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Otis delivers net sales growth of 6%, driven by Service with growth in all lines of business, led by repair

Net sales up 6% and organic sales up 1%, driven by Service net sales up 11% with organic sales up 5% Repair net sales up 16% with organic repair sales up approximately 10% Modernization orders up 11% at constant currency, backlog up 32%, 30% at constant currency New Equipment orders up 1% at constant currency, backlog up 6%, 3% at constant currency Operating cash flow of $413 million; adjusted free cash flow of $272 million Share repurchases of approximately $400 million , /PRNewswire/ -- Otis Worldwide Corporation (NYSE:OTIS) reported first quarter 2026 net sales of $3.6 billion with organic sales up 1% versus the prior year. GAAP earnings per share (EPS) increased 43% to $0.87 and adjusted EPS decreased 3% to $0.89.

"Otis delivered a solid quarter, with net sales up 6%. All Service lines of business grew, led by repair which grew 16% at actual currency and 10% organically. Orders and backlog strengthened: modernization orders were up 11% and backlog was up 30% at constant currency. New Equipment orders grew 1% and backlog grew 3% at constant currency. Otis delivered operating cash flow of $413 million and adjusted free cash flow of $272 million, up significantly from a year ago," said Chair, CEO & President Judy Marks. "This performance allowed Otis to repurchase approximately $400 million of shares while also announcing an exciting majority investment in WeMaintain, a digitally native and AI enabled elevator service provider." 

Judy Marks continued, "While underlying demand remains solid as reflected in our order activity, we faced near‑term pressures, reflected in our Service margins, from cost headwinds and investments in growth. We are taking decisive actions focused on operational execution, pricing, and cost efficiency to address these pressures, while continuing our disciplined capital allocation to drive long‑term shareholder value. The combination of our increasing backlog, pricing actions, and disciplined execution give us confidence in growing momentum into the second quarter and remainder of the year."

Key Figures

Quarter Ended March 31,

(dollars in millions, except per share amounts)

2026

2025

Y/Y

Y/Y (CFX)

Net sales

$  3,566

$ 3,350

6 %

1 %

Organic sales growth

1 %

GAAP

Operating profit

$    539

$    411

$    128

Operating profit margin

15.1 %

12.3 %

280 bps

Net income

$    340

$    243

40 %

Earnings per share

$   0.87

$   0.61

43 %

Adjusted non-GAAP comparison

Operating profit

$    550

$    560

$    (10)

$   (38)

Operating profit margin

15.4 %

16.7 %

(130) bps

Net income

$    347

$    368

(6) %

Earnings per share

$   0.89

$   0.92

(3) %

First quarter net sales of $3.6 billion increased 6% versus the prior year, driven primarily by Service sales with growth in all lines of business, partially offset by a decrease in New Equipment sales in China and Asia Pacific.

First quarter GAAP operating profit of $539 million increased $128 million driven primarily by a favorable comparison due to UpLift transformation costs, separation-related adjustments, and other non-recurring items in the prior year. Adjusted operating profit of $550 million decreased $10 million at actual currency and $38 million at constant currency, driven by declines in both segments. GAAP operating profit margin expanded 280 basis points to 15.1% and adjusted operating profit margin of 15.4% declined 130 basis points versus the prior year driven by unfavorable segment performance partially offset by segment mix. The performance was impacted by an unfavorable year‑over‑year comparison due to tariff impacts versus the prior year, continued Service investments that began in the second quarter of last year and accelerated this year to support strong repair and modernization order momentum, and shipment delays in New Equipment and modernization related to the geopolitical situation in the Middle East.

GAAP EPS of $0.87 increased 43% compared to the prior year primarily driven by a favorable comparison due to UpLift transformation costs, separation-related adjustments, and other non-recurring items in the prior year. Adjusted EPS of $0.89 decreased 3% driven by operational performance, higher interest, and higher taxes, partially offset by favorable foreign exchange rates and a lower share count.

Service

Quarter Ended March 31,

(dollars in millions)

2026

2025

Y/Y

Y/Y (CFX)

Net sales

$           2,417

$           2,187

11 %

6 %

Organic sales

5 %

Segment operating profit

$              556

$              537

$              19

$            (10)

Segment operating profit margin

23.0 %

24.6 %

(160) bps

In the first quarter, net sales of $2.4 billion increased 11%, with a 5% increase in organic sales. Organic maintenance and repair sales increased 4% and organic modernization sales increased 6%.

Segment operating profit of $556 million increased $19 million at actual currency and decreased $10 million at constant currency due to higher volume and favorable pricing being more than offset by higher labor and material cost, investments, and mix. Segment operating profit margin contracted 160 basis points to 23.0%.

New Equipment

Quarter Ended March 31,

(dollars in millions)

2026

2025

Y/Y

Y/Y (CFX)

Net sales

$           1,149

$           1,163

(1) %

(5) %

Organic sales

(5) %

Segment operating profit

$                38

$                66

$            (28)

$            (27)

Segment operating profit margin

3.3 %

5.7 %

(240) bps

In the first quarter, net sales of $1.1 billion decreased 1% versus the prior year, with low single digit organic sales growth in EMEA more than offset by a greater than 20% decline in China, a mid-single digit decline in Asia Pacific, and a low single digit decline in the Americas.

Segment operating profit of $38 million decreased $28 million at actual currency and $27 million at constant currency from the impacts of lower volume, unfavorable price, and mix, partially offset by productivity. Segment operating profit margin contracted 240 basis points to 3.3%.

New Equipment orders were up 1% at constant currency with a greater than 20% growth in the Americas, and a low single digit growth in EMEA, partially offset by a greater than 20% decline in Asia Pacific, and a low teens decline in China. New Equipment backlog increased 6% at actual currency and 3% at constant currency.

