Core Insights - Johnson Controls International plc (JCI) reported adjusted earnings of 89 cents per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of 84 cents, marking a 39% year-over-year increase [1][9] - Total revenues for the quarter reached $5.80 billion, surpassing the consensus estimate of $5.66 billion, with a year-over-year growth of 7% and organic revenue growth of 6% [1][9] Q1 Segmental Results - **Americas**: Revenues were $3.84 billion, up 6% year over year, with organic sales also increasing by 6%, driven by strong HVAC and controls performance. Adjusted EBITA rose 7% to $632 million [2] - **EMEA**: Revenues totaled $1.26 billion, a 9% increase year over year, with organic sales rising 4% due to growth in the service business. Adjusted EBITA increased 21% to $164 million [3] - **APAC**: Revenues increased 8% to $693 million, with organic sales also up 8%, supported by strength in Products and Systems. Adjusted EBITA grew 30% to $117 million [3] Margin Profile - Cost of sales increased 6.4% year over year to approximately $3.72 billion. Gross profit rose 7.7% to $2.07 billion, with a margin increase of 30 basis points to 35.8%. Selling, general and administrative expenses decreased by 12.7% to $1.22 billion [4] Financial Position - As of December 31, 2025, cash and cash equivalents were $552 million, up from $379 million at the end of fiscal 2025. Long-term debt increased to $8.7 billion from $8.59 billion [5] - The company generated net cash of $611 million from operating activities in Q1 fiscal 2026, compared to $249 million in the same period last year. Adjusted free cash flow was $428 million, down from $603 million year over year [6] Q2 Guidance - Johnson Controls anticipates organic revenue growth of approximately 5% from the previous year, with operating leverage estimated at about 45%. Adjusted earnings are expected to be around $1.11 per share [7] FY26 Guidance - The company expects organic revenue growth to be in the mid-single-digit range from the prior year, with operating leverage projected at about 50%. Adjusted earnings per share are anticipated to be approximately $4.70, with an expected adjusted free cash flow conversion of about 100% [10]

Core Insights - Johnson Controls International plc (JCI) reported adjusted earnings of $1.26 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.20, marking a 13.5% year-over-year increase [1] - Total revenues for the quarter reached $6.44 billion, surpassing the consensus estimate of $6.32 billion, with a 3% year-over-year increase and organic revenue growth of 4% [1][9] - For fiscal 2025, adjusted earnings were $3.76 per share, up 17.1% year over year, with total revenues of $23.6 billion reflecting a 2.8% increase [2] Q4 Segmental Results - **Americas**: Revenues were $4.33 billion, up 1% year over year, with organic sales increasing 3%, driven by HVAC and controls businesses; adjusted EBITA rose 4% to $862 million [3] - **EMEA**: Revenues totaled $1.34 billion, up 13% year over year, with organic sales climbing 9%; adjusted EBITA increased 15% to $208 million [4] - **APAC**: Revenues decreased 3% to $780 million, with organic sales also down 3% due to reduced volumes in China; adjusted EBITA fell 12% to $139 million [4] Margin Profile - In Q4, JCI's cost of sales increased 2.8% year over year to approximately $4.09 billion; gross profit rose 3.7% to $2.35 billion, with a gross margin improvement of 20 basis points to 36.5% [5] Financial Position - As of September 30, 2025, JCI had cash and cash equivalents of $379 million, down from $606 million at the end of fiscal 2024; long-term debt increased to $8.59 billion from $8 billion [6] Cash Flow and Shareholder Returns - In fiscal 2025, JCI generated net cash of $2.55 billion from operating activities, compared to $1.57 billion in the previous year; adjusted free cash flow was $2.12 billion, nearly double year over year [7] - The company paid dividends of $976 million and repurchased shares worth approximately $5.99 billion in fiscal 2025 [7] Guidance - For Q1, JCI anticipates organic revenue growth of approximately 3% year-over-year, with adjusted earnings expected to be about $0.83 per share [10] - For fiscal 2026, the company expects mid-single-digit organic revenue growth, adjusted earnings per share of approximately $4.55, and free cash flow conversion of about 100% [11]