Revenue reached about $3.9B in 2026Q3 with operating margin rising to 16.0% from 12.3% in 2025Q1, though gross margin has remained confined to a 29.2% to 30.7% band, suggesting profitability gains are coming from SG&A discipline rather than pricing expansion.
Otis Worldwide Corporation (OTIS) 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 | 15.13B | 14.43B | 14.26B | 14.21B | 13.69B | 14.3B | 12.76B | 13.12B | 12.91B | 12.32B |
| Revenue Growth % | 5.77% | 1.19% | 0.37% | 3.83% | -4.29% | 12.09% | -2.76% | 1.57% | 4.8% | - |
| Cost of Goods Sold | 10.62B | 10.06B | 10B | 10.02B | 9.77B | 10.11B | 8.98B | 9.29B | 9.19B | 8.62B |
| COGS % of Revenue | - | 69.72% | 70.15% | 70.49% | 71.36% | 70.67% | 70.37% | 70.83% | 71.15% | 69.96% |
| Gross Profit | 4.52B | 4.37B | 4.26B | 4.19B | 3.92B | 4.19B | 3.78B | 3.83B | 3.73B | 3.7B |
| Gross Margin % | 29.86% | 30.28% | 29.85% | 29.51% | 28.64% | 29.33% | 29.63% | 29.17% | 28.85% | 30.04% |
| Gross Profit Growth % | - | 2.65% | 1.53% | 6.96% | -6.51% | 10.96% | -1.23% | 2.68% | 0.65% | - |
| Operating Expenses | 2.19B | 2.24B | 2.25B | 2.01B | 1.89B | 2.08B | 2.14B | 2.01B | 1.89B | 1.79B |
| OpEx % of Revenue | - | 15.5% | 15.77% | 14.12% | 13.79% | 14.58% | 16.78% | 15.34% | 14.64% | 14.49% |
| Selling, General & Admin | 2.03B | 1.98B | 1.82B | 1.82B | 1.73B | 1.95B | 1.92B | 1.81B | 1.74B | 1.65B |
| SG&A % of Revenue | - | 13.71% | 12.75% | 12.83% | 12.61% | 13.62% | 15.08% | 13.8% | 13.43% | 13.37% |
| Research & Development | 158M | 152M | 152M | 144M | 150M | 159M | 152M | 163M | 181M | 175M |
| R&D % of Revenue | - | 1.05% | 1.07% | 1.01% | 1.1% | 1.11% | 1.19% | 1.24% | 1.4% | 1.42% |
| Other Operating Expenses | 1000K | 106M | 279M | 40M | 12M | -22M | 64M | 39M | -25M | -37M |
| Operating Income | 2.33B | 2.13B | 2.01B | 2.19B | 2.03B | 2.11B | 1.64B | 1.81B | 1.83B | 1.92B |
| Operating Margin % | 15.39% | 14.78% | 14.08% | 15.38% | 14.86% | 14.74% | 12.85% | 13.83% | 14.21% | 15.55% |
| Operating Income Growth % | - | 6.23% | -8.14% | 7.53% | -3.56% | 28.62% | -9.65% | -1.14% | -4.23% | - |
| EBITDA | 2.5B | 2.31B | 2.19B | 2.38B | 2.22B | 2.31B | 1.83B | 1.99B | 2.02B | 2.09B |
| EBITDA Margin % | 16.5% | 15.99% | 15.35% | 16.74% | 16.25% | 16.16% | 14.35% | 15.2% | 15.68% | 16.98% |
| EBITDA Growth % | 10.87% | 5.44% | -7.99% | 6.97% | -3.76% | 26.28% | -8.22% | -1.53% | -3.25% | - |
| D&A (Non-Cash Add-back) | 169M | 175M | 181M | 193M | 191M | 203M | 191M | 180M | 190M | 177M |
| EBIT | 2.32B | 2.13B | 2.05B | 2.25B | 2.07B | 2.1B | 1.64B | 1.81B | 1.83B | 2B |
| Net Interest Income | -217M | -196M | 31M | -150M | -143M | -136M | -122M | 14M | 14M | 21M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 53M | 51M | 61M |
| Interest Expense | 217M | 196M | -31M | 150M | 143M | 136M | 122M | 39M | 37M | 40M |
| Other Income/Expense | -224M | -199M | 31M | -155M | -145M | -147M | -128M | 47M | 58M | 41M |
| Pretax Income | 2.1B | 1.93B | 2.04B | 2.03B | 1.89B | 1.96B | 1.51B | 1.86B | 1.89B | 1.96B |
| Pretax Margin % | 13.91% | 13.4% | 14.3% | 14.29% | 13.8% | 13.72% | 11.85% | 14.19% | 14.66% | 15.88% |
| Income Tax | 493M | 479M | 305M | 533M | 519M | 541M | 455M | 594M | 683M | 1.15B |
| Effective Tax Rate % | 23.42% | 24.77% | 14.96% | 26.24% | 27.49% | 27.59% | 30.11% | 31.92% | 36.08% | 58.66% |
| Net Income | 1.56B | 1.38B | 1.65B | 1.41B | 1.25B | 1.25B | 906M | 1.12B | 1.05B | 636M |
| Net Margin % | 10.28% | 9.59% | 11.54% | 9.9% | 9.16% | 8.71% | 7.1% | 8.51% | 8.12% | 5.16% |
| Net Income Growth % | 15.52% | -15.87% | 17% | 12.21% | 0.56% | 37.53% | -18.82% | 6.39% | 64.94% | - |
| Net Income (Continuing) | 1.61B | 1.46B | 1.73B | 1.5B | 1.37B | 1.42B | 1.06B | 1.27B | 1.21B | 809M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 166M | 121M | 120M | 204M | 206M | 641M | 661M | 626M | 646M | 698M |
| EPS (Diluted) | 4.07 | 3.50 | 4.07 | 3.39 | 2.96 | 2.89 | 2.08 | 2.58 | 2.42 | 1.47 |
| EPS Growth % | 18.58% | -14% | 20.06% | 14.53% | 2.42% | 38.94% | -19.28% | 6.39% | 64.94% | - |
| EPS (Basic) | - | 3.53 | 4.10 | 3.42 | 2.98 | 2.91 | 2.09 | 2.58 | 2.42 | 1.47 |
| Diluted Shares Outstanding | 381.9M | 393.68M | 404.4M | 414.6M | 423M | 431.4M | 434.6M | 433.11M | 433.1M | 436.4M |
| Basic Shares Outstanding | 381M | 393.68M | 401.7M | 411.4M | 420M | 427.7M | 433.2M | 433.11M | 433.1M | 433.1M |
