Q1 26 EPS
$0.57
BEAT +12.07%
Est. $0.51
Q1 26 Revenue
$5.34B
BEAT +6.51%
Est. $5.01B
vs S&P Since Q1 26
-12.2%
TRAILING MARKET
CARR -4.7% vs S&P +7.6%
Market Reaction
Did CARR Beat Earnings? Q1 2026 Results
Carrier Global delivered a stronger-than-expected first quarter for fiscal 2026, posting adjusted EPS of $0.57 against a consensus estimate of $0.51, a beat of 12.07%, while revenue of $5.34 billion topped expectations by 6.51% and rose 2.4% year ove… Read more Carrier Global delivered a stronger-than-expected first quarter for fiscal 2026, posting adjusted EPS of $0.57 against a consensus estimate of $0.51, a beat of 12.07%, while revenue of $5.34 billion topped expectations by 6.51% and rose 2.4% year over year. The headline numbers, however, masked a quarter defined by sharp margin compression, as GAAP operating profit fell 59% to $259 million and free cash flow turned negative at roughly $15 million, compared to $420 million a year ago, weighed down by $108 million in restructuring charges and Residential HVAC softness that drove factory under-absorption in the Americas segment. The genuine bright spot was demand momentum, with data center orders surging over 500% and total company orders climbing 11%, sending shares up nearly 9% on the trading day. Management reaffirmed full-year 2026 guidance, targeting approximately $22 billion in sales, adjusted EPS of approximately $2.80, and free cash flow of approximately $2 billion, with a meaningful profitability recovery expected in the second half as the data center backlog converts to revenue.
Key Takeaways
- • Data center orders up over 500% with backlog fully covering expected 2026 data center sales
- • Total company orders up 11%; Commercial HVAC orders up 35%
- • CSA Residential sales down approximately 12%, driving factory under-absorption and margin contraction
- • Continued weakness in China Residential and Light Commercial
- • CST Container sales growth of 38%
- • 3% foreign currency translation tailwind offset 1% organic sales decline
- • Restructuring costs of $108 million versus $8 million a year ago
- • Lower share count partially offset operating profit decline
- • Favorable adjusted effective tax rate of negative 0.8% versus 22.0% a year ago
CARR YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
CARR Revenue by Segment
With YoY comparisons, source: SEC Filings
“We started the year with better than expected sales performance across the portfolio. Orders in our global Commercial HVAC business increased 35%, helped by data centers which were up over 500% in the quarter. The strong double-digit sequential increase in Commercial HVAC backlog gives us the confidence to drive our sixth consecutive year of double-digit growth in this business. CSA Light commercial and CSE Residential both delivered growth, while CSA Residential came in better than expected. I am pleased with the team's performance in the first quarter, and we are reaffirming our full-year outlook.”
— David Gitlin, Q1 2026 Earnings Press Release
CARR Earnings Trends
CARR vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CARR EPS Trend
Earnings per share: estimate vs actual
CARR Revenue Trend
Quarterly revenue: estimate vs actual
CARR Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.82 | $0.86 | +5.20% | $6.35B | +5.35% |
| Q1 26 BEAT | $0.51 | $0.57 | +12.07% | $5.34B | +6.51% |
| Q4 25 MISS FY | $0.36 | $0.34 | -4.55% | $4.84B | -3.58% |
| FY Full Year | $2.61 | $2.59 | -0.60% | $21.75B | -1.02% |
| Q3 25 BEAT | $0.57 | $0.67 | +17.71% | $5.58B | +0.49% |
| Q2 25 BEAT | $0.90 | $0.92 | +1.98% | $6.11B | +0.27% |
| Q1 25 BEAT | $0.58 | $0.65 | +11.28% | $5.22B | +0.60% |