Johnson Controls to Post Q4 Earnings: Is a Beat in the Cards?
Johnson Controls International plc JCI is scheduled to release fourth-quarter fiscal 2026 (ended September 2026) financial numbers on Oct. 27, before market open.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average surprise was 6.2%. In the last reported quarter, its earnings of $1.42 per share beat the consensus estimate of $1.32 by 7.6%.
The consensus estimate for revenues is pegged at $6.97 billion, indicating an increase of 8.1% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $1.58 per share, indicating an increase of 25.4% from the year-ago quarter’s figure.
Key Factors and Estimates to Note Ahead of JCI’s Earnings Release
The Americas segment is expected to have performed well, supported by solid demand for heating, ventilation and air conditioning (HVAC) platforms in data centers and strength in services businesses in the fiscal fourth quarter. The Zacks Consensus Estimate for the segment’s revenues is pegged at $4.88 billion, indicating a 12.7% increase from the year-ago figure.
The Europe, the Middle East, and Africa (EMEA) segment is expected to have benefited from strength in products and systems businesses. However, disruptions caused by the Middle East conflicts and lower non-recurring services volumes are likely to have affected the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $1.24 billion, indicating a 7.6% decrease from the year-ago figure.
Persistent strength in the applied HVAC business, driven by growth in data center applications, is expected to augment the Asia Pacific segment’s results. The Zacks Consensus Estimate for the segment’s revenues is pegged at $858 million, indicating a 10% increase from the year-ago figure.
Investments in digital offerings, like the OpenBlue platform that plays an integral part in meeting customer needs, are expected to augment its results.
Despite the positives, rising cost of sales poses a threat to Johnson Controls’ bottom line. High organizational realignment and transaction/separation costs are expected to have pushed up its overall expenses, which are likely to have impacted its margins in the fiscal fourth quarter.
Johnson Controls International plc Price and EPS Surprise
Johnson Controls International plc price-eps-surprise | Johnson Controls International plc Quote
Earnings Whispers
Our proven model predicts an earnings beat for JCI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: JCI has an Earnings ESP of +1.55% as the Most Accurate Estimate is pegged at $1.60 per share, which is higher than the Zacks Consensus Estimate of $1.58. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: JCI currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some companies, which according to our model, also have the right combination of elements to beat on earnings in this reporting cycle.
Emerson Electric Co. EMR has an Earnings ESP of +0.40% and a Zacks Rank of 2 at present. The company is scheduled to release fourth-quarter fiscal 2026 results on Nov. 4.
Emerson’s earnings beat the Zacks Consensus Estimate twice and matched on the other two occasions of the preceding four quarters, the average surprise being 1.3%.
Constellium CSTM has an Earnings ESP of +14.50% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on Oct. 28.
Constellium’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 83.3%.
Kennametal Inc. KMT has an Earnings ESP of +1.50% and a Zacks Rank of 3 at present. The company is slated to release first-quarter fiscal 2027 results on Nov. 4.
Kennametal’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.3%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpJohnson Controls International plc (JCI) : Free Stock Analysis Report
Emerson Electric Co. (EMR) : Free Stock Analysis Report
Kennametal Inc. (KMT) : Free Stock Analysis Report
Constellium SE (CSTM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