| Dividend Payout Ratio | - | 46.75% | 36.84% | 38.34% | 37.11% | 31.54% | 28.7% | - | - | - |
Quick answers to the most common questions about buying OTIS stock.
For fiscal year 2025, Otis Worldwide Corporation (OTIS) reported total revenue of $14.43B. This represents a 17.1% increase compared to $12.32B in 2017.
Otis Worldwide Corporation (OTIS) is profitable, generating $1.38B in net income for the fiscal year ending 2025 with a net profit margin of 9.6%.
Otis Worldwide Corporation (OTIS) reported an operating income of $2.13B, resulting in an operating profit margin of 14.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Otis Worldwide Corporation (OTIS) generated $4.37B in gross profit for the year, representing a gross profit margin of 30.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
China new equipment weakness
Metrics are mathematically derived from official filings.
Top-Line Growth Moderating Toward Low Single Digits
Based on reported figures, OTIS revenue grew 6.1% year-over-year in 2026Q3 to about $3.9B, a meaningful step up from the -2.5% contraction seen in 2025Q1, though growth has not yet shown sustained acceleration across the full ten-quarter series.
The recovery from negative growth in 2025 to positive mid-single-digit growth in 2026 suggests the Service-led mix is absorbing softness in New Equipment. Whether this represents durable momentum or a cyclical rebound depends on whether modernization and maintenance growth can persist while China volumes remain weak. Investors should monitor whether top-line growth holds above 5% without relying on pricing alone.
Gross Margin Anchored Near Thirty Percent
As reported in financial statements, OTIS gross margin has held in a narrow 29.2% to 30.7% band across the ten quarters, indicating structural stability in its blended New Equipment and Service cost base rather than meaningful pricing expansion.
The tight range suggests the mix shift toward higher-margin Service is being offset by thin New Equipment margins and rising labor and material costs. The absence of margin expansion despite growth implies limited incremental pricing power in the current environment. Persistent skilled-trade labor inflation may pressure this band if contract escalators lag cost increases.
Operating Margin Recovery Outpacing Revenue
Based on reported figures, OTIS operating margin rose from 12.3% in 2025Q1 to 16.0% in 2026Q3, with operating income growing faster than revenue, suggesting SG&A discipline and fixed-cost absorption are supporting operating leverage.
SG&A has remained relatively flat in absolute terms while revenue expanded, which points to meaningful operating leverage on the existing branch and service network. This pattern is consistent with the fixed-cost absorption thesis for a dense installed base. Investors should verify that the margin gain is not temporarily flattered by restructuring timing or cost deferrals.
EPS Growth Partly Reflects Share Count Reduction
According to recent SEC filings, OTIS diluted EPS reached $1.08 in 2026Q3 with 13.7% year-over-year growth, while net income growth of roughly 5% to 10% over the same period suggests a meaningful portion of per-share gains may stem from buybacks.
The divergence between net income and EPS growth implies that repurchases are contributing materially to per-share results. Net income quality appears reasonable given stable margins, but this reliance on capital return warrants scrutiny if organic earnings growth remains in the low single digits. Stock-based compensation is modest relative to earnings and does not appear to distort the reported figures.
Margin Ceiling and Buyback-Dependent Earnings
Based on reported figures, the strongest bear case is that OTIS gross margin has remained flat near 30% for ten quarters, implying that EPS growth may increasingly depend on share repurchases rather than durable operating improvement.
If China new equipment volumes stay depressed, the New Equipment segment could continue to dilute blended margins and cap operating leverage gains. Peer gross margins such as Allegion at 45.2% suggest OTIS lacks the pricing premium that would normally support a higher multiple, which warrants further investigation. Investors should monitor whether reported EPS growth can be sustained once buyback pace moderates.