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what it is
Otis sells, installs, and fixes the elevators and escalators your office, apartment, and mall already depend on.
how it gets paid
Last year Otis Worldwide made $14.4B in revenue. Maintenance and repair services was the main engine at $6.4B, or 44% of sales.
why it's growing
Revenue grew 1.2% last year. This figure was up 4% vs. prior year aided by a 2% rise in organic sales.
what just happened
Otis posted $1.03 in the latest reported quarter versus a $1.09 estimate, a 5.5% miss.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
100/100 earnings predictability — you can trust these numbers
21.5x trailing p/e — priced about right
2.8% dividend yield — cash in your pocket every quarter
24.0% return on capital — every dollar works hard here
xvary composite: 68/100 — average
What they do
Otis sells, installs, and fixes the elevators and escalators your office, apartment, and mall already depend on.
Otis wins because elevators are sticky after the sale. Service was 62% of 2024 sales, and once your building is on a maintenance contract, switching vendors is a hassle with real safety risk. That shows up in a 24.0% return on capital (how much profit each dollar invested earns → efficiency → so what: this installed base throws off dependable cash).
How they make money
$14.4B
annual revenue · their business grew +1.2% last year
Elevator new equipment
$4.0B
+1.0%
Escalator and moving walk new equipment
$1.5B
+0.0%
Maintenance and repair services
$6.4B
+2.0%
Modernization upgrades
$2.5B
+4.0%
The products that matter
elevators, escalators, and installs
New Equipment
$14.4B company revenue base
This is the visible part of the story. It sits inside a $14.4B business, and management said growth here was weak in China and the Americas. That matters because new equipment fills the future service pipeline.
front door
maintenance and modernization work
Service and Modernization
95 / 100 price stability
The segment split is not provided in this snapshot, so we will not fake it. What you do have is a 95 / 100 price stability score, an 11.3% net margin, and management commentary that modernization was solid. In human terms: the installed base keeps the numbers from getting too cyclical.
recurring engine
Key numbers
24.0%
return on capital
Return on capital → profit earned on invested money → so what: Otis turns an installed base into strong economics.
18.4%
operating margin
Operating margin → profit after running the business → so what: service revenue gives Otis room most equipment makers do not get.
2.8%
dividend yield
Dividend yield → cash paid to you each year at today's price → so what: you are paid to wait while orders recover.
95/100
price stability
Price stability → how steady the stock has traded → so what: this usually behaves more like infrastructure than hype.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- long-term debt $7.6B (18% of capital)
- net profit margin 12.8% — keeps 13 cents of every dollar in revenue
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in OTIS 3 years ago → it's now worth $11,730.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Otis posted $1.03 in the latest reported quarter versus a $1.09 estimate, a 5.5% miss.
The setup was mixed. Full-year revenue was $14.4B, up 1.2%, while the September interim showed sales just under $3.7B, up 4%, helped by 2% organic sales growth and stronger modernization.
$3.6B
revenue
$1.03
eps
18.4%
operating margin
the number that mattered
The key number was the $1.03 EPS print, because the market was looking for $1.09 and even a steady business gets punished when it misses by 5.5%.
-
otis worldwide beat expectations for both sales and earnings in the september interim.
-
the top line came in just shy of $3.7 billion, beating our estimate by $40 million.
-
this figure was up 4% vs. prior year aided by a 2% rise in organic sales.
-
add to this, the service segment had a solid quarter in terms of modernization upgrades.
-
new equipment sales continued to sputter, especially in china and the americas.management believes the global economy is playing a major role in this matter and expects a recovery to begin to take shape in 2026.
source: company earnings report, 2026
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What could go wrong
the top threat is continued new-equipment weakness in China and the Americas.
med
china and americas equipment slowdown lasts longer than expected
Management already flagged weak new-equipment sales in both regions. If that weakness carries through 2026, the $15B revenue estimate starts to look aggressive.
Otis generated $14.4B last year. Missing even modest growth matters when the stock already trades at 21.5x trailing earnings.
med
price pressure in service or modernization
The whole appeal here is that the installed base throws off steady, high-quality revenue. If competition forces pricing concessions, the smooth part of the story gets rougher fast.
A 1-point margin hit on a $14.4B revenue base is about $144M of profit pressure. That is real money for a business earning an 11.3% net margin.
med
labor, safety, and compliance costs creep higher
Elevators are regulated, service work is labor-intensive, and neither of those facts is optional. Rising technician costs or tougher safety compliance requirements can eat into steady-looking results.
Otis keeps about 11 cents of every revenue dollar. That leaves less cushion than the stock's 95 / 100 stability score might imply.
If revenue stalls below the $15B path and margin slips by even 1 point, you are looking at roughly $144M of profit pressure against a stock priced for steadiness.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
the $15B revenue line
That is the current full-year estimate. If Otis cannot grow from $14.4B to $15B, the market will stop paying up for reliability.
trend
institutional selling streak
Institutions were net sellers for two straight quarters, with 477 buyers versus 606 sellers in 3Q2025. If that keeps going, sentiment is getting worse before fundamentals do.
calendar
the 2026 recovery claim
Management says recovery should begin taking shape in 2026. The next few quarters need to show that this is more than a calendar-based hope.
risk
new equipment versus modernization
Modernization looked solid while new equipment stayed weak. If the first keeps offsetting the second, the stock holds up. If both soften, the thesis changes.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong short-term edge here.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. This is the part of the story the market trusts.
chart momentum
average
technical score 3 — the stock is moving with the broader market, not breaking away from it.
earnings predictability
100 / 100
Management usually delivers what the market expects. Great for trust. Less great if you are hoping for surprise upside.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 477 buyers vs. 606 sellers in 3q2025. total institutional holdings: 0.3B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$75
$127
$87
current price
$101
target midpoint · +16% from current · 3-5yr high: $175 (+100% · 20% ann'l return)
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