JCI · Johnson Controls International plc

Johnson Controls reported robust Q2 FY2026 results driven by 8% sales growth to $6.1 billion, with organic sales up 6%, led by strength in Applied HVAC and Services. GAAP EPS reached $0.99 and adjusted EPS $1.19, 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, fueled by data center demand and high-growth sectors. Segment performance was strong: Americas sales rose 7% to $4.1 billion with 17.1% EBIT margin (up 100 bp), backlog $14.9 billion up 32%; EMEA sales up 7% to $1.3 billion, EBIT margin expanded 430 bp to 14.0% despite Middle East disruptions; APAC sales surged 16% to $739 million, EBIT margin up 360 bp to 19.4% on Applied HVAC growth. Corporate expenses fell 24% adjusted due to cost reductions. Cash generation was solid with $672 million operating cash flow and $604 million free cash flow; $244 million dividends paid. The company raised FY2026 guidance to ~6% organic sales growth (from mid-single digits), ~$4.85 adjusted EPS (from ~$4.70), maintaining ~50% operating leverage and ~100% adjusted FCF conversion, signaling confidence in sustained momentum and Business System improvements.