Key Highlights

  • Johnson Controls reported fiscal fourth-quarter adjusted EPS of $1.66, up from $1.26, on sales of $7.113 billion, up 10%.
  • Organic orders rose 44% and backlog reached $23.0 billion, up 43% organically.
  • Americas orders rose 58% organically, with backlog of $17.8 billion, up 54%.
  • Fiscal 2027 adjusted EPS is guided to $6.15 to $6.30 on organic sales growth of 11% to 12%.
  • Fiscal 2026 adjusted free cash flow was $3.229 billion, and the company repurchased $1.505 billion of stock.

Johnson Controls Earnings: Why Did Orders Jump 44% in the Fiscal Fourth Quarter?

Johnson Controls International (NYSE:JCI) reported fiscal fourth-quarter results on Tuesday, October 27, for the quarter ended September 30. Sales were $7.113 billion, up 10%, and organic sales grew 12%. Adjusted EPS was $1.66 against $1.26 a year earlier, a gain of about 32% by calculation, and GAAP diluted EPS from continuing operations was $1.60. The EPS estimate as screened was $1.59, so the adjusted figure was 4.64% above it as screened.

Organic orders rose 44%, and backlog reached $23.0 billion, up 43% organically. The chief executive said the company finished fiscal 2026 with significant momentum and enters fiscal 2027 with confidence given record backlog and sustained customer demand.

Johnson Controls Segments: Where Did the Growth and Margin Gains Come From?

Americas led. Sales were $4.930 billion, up 14% both reported and organically, and organic orders rose 58%. Segment EBIT margin was 20.1%, up 250 basis points, and adjusted segment EBITA margin was 22.0%, up 210 basis points. Americas backlog stood at $17.8 billion, up 54%.

EMEA sales were $1.312 billion, down 2% reported and up 3% organically, with orders up 12% and backlog of $3.1 billion, up 18%. APAC sales were $871 million, up 12% reported and 13% organically, with orders up 11%, backlog of $2.1 billion and an adjusted segment EBITA margin of 18.9%, up 110 basis points.

Johnson Controls Fiscal 2027 Guide: How Much Growth Is Management Projecting?

For the first quarter of fiscal 2027, management guided organic sales growth of 12% to 14%, operating leverage of 30% to 35% and adjusted EPS of $1.15 to $1.20. For the full year, it guided organic sales growth of 11% to 12%, operating leverage of more than 30%, adjusted EPS of $6.15 to $6.30 and adjusted free cash flow conversion of about 95%.

Against fiscal 2026 adjusted EPS of $5.16, the full-year range implies growth of roughly 19% to 22%, a calculated figure. Fiscal 2026 sales were $25.666 billion, up 9%, with organic growth of 8%, and GAAP diluted EPS from continuing operations was $4.72.

Johnson Controls Cash and Buybacks: What Did Shareholders Receive?

Fourth-quarter free cash flow was $1.078 billion, or $1.096 billion adjusted. For fiscal 2026, free cash flow was $3.407 billion and adjusted free cash flow was $3.229 billion.

The company repurchased $655 million of stock in the quarter and $1.505 billion for the year, and paid dividends of $242 million in the quarter and $976 million for the year. Watch whether the order surge converts to sales on the 12% to 14% first-quarter pace, whether the 30% operating leverage target holds, and how Americas backlog of $17.8 billion is delivered through fiscal 2027.