Wells Fargo raises Johnson Controls stock price target on growth outlook

Johnson Controls (JCI) shares rose 5.7% on October 27, 2026, after reporting fiscal Q4 2026 results. Adjusted EPS of $1.66 and revenue of $7.11B exceeded estimates. Orders grew 44%, driven by data center demand. Management expects 11-12% organic revenue growth for fiscal 2027. The stock closed at $155.88, near its 12-month high.

Protectt.ai acquired a majority stake in AIShield, an AI security platform, to expand enterprise AI security. AIShield will operate independently, with Protectt.ai as the controlling shareholder. Truelink Capital agreed to acquire Johnson Controls' global intrusion security business for expansion. Both transactions involve undisclosed valuations and aim to support product development and international growth.

Johnson Controls (JCI) reported a record $23 billion backlog, with CFO Marc Vandiepenbeeck noting that if customer constraints ease, the company could exceed its 11-12% organic growth guidance. The company anticipates $400 million in restructuring expenses over 2027-2028, with savings expected by 2029. Adjusted free cash flow conversion is expected to decline to 95% in 2027 due to increased capital expenditures and restructuring costs.

Johnson Controls (JCI) reported Q4 earnings, highlighting expansion in data-center offerings beyond chillers, including cooling distribution units and modular data centers. The company expects $900M in capital expenditures and $600M in annualized savings from restructuring by 2029. For fiscal 2027, JCI forecasts 11-12% organic revenue growth and adjusted EPS of $6.15-$6.30. The sale of its global intrusion business, generating $500M in annual revenue, is expected to close by Q2 2027.

Johnson Controls International plc is shifting focus to thermal technology, targeting AI and data centers. FY2027 revenue growth is projected at 11%-12%, with $900M in capex planned. The company is divesting its intrusion business and restructuring for $600M in annual savings by 2029. Management expects backlog conversion to remain 70%-80% due to customer-side constraints.

Johnson Controls (JCI) projects FY 2027 organic revenue growth of 11%-12% and adjusted EPS of $6.15-$6.30. The company plans $900M in capex, with CEO Joakim Weidemanis highlighting progress in becoming a more focused thermal technology company.