Revenue growth accelerated to 8.2% in 2026Q2, though gross margins remain constrained within a narrow 34.3% to 37.1% range, suggesting limited success in scaling higher-margin digital service offerings.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 24.43B | 23.6B | 22.95B | 22.33B | 20.64B | 23.67B | 22.32B | 23.97B | 23.4B | 30.17B | 20.84B | 37.18B | 10.33B | 10.07B | 10.4B | 10.56B | 17.02B | 16.88B | 20.2B | 18.48B | 17.34B | 39.28B | 38.41B | 22.65B | 20.1B | 18.43B | 17.15B | 16.14B | 12.59B | 11.15B | 10.01B |
| Revenue Growth % | 5.1% | 2.81% | 2.78% | 8.21% | -12.81% | 6.05% | -6.89% | 2.43% | -22.44% | 44.8% | -43.95% | 259.84% | 2.57% | -3.17% | -1.46% | -37.96% | 0.79% | -16.42% | 9.32% | 6.58% | -55.87% | 2.27% | 69.61% | 12.65% | 9.1% | 7.42% | 6.29% | 28.22% | 12.93% | 11.35% | 20.16% |
| Cost of Goods Sold | 15.5B | 15B | 14.87B | 14.51B | 13.55B | 15.62B | 14.9B | 16.27B | 15.72B | 20.86B | 15.16B | 30.72B | 6.55B | 6.4B | 6.63B | 6.89B | 10.74B | 10.87B | 13.12B | 12.22B | 11.43B | 25.57B | 23.88B | 19.43B | 17.26B | 15.82B | 14.1B | 13.37B | 10.39B | 9.13B | 8.29B |
| COGS % of Revenue | - | 63.59% | 64.79% | 64.96% | 65.64% | 65.98% | 66.77% | 67.87% | 67.2% | 69.15% | 72.76% | 82.62% | 63.37% | 63.56% | 63.69% | 65.26% | 63.09% | 64.39% | 64.97% | 66.12% | 65.91% | 65.08% | 62.18% | 85.78% | 85.84% | 85.87% | 82.18% | 82.84% | 82.56% | 81.92% | 82.84% |
| Gross Profit | 8.93B | 8.59B | 8.08B | 7.82B | 7.09B | 8.05B | 7.42B | 7.7B | 7.67B | 9.31B | 5.68B | 6.46B | 3.79B | 3.67B | 3.78B | 3.67B | 6.28B | 6.01B | 7.08B | 6.26B | 5.91B | 13.72B | 14.53B | 3.22B | 2.85B | 2.6B | 3.06B | 2.77B | 2.19B | 2.01B | 1.72B |
| Gross Margin % | 36.56% | 36.41% | 35.21% | 35.04% | 34.36% | 34.02% | 33.23% | 32.13% | 32.8% | 30.85% | 27.24% | 17.38% | 36.63% | 36.44% | 36.31% | 34.74% | 36.91% | 35.61% | 35.03% | 33.88% | 34.09% | 34.92% | 37.82% | 14.22% | 14.16% | 14.13% | 17.82% | 17.16% | 17.44% | 18.08% | 17.16% |
| Gross Profit Growth % | - | 6.32% | 3.28% | 10.35% | -11.94% | 8.58% | -3.71% | 0.34% | -17.54% | 63.94% | -12.15% | 70.73% | 3.11% | -2.81% | 3% | -41.61% | 4.46% | -15.04% | 13.04% | 5.94% | -56.93% | -5.58% | 351.15% | 13.11% | 9.33% | -14.8% | 10.36% | 26.18% | 8.94% | 17.26% | 11.12% |
| Operating Expenses | 5.62B | 5.76B | 5.66B | 5.39B | 5.08B | 5.28B | 5.66B | 6.26B | 5.75B | 6.16B | 4.2B | 4B | 2.59B | 2.7B | 2.89B | 2.83B | 4.55B | 4.6B | 4.91B | 4.78B | 4.47B | 8.23B | 8.92B | 2.06B | 1.72B | 1.64B | 2.09B | 1.91B | 1.53B | 1.42B | 1.22B |
| OpEx % of Revenue | - | 24.43% | 24.66% | 24.12% | 24.61% | 22.33% | 25.37% | 26.11% | 24.57% | 20.4% | 20.18% | 10.75% | 25.07% | 26.79% | 27.78% | 26.8% | 26.75% | 27.24% | 24.29% | 25.85% | 25.81% | 20.94% | 23.22% | 9.09% | 8.58% | 8.92% | 12.19% | 11.86% | 12.16% | 12.72% | 12.17% |
