Upside case
Bull case
$114+55.1%
OTIS would need investors to value it at roughly 27x earnings — about 10x more generous than today's 18x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Otis Worldwide Corporation (OTIS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
13
analysts
5 bullish · 1 bearish · 13 covering OTIS
Strong Buy
0
Buy
5
Hold
7
Sell
1
Strong Sell
0
Consensus Target
$93
+26.9% vs today
Scenario Range
$54 – $114
Model bear to bull value window
Coverage
13
Published analyst ratings
Valuation Context
17.5x
Forward P/E · Market cap $28.5B
OTIS price targets
Three scenarios for where OTIS stock could go
Current
~$73
Confidence
49 / 100
Updated
Jun 18, 2026
Where we are now
Current · $73
Bear
$54
Base
$86
Bull
$114
Market caseClosest to today
Base case
$86+17.7%
At 21x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$54-25.8%
If investor confidence fades or macro conditions deteriorate, a 5x multiple contraction could push OTIS down roughly 26% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Otis Worldwide Corporation
OTIS · NYSEIndustrialsIndustrial - MachineryDecember year-end
Otis Worldwide is a leading manufacturer and service provider of elevators, escalators, and moving walkways for buildings and infrastructure projects globally. It generates revenue primarily through new equipment sales (~40% of revenue) and a larger, more stable service segment (~60%) that provides maintenance, repair, and modernization of existing units. The company's competitive moat lies in its massive installed base of over 2 million units worldwide — creating a recurring service revenue stream and high switching costs for building owners.
Market Cap
$28.5B
Revenue TTM
$14.6B
Net Income TTM
$1.5B
Net Margin
10.1%
OTIS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 2 of 4Q3 2025
EPS
$1.05/$1.03
Revenue
$3.6B/$3.7B
Q4 2025
EPS
$1.05/$1.01
Revenue
$3.7B/$3.7B
Q1 2026
EPS
$1.03/$1.04
Revenue
$3.8B/$3.9B
Q2 2026
EPS
$0.89/$0.91
Revenue
$3.6B/$3.5B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.05/$1.03 | +1.9% | $3.6B/$3.7B | -2.0% |
| Q4 2025 | $1.05/$1.01 | +4.0% | $3.7B/$3.7B | +0.8% |
| Q1 2026 | $1.03/$1.04 | -1.0% | $3.8B/$3.9B | -2.3% |
| Q2 2026 | $0.89/$0.91 | -2.2% | $3.6B/$3.5B | +1.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$15.0B
+2.3% YoY
FY2
$15.6B
+4.1% YoY
EPS Outlook
FY1
$3.98
+4.7% YoY
FY2
$4.27
+7.3% YoY
Trailing FCF (TTM)$1.7B
FCF Margin: 11.4%
Next Earnings
July 22, 2026
Expected EPS
$1.01
Expected Revenue
$3.8B
OTIS beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
OTIS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $14.4B
Product Mix
Latest annual revenue by segment or product family
Services
65.4%
+6.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Other
59.5%
+6.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Services is the largest disclosed segment at 65.4% of FY 2025 revenue, up 6.2% YoY.
Other is the largest reported region at 59.5%, up 6.0% YoY.
OTIS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $126 — implies +72.5% from today's price.
