Revenue growth has been subdued, with Q2 2026 organic growth of 3% and gross margin of 27.2% still below the 28.9% peak in Q2 2025, while operating margin volatility (from 1.1% in Q4 2025 to 12.1% in Q2 2026) reflects ongoing transformation costs.
Carrier Global Corporation (CARR) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 22.11B | 21.75B | 22.49B | 18.95B | 17.29B | 20.61B | 17.46B | 18.61B | 18.91B | 17.81B |
| Revenue Growth % | -1.58% | -3.29% | 18.65% | 9.62% | -16.13% | 18.09% | -6.19% | -1.62% | 6.17% | - |
| Cost of Goods Sold | 16.73B | 16.12B | 16.5B | 13.79B | 12.99B | 14.63B | 12.35B | 13.19B | 13.35B | 12.63B |
| COGS % of Revenue | - | 74.14% | 73.4% | 72.76% | 75.14% | 70.99% | 70.73% | 70.88% | 70.56% | 70.89% |
| Gross Profit | 5.38B | 5.62B | 5.98B | 5.16B | 4.3B | 5.98B | 5.11B | 5.42B | 5.57B | 5.18B |
| Gross Margin % | 24.34% | 25.86% | 26.6% | 27.24% | 24.86% | 29.01% | 29.27% | 29.12% | 29.44% | 29.11% |
| Gross Profit Growth % | - | -5.97% | 15.87% | 20.13% | -28.14% | 17.05% | -5.72% | -2.69% | 7.41% | - |
| Operating Expenses | 3.82B | 3.72B | 3.88B | 3.1B | 2.39B | 3.33B | 2.03B | 2.93B | 1.93B | 2.15B |
| OpEx % of Revenue | - | 17.09% | 17.27% | 16.36% | 13.84% | 16.18% | 11.61% | 15.74% | 10.21% | 12.1% |
| Selling, General & Admin | 3.22B | 3.09B | 3.2B | 2.61B | 1.98B | 3.12B | 2.82B | 2.76B | 2.69B | 2.58B |
| SG&A % of Revenue | - | 14.22% | 14.22% | 13.76% | 11.44% | 15.14% | 16.15% | 14.84% | 14.22% | 14.51% |
| Research & Development | 602M | 625M | 686M | 493M | 416M | 503M | 419M | 401M | 400M | 364M |
| R&D % of Revenue | - | 2.87% | 3.05% | 2.6% | 2.41% | 2.44% | 2.4% | 2.15% | 2.11% | 2.04% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -288M | -1.21B | -234M | -1.16B | -793M |
| Operating Income | 1.56B | 1.91B | 2.1B | 2.06B | 1.9B | 2.65B | 3.08B | 2.49B | 3.64B | 3.03B |
| Operating Margin % | 7.05% | 8.77% | 9.33% | 10.88% | 11.01% | 12.83% | 17.66% | 13.39% | 19.23% | 17.01% |
| Operating Income Growth % | - | -9.1% | 1.75% | 8.3% | -28.02% | -14.21% | 23.77% | -31.51% | 20.03% | - |
| EBITDA | 2.58B | 3.18B | 3.33B | 2.55B | 2.23B | 2.98B | 3.42B | 2.83B | 3.99B | 3.4B |
| EBITDA Margin % | 11.69% | 14.63% | 14.81% | 13.47% | 12.91% | 14.47% | 19.59% | 15.19% | 21.12% | 19.1% |
| EBITDA Growth % | -31.09% | -4.47% | 30.43% | 14.38% | -25.18% | -12.75% | 20.98% | -29.24% | 17.4% | - |
| D&A (Non-Cash Add-back) | 969M | 1.27B | 1.23B | 491M | 328M | 338M | 336M | 335M | 357M | 372M |
| EBIT | 1.78B | 2.26B | 2.85B | 2.31B | 4.13B | 2.36B | 3.15B | 2.26B | 3.93B | 3.27B |
| Net Interest Income | -198M | -176M | -371M | -160M | -219M | -306M | -288M | 27M | 37M | -115M |
| Interest Income | 136M | 169M | 209M | 146M | 83M | 13M | 10M | 102M | 121M | 104M |
| Interest Expense | 334M | 345M | 580M | 306M | 302M | 319M | 298M | 75M | 84M | 219M |
| Other Income/Expense | -230M | -109M | 176M | -63M | 1.92B | -245M | -228M | 181M | 205M | 24M |
| Pretax Income | 1.33B | 1.8B | 2.27B | 2B | 3.82B | 2.4B | 2.85B | 2.67B | 3.84B | 3.05B |