| Selling, General & Admin | 5.56B | 5.76B | 5.39B | 5.14B | 5.08B | 5.01B | 5.39B | 5.94B | 5.44B | 5.79B | 4.05B | 3.63B | 2.4B | 2.53B | 2.75B | 2.7B | 4.42B | 4.48B | 4.78B | 4.66B | 4.36B | 7.39B | 8.14B | 2.06B | 1.72B | 1.64B | 1.63B | 1.47B | 1.15B | 1.06B | 852.8M |
| SG&A % of Revenue | - | 24.43% | 23.5% | 23% | 24.61% | 21.16% | 24.14% | 24.78% | 23.25% | 19.21% | 19.42% | 9.75% | 23.2% | 25.09% | 26.39% | 25.58% | 25.98% | 26.55% | 23.66% | 25.2% | 25.17% | 18.82% | 21.19% | 9.09% | 8.58% | 8.92% | 9.5% | 9.1% | 9.11% | 9.53% | 8.52% |
| Research & Development | 273M | 273M | 267M | 251M | 0 | 275M | 274M | 319M | 310M | 360M | 158M | 134M | 792M | 172M | 145M | 0 | 0 | 116M | 0 | 0 | 0 | 0 | 0 | 0 | 17.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.16% | 1.16% | 1.12% | - | 1.16% | 1.23% | 1.33% | 1.32% | 1.19% | 0.76% | 0.36% | 7.67% | 1.71% | 1.39% | - | - | 0.69% | - | - | - | - | - | - | 0.09% | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -273M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.8M | 0 | 461.8M | 445.6M | 384.2M | 354.9M | 365.3M |
| Operating Income | 3.32B | 2.83B | 2.42B | 2.44B | 2.01B | 2.77B | 1.75B | 1.44B | 1.93B | 3.15B | 1.47B | 2.47B | 1.2B | 972M | 887M | 838M | 1.73B | 1.41B | 2.17B | 1.48B | 1.43B | 5.49B | 5.61B | 1.16B | 1.12B | 961.1M | 965M | 854.9M | 664M | 597.1M | 478.9M |
| Operating Margin % | 13.57% | 11.99% | 10.55% | 10.91% | 9.75% | 11.69% | 7.86% | 6.02% | 8.23% | 10.45% | 7.07% | 6.64% | 11.57% | 9.65% | 8.53% | 7.94% | 10.16% | 8.37% | 10.74% | 8.03% | 8.27% | 13.98% | 14.61% | 5.13% | 5.58% | 5.22% | 5.63% | 5.3% | 5.28% | 5.36% | 4.78% |
| Operating Income Growth % | - | 16.81% | -0.66% | 21.12% | -27.29% | 57.75% | 21.55% | -25.04% | -38.93% | 113.99% | -40.29% | 106.44% | 22.94% | 9.58% | 5.85% | -51.53% | 22.36% | -34.88% | 46.23% | 3.49% | -73.89% | -2.1% | 382.95% | 3.53% | 16.74% | -0.4% | 12.88% | 28.75% | 11.2% | 24.68% | 6.71% |
| EBITDA | 3.95B | 3.69B | 3.24B | 3.18B | 2.73B | 3.61B | 2.58B | 2.27B | 2.75B | 4.34B | 2.43B | 3.33B | 1.55B | 1.35B | 1.3B | 1.26B | 2.93B | 2.54B | 3.32B | 2.63B | 2.62B | 7.57B | 7.73B | 1.72B | 1.64B | 1.48B | 1.43B | 1.3B | 1.05B | 952M | 741.4M |
| EBITDA Margin % | 16.16% | 15.65% | 14.1% | 14.25% | 13.22% | 15.26% | 11.54% | 9.46% | 11.75% | 14.38% | 11.64% | 8.95% | 15.03% | 13.44% | 12.54% | 11.93% | 17.23% | 15.04% | 16.46% | 14.24% | 15.09% | 19.28% | 20.12% | 7.59% | 8.15% | 8.02% | 8.32% | 8.06% | 8.33% | 8.54% | 7.41% |
| EBITDA Growth % | -2.85% | 14.09% | 1.73% | 16.6% | -24.45% | 40.22% | 13.58% | -17.5% | -36.66% | 78.9% | -27.08% | 114.23% | 14.7% | 3.75% | 3.65% | -57.06% | 15.48% | -23.62% | 26.29% | 0.61% | -65.46% | -2.02% | 349.47% | 4.93% | 10.95% | 3.52% | 9.71% | 24.07% | 10.11% | 28.41% | 0.56% |
| D&A (Non-Cash Add-back) | 634M | 865M | 816M | 745M | 717M | 845M | 822M | 825M | 824M | 1.19B | 953M | 860M | 358M | 382M | 418M | 421M | 1.2B | 1.13B | 1.15B | 1.15B | 1.18B | 2.08B | 2.12B | 558M | 516.8M | 515.9M | 461.8M | 445.6M | 384.2M | 354.9M | 262.5M |
