Otis Worldwide Corporation Stock 12‑Month Price Target Raised to $85.75, Implies 13% Upside

Otis Worldwide issued $500M in 5.825% notes due 2036, with proceeds to repay 2027 debt. Notes pay interest semiannually, are unsecured, and rank equally with other unsecured debt. Net proceeds estimated at $495.3M.

Otis Worldwide Corp (OTIS) filed an SEC Form 8-K — Other Events. Item 8.01. Other Events. On November 5, 2026, Otis Worldwide Corporation (the “ Company ”) issued $500,000,000 aggregate principal amount of its 5.825% Notes due 2036 (the “ Otis Notes ”). The Otis Notes were registered under the Securities Act of 1933, as amended (the “ Act ”),

Otis Worldwide reported Q3 2026 revenue of $3.91B, net income of $414M, and EPS of $1.08, up 6.1%, 10.7%, and 13.7% YoY. Service sales grew 7%, while New Equipment sales rose 3%. Cost pressures impacted margins, with Service profit increasing and New Equipment profit declining.

Otis Worldwide (OTIS) reported Q3 2026 earnings with flat adjusted EPS due to higher costs and FX. Organic growth was strong, but margins contracted. China sales declined 20%, with orders and backlog also down. Service margins fell 1.3% YoY due to labor costs and mix. Modernization sales rose 20%, but margins remain a challenge. Management expects Q4 service margins to be similar to Q3, with China stimulus continuing. Americas new equipment backlog grew 14%.

Otis Worldwide (OTIS) reported Q3 net income of $414M, or $1.08 per share, beating analyst estimates of $1 per share. Revenue was $3.91B, exceeding expectations of $3.85B. The company expects full-year earnings of $4.01-$4.05 per share and revenue of $15.1B-$15.3B.

Otis Worldwide reported its strongest organic sales growth in 13 quarters, with a 7% increase in service and a return to growth in new equipment. The company saw a 20% growth in modernization and a 100 basis point improvement in service operating margins to 24.2%. Despite challenges in China, Otis reaffirmed its 2026 net sales guidance of $15.1 billion to $15.3 billion. Management highlighted investments in AI, service quality, and reshoring trends in North America.