Cash flow

Quarter Ended March 31,

(dollars in millions)

2026

2025

Y/Y

Cash flow from operations

$        413

$        190

$       223

Free cash flow

$        380

$        156

$       224

Adjusted free cash flow

$        272

$        186

$         86

First quarter cash flow changes were driven by an increase in net income and changes in working capital.

2026 Outlook1
Otis is revising our full year outlook:

Net sales of $15.1 to $15.3 billion Organic sales up low to mid-single digits Organic New Equipment sales down low single digits to flat Organic Service sales up mid to high single digits Adjusted operating profit of approximately $2.5 billion, up $20 to $60 million at constant currency; up $60 to $100 million at actual currency Adjusted EPS of $4.20 to $4.24 Adjusted free cash flow of $1.60 to 1.65 billion 1 Note: When we provide outlook for organic sales, adjusted operating profit, adjusted EPS, adjusted effective tax rate and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information.

About Otis
Otis is the world's leading elevator and escalator manufacturing, installation, service and modernization company. We move 2.5 billion people a day and maintain approximately 2.5 million customer units worldwide, the industry's largest Service portfolio. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 45,000 field professionals, all committed to manufacturing, installing and maintaining products to meet the diverse needs of our customers and passengers in more than 200 countries and territories worldwide. For more information, visit www.otis.com and follow us on LinkedIn, YouTube, Instagram and Facebook @OtisElevatorCo.

Use and Definitions of Non-GAAP Financial Measures
Otis Worldwide Corporation ("Otis") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures (referenced in this press release) to the corresponding amounts prepared in accordance with GAAP appears in the attached tables. These tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Below are our non-GAAP financial measures:

Non-GAAP measure

Definition

Organic sales

Represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a non-recurring and/or nonoperational nature ("other significant items"). Management believes organic sales is a useful measure in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted selling, general and

administrative ("SG&A") expense

Represents SG&A expense (a GAAP measure), excluding restructuring costs and other significant items.

Adjusted operating profit

Represents income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items.

Adjusted net interest expense

Represents net interest expense (a GAAP measure), adjusted for the impacts of non-recurring acquisition related financing costs and related net interest expense pending the completion of a transaction and other significant items.

Adjusted noncontrolling interest in

earnings

Represents noncontrolling interest in earnings (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.

Adjusted net income

Represents net income attributable to Otis Worldwide Corporation (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.

Adjusted earnings per share ("EPS")

Represents diluted earnings per share attributable to common shareholders (a GAAP measure), adjusted for the per share impact of restructuring and other significant items, including related tax effects.

Adjusted effective tax rate

Represents the effective tax rate (a GAAP measure) adjusted for other significant items and the tax impact of restructuring costs and other significant items.

Constant currency

GAAP financial results include the impact of changes in foreign currency exchange rates ("AFX"). We use the non-GAAP measure "at constant currency" or "CFX" to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that this non-GAAP measure is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Free cash flow

Represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Otis' ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

Adjusted free cash flow

Represents cash flow from operations (a GAAP measure) less capital expenditures, adjusted to exclude certain items management believes affect the comparability of operating results. Management believes adjusted free cash flow is a useful measure of liquidity that provides investors additional information regarding the Company's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

Management believes that organic sales, adjusted SG&A expense, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted EPS and the adjusted effective tax rate are useful measures in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

When we provide our expectations for adjusted net sales, organic sales, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted effective tax rate, adjusted EPS, free cash flow and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Cautionary Statement
This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for Otis' future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "medium-term," "near-term," "confident," "goals" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, dividends, share repurchases, tax rates, research & development spend, restructuring or transformation actions (including UpLift and related reorganization and outsourcing activities and such actions with respect to our business in China), credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statements that relate to climate change and our intent to achieve certain sustainability targets or other corporate responsibility initiatives, including operational impacts and costs associated therewith, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, Otis claims the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate and any changes therein, including financial market conditions, fluctuations in commodity prices and other inflationary pressures, interest rates and foreign currency exchange rates, levels of end market demand in construction, pandemic health issues, natural disasters, whether as a result of climate change or otherwise, and the financial condition of Otis' customers and suppliers; (2) the effect of changes in political conditions in the U.S. and in other countries in which Otis and its businesses operate, including tensions between the U.S. and China and geopolitical conflicts, including the ongoing conflicts and instability in the Middle East and the conflict between Russia and Ukraine on general market conditions, commodity costs, global trade policies and related sanctions, export controls and tariffs, and currency exchange rates in the near term and beyond; (3) challenges in the development, production, delivery, support, employee adoption, performance and realization of the anticipated benefits of advanced technologies and new products and services; (4) future levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability or costs thereof, including credit market conditions and Otis' capital structure; (6) the timing and scope of future repurchases of Otis' common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) fluctuations in prices and delays and disruptions in delivery of materials and services from suppliers, whether as a result of changes in general economic conditions, geopolitical conflicts or otherwise; (8) cost reduction or containment actions, restructuring or transformation costs and related savings and other consequences thereof, including with respect to UpLift and our China business and related impacts of reorganization, change management and outsourcing activities, as applicable; (9) new business and investment opportunities and the realization of anticipated benefits, including meeting customer expectations and maintaining our competitiveness; (10) the outcome of legal proceedings, investigations and other contingencies; (11) pension plan assumptions and future contributions; (12) the impact of the negotiation of collective bargaining agreements and labor disputes, labor actions, including strikes or work stoppages, and labor inflation in the markets in which Otis and its businesses operate globally; (13) the effect of changes in laws, regulations and enforcement priorities in the U.S. and other countries in which Otis and its businesses operate; (14) the ability of Otis to retain and hire key personnel; (15) the scope, nature, impact or timing of acquisition and divestiture activity, the integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (16) the determination by the Internal Revenue Service (the "IRS") and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions in connection with the separation (the "Separation") of Otis and Carrier Global Corporation ("Carrier") from United Technologies Corporation (now known as RTX Corporation ("RTX"); and (17) our obligations and disputes that have or may hereafter arise under the agreements we entered into with RTX and Carrier in connection with the Separation. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see Otis' registration statement on Form 10 and the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Otis Worldwide Corporation