| EBIT | 2.76B | 2.29B | 1.98B | 1.36B | 1.33B | 3.03B | 1.26B | 1.36B | 2.03B | 3.09B | 1.39B | 2.46B | 713M | 696M | 314M | 1B | 1.55B | -1.47B | 1.83B | -1.88B | 1.41B | 4.97B | 5.04B | 1.17B | 1.13B | 996.5M | 965M | 854.9M | 664M | 597.1M | 478.9M |
| Net Interest Income | -134M | -138M | -445M | -228M | -331M | -409M | -330M | -242M | -468M | -515M | -312M | -303M | -83M | -84M | -190M | -213M | -253M | -257M | -286M | -209M | -236M | -691M | -865M | -103.5M | -110.4M | -110M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 16M | 19M | 17M | 17M | 6M | 9M | 23M | 61M | 13M | 19M | 12M | 9M | 14M | 16M | 19M | 27M | 31M | 44M | 110M | 104M | 43M | 123M | 91M | 10.2M | 11.9M | 19.4M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 150M | 157M | 462M | 245M | 337M | 418M | 353M | 303M | 481M | 534M | 324M | 312M | 97M | 100M | 209M | 240M | 284M | 301M | 396M | 313M | 279M | 814M | 956M | 113.7M | 122.3M | 129.4M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -810M | -859M | -899M | -1.32B | -900M | -153M | -851M | -387M | -379M | -594M | -412M | -316M | -373M | -424M | -872M | -86M | -459M | -3.18B | -739M | -3.68B | -300M | -1.34B | -1.52B | -104.1M | -116M | -94M | -153.7M | -123.6M | -70.3M | -195.6M | -84.4M |
| Pretax Income | 2.51B | 1.97B | 1.52B | 1.11B | 1.11B | 2.61B | 903M | 1.06B | 1.55B | 2.56B | 1.06B | 2.15B | 822M | 548M | 15M | 752M | 1.27B | -1.77B | 1.43B | -2.2B | 1.13B | 4.15B | 4.08B | 1.06B | 1.01B | 867.1M | 811.3M | 731.3M | 593.7M | 401.5M | 394.5M |
| Pretax Margin % | 10.26% | 8.34% | 6.63% | 4.98% | 5.39% | 11.04% | 4.05% | 4.41% | 6.61% | 8.48% | 5.09% | 5.79% | 7.96% | 5.44% | 0.14% | 7.12% | 7.46% | -10.48% | 7.08% | -11.88% | 6.54% | 10.57% | 10.63% | 4.67% | 5% | 4.71% | 4.73% | 4.53% | 4.72% | 3.6% | 3.94% |
| Income Tax | 450M | 245M | 111M | -468M | -182M | 868M | 108M | -233M | 197M | 705M | 197M | 600M | 24M | 108M | 348M | 134M | 138M | 71M | 335M | 324M | 310M | 1.03B | 1.12B | 327.8M | 347.6M | 335.5M | 338.9M | 311.7M | 256M | 180.9M | 171.8M |
| Effective Tax Rate % | 17.96% | 12.44% | 7.29% | -42.05% | -16.37% | 33.21% | 11.96% | -22.06% | 12.74% | 27.56% | 18.57% | 27.89% | 2.92% | 19.71% | 2320% | 17.82% | 10.87% | -4.01% | 23.41% | -14.75% | 27.34% | 24.92% | 27.49% | 31% | 34.55% | 38.69% | 41.77% | 42.62% | 43.12% | 45.06% | 43.55% |
| Net Income | 3.53B | 3.29B | 1.71B | 1.85B | 1.53B | 1.64B | 631M | 474M | 2.16B | 1.61B | -868M | 1.56B | 1.22B | 1.18B | 1.18B | 1.42B | 1.31B | -338M | 979M | 1.25B | 1.03B | 909.4M | 817.5M | 682.9M | 600.5M | 478.3M | 472.4M | 419.6M | 337.7M | 288.5M | 234.7M |
| Net Margin % | 14.45% | 13.95% | 7.43% | 8.28% | 7.42% | 6.92% | 2.83% | 1.98% | 9.24% | 5.34% | -4.17% | 4.2% | 11.76% | 11.69% | 11.38% | 13.4% | 7.68% | -2% | 4.85% | 6.78% | 5.93% | 2.31% | 2.13% | 3.02% | 2.99% | 2.6% | 2.75% | 2.6% | 2.68% | 2.59% | 2.34% |
