Revenue growth remains inconsistent, fluctuating between -3.2% and 6.4% over the last ten quarters, while operating margins have struggled to scale beyond a 15.9% peak.
| Sales/Revenue | 14.65B | 14.43B | 14.26B | 14.21B | 13.69B | 14.3B | 12.76B | 13.12B | 12.91B | 12.32B |
| Revenue Growth % | 3.34% | 1.19% | 0.37% | 3.83% | -4.29% | 12.09% | -2.76% | 1.57% | 4.8% | - |
| Cost of Goods Sold | 10.2B | 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 | 4.45B | 4.37B | 4.26B | 4.19B | 3.92B | 4.19B | 3.78B | 3.83B | 3.73B | 3.7B |
| Gross Margin % | 30.39% | 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 | 2.02B | 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 | 153M | 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 | 2M | 106M | 279M | 40M | 12M | -22M | 64M | 39M | -25M | -37M |
| Operating Income | 2.26B | 2.13B | 2.01B | 2.19B | 2.03B | 2.11B | 1.64B | 1.81B | 1.83B | 1.92B |
| Operating Margin % | 15.44% | 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 | 2.44B | 2.31B | 2.19B | 2.38B | 2.22B | 2.31B | 1.83B | 1.99B | 2.02B | 2.09B |
| EBITDA Margin % | 16.62% | 15.99% | 15.35% | 16.74% | 16.25% | 16.16% | 14.35% | 15.2% | 15.68% | 16.98% |
| EBITDA Growth % | 18.55% | 5.44% | -7.99% | 6.97% | -3.76% | 26.28% | -8.22% | -1.53% | -3.25% | - |
| D&A (Non-Cash Add-back) | 174M | 175M | 181M | 193M | 191M | 203M | 191M | 180M | 190M | 177M |
| EBIT | 2.26B | 2.13B | 2.05B | 2.25B | 2.07B | 2.11B | 1.64B | 1.81B | 1.83B | 2B |
| Net Interest Income | -210M | -196M | 31M | -150M | -143M | -136M | -122M | 14M | 14M | 21M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 53M | 51M | 61M |
| Interest Expense | 210M | 196M | -31M | 150M | 143M | 136M | 122M | 39M | 37M | 40M |
| Other Income/Expense | -213M | -199M | 31M | -155M | -145M | -147M | -128M | 47M | 58M | 41M |
| Pretax Income | 2.05B | 1.93B | 2.04B | 2.03B | 1.89B | 1.96B | 1.51B | 1.86B | 1.89B | 1.96B |
| Pretax Margin % | 13.98% | 13.4% | 14.3% | 14.29% | 13.8% | 13.72% | 11.85% | 14.19% | 14.66% | 15.88% |
| Income Tax | 496M | 479M | 305M | 533M | 519M | 541M | 455M | 594M | 683M | 1.15B |
| Effective Tax Rate % | 24.22% | 24.77% | 14.96% | 26.24% | 27.49% | 27.59% | 30.11% | 31.92% | 36.08% | 58.66% |
| Net Income | 1.48B | 1.38B | 1.65B | 1.41B | 1.25B | 1.25B | 906M | 1.12B | 1.05B | 636M |
| Net Margin % | 10.11% | 9.59% | 11.54% | 9.9% | 9.16% | 8.71% | 7.1% | 8.51% | 8.12% | 5.16% |
| Net Income Growth % | -3.52% | -15.87% | 17% | 12.21% | 0.56% | 37.53% | -18.82% | 6.39% | 64.94% | - |
| Net Income (Continuing) | 1.55B | 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 | 245M | 121M | 120M | 204M | 206M | 641M | 661M | 626M | 646M | 698M |
| EPS (Diluted) | 3.80 | 3.50 | 4.07 | 3.39 | 2.96 | 2.89 | 2.08 | 2.58 | 2.42 | 1.47 |
| EPS Growth % | -1.31% | -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 | 389.6M | 393.68M | 404.4M | 414.6M | 423M | 431.4M | 434.6M | 433.11M | 433.1M | 436.4M |
| Basic Shares Outstanding | 388.1M | 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% | - | - | - |
China property market exposure
According to the provided quarterly income statements, Otis experienced a revenue growth rate of 6.4% in 2026Q1, following a period of inconsistent performance where growth fluctuated between negative 3.2% and positive 5.3% over the preceding ten quarters, suggesting a lack of sustained top-line momentum.
The recent uptick in revenue growth appears to be a departure from the stagnation observed throughout 2024 and early 2025. Investors should monitor whether this reflects a genuine recovery in new equipment demand or merely favorable timing in project-based revenue recognition, as the underlying cyclicality of the construction sector remains a significant headwind.
As reported in the financial data, Otis has maintained a remarkably consistent gross margin profile, hovering near the 30% threshold for the last ten quarters, which indicates a disciplined approach to managing variable costs despite broader inflationary pressures in the global industrial machinery sector.
This stability suggests that the company's service-led model effectively buffers the lower-margin new equipment business from extreme volatility. However, the inability to expand these margins beyond the 30% range may imply that competitive pricing pressures in the new installation market are offsetting the efficiency gains achieved in the service segment.
Based on the income statement figures, operating margins have oscillated between 10.2% and 15.9% over the last ten quarters, demonstrating that operating income is not consistently scaling faster than gross profit, which warrants further investigation into the company's ability to control rising SG&A expenses.
The fluctuation in operating margins suggests that fixed-cost absorption is sensitive to revenue volume, particularly when new equipment sales soften. While the company aims to digitize maintenance to improve efficiency, the current data indicates that SG&A costs remain a significant drag on the bottom line, preventing meaningful operating leverage expansion.
Analysis of the reported figures reveals that net income has experienced significant volatility, including a notable spike in 2024Q3, which may indicate that non-operating items or tax anomalies are obscuring the true underlying profitability of the core service and equipment business segments.
The recent introduction of stock-based compensation in 2026Q1, which was absent in previous periods, suggests a potential shift in expense structure that could dilute future earnings quality. Investors should remain cautious, as the reliance on non-operating gains to bolster net income may mask underlying operational challenges in the competitive elevator maintenance market.
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.