Condensed Consolidated Statements of Operations

Quarter Ended March 31,

(Unaudited)

(dollars in millions, except per share amounts; shares in millions)                                                       

2026

2025

Net Sales

$        3,566

$        3,350

Costs and Expenses:

Cost of products and services sold

2,484

2,349

Research and development

38

37

Selling, general and administrative

510

464

Total Costs and Expenses

3,032

2,850

Other income (expense), net

5

(89)

Operating profit

539

411

Non-service pension cost (benefit)

—

—

Interest expense (income), net

59

45

Net income before income taxes

480

366

Income tax expense (benefit)

127

110

Net income

353

256

Less: Noncontrolling interest in subsidiaries' earnings

13

13

Net income attributable to Otis Worldwide Corporation

$          340

$          243

Earnings Per Share of Common Stock:

Basic

$         0.88

$         0.61

Diluted

$         0.87

$         0.61

Weighted Average Number of Shares Outstanding:

Basic shares

388.1

396.6

Diluted Shares

389.6

399.1

Otis Worldwide Corporation

Reconciliation of Reported (GAAP) to Adjusted Operating Profit & Operating Profit Margin

Quarter Ended March 31,

(Unaudited)

(dollars in millions)

2026

2025

Net Sales

New Equipment

$      1,149

$      1,163

Service

2,417

2,187

Total Net Sales

$      3,566

$      3,350

Operating Profit

New Equipment

$         38

$         66

Service

556

537

Total segment operating profit

594

603

Corporate and Unallocated

(55)

(192)

Total Otis GAAP Operating Profit

539

411

UpLift restructuring

—

20

Other restructuring

7

23

UpLift transformation costs

—

23

Separation-related adjustments 1

5

52

Litigation-related settlement costs 2

—

21

Held for sale impairment

—

10

Other, net

(1)

—

Total Otis Adjusted Operating Profit

$        550

$        560

Reported Total Operating Profit Margin                                                                                                       

15.1 %

12.3 %

Adjusted Total Operating Profit Margin

15.4 %

16.7 %

1 Separation-related adjustments in the quarters ended March 31, 2026 and 2025 represent estimated amounts due to RTX Corporation

(our former parent) in accordance with the Tax Matters Agreement, including those amounts related to a favorable ruling received in

August 2024 regarding a tax litigation in Germany.

2 Litigation-related settlement costs in the quarter ended March 31, 2025 represent the aggregate amount of settlement costs and

increase in loss contingency accruals, excluding legal costs, for certain legal matters that are outside of the ordinary course of business

due to the size, complexity and/or unique facts of these matters.

Otis Worldwide Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per Share, and Effective Tax Rate 

Quarter Ended March 31,

(Unaudited)

(dollars in millions, except per share amounts)

2026

2025

Adjusted Operating Profit

$        550

$        560

Adjusted net interest expense 1

59

46

Adjusted income from operations before income taxes

491

514

Income tax expense (benefit)

127

110

Tax impact on restructuring and non-recurring items

4

21

Adjusted net income from operations

360

383

Adjusted noncontrolling interest 2

13

15

Adjusted net income attributable to common shareholders

$        347

$        368

GAAP net income attributable to common shareholders

$        340

$       243

UpLift restructuring

—

20

Other restructuring

7

23

UpLift transformation costs

—

23

Separation-related adjustments

5

52

Litigation-related settlement costs

—

21

Held for sale impairment

—

10

Interest income related to non-recurring tax items 1

—

(1)

Tax effects of restructuring, non-recurring items and other adjustments

(4)

(21)

Other, net 2

(1)

(2)

Adjusted net income attributable to common shareholders                                                                 

$        347

$        368

Diluted Earnings Per Share

$       0.87

$       0.61

Impact to diluted earnings per share

0.02

0.31

Adjusted Earnings Per Share

$       0.89

$       0.92

Effective Tax Rate

26.5 %

30.1 %

Impact of adjustments on effective tax rate

0.2 %

(4.5) %

Adjusted Effective Tax Rate

26.7 %

25.6 %

1 In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits and related interest

income were recorded in 2024. Net interest expense is reflected as adjusted without $1 million of interest income for quarter ended March

31, 2025.

2 Noncontrolling interest is reflected as adjusted without $2 million of the noncontrolling interest share of Other restructuring for the quarter

ended March 31, 2025.

Otis Worldwide Corporation

Components of Changes in Net Sales

Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025

Factors Contributing to Total % Change in Net Sales

Organic

FX

Translation

Acquisitions /

Divestitures,

net and Other

Total

New Equipment

(5) %

4 %

— %

(1) %

Service

5 %

5 %

1 %

11 %

Maintenance and Repair

4 %

5 %

2 %

11 %

Modernization

6 %

3 %

1 %

10 %

Total Net Sales

1 %

5 %

— %

6 %

Components of Changes in New Equipment Backlog

March 31, 2026

Y/Y Growth %

New Equipment Backlog increase at actual currency

6 %

Foreign exchange impact to New Equipment Backlog

(3) %

New Equipment Backlog increase at constant currency

3 %

Components of Changes in Modernization Backlog

March 31, 2026

Y/Y Growth %

Modernization Backlog increase at actual currency

32 %

Foreign exchange impact to Modernization Backlog

(2) %

Modernization Backlog increase at constant currency

30 %

Otis Worldwide Corporation

Reconciliation of Segment and Total Adjusted Operating Profit at Constant Currency

Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025

(dollars in millions)

2026

2025

Y/Y

New Equipment

Segment Operating Profit

$               38

$               66

$              (28)

Impact of foreign exchange

1

—

1

Segment Operating Profit at constant currency                    

$               39

$               66

$              (27)

Service

Segment Operating Profit

$              556

$              537

$               19

Impact of foreign exchange

(29)

—

(29)

Segment Operating Profit at constant currency

$              527

$              537

$              (10)

Otis Consolidated

Adjusted Operating Profit

$              550

$              560

$              (10)

Impact of foreign exchange

(28)

—

(28)

Adjusted Operating Profit at constant currency

$              522

$              560

$              (38)

Otis Worldwide Corporation

Condensed Consolidated Balance Sheet

March 31, 2026

December 31, 2025

(dollars in millions)

(Unaudited)

Assets

Cash and cash equivalents

$                  834

$                1,096

Accounts receivable, net

3,920

3,688

Contract assets

751

699

Inventories

669

613

Other current assets

290

405

Total Current Assets

6,464

6,501

Future income tax benefits

400

407

Fixed assets, net

744

743

Operating lease right-of-use assets

552

554

Intangible assets, net

333

343

Goodwill

1,682

1,695

Other assets

367

410

Total Assets

$              10,542

$              10,653

Liabilities and Equity (Deficit)

Short-term borrowings and current portion of long-term debt           

$                   939

$                1,056

Accounts payable

1,975

2,142

Accrued liabilities

1,710

1,847

Contract liabilities

3,100

2,611

Total Current Liabilities

7,724

7,656

Long-term debt

6,879

6,900

Future pension and postretirement benefit obligations

416

419

Operating lease liabilities

400

397

Future income tax obligations

225

223

Other long-term liabilities

333

329

Total Liabilities

15,977

15,924

Redeemable noncontrolling interest

74

75

Shareholders' Equity (Deficit):

Common Stock and additional paid-in capital

332

333

Treasury Stock

(4,601)

(4,198)

Accumulated deficit

(378)

(440)

Accumulated other comprehensive income (loss)

(1,033)

(1,087)

Total Shareholders' Equity (Deficit)

(5,680)

(5,392)

Noncontrolling interest

171

46

Total Equity (Deficit)

(5,509)

(5,346)

Total Liabilities and Equity (Deficit)

$              10,542

$              10,653

Otis Worldwide Corporation

Condensed Consolidated Statement of Cash Flows

Quarter Ended

March 31,

(Unaudited)

(dollars in millions)

2026

2025

Operating Activities:

Net income from operations

$     353

$     256

Adjustments to reconcile net income to net cash flows provided by operating activities:

Depreciation and amortization

41

42

Deferred income tax expense (benefit)

4

—

Stock compensation cost

19

21

Change in:

Accounts receivable, net

(229)

(104)

Contract assets and liabilities, current

432

260

Inventories

(58)

(18)

Other current assets

137

(2)

Accounts payable

(176)

(281)

Accrued liabilities

(117)

12

Pension contributions

(11)

(18)

Other operating activities, net

18

22

Net cash flows provided by (used in) operating activities

413

190

Investing Activities:

Capital expenditures

(33)

(34)

Acquisitions of businesses and intangible assets, net of cash

(3)

(36)

Other investing activities, net

51

(91)

Net cash flows provided by (used in) investing activities

15

(161)

Financing Activities:

Increase (decrease) in short-term borrowings, net

29

(11)

Repayment of long-term debt

(135)

—

Dividends paid on Common Stock

(163)

(155)

Repurchases of Common Stock

(400)

(253)

Dividends paid to noncontrolling interest

(3)

(2)

Acquisition of noncontrolling interest shares

(10)

—

Other financing activities, net

(12)

(7)

Net cash flows provided by (used in) financing activities

(694)

(428)

Summary of Activity:

Net cash provided by (used in) operating activities

413

190

Net cash provided by (used in) investing activities

15

(161)

Net cash provided by (used in) financing activities

(694)

(428)

Effect of exchange rate changes on cash and cash equivalents

5

7

Net increase (decrease) in cash, cash equivalents and restricted cash

(261)

(392)

Cash, cash equivalents and restricted cash, beginning of period

1,105

2,321

Cash, cash equivalents and restricted cash, end of period

844

1,929

Less: Restricted cash

10

11

Cash and cash equivalents, end of period

$     834

$   1,918

Otis Worldwide Corporation

Adjusted Free Cash Flow Reconciliation

Quarter Ended March 31,

(Unaudited)

(dollars in millions)

2026

2025

Net cash flows provided by operating activities (GAAP)                                             

$       413

$       190

Capital expenditures

(33)

(34)

Free cash flow (Non-GAAP)

380

156

Adjustments for:

UpLift restructuring payments

8

11

UpLift transformation payments

4

19

Separation-related payments 1

6

—

German Tax Litigation refunds 2

(126)

—

Adjusted free cash flow (Non-GAAP)

$       272

$       186

1 These represent payments to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement.

2 In August 2024, we received a favorable ruling regarding a tax litigation in Germany. The Company has started to

receive refunds and anticipates the refund process to continue through 2026.

