Johnson Controls International plc (NYSE:JCI) delivered a strong start to fiscal 2026, reporting first-quarter results on Wednesday that topped market expectations and prompted the company to lift its full-year guidance.
Shares of the energy efficiency and building technologies group surged 8.09% in pre-market trading following the announcement.
Adjusted earnings per share for the quarter came in at $0.89, ahead of the $0.84 consensus estimate. Revenue rose 7% year on year to $5.8 billion, exceeding analysts’ forecasts of $5.64 billion. On an organic basis, sales increased 6%, supported by a sharp acceleration in orders, which climbed 39% organically compared with the same period last year.
“Johnson Controls delivered a strong start to the year, with solid revenue growth, meaningful margin expansion, and adjusted EPS up nearly 40%, reflecting improving execution across the enterprise,” said CEO Joakim Weidemanis. “Our nearly 40% order growth highlights strong customer demand in our core end markets, where our technology leadership and enviable field presence continues to differentiate us.”
The company’s order backlog expanded to $18.2 billion, representing 20% organic growth year on year. Demand was particularly strong in the Americas, where orders surged 56%, largely driven by increased customer spending on data center projects.
Buoyed by the strong quarter, Johnson Controls raised its full-year adjusted EPS outlook to around $4.70, up from its prior forecast of $4.55 and above the analyst consensus of $4.62. For the second quarter, the company expects organic sales growth of roughly 5% and adjusted EPS of about $1.11, well ahead of the $0.84 market estimate.
The company reiterated its expectation for mid-single-digit organic sales growth and adjusted free cash flow conversion of approximately 100% for the full fiscal year.
Performance was solid across all regions. APAC delivered the strongest margin improvement, with adjusted EBITA margin rising 290 basis points to 16.9%. EMEA expanded its adjusted EBITA margin by 120 basis points to 13.0%, while the Americas, the group’s largest revenue contributor, posted 6% organic sales growth.