Otis Reports Solid 2025 Results and 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy OTIS?
Source: PRnewswire
- Service Business Growth: In 2025, Otis's service sales increased by 8%, driving fourth-quarter net sales to $3.8 billion, a 3% year-over-year increase, indicating strong performance and sustained market demand in the service sector.
- Surge in Modernization Orders: Modernization orders surged by 43% in Q4, leading to a 30% and 2% increase in modernization and new equipment backlogs, respectively, establishing a solid foundation for business growth in 2026 and beyond.
- Shareholder Return Strategy: The company repurchased approximately $800 million in stock in 2025 and raised its dividend again, returning $1.5 billion in cash to shareholders, demonstrating a balanced capital management strategy and confidence in future growth.
- 2026 Outlook: Otis anticipates organic sales growth in the low to mid-single digits and adjusted EPS growth in the mid to high single digits for 2026, reflecting ongoing momentum from its service strategy and an improved cost structure.
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Analyst Views on OTIS
Wall Street analysts forecast OTIS stock price to rise
7 Analyst Rating
3 Buy
3 Hold
1 Sell
Moderate Buy
Current: 91.750
Low
92.00
Averages
100.67
High
111.00
Current: 91.750
Low
92.00
Averages
100.67
High
111.00
About OTIS
Otis Worldwide Corporation is an elevator and escalator manufacturing, installation and service company. The Company’s segments include New Equipment and Service. The New Equipment segment designs, manufactures, sells and installs a range of passenger and freight elevators, and escalators and moving walkways for residential, commercial and infrastructure projects. Its elevator and escalator solutions include Gen2, Gen3, Gen360 and SkyRise. Through its Service segment, it performs maintenance and repair services, and modernization services to upgrade elevators and escalators. Through its network of service sales personnel, it sells its services directly to customers in all significant elevator and escalator verticals around the world. It serves customers in over 200 countries and territories around the world. The SkyRise advanced elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed-use skyscrapers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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