SOURCE Otis Worldwide Corporation

Otis Worldwide (OTIS - Free Report) reported $3.57 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 6.5%. EPS of $0.89 for the same period compares to $0.92 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.5 billion, representing a surprise of +1.99%. The company delivered an EPS surprise of -2%, with the consensus EPS estimate being $0.91.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Otis Worldwide performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Service: $2.42 billion versus the three-analyst average estimate of $2.38 billion. The reported number represents a year-over-year change of +10.5%.Net Sales- New Equipment: $1.15 billion versus $1.1 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.2% change.Segment Operating Profit- New Equipment: $38 million compared to the $41.09 million average estimate based on three analysts.Segment Operating Profit- Service: $556 million versus $586.18 million estimated by three analysts on average.Operating Profit- General corporate expenses and other: $-55 million versus $-91.1 million estimated by two analysts on average.View all Key Company Metrics for Otis Worldwide here>>>

Shares of Otis Worldwide have returned +1.1% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Key Takeaways Otis Worldwide's Q1 Service grew broadly, led by repairs, while modernization orders and backlog improved.Otis Worldwide said healthy modernization orders and a growing backlog boost visibility into future revenues.Otis Worldwide said tariffs, Service investments and Mideast delays pressured margins, trimming earnings. Otis Worldwide Corporation (OTIS - Free Report) reported mixed first-quarter 2026 results, wherein earnings missed the Zacks Consensus Estimate and declined year over year. Meanwhile, net sales surpassed the same and increased from the prior year's reported figure.

Otis Worldwide’s first-quarter results reflected broad-based momentum in Service, led by repair activity, alongside solid order and backlog improvement in the modernization business. The company has emphasized actions around operational execution, pricing and cost efficiency as it works to monetize investments and improve margin performance in the coming quarters.

However, management attributed the margin pressure to tariff impacts relative to the prior year, continued Service investments that began in the second quarter of last year and accelerated this year, and shipment delays tied to geopolitical disruption in the Middle East.

Inside OTIS’ Q1 HeadlinesOTIS reported earnings per share (EPS) of 89 cents, missing the Zacks Consensus Estimate of 91 cents by 2.2%. In the year-ago quarter, it had reported an adjusted EPS of 92 cents.

Net sales of $3.57 billion surpassed the consensus mark of $3.5 billion by 2% and increased 6.4% on a year-over-year basis. Organically, net sales were up 1% year over year. Favorable foreign exchange movement supported sales growth by 5%. A standout in the quarter was repair, with net sales up 16% at actual currency and organic repair sales up about 10%.

Adjusted operating margin contracted 130 basis points year over year to 15.4%, reflecting weaker segment performance, partially offset by a favorable segment mix. Our model predicted the adjusted operating margin to decrease 70 bps (basis points) year over year to 16%.

Segment Details of OTISService: The net sales of this segment increased 11% year over year to $2.42 billion. A 5% rise in organic sales was accompanied by a 5% favorable foreign exchange movement. Organic maintenance and repair sales increased 4%, and organic modernization sales rose 6% from the year-ago quarter. Our model estimated organic sales for the segment to grow 10.2%. The Modernization backlog at constant currency increased 30% year over year.

Segment operating margin contracted 160 bps year over year to 23% due to higher volume and favorable pricing, which were more than offset by higher labor and material costs, investments and mix effects.

New Equipment: This segment’s net sales of $1.15 billion fell 1% from the prior-year period. Organic sales declined 5%. Our model predicted organic sales for the New Equipment segment to decrease 5%.

New Equipment orders rose 1% at constant currency, with more than 20% strength in the Americas and low single-digit growth in EMEA, partially offset by more than 20% decline in the Asia Pacific and a low teens decline in China. The segment’s backlog increased 6% at actual currency and 3% at constant currency, providing some support for future revenue conversion despite near-term delivery challenges.

Segment operating margin contracted 240 bps year over year to 3.3%. The downtrend was due to the impacts of lower volume, unfavorable price, and mix, which was partially offset by productivity tailwinds.

Financial Position of OTISOtis Worldwide had cash and cash equivalents of $834 million as of March 31, 2026, down from $1.1 billion reported at 2025-end. Long-term debt decreased to $6.88 billion as of March 31, 2026, from $6.9 billion at the end of 2025.

Net cash flows provided by operating activities were $413 million as of March 31, 2026, up from $190 million a year ago.

Adjusted free cash flow (FCF) totaled $272 million as of March 31, 2026, up from $186 million a year ago.

OTIS Revises 2026 GuidanceThe company expects net sales in the range of $15.1-$15.3 billion (up from the prior outlook of $15-$15.3 billion), implying approximately 4.6%-6% year-over-year growth. Organic sales growth is still projected in the low- to mid-single-digit range.

Organic New Equipment sales are now expected to range from low single digits to flat (previously projected as flat to low single digits), while Organic Service sales are still anticipated to grow in the mid- to high-single-digit range.

Adjusted operating profit is projected at $2.5 billion (down from the prior range of $2.5-$2.6 billion), now reflecting an increase of $20-$60 million at constant currency and $60-$100 million at actual currency.

Adjusted earnings are forecast at $4.20-$4.24 per share, while adjusted free cash flow is expected to be between $1.6 billion and $1.65 billion (compared with the earlier outlook of $1.6-$1.7 billion).

OTIS' Zacks Rank & Key PicksOtis Worldwide currently carries a Zacks Rank #4 (Sell).

Here are some top-ranked stocks from the Industrial Products sector:

DXP Enterprises, Inc. (DXPE - Free Report) flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 22.6%, on average. DXPE stock has climbed 37% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DXP Enterprise’s fiscal 2026 sales and EPS indicates growth of 10.1% and 14.4%, respectively, from the prior-year levels.

Astec Industries, Inc. (ASTE - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 23.8%, on average. ASTE stock has gained 19.2% in the past six months.

The Zacks Consensus Estimate for Astec’s 2026 sales and EPS indicates growth of 13% and 13.5%, respectively, from the prior-year levels.

Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 67.3%, on average. AA stock has jumped 64.2% in the past six months.

The Zacks Consensus Estimate for Alcoa’s 2026 sales and EPS indicates growth of 17.6% and 103.2%, respectively, from the year-ago period’s levels.

