Carrier Reports Third Quarter 2026 Results
CARRIER GLOBAL Corp (CARR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Carrier Reports Third Quarter 2026 Results Signed LTAs valued at multiple billions of dollars with minimum volume commitments • Total company orders 1 up ~35%; Commercial HVAC 1 up ~60%; data centers up ~300% • Record >$8.5B backlog; LTA minimums additive to backlog •
How this was made
The 30-second read
Why it matters
The earnings beat and updated guidance are likely to drive short‑term buying interest, especially given the strong backlog and data‑center order growth.
Market read
Carrier's results reinforce bullish sentiment in the industrial equipment sector and may lift related peers.
What to watch
Potential headwinds from input‑cost inflation and divestiture impacts may limit upside.
Carrier Reports Third Quarter 2026 Results
Net sales rose 12%, organic sales rose 15%, adjusted operating profit rose 33% and adjusted EPS rose 30%, supported by broad segment growth and strong cash flow. However, a $3.1 billion non-cash goodwill impairment in Climate Solutions Europe produced a GAAP operating loss of $(2,273) million and GAAP diluted EPS from continuing operations of $(3.16).
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 total net salesGAAP | $6.26B | – | 12% |
| Third Quarter 2026 product salesGAAP | $5.58B | – | – |
| Third Quarter 2026 service salesGAAP | $678M | – | – |
| Third Quarter 2026 organic salesnon-GAAP | 15% | – | 15% |
| Third Quarter 2026 operating profit (loss)GAAP | −$2.27B | – | n.m. |
| Third Quarter 2026 operating marginGAAP | (36.3)% | – | n.m. |
| Third Quarter 2026 adjusted operating profitnon-GAAP | $1.09B | – | 33% |
| Third Quarter 2026 adjusted operating marginnon-GAAP | 17.4% | – | 260 bps |
| Third Quarter 2026 earnings (loss) from continuing operationsGAAP | −$2.54B | – | – |
| Third Quarter 2026 net earnings (loss) attributable to common shareownersGAAP | −$2.59B | – | – |
| Third Quarter 2026 adjusted earnings from continuing operations attributable to common shareownersnon-GAAP | $713M | – | – |
| Third Quarter 2026 diluted earnings (loss) per share from continuing operationsGAAP | $(3.16) | – | n.m. |
| Third Quarter 2026 adjusted diluted earnings per share from continuing operationsnon-GAAP | $0.87 | – | 30% |
| Nine Months 2026 total net salesGAAP | $17.95B | – | 6% |
| Nine Months 2026 organic salesnon-GAAP | 6% | – | 6% |
| Nine Months 2026 operating profit (loss)GAAP | −$1.19B | – | – |
| Nine Months 2026 adjusted operating profitnon-GAAP | $2.78B | – | – |
| Nine Months 2026 diluted earnings (loss) per share from continuing operationsGAAP | $(2.24) | – | – |
| Nine Months 2026 adjusted diluted earnings per share from continuing operationsnon-GAAP | $2.31 | – | – |
| Third Quarter 2026 net cash flows provided by operating activitiesGAAP | $813M | – | – |
| Third Quarter 2026 capital expendituresGAAP | −$139M | – | – |
| Third Quarter 2026 free cash flownon-GAAP | $674M | – | – |
| Nine Months 2026 net cash flows provided by operating activitiesGAAP | $1.82B | – | – |
| Nine Months 2026 capital expendituresGAAP | −$350M | – | – |
| Nine Months 2026 free cash flownon-GAAP | $1.47B | – | – |
| Third Quarter 2026 Climate Solutions Americas segment operating profitother | $745M | – | 40% |
| Third Quarter 2026 Climate Solutions Americas segment operating marginother | 22.2% | – | 250 bps |
| Third Quarter 2026 Climate Solutions Europe segment operating profitother | $168M | – | 40% |
| Third Quarter 2026 Climate Solutions Europe segment operating marginother | 12.6% | – | 330 bps |
| Third Quarter 2026 Climate Solutions Asia Pacific, Middle East & Africa segment operating profitother | $103M | – | 6% |
| Third Quarter 2026 Climate Solutions Asia Pacific, Middle East & Africa segment operating marginother | 12.1% | – | 50 bps |
| Third Quarter 2026 Climate Solutions Transportation segment operating profitother | $117M | – | 2% |
| Third Quarter 2026 Climate Solutions Transportation segment operating marginother | 16.1% | – | 70 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Climate Solutions AmericasOrganic sales were up 25%, driven by strong Residential and Commercial performance, up over 30% and 25%, respectively. | $3.35B | – | 24% |
