AI-extracted from the 10-Q filed 2026-07-23 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Otis Q2 2026 net sales rose 7% to $3,859M as Service grew 11% to $2,580M, while New Equipment sales were flat and its operating margin fell to 3.1%.
Biggest Revenue Drivers
Service$2,580M+11% YoY
Organic volume increase of 9%, driven by modernization growth of 24% and maintenance and repair growth of 6%.
New Equipment$1,279M0% YoY
Organic sales decrease of (1)%, driven by a high-teens decline in China and mid-single-digit decline in EMEA, offset by ~10% growth in Americas.
Biggest Revenue Drivers
Total revenue: $3,859M+7% YoY
Service$2,580M+11% YoY
Organic volume increase of 9%, driven by modernization growth of 24% and maintenance and repair growth of 6%.
New Equipment$1,279M0% YoY
Organic sales decrease of (1)%, driven by a high-teens decline in China and mid-single-digit decline in EMEA, offset by ~10% growth in Americas.
Largest Expense Items
Cost of services sold$1,642M+14% YoY
Reflects higher Service volume, higher labor costs supporting operational execution and productivity, and higher material costs.
Cost of products sold$1,081M+1% YoY
Gross margin percentage decreased 90 basis points due to cost increases including labor and material costs, partially offset by Service mix.
Selling, general and administrative$520M+4% YoY
Driven by annual wage increases, higher costs from organizational initiatives, costs to support operational execution and foreign exchange, partially offset by restructuring savings.
Margins: Gross margin percentage decreased 90 basis points to 29.4% due to cost increases, partially offset by higher Service sales mix. New Equipment operating margin fell to 3.1% from 5.3%, while Service margin was 23.2% versus 24.9%.
Watch Items from the Filing
New Equipment operating profit fell 41% to $40M, with China revenue declining high-teens, signaling continued weakness in that market.
Total debt rose to $8,436M and net debt to $7,623M; total shareholders' deficit of $(5,748)M persists after $807M year-to-date share repurchases.
Total remaining performance obligations of approximately $19.7B, with about 75% expected to be recognized over the following 24 months, support revenue visibility.
Income tax refunds of approximately €313M (~$356M) from the German tax litigation are being received through 2026, with about $55M still payable to RTX under the TMA.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
14 transactions in OTIS reported by 10 members of Congress under the STOCK Act, most recent trade Aug 27, 2026. Reported transactions, not recommendations.
About Otis Worldwide Corp (OTIS): stock profile, AI score and financials
Otis Worldwide Corp (OTIS) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores OTIS at 61.4/100 on a composite quality score built from its SEC filings, placing it at rank #782 of 2,925 stocks — the top half of the AI-ranked universe. OTIS scores in the top quartile across balance sheet strength (91.9), revenue scale (89.8), institutional flow (77.9). Areas of concern include revenue growth (33.1), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), Otis Worldwide Corp reports quarterly revenue of $3.9B, net income of $428.0M, an operating margin of 14.9%. OTIS trades on the NYSE exchange and files with the SEC under CIK 1781335. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate OTIS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Otis Worldwide Corp directly from SEC EDGAR.