JPMorgan Raises Johnson Controls International plc (JCI) Target After Q1 “Break Out in Performance”

Core Viewpoint - Johnson Controls International plc (NYSE:JCI) has demonstrated strong performance in its fiscal Q1 results, leading to an increased price target from JPMorgan and a positive outlook for future profits driven by demand in the data center sector [2][3][4]. Financial Performance - For the quarter ended December 31, Johnson Controls reported adjusted earnings of $0.89 per share, up from $0.64 a year earlier [5]. - Revenue for the first quarter increased to $5.79 billion, compared to $5.43 billion in the prior-year period [5]. - The company raised its full-year adjusted profit forecast to $4.70 per share from $4.55, surpassing analysts' average estimate of $4.61 [4]. Market Outlook - The company guided 2026 profit above Wall Street expectations, indicating steady demand for its thermal management and cooling equipment, particularly in data centers [3]. - As AI computing capacity expands, the demand for energy-efficient thermal management solutions is rising, benefiting Johnson Controls [4]. Analyst Ratings - JPMorgan raised its price target on Johnson Controls to $158 from $138 and maintained an Overweight rating, citing a "break out in performance" under the new CEO [2][8].