| Climate Solutions EuropeOrganic sales growth of 12% was offset by a 7% net headwind from divestitures and a 2% headwind from currency. Residential and Light Commercial sales increased low-teens and Commercial grew high-single digits. | $1.33B | – | 3% |
| Climate Solutions Asia Pacific, Middle East & AfricaOrganic sales were up 3% driven by strong growth in Commercial, up 10%, partially offset by a mid-single digit decline in RLC. | $848M | – | 2% |
| Climate Solutions TransportationContinued growth in Container was more than offset by Truck and Trailer. | $726M | – | (3)% |
Full-Year 2026 outlook
- Revenue$23.8 to $24.0 billion
- NoteOrganic sales: up ~10%
- NoteFX: 1%
- NoteNet, Acquisitions / Divestitures: (2%)
- NoteAdjusted Operating Profit: ~$3.5 billion
- NoteAdjusted EPS: $2.85 to $2.90
- NoteFree Cash Flow: ~$2 billion
- NoteExpected return to shareowners through dividends and share repurchases: approximately $2.3 billion
Capital returns
- Repurchases of common stock: $(399) million for the three months ended September 30, 2026.
- Dividends paid on common stock: $(198) million for the three months ended September 30, 2026.
- Repurchases of common stock: $(1,144) million for the nine months ended September 30, 2026.
- Dividends paid on common stock: $(598) million for the nine months ended September 30, 2026.
- Returned ~$600 million to shareowners through dividends and repurchases.
- Expects to return to shareowners approximately $2.3 billion through dividends and share repurchases for full-year 2026.
What drove it
- Total company orders were up ~35%; Commercial HVAC orders were up ~60%; data center orders were up ~300%.
- Record backlog was >$8.5B, up 60% versus last year. LTA minimums are additive to backlog.
- Signed LTAs valued at multiple billions of dollars with minimum volume commitments.
- Adjusted operating margin improved predominantly due to favorable volume and price, partially offset by increased input costs and tariffs.
- The company recorded approximately $130 million of operating profit benefit from IEEPA refunds.
- CSA margin benefited from ~$120 million of IEEPA refunds and organic growth.
- CSE demand included residential heat pump and air conditioning sales up ~35% each.
Concerns
- The company recorded a non-cash goodwill impairment charge of $3.1 billion related to its Climate Solutions Europe reporting unit.
- GAAP operating loss was $(2,273) million and GAAP diluted EPS from continuing operations was $(3.16).
- Divestitures were a 3% headwind to consolidated third-quarter sales.
- CSE sales faced a 7% net headwind from divestitures and a 2% headwind from currency.
- CST sales decreased 3%, as growth in Container was more than offset by Truck and Trailer.
- Carrier cited industry-wide macro pressures, including tariffs and increasing input costs.
What to watch
- Execution against full-year sales guidance of $23.8 to $24.0 billion and organic sales growth guidance of up ~10%.
- Conversion of >$8.5B of backlog and signed LTAs with minimum volume commitments into sales.
- Data center orders, which were up ~300%, and Commercial HVAC orders, which were up ~60%.
- The impact of tariffs and increasing input costs on margins.
- Progress toward adjusted EPS guidance of $2.85 to $2.90 and free cash flow guidance of ~$2 billion.
- Effects of the Riello and NORESCO divestitures, which are expected to create ~$225 million and ~$125 million year-over-year revenue headwinds, respectively.
Balance sheet and cash flow
- Cash and cash equivalents were $1,354 million at September 30, 2026, compared with $1,555 million at December 31, 2025.
- Long-term debt was $9,992 million at September 30, 2026, compared with $11,365 million at December 31, 2025.
- Short-term borrowings and current portion of long-term debt were $1,482 million at September 30, 2026, compared with $468 million at December 31, 2025.
- Net debt was $10,120 million at September 30, 2026, compared with $10,278 million at December 31, 2025.
- Third quarter net cash flows provided by operating activities were $813 million, capital expenditures were $(139) million, and free cash flow was $674 million.
