Johnson Controls International
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Johnson Controls International (JCI) investor relations material

Johnson Controls International Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary4 Feb, 2026

Executive summary

  • Achieved 7% net sales growth year-over-year to $5.8 billion in Q1, with organic sales up 6% and broad-based strength across all regions and segments.

  • Adjusted EBIT margin expanded by 190 basis points to 12.4%, and adjusted EPS rose nearly 40% year-over-year to $0.89, exceeding guidance.

  • Orders increased 39% year-over-year, with backlog up 20% to $18.2 billion, driven by strong demand in data centers and high-growth markets, especially in the Americas.

  • Advanced portfolio with innovations in cooling, connectivity, and digital service capabilities, and completed key divestitures.

  • Raised full-year adjusted EPS guidance to ~$4.70, reflecting strong execution and momentum.

Financial highlights

  • Q1 sales were $5.8 billion, up 7% year-over-year; gross profit reached $2.07 billion, with gross margin at 35.8%.

  • Adjusted EBIT was $719 million, up 27% year-over-year; adjusted EBIT margin reached 12.4%.

  • Adjusted EPS from continuing operations was $0.89, up 39% from $0.64 in the prior year.

  • Free cash flow was $531 million; adjusted free cash flow was $428 million, with conversion at 77%.

  • Net debt to adjusted EBITDA improved to 2.2x, within the long-term target range.

Outlook and guidance

  • Q2 guidance: organic sales growth ~5%, operating leverage ~45%, adjusted EPS ~$1.11.

  • Full-year FY26 guidance: mid-single-digit organic sales growth, operating leverage ~50%, adjusted EPS raised to ~$4.70, and adjusted free cash flow conversion ~100%.

  • Tax rate expected at ~17% for Q2 and full-year FY26.

  • Backlog grew 20% year-over-year to $18.2 billion, with orders up 39%.

Data center project demand outlook Americas?
Why Americas segment EBITA margin flat?
Key drivers of Q1 adjusted free cash flow variance?
JCI's tech roadmap for AI compute environments?
Business system's impact on gross margin runway?
When will backlog drive higher organic growth?
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Frequently asked questions

Johnson Controls International plc operates in two segments, Products and Solutions, and Building Efficiency. The Products and Solutions segment manufactures automotive seating components, systems and electronics, as well as batteries for automobiles, light trucks, and hybrid electric vehicles. The Building Efficiency segment designs, produces, markets and installs heating, ventilating and air conditioning controls; fire, security and building management systems; electronic security systems; call accounting software; nurse call systems; energy conservation equipment; intruder alarms; and central station monitoring services.

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