Posted by Defense World Staff on Apr 26th, 2026

Arizona State Retirement System lessened its stake in Otis Worldwide Corporation (NYSE:OTIS – Free Report) by 6.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 107,728 shares of the company’s stock after selling 7,557 shares during the period. Arizona State Retirement System’s holdings in Otis Worldwide were worth $9,410,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in OTIS. Root Financial Partners LLC bought a new stake in shares of Otis Worldwide during the 3rd quarter valued at $26,000. Stance Capital LLC bought a new stake in shares of Otis Worldwide during the 3rd quarter valued at $27,000. Rakuten Investment Management Inc. bought a new stake in shares of Otis Worldwide during the 3rd quarter valued at $31,000. Westside Investment Management Inc. grew its position in shares of Otis Worldwide by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 336 shares of the company’s stock valued at $31,000 after acquiring an additional 168 shares during the period. Finally, Physician Wealth Advisors Inc. grew its position in shares of Otis Worldwide by 57.7% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 339 shares of the company’s stock valued at $31,000 after acquiring an additional 124 shares during the period. Institutional investors own 88.03% of the company’s stock.

Key Stories Impacting Otis Worldwide Here are the key news stories impacting Otis Worldwide this week:

Positive Sentiment: Management highlighted strong service revenue growth and reiterated fiscal‑year EPS guidance range (FY26: 4.200–4.240), signaling durable recurring revenue that supports longer‑term cash flow. Otis Worldwide Corp (OTIS) Q1 2026 Earnings Call Highlights: Strong Service Growth and … Positive Sentiment: Company reported sales growth driven by services, and some outlets flagged that Otis lifted its sales outlook, which can support multiple expansion if margins recover. Otis tops revenue view, lifts sales outlook as shares rise Positive Sentiment: Otis remains on dividend roundups as an income name, a signal to yield‑focused investors that cash return remains part of the thesis. Dividend Roundup: Otis Worldwide, Eaton, AGNC Invest, Morgan Stanley, and more Neutral Sentiment: Royal Bank of Canada trimmed its price target from $110 to $105 but kept an “outperform” rating — a cautious vote of confidence that still signals upside versus current levels. Royal Bank Of Canada price target change Neutral Sentiment: Earnings materials and call slides provide detail on backlog, service mix and regional dynamics; useful for modeling but not a market mover by itself. Otis Worldwide Corporation 2026 Q1 – Results – Earnings Call Presentation Negative Sentiment: Analysts and commentators flagged persistent margin pressure from labor and materials; Seeking Alpha calls out lackluster margin progress as a notable headwind that could limit earnings upside. Otis Worldwide: Lackluster Margin Progress Is A Notable Headwind Negative Sentiment: Company warned of tariff exposure and shipment delays related to the Middle East conflict, which pose short‑term cost and delivery risks for equipment sales and could pressure near‑term margins. Elevator maker Otis flags tariff hit, shipment delays amid Middle East conflict Otis Worldwide Stock Down 2.1% Shares of OTIS stock opened at $77.80 on Friday. The stock has a market cap of $30.01 billion, a P/E ratio of 20.69, a PEG ratio of 2.48 and a beta of 1.05. Otis Worldwide Corporation has a 52 week low of $75.27 and a 52 week high of $101.42. The company’s fifty day simple moving average is $83.50 and its two-hundred day simple moving average is $87.26.

Otis Worldwide (NYSE:OTIS – Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The company reported $0.89 EPS for the quarter, missing the consensus estimate of $0.91 by ($0.02). The company had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.77 billion. Otis Worldwide had a negative return on equity of 29.39% and a net margin of 10.11%.The firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.92 EPS. Otis Worldwide has set its FY 2026 guidance at 4.200-4.240 EPS. On average, analysts anticipate that Otis Worldwide Corporation will post 4.14 EPS for the current fiscal year.

Otis Worldwide Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 15th will be paid a $0.44 dividend. This represents a $1.76 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, May 15th. This is an increase from Otis Worldwide’s previous quarterly dividend of $0.42. Otis Worldwide’s dividend payout ratio is presently 48.00%.

Wall Street Analyst Weigh In OTIS has been the subject of a number of recent research reports. Royal Bank Of Canada cut their price objective on shares of Otis Worldwide from $110.00 to $105.00 and set an “outperform” rating for the company in a research report on Thursday. Morgan Stanley set a $88.00 price objective on shares of Otis Worldwide in a research report on Friday. New Street Research set a $98.00 price objective on shares of Otis Worldwide in a research report on Friday, January 30th. JPMorgan Chase & Co. downgraded shares of Otis Worldwide from an “overweight” rating to a “neutral” rating and set a $98.00 price objective for the company. in a research report on Friday, January 30th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Otis Worldwide in a research report on Friday, March 27th. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $97.64.

Read Our Latest Stock Analysis on Otis Worldwide

Insider Activity at Otis Worldwide In other Otis Worldwide news, CAO Michael Patrick Ryan sold 1,182 shares of the business’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $90.06, for a total value of $106,450.92. Following the sale, the chief accounting officer owned 3,504 shares in the company, valued at $315,570.24. The trade was a 25.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Montlivault Stephane De sold 47,944 shares of the business’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $92.25, for a total transaction of $4,422,834.00. Following the completion of the sale, the insider owned 29,176 shares in the company, valued at approximately $2,691,486. The trade was a 62.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 158,013 shares of company stock worth $14,337,635 in the last quarter. 0.23% of the stock is owned by company insiders.

Otis Worldwide Profile (Free Report)

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis’s business derives from long-term service contracts and responsive maintenance work.

Recommended Stories Five stocks we like better than Otis Worldwide Want to see what other hedge funds are holding OTIS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Otis Worldwide Corporation (NYSE:OTIS – Free Report).

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Otis CEO Judy Marks said the company can't hire elevator mechanics fast enough. Bloomberg/Getty Images In an era of rampant layoffs, it can feel like no job is safe.

