $6.15 to $6.30.
Johnson Controls reported an increase in adjusted segment EBITA margins across its Americas, EMEA and Asia-Pacific businesses during the fourth quarter.
The Americas segment recorded an adjusted EBITA margin of 22.0%, an increase of 210 basis points from the corresponding period of the previous year.
The company did not provide specific adjusted EBITA margin figures for EMEA and Asia-Pacific in the supplied announcement.
The margin improvements accompanied consolidated revenue growth of 10% and organic sales growth of 12%.
Johnson Controls shares increased approximately 2.37% in premarket trading on Tuesday after the company released its fourth-quarter results and fiscal 2027 guidance.
The movement followed adjusted earnings and revenue above analyst expectations, together with earnings forecasts for the first quarter and full fiscal year 2027 that exceeded consensus estimates.
The company also reported higher organic sales, increased order activity and growth in its backlog.
The available information does not establish a single cause for the share price movement.
Johnson Controls’ fourth-quarter report showed higher revenue and adjusted earnings, supported by growth in the Americas and demand associated with data centers.
The company also reported increased orders and backlog, alongside adjusted margin expansion across its geographic operating segments.
For fiscal 2027, Johnson Controls expects adjusted earnings per share of $6.15 to $6.30, organic sales growth of 11% to 12% and adjusted free cash flow conversion of approximately 95%.
Its first-quarter outlook includes adjusted earnings of $1.15 to $1.20 per share and organic sales growth of 12% to 14%.
Subsequent financial reports will provide further information about data center demand, order conversion, regional performance and progress against the company’s fiscal 2027 forecasts.
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