Carrier Global Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.18%.
Did CARR Beat Earnings? Q2 2026 Results
Carrier Global delivered a broad-based beat in the second quarter of 2026, with results that arrived ahead of expectations and prompted the company to lift its full-year outlook. Adjusted EPS of $0.86 topped the $0.82 consensus by 5.20%, even as the figure declined 7% from the prior year's $0.92 due to margin pressure and a higher effective tax rate. Revenue of $6.35 billion rose 3.9% year-over-year and cleared the $6.03 billion estimate by 5.35%, with organic sales growing 3%, returning to growth earlier than management had anticipated. The standout driver behind the raised guidance was a surge in orders, up roughly 40% overall, with Commercial HVAC orders climbing approximately 65% and data center orders more than tripling, pushing backlog to record levels. Carrier now expects full-year 2026 sales of approximately $23 billion, adjusted EPS of approximately $2.90, and free cash flow of approximately $2 billion, with the raised targets absorbing an approximately $0.05 headwind from the NORESCO exit and new U.S. factory costs. Analyst sentiment heading into the print had skewed constructive, reflecting confidence in structural demand for high-efficiency climate solutions.
- Total company orders up ~40%, with Commercial HVAC orders up ~65% and data center orders up >300%
- Organic sales returned to growth up 3%, earlier than expected
- CSA Residential up 9% and Light Commercial up 10%
- Strong Container growth of ~40% in CST segment
- Double-digit growth in India, Middle East, Southeast Asia and Australia in CSAME
- Favorable volume and productivity partially offset by increased input costs and unfavorable business mix
- Record backlog levels supporting raised guidance
“We ended the first half with a stronger than expected second quarter, including better sales, adjusted EPS and free cash flow. Organic sales returned to growth earlier than expected, up 3%, driven by strong performance in our CSA segment. Improving Residential and Light Commercial markets in CSA and CSE are encouraging. Orders were very strong globally in the second quarter supported by continued data center demand. Given record backlog levels and our year-to-date performance, we are raising our full-year outlook and now expect sales of about $23 billion and adjusted EPS of ~$2.90.”
Carrier Global CEO, on the earnings call
Forward Guidance & Outlook
Carrier raised its full-year 2026 guidance: sales of approximately $23 billion (up from ~$22 billion), with organic growth up mid-high single digits and FX tailwind of 1%. Adjusted operating profit raised to approximately $3.5 billion (from ~$3.4 billion). Adjusted EPS raised to approximately $2.90 (from ~$2.80), which includes approximately ($0.05) headwind from the NORESCO exit and new U.S. factory costs. Free cash flow expected at approximately $2 billion, unchanged. The Riello divestiture was completed on July 1, 2026, and the NORESCO divestiture has been announced. Divestitures represent approximately (2%) or ~$225 million and ~$125 million year-over-year revenue headwinds from Riello and NORESCO exits, respectively.
CARR YoY Financials
CARR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.