Otis Worldwide Posts $340M Q1 Profit, Up 40% as Operating Income Surges
Otis Worldwide Corporation, a global elevator and escalator manufacturer, reported net income of $340 million for the quarter ending March 31, 2026, up 40% from $243 million in the prior-year period. Revenue rose 6.4% to $3.57 billion.
Otis Worldwide Corporation (NYSE: OTIS), a global elevator and escalator manufacturer, reported net income of $340 million for the three months ending March 31, 2026, up 40% from $243 million in the same quarter of 2025. Diluted earnings per share climbed to $0.87 from $0.61 year-over-year. Read more earnings reports.
Revenue for the quarter reached $3.57 billion, up 6.4% from $3.35 billion in the first quarter of 2025. Cost of goods sold increased to $2.48 billion from $2.33 billion, while operating income jumped 31% to $539 million from $411 million a year earlier.
The company's selling, general and administrative expenses rose to $453 million from $392 million in the prior-year quarter. Research and development spending edged up to $38 million from $37 million. Income tax expense totaled $127 million, compared to $110 million in Q1 2025.
Cash from operations more than doubled to $413 million for the quarter, compared to $190 million in the same period last year. Cash from financing activities showed an outflow of $694 million, primarily reflecting shareholder returns, versus $428 million in the prior-year quarter. Cash from investing activities was an inflow of $15 million, reversing a $161 million outflow in Q1 2025.
The company's balance sheet showed total assets of $10.54 billion as of March 31, 2026, down from $10.65 billion at year-end 2025. Cash and cash equivalents declined to $834 million from $1.10 billion at December 31, 2025. Accounts receivable increased to $3.92 billion from $3.69 billion.
Total liabilities stood at $15.98 billion, up slightly from $15.92 billion at the end of 2025. Long-term debt decreased to $6.88 billion from $6.90 billion. The company maintained negative stockholders' equity of $5.68 billion as of March 31, 2026, compared to negative $5.39 billion at year-end 2025.
Treasury stock increased to $4.60 billion from $4.20 billion during the quarter. The weighted average diluted share count decreased to 389.6 million from 399.1 million in the prior-year period, reflecting ongoing share repurchases.
Q1 2026 Financial Summary
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $3.57 billion | $3.35 billion | +6.4% |
| Operating Income | $539 million | $411 million | +31% |
| Net Income | $340 million | $243 million | +40% |
| Diluted EPS | $0.87 | $0.61 | +43% |
| Cash from Operations | $413 million | $190 million | +117% |
Balance Sheet Highlights
| Item | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Total Assets | $10.54 billion | $10.65 billion |
| Cash & Equivalents | $834 million | $1.10 billion |
| Total Liabilities | $15.98 billion | $15.92 billion |
| Long-Term Debt | $6.88 billion | $6.90 billion |
| Stockholders' Equity | -$5.68 billion | -$5.39 billion |