Upside to Fair Value
72.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
OTIS
20.9x
vs
S&P 500
24.4x
14% discount
vs Industrials Trailing P/E
OTIS
20.9x
vs
Industrials
25.6x
18% discount
vs OTIS 5Y Avg P/E
Today
20.9x
vs
5Y Average
26.1x
20% discount
Forward PE
17.5x
S&P 500
18.8x
-7%
Industrials
21.2x
-17%
5Y Avg
—
—
Trailing PE
20.9x
S&P 500
24.4x
-14%
Industrials
25.6x
-18%
5Y Avg
26.1x
-20%
PEG Ratio
1.91x
S&P 500
1.66x
+15%
Industrials
1.65x
+16%
5Y Avg
—
—
EV/EBITDA
15.7x
S&P 500
15.2x
+3%
Industrials
13.9x
+13%
5Y Avg
18.6x
-16%
Price/FCF
19.7x
S&P 500
20.7x
-5%
Industrials
20.0x
-2%
5Y Avg
24.3x
-19%
Price/Sales
2.0x
S&P 500
3.1x
-36%
Industrials
1.6x
+26%
5Y Avg
2.5x
-22%
Dividend Yield
2.24%
S&P 500
1.91%
+17%
Industrials
1.21%
+85%
5Y Avg
1.48%
+51%
| Metric | OTIS | S&P 500 | Industrials | 5Y Avg OTIS |
|---|---|---|---|---|
| Forward PE | 17.5x | 18.8x | 21.2x-17% | — |
| Trailing PE | 20.9x | 24.4x-14% | 25.6x-18% | 26.1x-20% |
| PEG Ratio | 1.91x | 1.66x+15% | 1.65x+16% | — |
| EV/EBITDA | 15.7x | 15.2x | 13.9x+13% | 18.6x-16% |
| Price/FCF | 19.7x | 20.7x | 20.0x | 24.3x-19% |
| Price/Sales | 2.0x | 3.1x-36% | 1.6x+26% | 2.5x-22% |
| Dividend Yield | 2.24% | 1.91% | 1.21% | 1.48% |
OTIS trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolOTIS Financial Health
Verdict
Strong
OTIS generates $1.7B in free cash flow at a 11.4% margin — 78.1% ROIC signals a durable competitive advantage · returns 5.1% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$14.6B
Revenue Growth
TTM vs prior year
+3.3%
Gross Margin
Gross profit as a share of revenue
30.4%
Operating Margin
Operating income divided by revenue
15.4%
Net Margin
Net income divided by revenue
10.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.80
Free Cash Flow (TTM)
Cash generation after capex
$1.7B
FCF Margin
FCF as share of revenue — the primary cash quality signal
11.4%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
78.1%
ROA
Return on assets, trailing twelve months
14.0%
Cash & Equivalents
Liquid assets on the balance sheet
$1.1B
Net Debt
Total debt minus cash
$7.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
4.6× FCF
~4.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
—
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.1%
Dividend
2.2%
Buyback
2.8%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$809M
Dividend / Share
Annualized trailing dividend per share
$1.64
Payout Ratio
Share of earnings distributed as dividends
46.7%
Shares Outstanding
Declining as buybacks retire shares
389M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageOTIS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Organic revenue stagnation
Concerns over organic revenue stagnation impacting growth prospects.
Medium
Acquisition-dependent growth
Growth strategy heavily reliant on acquisitions, raising execution risks.
Medium
Valuation concerns
Current valuation and risk profile may deter investors.
Lower
Regulatory risk factors
Modified risk factors in 10-K filings indicate evolving regulatory or operational risks.
High Risk
Soft quarterly results
Recent quarterly performance has been weak, contributing to stock decline.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why OTIS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Leading market position
Otis is a leading manufacturer and maintainer of elevators, escalators, and moving walkways with world-class modernization tools.
Strong service segment
The company has a strong service segment with high customer retention, contributing to stable revenue streams.
Modernization opportunities
Otis has significant opportunities in modernization, leveraging its expertise to upgrade existing infrastructure.
Scale advantages
The company benefits from its large scale, which provides competitive advantages in operations and market reach.
Q3 2025 growth potential
Analysts emphasize potential growth in Q3 2025, highlighting the company's forward-looking opportunities.
