Results
Johnson Controls Reports Q4 and FY26 Results; Initiates FY27 Guidance
Q4 sales increased 10% and organic sales increased 12%*
Q4 GAAP EPS of $1.60; Q4 Adjusted EPS* of $1.66*
Q4 orders +44% organically year-over-year
Backlog of $23.0 billion increased 43% organically year-over-year
* This earnings release contains non-GAAP financial measures.
Definitions and reconciliations of the non-GAAP financial measures can be found in the attached footnotes.
Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures.
CORK, Ireland — October 27, 2026 — Johnson Controls International plc (NYSE: JCI), a global leader in thermal management, mission-critical building systems, energy efficiency, and decarbonization, is proud to announce fiscal fourth quarter 2026 GAAP earnings per share (“EPS”) of $1.60.
Adjusted EPS was $1.66.
Q4 sales increased 10% to $7.1 billion and organic sales increased 12%.
For the quarter, GAAP net income from continuing operations attributable to JCI was $967 million and adjusted net income from continuing operations was $1.0 billion.
Cash provided by operating activities was $1.3 billion.
Free cash flow was $1.1 billion and adjusted free cash flow was $1.1 billion.
3“We finished fiscal 2026 with significant momentum, delivering more than 8% organic revenue growth, double-digit adjusted EPS growth and strong free cash flow conversion,” said Joakim Weidemanis, Chief Executive Officer of Johnson Controls.
“Our strong topline growth, combined with continued productivity and simplification improvements, led to margin expansion across all three segments.
That performance reflects the strength of our differentiated technological capabilities, unmatched field presence and proprietary business system, which help us move with speed, win with customers and strengthen performance.
1With record backlog and sustained customer demand, we enter fiscal 2027 with confidence in our ability to continue creating value for customers and shareholders.”
FISCAL Q4 SEGMENT RESULTS
The financial highlights presented in the tables below exclude discontinued operations and are in accordance with GAAP, unless otherwise indicated.
All comparisons are to the fourth quarter of fiscal 2025.
Orders and backlog metrics included in the release relate to the Company's Solutions and Services based businesses.
Orders prior to Q1 2026 exclude certain equipment-only sales for longer cycle projects.
Backlog has been restated to include this new category.
A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls’ website at http://investors.johnsoncontrols.com.
Americas
Sales in the quarter of $4.9 billion increased 14% over the prior year.
6Organic sales also increased 14% led by continued strength in both Applied HVAC & Controls.
Products and Systems sales increased 16% and Services increased 10% organically.
Excluding acquisitions and divestitures and adjusted for foreign currency, orders increased 58% year-over-year and backlog of $17.8 billion increased 54% year-over-year .
The increase in orders and backlog was supported by sustained demand for data centers and our differentiated technology and capabilities.
Segment EBIT margin increased 250 bp and adjusted Segment EBITA margin increased 210 bp compared to the prior year.
The increases were primarily driven by strong operating leverage on higher revenue and favorable business mix.
Adjusted Segment EBITA in both Q4 2026 and Q4 2025 excludes transformation costs.
EMEA (Europe, Middle East, Africa)
Sales in the quarter of $1.3 billion decreased 2% over the prior year.
Organic sales grew 3% versus the prior year, with continued pressure in the region due to the conflicts in the Middle East.
8Products and Systems sales remained flat and Services increased 6% organically.
Excluding acquisitions and divestitures and adjusted for foreign currency, orders increased 12% year-over-year and backlog of $3.1 billion increased 18% year-over-year.
5Segment EBIT margin increased 100 bps and adjusted Segment EBITA margin increased 80 bps compared to the prior year.
The increases were primarily driven by favorable pricing and productivity improvements, partially
offset by the impact of business divestitures .
Adjusted Segment EBITA in both Q4 2026 and Q4 2025 excludes transformation costs.
APAC (Asia Pacific)
Sales in the quarter of $871 million increased 12% versus the prior year.
Organic sales increased 13% versus the prior year, led by 15% growth in Product and Systems and continued strength in Applied HVAC.
Excluding acquisitions and divestitures and adjusted for foreign currency, orders increased 11% and backlog of $2.1 billion increased 12% year-over-year.
7Segment EBIT margin increased 120 bps and adjusted Segment EBITA margin increased 110 bps compared to the prior year, primarily driven by productivity improvements and higher revenues.
Corporate
Adjusted Corporate expense in both Q4 2026 and Q4 2025 excludes certain transaction/separation costs and transformation costs.
In addition, Q4 2025 excludes accelerated depreciation of ERP assets.
The decrease year-over-year is primarily due to ongoing cost reduction actions across corporate functions and the timing of certain corporate expenses.
OTHER Q4 ITEMS
The Company paid dividends of $242 million.
GUIDANCE
The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as mark-to-market adjustments.
Organic revenue growth excludes the effect of acquisitions, divestitures and foreign currency.
The Company is unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to its most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense.
2The unavailable information could have a significant impact on the Company’s fiscal 2027 first quarter and full year GAAP financial results.
The Company initiated fiscal 2027 first quarter continuing operations guidance:
Organic sales growth of 12% to 14%
Operating leverage of 30% to 35%
Adjusted EPS of $1.15 to $1.20
The Company initiated fiscal 2027 full year continuing operations guidance:
Organic sales growth of 11% to 12%
Operating leverage of 30%+
Adjusted EPS of $6.15 to $6.30
Adjusted free cash flow conversion of ~95%
A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Johnson Controls website at https://investors.johnsoncontrols.com/news-and-events/events-and-presentations .
Johnson Controls, a global leader in thermal management, mission-critical building systems, energy efficiency, and decarbonization, helps customers use energy more productively, reduce carbon emissions, and operate with the precision and resilience required in rapidly expanding industries such as data centers, healthcare, pharmaceuticals, advanced manufacturing, and higher education.
4For more than 140 years, Johnson Controls has delivered performance where it really matters.
Backed by advanced technology, lifecycle services and an industry-leading field organization, we elevate customer performance, turn goals into real-world results and help move society forward.
Visit www.johnsoncontrols.com for more information and follow @Johnson Controls on social platforms.
Eric SwansonDanielle Canzanella
Johnson Controls International plc (the "Company") has made statements in this document that are forward-looking and therefore are subject to risks and uncertainties.
However, the absence of these words does not mean that a statement is not forward-looking.
A detailed discussion of risks related to Johnson Controls’ business is included in the section entitled "Risk Factors" (refer to Part I, Item 1A, of this Annual Report on Form 10-K).
Johnson Controls International plc
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