Except, perhaps, elevator mechanics.

Judy Marks is the CEO of elevator giant Otis and oversees a workforce of roughly 72,000 employees. That includes about 45,000 mechanics — and she says the company can't hire them fast enough.

"The demand is high," Marks told Business Insider.

When Otis spun off from its parent company in April 2020, it employed about 40,000 of these field professionals. Today, that number has increased by about 12.5% to 45,000, Otis said. The Bureau of Labor Statistics projected that elevator and escalator installers and repairers will grow by 5% between 2024 and 2034, which is 2% above the average for all occupations.

Beyond installing elevators and escalators, mechanics also maintain and repair equipment, she said. In some markets, including Japan, she said a declining population combined with a boom in refurbishment and construction has made hiring a challenge.

Mechanics also don't have to worry about losing their jobs to automation in the immediate future. As a regulated industry in most countries, Marks said humans are essential to the job. The role requires years of training and physical labor, which hasn't been easily replaced by robots so far.

"This is truly a craft skill," Marks said.

A long-term careerMany skilled-trade jobs have been on the rise in recent years. LinkedIn released data last year that revealed construction was the fastest-growing industry for new college grads. In 2026, it ranked construction fifth among the fastest-growing industries for new grads.

Marks said elevator mechanics, in particular, tend to stay in the profession for decades. She said Otis has roughly as many mechanics with zero to five years of experience as it does workers who have been with the company for more than 30 years.

"We don't have this kind of 'silver cliff' that's coming," Marks said, referring to how some older workers struggle in other trades.

"Most of them stay in the trade the rest of their life, and a lot of them, their fathers or mothers or grandfathers were in it."

In the US, Otis elevator mechanics are represented through a multi-employer union. Marks said it offers an apprenticeship for people starting at 18 years old, working for Otis during the day as helpers while attending elevator service school at night. After completing a four-year apprenticeship and passing a mechanic's exam, workers achieve journeyman status in the trade.

One of the highest-paying trade jobsElevator mechanics sit at the top of the pay scale when it comes to trade jobs.

The BLS released data on Friday that found that elevator and escalator installers and repairers earned the highest average salary among construction and extraction occupations in May 2025, at $109,820, with the 90th percentile at $158,890. That's well above both the category's average wage of $65,360 and the overall US average wage of $69,770, according to the report.

Other top-paying trades in the category included first-line supervisors of construction trades and extraction workers, who earned an average of $86,450, and terrazzo workers and finishers, who made $84,920, the report said.

In addition to solid pay, elevator mechanic roles at Otis also include eligibility for paid college tuition.

"When they come out and come work for us, I'll pay if they want to go to college," Marks said.

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Job Market

­Includes options for factory preassembled modules to streamline installation time Offers modernization packages for commercial escalators that improve safety and reliability, and reduce disruption during the modernization process Flexible upgrade options allow customers to select the level of modernization that best fits their building, budget and operational needs , /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS), the world's leading elevator and escalator manufacturing, installation, service and modernization company, has announced the global launch of its Otis Link™ MOD suite of commercial escalator modernization solutions, giving building owners a safer, smarter and more efficient way to upgrade aging escalators.

Otis’ modernization solutions provide improved reliability, less disruption to building operations and tenants, and a clearer more manageable roadmap for long-term performance. Global populations, infrastructure and equipment continue to age. Of the more than 1 million escalators installed globally, predominantly commercial escalators, nearly 20%1 are now in the modernization window, requiring updates to keep pace with evolving safety standards, usage demands and performance expectations. Otis' modernization solutions provide improved reliability, less disruption to building operations and tenants, and a clearer more manageable roadmap for long-term performance.

Otis Link MOD offers a suite of comprehensive upgrade packages, including the new Otis Link MOD Pro package, which delivers a complete modernization of critical commercial escalator components and aesthetics while retaining the existing truss—the escalator's structural backbone. Its modular, factory‑preassembled design streamlines modernization, significantly shortening project timelines. By minimizing on‑site work, the system reduces jobsite hazards and downtime in busy commercial environments and adapts easily to a wide range of building layouts.

"Across the globe, our customers are balancing aging infrastructure with the need to keep people moving safely and reliably every day. That challenge is only intensifying as populations age and demand for buildings – and the systems that support them – continues to grow," said Claire Miller, Executive Vice President and Chief Growth Officer, Otis. "Our Otis Link MOD solutions are designed to help customers extend the life and value of their escalators while minimizing disruption to their daily operations, so passengers can continue to move with confidence. By combining advanced technology and engineering with our deep modernization expertise, we're enabling building owners to extend the life of their escalators and deliver a mobility experience that meets modern safety and performance expectations."

The Otis Link MOD suite of solutions includes four packages2 – Link MOD Prime, Link MOD Plus, Link MOD Pro and full replacement with an Otis Link escalator. All Link MOD packages are powered by Otis' industry-leading technology and designed to allow customers to choose the scope and pace of their escalator modernization.

Visit www.otis.com for full details.

What are the benefits of Otis' Link MOD packages?

