JCI · Johnson Controls International plc

Johnson Controls delivered robust Q2 FY2026 performance, with total sales reaching $6.1 billion, up 8% reported and 6% organic, driven by strength in Applied HVAC, Services, and data center demand. GAAP EPS rose to $0.99 and adjusted EPS to $1.19, reflecting 45% growth, supported by $609 million GAAP net income and $730 million adjusted net income. CEO Joakim Weidemanis highlighted strong execution, 30% organic order growth, and a record $20 billion backlog (up 26% organically), signaling sustained demand in high-growth areas like data centers. Segment results showed balanced strength: Americas sales grew 7% to $4.1 billion with adjusted EBITA margin expanding 100 bp to 19.5% on pricing, productivity, and volumes; EMEA sales up 7% to $1.3 billion despite Middle East disruptions, with margins surging 370 bp to 14.9% via productivity and leverage; APAC sales jumped 16% to $739 million, led by 20%+ Applied HVAC growth, margins up 350 bp to 19.8%. Corporate expenses fell 24% adjusted, aiding overall profitability. Cash generation was solid at $672 million operating cash flow and $604 million free cash flow. The company raised FY2026 guidance, lifting organic sales growth to ~6% and adjusted EPS to ~$4.85 from ~$4.70, while maintaining ~50% operating leverage and ~100% adjusted free cash flow conversion, underscoring confidence in the Business System momentum and long-term value creation.