| Net Income Growth % | 40.96% | 93.02% | -7.79% | 20.69% | -6.41% | 159.43% | 33.12% | -78.08% | 34.2% | 285.6% | -155.53% | 28.64% | 3.14% | -0.51% | -16.33% | 8.26% | 486.69% | -134.53% | -21.81% | 21.79% | 13.04% | 11.24% | 19.71% | 13.72% | 25.55% | 1.25% | 12.58% | 24.25% | 17.05% | 22.92% | 19.87% |
| Net Income (Continuing) | 2.06B | 1.72B | 1.41B | 1.58B | 1.29B | 1.75B | 795M | 1.29B | 1.35B | 1.85B | 864M | 1.55B | 798M | 440M | -333M | 618M | 1.13B | -1.84B | 1.1B | -2.52B | 824M | 3.12B | 2.96B | 729.7M | 658.4M | 531.6M | 472.4M | 419.6M | 337.7M | 220.6M | 222.7M |
| Discontinued Operations | 2M | 1.79B | 298M | 287M | 429M | 124M | 0 | -626M | 987M | -43M | -1.6B | 124M | -119M | 93M | 800M | 932M | 12M | 14M | -26M | 1.33B | 3.03B | 225M | -69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 25M | 27M | 1.26B | 1.15B | 1.13B | 1.19B | 1.09B | 1.06B | 1.29B | 1.13B | 1.21B | 375M | 445M | 417M | 401M | 398M | 106M | 201M | 236M | 128M | 129M | 196M | 121.5M | 221.8M | 189M | 207.3M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.76 | 2.63 | 2.52 | 2.69 | 2.19 | 2.27 | 0.84 | 0.54 | 2.32 | 1.71 | -1.30 | 2.47 | 1.80 | 1.44 | 1.78 | 2.16 | 2.19 | -0.57 | 1.63 | 2.19 | 1.97 | 1.51 | 1.41 | 0.52 | -4.62 | 21.40 | 21.32 | 0.78 | 15.20 | 13.07 | 0.44 |
| EPS Growth % | 49.07% | 4.37% | -6.32% | 22.83% | -3.52% | 170.24% | 54.92% | -76.63% | 35.67% | 231.54% | -152.63% | 37.22% | 25% | -19.1% | -17.59% | -1.37% | 484.21% | -134.97% | -25.57% | 11.17% | 30.46% | 7.09% | 171.15% | 111.26% | -121.59% | 0.38% | 2633.33% | -94.87% | 16.3% | 2870.45% | -95.08% |
| EPS (Basic) | - | 2.64 | 2.53 | 2.70 | 2.22 | 2.31 | 0.84 | 0.54 | 2.34 | 1.72 | -1.30 | 2.50 | 1.82 | 1.45 | 1.80 | 2.19 | 2.21 | -0.57 | 1.65 | 2.22 | 2.03 | 1.59 | 1.50 | 0.52 | -4.62 | 22.66 | 22.62 | 0.83 | 16.25 | 13.78 | 0.47 |
| Diluted Shares Outstanding | 613M | 654.1M | 676M | 679M | 679M | 721.1M | 753.6M | 874.3M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M |
| Basic Shares Outstanding | 606.93M | 651.8M | 673.8M | 679M | 679M | 679M | 751M | 870.2M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M | 679M |
| Dividend Payout Ratio | - | 29.66% | 58.65% | 53% | 59.79% | 46.55% | 125.2% | 194.09% | 44.13% | 43.58% | - | 42.03% | 46.75% | 43.55% | 40.29% | 29.19% | 25.94% | - | 30.34% | 15.58% | 21.21% | 21.11% | 20.88% | 19.96% | 20.87% | 24.59% | 22.48% | 22.83% | 26.3% | 28.91% | 34.09% |
Operational complexity and divestiture
According to the most recent quarterly filings, JCI has successfully accelerated its top-line growth to 8.2% in 2026Q2, marking a significant recovery from the contractionary periods observed throughout 2024, suggesting that the company's strategic focus on high-margin service and digital integration is gaining meaningful traction.
