Otis Worldwide Q2 Earnings: Service Growth Drives Sales but Margins Decline

Otis Worldwide reported stronger second-quarter organic sales growth in 2026, driven by its service business, but lowered parts of its profit outlook as investments in service quality and productivity pressures weighed on margins. Net sales were $3.9 billion, with organic sales up 6%. Service organic sales rose 9%, with modernization orders up 9% and backlog up 26%. However, adjusted operating margin fell 180 basis points to 15.2%, and adjusted EPS declined 4%. New equipment organic sales declined 1%, the lowest rate of decline in nine quarters, with growth in the Americas and Asia Pacific offset by declines in China and EMEA. The company expects margins to recover as service revenue growth continues.