NYSEIndustrialsIndustrial - MachinerySnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — EPS near $4.22 per share in fiscal 2026: EPS $4.03 vs $4.22 target.
Otis grows sales about 6% a year to $15.1-$15.3 billion in 2026. Profit margins stay stable with EPS around $4.22 per share. Free cash flow is solid near $1.62 billion. New product upgrades could boost future sales growth.
Sales growth slows below 5.6% expected by analysts. Profit margins shrink and EPS falls below $4. Free cash flow weakens. Recent guidance cuts and mixed results may signal tougher demand.
The stock trades about 33% below our valuation level and about 20% above the Street median. Analysts expect roughly 6% revenue growth. Our view aligns with moderate growth but sees risk from recent guidance cuts.
Breaks if: EPS falls below $4.0 per share in FY26
Breaks if: free cash flow falls below $1.5 billion in FY26
Breaks if: no meaningful sales growth from Otis Link MOD upgrades within 12 months
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady growth. The current thesis is intact, supported by management's commitment to increasing sales and earnings.
The market currently prices OTIS as cheap compared to its peers, with a slight expectations gap. This suggests that while the stock is seen as undervalued, there is still some caution due to execution quality.
Management is on track to meet its targets for sales, adjusted earnings per share (EPS), and free cash flow. However, there is a low probability of missing these targets, though past performance has shown some volatility.
The future performance of OTIS will depend on guidance from key sector players and their earnings results. Any cuts in guidance from OTIS or sector bellwethers could negatively impact sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: annual revenue falls below $15.1 billion in FY26
Overall, OTIS appears to be in a stable position with a focus on growth, but it faces risks related to sector performance and execution. Not investment advice.
