Core Insights - Johnson Controls International plc (JCI) is experiencing strong momentum across all segments, driven by demand for HVAC platforms and controls [1][7] Segment Performance - The Americas segment is benefiting from increased demand for HVAC platforms in data centers and strong performance in controls businesses [1] - The EMEA segment is supported by strength in service, fire and security, and applied HVAC businesses [1] - The APAC segment's performance is driven by solid momentum in the service business, with positive contributions from products and systems [1] Acquisitions and Revenue Growth - In fiscal 2025, acquisitions contributed an additional $25 million to JCI's revenues, notably through the acquisition of FM:Systems, enhancing OpenBlue's digital buildings offerings [2] Shareholder Returns - JCI rewarded shareholders with $976 million in dividends and repurchased shares worth $5.99 billion in fiscal 2025, increasing its quarterly dividend by 8% to 40 cents per share [3] Financial Performance - JCI's shares gained 15.1% over the past six months, outperforming the industry growth of 3.0% [4] Cost Pressures - The company faces margin pressure due to an 11.2% year-over-year increase in selling, general and administrative expenses, driven by organizational realignment and higher IT and cybersecurity costs [6][7] Currency Impact - JCI's global market exposure makes it vulnerable to foreign exchange fluctuations, with adverse currency translations reducing the Americas segment's sales by $34 million in fiscal 2025 [8]

Core Viewpoint - Johnson Controls International plc (JCI) is set to release its second-quarter fiscal 2025 financial results on May 7, with expectations of a mixed performance in revenues and earnings compared to the previous year [1][5]. Revenue Estimates - The consensus estimate for JCI's revenues is $5.64 billion, reflecting a decrease of 15.8% from the same quarter last year [2]. - The Building Solutions North America segment is anticipated to benefit from strong demand for HVAC platforms in data centers [2]. - The Building Solutions Europe, the Middle East, Africa/Latin America segment is expected to see revenues of $1.1 billion, indicating a 0.5% increase year-over-year [3]. - The Building Solutions Asia Pacific segment is projected to experience a revenue decline of 14.3% year-over-year to $434.8 million [4]. - The Global Products segment is expected to see an 8.3% increase in revenues year-over-year to $531.5 million [4]. Earnings Estimates - The consensus estimate for adjusted earnings is set at 77 cents per share, a decrease of 1.3% from the previous year [2]. - JCI has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 5.1% [1]. Key Factors Influencing Performance - Investments in digital offerings, such as the OpenBlue platform, are expected to drive revenue growth [5]. - However, rising selling, general and administrative (SG&A) expenses, particularly due to higher insurance recovery costs, may negatively impact margins [6]. - The company faces foreign currency headwinds due to its significant international operations, which could further affect profitability [6]. Earnings Prediction Model - JCI currently has an Earnings ESP of 0.00%, indicating no clear prediction for an earnings beat this time [8]. - The company holds a Zacks Rank of 4 (Sell), which suggests a less favorable outlook compared to higher-ranked peers [8].