| Pretax Margin % | 6.01% | 8.27% | 10.11% | 10.55% | 22.11% | 11.64% | 16.36% | 14.36% | 20.31% | 17.14% |
| Income Tax | 51M | 240M | 1.06B | 521M | 616M | 699M | 849M | 517M | 1.07B | 1.79B |
| Effective Tax Rate % | 3.84% | 13.35% | 46.7% | 26.06% | 16.11% | 29.13% | 29.74% | 19.35% | 27.93% | 58.51% |
| Net Income | 1.22B | 1.48B | 5.6B | 1.35B | 3.53B | 1.66B | 1.98B | 2.12B | 2.73B | 1.23B |
| Net Margin % | 5.52% | 6.82% | 24.92% | 7.12% | 20.44% | 8.07% | 11.35% | 11.37% | 14.45% | 6.89% |
| Net Income Growth % | -69.51% | -73.52% | 315.42% | -61.83% | 112.38% | -16.04% | -6.33% | -22.6% | 122.82% | - |
| Net Income (Continuing) | 1.28B | 1.56B | 1.21B | 1.48B | 3.21B | 1.7B | 2.01B | 2.15B | 2.77B | 1.27B |
| Discontinued Operations | 1000K | 29M | 4.5B | -38M | 377M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 325M | 324M | 314M | 328M | 318M | 327M | 326M | 333M | 352M | 371M |
| EPS (Diluted) | 1.45 | 1.70 | 6.15 | 1.63 | 4.10 | 1.87 | 2.25 | 2.44 | 3.16 | 0.00 |
| EPS Growth % | -67.86% | -72.36% | 277.3% | -60.24% | 119.25% | -16.89% | -7.79% | -22.78% | - | - |
| EPS (Basic) | - | 1.74 | 6.24 | 1.61 | 4.19 | 1.92 | 2.29 | 2.44 | 3.16 | 0.00 |
| Diluted Shares Outstanding | 839.6M | 846.7M | 911.7M | 853M | 861.2M | 890.3M | 880.2M | 866.22M | 872.8M | 872.8M |
| Basic Shares Outstanding | 831.5M | 839.2M | 898.2M | 837.3M | 843.4M | 867.7M | 866.5M | 866.22M | 866.2M | 866.2M |
| Dividend Payout Ratio | - | 52.02% | 11.96% | 45.96% | 14.4% | 25.06% | 6.96% | - | - | - |
Quick answers to the most common questions about buying CARR stock.
For fiscal year 2025, Carrier Global Corporation (CARR) reported total revenue of $21.75B. This represents a 22.1% increase compared to $17.81B in 2017.
Carrier Global Corporation (CARR) is profitable, generating $1.48B in net income for the fiscal year ending 2025 with a net profit margin of 6.8%.
Carrier Global Corporation (CARR) reported an operating income of $1.91B, resulting in an operating profit margin of 8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Carrier Global Corporation (CARR) generated $5.62B in gross profit for the year, representing a gross profit margin of 25.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Viessmann integration execution risk
Metrics are mathematically derived from official filings.
Organic Growth Resumes but Remains Subdued
Carrier's Q2 2026 organic sales grew 3% year-over-year, marking a return to growth after two quarters of decline, though still below historical mid-cycle levels, according to recent earnings reports.
The 3% growth in Q2 2026, following -6.8% and -6.0% in Q3 and Q4 2025, suggests the prior stagnation is resolving, likely driven by data center demand and the SEER2 transition. However, the growth rate remains modest compared to peers like Trane (7.5%) and Lennox (though negative), indicating Carrier is still lagging in capturing cyclical upside. The raised guidance implies management confidence, but the sustainability hinges on European heat pump recovery and continued commercial strength.
