Johnson Controls International plc Q4 2026 Earnings Recap

Johnson Controls rose 5.7% after earnings, with investors responding to accelerating demand: orders increased 44% and backlog reached a record $23 billion. Fourth-quarter revenue and EPS growth, alongside margin expansion, added support; the transcript excerpt does not include fiscal 2027 guidance.

Key Takeaways

• Q4 organic revenue increased 12%; systems grew 13% and service 8%.
• Adjusted EPS rose 32% to $1.66. Adjusted EBIT margin expanded 300 basis points to 18%.
• Orders increased 44%, and backlog grew 43% to a record $23 billion, led by data centers and other mission-critical verticals.
• Full-year organic revenue increased more than 8%, adjusted EPS rose 37%, and adjusted free cash flow was $3.2 billion, or 103% conversion.
• The company ended the year with $600 million of cash and net debt at 1.8x; it returned $2.5 billion to shareholders through repurchases and dividends.