- Nine-month net cash flows provided by operating activities were $1,819 million, capital expenditures were $(350) million, and free cash flow was $1,469 million.
Analysis
Carrier reported strong underlying third-quarter growth. Net sales increased 12% to $6,263 million and organic sales increased 15%. The order backdrop was stronger, with total company orders up ~35%, Commercial HVAC orders up ~60%, data center orders up ~300%, and backlog above $8.5B. Management said the backlog was up 60% versus last year, while minimum volume commitments under long-term agreements are additive to backlog.
Profitability improved materially on an adjusted basis but deteriorated sharply under GAAP. Adjusted operating profit increased 33% to $1,091 million and adjusted operating margin expanded 260 basis points to 17.4%, with favorable volume and price partly offset by increased input costs and tariffs. The company recorded approximately $130 million of operating profit benefit from IEEPA refunds. A $3.1 billion non-cash goodwill impairment related to Climate Solutions Europe drove a GAAP operating loss of $(2,273) million, net earnings attributable to common shareowners of $(2,593) million, and diluted EPS from continuing operations of $(3.16).
CSA was the principal sales and profit contributor, with sales up 24%, organic sales up 25%, and segment operating margin up 250 basis points to 22.2%. CSE generated 12% organic growth, but reported sales increased only 3% because divestitures and currency were headwinds; its margin rose 330 basis points to 12.6%. CSAME sales rose 2%, while CST sales declined 3% as Container growth was more than offset by Truck and Trailer. All four segments reported higher segment operating margins.
Cash generation strengthened. Third-quarter operating cash flow was $813 million and free cash flow was $674 million, compared with $341 million and $224 million, respectively, in the prior-year quarter. Carrier repurchased $399 million of common stock and paid $198 million in common dividends during the quarter. Cash and cash equivalents were $1,354 million at September 30, 2026, while net debt was $10,120 million.
For full-year 2026, Carrier now expects sales of $23.8 to $24.0 billion, organic sales growth of up ~10%, adjusted operating profit of ~$3.5 billion, adjusted EPS of $2.85 to $2.90, and free cash flow of ~$2 billion. The company expects approximately $2.3 billion of dividends and share repurchases. The outlook is supported by product portfolio, record backlog, LTA minimum volume commitments, and continued recovery in RLC end markets, while management remains focused on tariffs, input costs, and the revenue headwinds from the Riello and NORESCO divestitures.
Management, verbatim
We delivered strong third quarter performance, with orders, sales and adjusted EPS all up between 15% and 35%, with very strong free cash flow.
David Gitlin, Chairman & CEO
Organic orders were up ~35%, with data center orders up ~300%, resulting in over $8.5 billion of backlog, up 60% versus last year, reflecting continued strong demand for our differentiated solutions. We expect to deliver double-digit organic sales and adjusted EPS growth in 2026, while record backlog levels give us confidence to sustain this momentum into 2027 and beyond.
David Gitlin, Chairman & CEO
Not in the filing
stated, not guessed- Third Quarter 2026 gross profit and gross margin were not reported.
- Full-Year 2026 gross margin guidance was not reported.
- Full-Year 2026 operating expenses guidance was not reported.
- Full-Year 2026 tax rate guidance was not reported.
- Prior-quarter comparisons for reported third-quarter metrics were not reported.
- A separately provided previous earnings release outlook was not provided; therefore, no reported actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Carrier Global Corp (NYSE:CARR) filed its Q3 2026 earnings via an SEC Form 8‑K, providing detailed segment performance and FY guidance.
Ticker impact
Carrier Global reported Q3 2026 results with net sales up 12% and issued guidance for FY 2026 sales near $24B, indicating strong momentum.
likely upward pressure as investors price in higher sales and earnings expectations
The company posted solid top‑line growth, strong free cash flow, and updated FY guidance, which typically supports a bullish move.
Market effects
Positive for climate‑solutions and HVAC equipment sector as Carrier's backlog and data‑center demand surge.
U.S. industrial and building‑systems stocks may see modest upside.
Limited to industrial equipment space; no broad market impact.
Counterpoint
If the goodwill impairment and tariff pressures persist, earnings could be pressured despite guidance.
Key entities
- companyCarrier Global Corp
U.S. listed industrial HVAC and climate‑solutions provider.