Gross Margin Recovery Tempered by Mix
Gross margin improved to 27.2% in Q2 2026 from 23.3% in Q1, but remains below the 28.9% peak in Q2 2025, reflecting ongoing portfolio transformation and pricing constraints, as per financial statements.
The sequential recovery in gross margin suggests easing commodity costs and better pricing, yet the 25.9% trailing average is significantly below Trane's 36.2% and Lennox's 33.0%, indicating a structural mix disadvantage from lower-margin fire and security businesses. As Carrier divests these, margins may expand, but the Viessmann integration and competitive heat pump pricing could limit upside. Investors should monitor whether the backlog converts at accretive margins.
Operating Leverage Volatile Amid Transformation
Operating margin swung from 1.1% in Q4 2025 to 12.1% in Q2 2026, reflecting significant quarterly volatility driven by restructuring costs and revenue timing, as reported in income statements.
The wide swings in operating margin—from 1.1% to 13.0% over the past year—highlight the lack of stable operating leverage, likely due to separation costs and integration expenses. SG&A as a percentage of revenue has been relatively stable around 14-16%, but the low-margin quarters (Q4 2025) suggest overhead absorption is poor when revenue dips. As the portfolio simplifies, operating leverage should improve, but the current trajectory is uneven.
Earnings Distorted by One-Time Items
Net income in Q4 2024 and Q2 2024 included large gains from discontinued operations, inflating EPS to $2.82 and $2.55, respectively, while Q2 2026 EPS of $0.60 reflects cleaner operations, per SEC filings.
The reported EPS figures are heavily distorted by divestiture gains, making year-over-year comparisons misleading. Excluding these, underlying EPS growth is modest, and the -14.3% EPS growth in Q2 2026 versus a 3.9% revenue increase suggests margin pressure or higher interest costs. Stock-based compensation is minimal, but the amortization of intangibles from Viessmann likely depresses GAAP earnings. Quality of earnings is moderate, with non-operating items obscuring true operational performance.
Cost Structure in Transition
COGS as a percentage of revenue has ranged from 71.1% to 80.1% over the past year, with Q2 2026 at 72.8%, indicating ongoing pressure from raw materials and mix, as per income statement data.
The high variable cost structure exposes Carrier to copper and steel price fluctuations, and the gross margin of 27.2% suggests limited pricing power relative to peers. SG&A has been relatively controlled, but R&D spending has declined from $192M in Q1 2024 to $148M in Q2 2026, which may signal a shift toward efficiency but could also underinvest in innovation. The divestiture of lower-margin businesses should improve the cost structure, but the near-term impact is mixed.
Q2 2026 Marks a Turning Point
Q2 2026 stands out as a pivotal quarter with organic growth returning to 3% and operating margin recovering to 12.1%, after a trough of 1.1% in Q4 2025, based on reported quarterly results.
The sharp recovery from Q4 2025's depressed margins suggests that the prior weakness was largely due to one-time charges and seasonal factors, and that the underlying business is stabilizing. The raised guidance and record backlog indicate that the inflection may be durable, but the sustainability depends on the successful integration of Viessmann and the ability to maintain pricing power. This quarter could mark the beginning of a margin expansion phase if the portfolio transformation proceeds as planned.
Margin Gap and Integration Risks Persist
Despite the Q2 2026 beat, Carrier's gross margin of 27.2% trails Trane's 36.2% by 900 basis points, and the Viessmann acquisition's synergies remain unproven, as per peer comparisons.
Short-sellers would highlight the persistent margin discount to peers, which may reflect structural disadvantages in the residential dealer model and the commoditization of heat pumps. The 3% organic growth is below the 7.5% achieved by Trane, suggesting Carrier is losing share or facing weaker demand. The Viessmann integration carries execution risk, and the six-month stock decline despite improving fundamentals may indicate the market is skeptical of the long-term ROIC. Investors should monitor whether the backlog converts to profitable revenue and whether margins can close the gap.