Otis Worldwide Corporation (OTIS) AI Stock Analysis

Otis Worldwide Corporation manufactures, installs, and services elevators and escalators across the United States, China, and global markets. The company operates through two core segments: New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways for residential buildings, commercial properties, and infrastructure projects, serving real-estate developers and general contractors. The Service segment provides maintenance, repair, and modernization solutions to optimize performance, resolve operational issues, and upgrade existing equipment with modern technologies for enhanced reliability, efficiency, and passenger safety.

Between FY2021 and FY2025, annual revenue edged up from $14.30B to $14.43B, delivering a 5-year revenue CAGR of 2.5%. Over that timeframe, gross margin expanded from 29.3% in FY2021 to 30.3% in FY2025, while operating margin stayed relatively stable, ending FY2025 at 14.8%. Net income was $1.25B in FY2021, peaked at $1.65B in FY2024, and reached $1.38B in FY2025, yielding an EPS of $4.05. Over the trailing twelve months ended June 30, 2026, revenue stood at $14.91B with an operating margin of 15.1%. In the latest quarter, quarterly revenue grew 7.3% year-over-year while quarterly earnings rose 13.0%.

As of June 30, 2026, Otis Worldwide held $813.0M in cash and short-term investments against $8.85B in total debt, leading to net debt of $8.03B. Total assets stood at $11.16B, while shareholders' equity was negative at -$5.75B, accompanied by a current ratio of 0.83. In FY2025, the business generated $1.60B in operating cash flow and $1.44B in free cash flow. Cash deployment in FY2025 included $152.0M for capital expenditures, $809.0M for share buybacks, and $647.0M in dividends paid, contributing to a 10.0% reduction in share count over 5 years.

Otis trades at a trailing P/E of 18.3x and a forward P/E of 15.1x, below the median of its S&P 500 Industrials peers of 28.5x trailing and 20.7x forward. Its enterprise value of $34.04B translates to an EV/EBITDA of 13.4x, lower than the peer median of 17.7x, while its price-to-sales multiple is 1.8x compared to the peer median of 3.3x. The stock has underperformed broader markets, declining 19.6% over the past year and 7.8% over five years, versus gains of 16.8% and 83.0% for the S&P 500.

Otis pays a quarterly dividend with a forward annualized rate of $1.76 per share, representing a 2.47% dividend yield and a 43.2% payout ratio. The company has paid dividends for 7 consecutive years, posting a 5-year annualized dividend growth rate of 22.4%. The most recent ex-dividend date was August 14, 2026.

Wall Street analysts hold 5 Strong Buy, 2 Buy, 7 Hold, 0 Sell, and 1 Strong Sell recommendations on the stock. The mean price target of $86.54 represents 21.3% upside compared to the last close of $71.33. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $15.31B and EPS of $4.04, reflecting a 0.2% decline in earnings. For the next fiscal year, 15 analysts expect revenue of $16.00B and EPS of $4.53. Otis beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for October 28, 2026.

This page is an AI-written research summary of Otis Worldwide Corporation (OTIS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: OTIS income statement, OTIS balance sheet, OTIS key metrics, OTIS analyst forecast, OTIS chart. See the OTIS stock overview for the latest quote and news.