Industry innovation focus
Otis is dedicated to connecting people in a taller, faster, smarter world, showcasing its commitment to innovation in the industry.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
OTIS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$73.27
52W Range Position
13%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$69.16
+5.9% from the low
52-Week High
$101.42
-27.8% from the high
1 Month
+3.01%
3 Month
-6.70%
YTD
-17.1%
1 Year
-23.4%
3Y CAGR
-5.6%
5Y CAGR
-1.6%
10Y CAGR
+4.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
OTIS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
17.5x
vs 25.6x median
-32% below peer median
Revenue Growth
+2.3%
vs +5.5% median
-59% below peer median
Net Margin
10.1%
vs 13.4% median
-25% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
OTI OTIS Otis Worldwide Corporation | $28.5B | 17.5x | +2.3% | 10.1% | Hold | +26.9% |
CAR CARR Carrier Global Corporation | $60.0B | 25.6x | +2.1% | 6.0% | Buy | -4.1% |
TT TT Trane Technologies plc | $107.0B | 32.4x | +8.0% | 13.4% | Hold | +8.6% |
JCI JCI Johnson Controls International plc | $88.4B | 29.6x | +3.7% | 14.5% | Buy | +8.0% |
ALL ALLE Allegion plc | $11.5B | 15.2x | +6.6% | 15.2% | Hold | +21.5% |
FEL FELE Franklin Electric Co., Inc. | $4.6B | 22.7x | +5.5% | 6.9% | Hold | -4.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
OTIS Dividend and Capital Return
OTIS returns 5.1% annually — 2.24% through dividends and 2.8% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
5.1%
Dividend + buyback return per year
Buyback Yield
2.8%
Dividend Yield
2.24%
Payout Ratio
46.7%
How OTIS Splits Its Return
Div 2.24%
Buyback 2.8%
Dividend 2.24%Buybacks 2.8%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.64
Growth Streak
Consecutive years of dividend increases
5Y
3Y Div CAGR
14.1%
5Y Div CAGR
22.4%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$809M
Estimated Shares Retired
11M
Approx. Share Reduction
2.8%
Shares Outstanding
Current diluted share count from the screening snapshot
389M
At 2.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.86 | — | — | — |
| 2025 | $1.65 | +9.3% | 2.4% | 4.2% |
| 2024 | $1.51 | +15.3% | 2.7% | 4.3% |
| 2023 | $1.31 | +18.0% | 2.2% | 3.6% |
| 2022 | $1.11 | +20.7% | 2.6% | 4.0% |
FAQ
7 questionsOTIS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Otis Worldwide Corporation (OTIS) stock a buy or sell in 2026?
Otis Worldwide Corporation (OTIS) is rated Hold by Wall Street analysts as of 2026. Of 13 analysts covering the stock, 5 rate it Buy or Strong Buy, 7 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $93, implying +26.9% from the current price of $73. The bear case scenario is $54 and the bull case is $114.
02What is the OTIS stock price target for 2026?
The Wall Street consensus price target for OTIS is $93 based on 13 analyst estimates. The high-end target is $105 (+43.3% from today), and the low-end target is $77 (+5.1%). The base case model target is $86.
03Is Otis Worldwide Corporation (OTIS) stock overvalued in 2026?
OTIS trades at 17.5x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Otis Worldwide Corporation (OTIS) stock in 2026?
The primary risks for OTIS in 2026 are: (1) Organic revenue stagnation — Concerns over organic revenue stagnation impacting growth prospects. (2) Soft quarterly results — Recent quarterly performance has been weak, contributing to stock decline. (3) Acquisition-dependent growth — Growth strategy heavily reliant on acquisitions, raising execution risks. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Otis Worldwide Corporation's revenue and earnings forecast?
Analyst consensus estimates OTIS will report consensus revenue of $15.0B (+2.3% year-over-year) and EPS of $3.98 (+4.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $15.6B in revenue.
06When does Otis Worldwide Corporation (OTIS) report its next earnings?
Otis Worldwide Corporation is expected to report its next earnings on approximately 2026-07-22. Consensus expects EPS of $1.01 and revenue of $3.8B. Over recent quarters, OTIS has beaten EPS estimates 67% of the time.
07How much free cash flow does Otis Worldwide Corporation generate?
Otis Worldwide Corporation (OTIS) generated $1.7B in free cash flow over the trailing twelve months — a free cash flow margin of 11.4%. OTIS returns capital to shareholders through dividends (2.2% yield) and share repurchases ($809M TTM).