Key Highlights

  • Net sales of USD 6.26 billion rose 12% year over year, above the consensus estimate of USD 6.09 billion.
  • EPS of USD 0.87 topped the consensus estimate of USD 0.76, while GAAP diluted loss was USD 3.16 per share.
  • Data center orders rose 300%, lifting total orders 35% and backlog to a record above USD 8.5 billion.
  • A USD 3.10 billion goodwill impairment on the Europe unit drove a net loss of USD 2.59 billion.

Carrier Global Corporation (NYSE:CARR) reported third quarter 2026 net sales of USD 6,263 million, up 12% from USD 5,579 million and above the consensus estimate of USD 6.09 billion. Earnings per share were USD 0.87 against a consensus estimate of USD 0.76. On a GAAP basis the company posted a diluted loss of USD 3.16 per share, compared with earnings of USD 0.50 a year earlier, after a USD 3,100 million goodwill impairment.

Chairman and Chief Executive Officer David Gitlin said adjusted earnings per share increased 30%, or about 15% excluding the benefit of IEEPA tariff refunds, with organic sales up 15% and adjusted operating margin wider by 260 basis points.

Data Centers Lift Orders While Europe Takes a Charge

Global orders rose 35%, with commercial orders up more than 60%. Data center orders grew 300%, and year to date they have topped USD 3 billion. Data center sales exceeded USD 550 million in the quarter, and the company signed a hyperscaler agreement worth more than USD 3 billion, a significant portion covered by a minimum volume commitment. Climate Solutions Americas sales rose to USD 3,354 million from USD 2,711 million, at a segment margin of 22.2%.

The goodwill charge was recorded against the Climate Solutions Europe reporting unit, whose carrying amount exceeded its estimated fair value in the annual test, cutting its goodwill from USD 7,808 million to USD 4,447 million with currency effects. The quarter also included a benefit of USD 133 million from IEEPA tariff refunds, which the Chief Financial Officer said lifted Americas margin above the guide, while price realization and input costs ran worse than planned.

Guidance Raised for Sales, Lowered for Americas Margin

The Chief Financial Officer said full year sales are now projected near USD 24 billion with organic growth of about 10%, up from a prior outlook of a little over USD 23 billion. Adjusted earnings per share guidance stands at USD 2.85 to USD 2.90. Outlooks for adjusted operating profit, free cash flow and share repurchases were unchanged, while Climate Solutions Americas operating margin is now projected near 19% because of lower than planned price realization and higher input costs.

Management cited unplanned in year cost headwinds of USD 550 million to USD 600 million from tariffs, commodities and supply chain issues, against gross productivity of about USD 600 million. Price increases of up to 10% have been announced in the Americas segment. Free cash flow was close to USD 700 million in the quarter and USD 1.5 billion year to date, and the company repurchased USD 403 million of stock in the quarter.

Data Points Behind the Next Report

Several company specific markers frame the fourth quarter. Management targets USD 2 billion of full year data center sales, against more than USD 550 million delivered in the third quarter. The IEEPA refund no longer offsets input costs in the fourth quarter, which tests the Americas margin guide of about 19% for the year. Residential demand is another gauge, with the North American market now tracking between 7.5 million and 8 million units.

Longer dated items include customer deliveries from the new Fort Worth, Texas site planned for late summer 2027, field trials of an integrated heat pump and hot water system in the first half of 2027, and 2027 guidance, which management said it is too early to give.