The transition from negative growth in early 2024 to mid-single-digit expansion indicates that the company is successfully navigating the cyclical headwinds of the commercial construction market. This trajectory appears to be supported by the firm's ability to leverage its installed base for recurring service revenue, which provides a more stable foundation than pure equipment sales.
As reported in financial statements, JCI's gross margin has hovered within a narrow band of 34.3% to 37.1% over the last ten quarters, indicating that despite efforts to pivot toward higher-margin digital services, the company remains structurally tethered to the competitive and lower-margin equipment manufacturing segment.
The inability to consistently break above the 37% gross margin threshold suggests that competitive pricing pressures in the OEM channel continue to offset gains from the OpenBlue platform. Investors should monitor whether the planned divestiture of the residential HVAC business serves as a catalyst for a more permanent shift toward a higher-margin service-centric profile.
Based on JCI's reported figures, operating margins have demonstrated significant volatility, ranging from a negative 2.5% in 2024Q2 to a peak of 20.6% in 2024Q3, reflecting the impact of periodic restructuring charges and the inherent difficulty in scaling fixed costs across a complex global branch network.
The inconsistency in operating leverage suggests that management's efforts to streamline the organization are frequently interrupted by non-recurring items and portfolio pruning. This lack of predictable operating margin expansion warrants further investigation into whether the company can achieve sustainable cost discipline without sacrificing its competitive service footprint.
Analysis of recent SEC filings reveals that JCI's net income is frequently influenced by significant non-operating items, such as the 26.3% net margin recorded in 2025Q4, which deviates sharply from the typical 8-12% range and suggests that reported EPS may not accurately reflect core operational performance.
The reliance on non-operating gains to bolster the bottom line complicates the assessment of true earnings power and suggests that investors should focus on adjusted metrics to gauge underlying profitability. The persistent use of stock-based compensation, while relatively stable, remains a secondary factor that dilutes the quality of earnings over the long term.
Data from the past ten quarters suggests that JCI continues to trade at a valuation discount relative to peers like Trane Technologies, potentially indicating that the market remains skeptical of the company's ability to successfully integrate its disparate fire, security, and HVAC business units into a cohesive entity.
Short-sellers may focus on the company's historical reliance on restructuring and divestitures as evidence of a lack of organic operational excellence. The persistent complexity discount implies that until management can demonstrate consistent, high-quality growth without the need for constant portfolio rebalancing, the market may continue to undervalue the firm's integrated building technology model.
Quick answers to the most common questions about buying JCI stock.
For fiscal year 2025, Johnson Controls International plc (JCI) reported total revenue of $23.60B. This represents a 135.7% increase compared to $10.01B in 1996.
Johnson Controls International plc (JCI) is profitable, generating $3.29B in net income for the fiscal year ending 2025 with a net profit margin of 13.9%.
Johnson Controls International plc (JCI) reported an operating income of $2.83B, resulting in an operating profit margin of 12.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Johnson Controls International plc (JCI) generated $8.59B in gross profit for the year, representing a gross profit margin of 36.4%. This demonstrates the company's core pricing power and production efficiency.