Enhance Safety

Improved step stability featuring the Otis Step Safety System, engineered to keep escalator steps firmly on their tracks. Optional patented mini moving skirt, designed to help prevent objects from becoming caught (available with full replacement solution). Integrated handrail sanitizing and cleaning options that help reassure users about the cleanliness of the equipment. Minimize the unexpected

Customers are in control, making informed choices about the scope, cost and pace of their escalator modernization with guidance from Otis experts. The Otis Link MOD Pro package offers a modular, pre-assembled design that minimizes disruption on site. Improve performance with technology-driven reliability

The self-adjusting handrail system automatically adjusts the handrail tension while the escalator is running and reduces handrail-related callbacks by over 90% compared to units without this technology.3 An upgraded electronic controller minimizes shutdowns and keeps escalators available when customers need them. The Otis ONE™ IoT platform (where available4) collects and analyzes data from escalators' smart sensors to deliver performance information, proactive communication and predictive insights to Otis' customers, and the field professionals servicing their units. Available in the U.S. and Canada, Otis Link MOD escalators feature a direct drive system that eliminates the traditional drive chain, offering greater flexibility for installation in existing buildings, improved reliability and reduced lubrication needs. Operational features

An intelligent lubrication system reduces oil consumption by adjusting the amount of oil automatically at each lubrication point. A standby or intermittent use mode option reduces downtime, energy consumption and operating costs when the escalator is idle. Bring passenger experience to the next level

Options include aesthetic packages, handrail colors and customizable LED lighting. Seamless support

Otis' highly trained technicians and support teams are available to properly maintain escalators, with a focus on safety, efficiency and reliability. About Otis
Otis gives people freedom to connect and thrive in a taller, faster, smarter world. The global leader in the manufacture, installation, service and modernization of elevators and escalators, we move 2.5 billion people a day and maintain approximately 2.5 million customer units worldwide – the industry's largest Service portfolio. You'll find us in the world's most iconic structures, as well as residential and commercial buildings, transportation hubs and everywhere people are on the move. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 45,000 field professionals, all committed to manufacturing, installing and maintaining products to meet the diverse needs of our customers and passengers in more than 200 countries and territories. To learn more, visit www.otis.com and follow us on LinkedIn, YouTube, Instagram and Facebook @OtisElevatorCo.

Based on Otis internal data. Otis Link MOD package availability varies by market. Visit Otis.com or contact your Otis sales representative to learn more. Based on Otis internal data with Otis Service contract. Otis ONE features are subject to a maintenance contract and paid tiered subscription with Otis. Otis ONE for Link and Link MOD suite of offerings is available in Asia Pacific, China, Europe and the Middle East.   Media Contact:
Richard Howat
Phone: +44 7392860548
Email: [email protected]

SOURCE Otis Worldwide Corporation

T-Mobile US and OTIS Worldwide are both down over 25% in the past year, creating long-term buying opportunities. TMUS boasts the lowest leverage among peers, aggressive buybacks, and raised guidance, with a forward P/E under 17x and double-digit dividend growth expected. OTIS faces temporary inflation and China headwinds but shows stabilizing orders, cost savings, and trades at a forward P/E of 16.7x, below historical and sector averages.

Lumentum Holdings Inc. (LITE) Presents at Bank of America 2026 Global Technology Conference Transcript

The AI memory supercycle is real and still running. High-bandwidth memory (HBM) became the scarce resource around which the entire AI industry organized. Investors who got there early made a lot of money.

This caused the conversation in AI infrastructure to shift. Power is one constraint. But the issue that engineers are losing sleep over is optical interconnect, the technology that moves data between chips at the speed of light, inside and between servers. As AI models grow larger and more distributed, moving data across copper wires becomes too slow and too power-hungry.

Silicon photonics is becoming the next critical layer of the AI stack. The silicon photonics market is estimated at $3.6 billion in 2026 and is projected to reach $15.7 billion by 2033 -- a 23.2% compound annual growth rate. Lumentum Holdings (LITE +3.94%) is the stock in this market I'd buy right now, before this cycle gets crowded.

Image source: Getty Images.

In March 2026, Nvidia (NVDA 0.11%) invested $2 billion in Lumentum through a private placement of convertible preferred stock and signed a multibillion-dollar purchase commitment for advanced laser components. One month later, Lumentum announced a new 240,000-square-foot manufacturing facility in Greensboro, North Carolina, acquired from semiconductor company Qorvo. The facility will produce indium phosphide (InP)-based optical devices -- the lasers that power next-generation AI transceivers -- with Nvidia confirmed as a customer.

The Greensboro facility isn't expected to ramp production until mid-2028. Think about that for a second. Nvidia is not only paying for Lumentum's future capacity today -- it's building supply chain infrastructure for a product cycle that won't fully arrive for two years. That is a sign that the company is locking in a critical supplier before demand overwhelms supply.

Today's Change

(

3.94

%) $

35.02

Current Price

$

924.61

A risk: Lumentum's stock is up over 1,100% in the last year Lumentum's stock has moved sharply in 2026, which might make it feel late. Over the past year, the stock has surged an extraordinary 1,110%, climbing from roughly $77 to $938 per share.

But the InP fab is not yet producing. When that fab alone starts operations, it could bump the ticker up another 100%. The 1.6 terabit-per-second transceiver generation has barely shipped at scale. The co-packaged optics transition -- where the transceiver moves inside the chip package itself -- is a product cycle that has yet to produce meaningful revenue at any company.

The risk is with Lumentum timing. Optical supercycles can stretch, and if Nvidia's roadmap shifts or AI capex growth slows, Lumentum's growth rates could compress before Greensboro comes online. Dilution from the preferred stock conversion is also worth watching.

But if you're looking for the infrastructure layer that moves from "important" to "indispensable" over the next five years, photonics is the answer. And Lumentum is the company with a $2 billion strategic partner, a domestic fab, and a product roadmap to back it up.

The Portfolio returned -4.62% ((gross)) and the S&P 500® Index returned -4.33% for the first quarter of 2026. Vertiv is an essential supplier of cooling, power management, and rack systems to AI data centers, with its orders backlog more than doubling on a year-over-year basis. NVIDIA announced that it would invest $2 billion in Lumentum to secure future capacity, further highlighting Lumentum's growing market power as a key provider of mission-critical components.

Lumentum Holdings Inc. (LITE) Presents at Mizuho Technology Conference 2026 Transcript

Lumentum (LITE +4.36%) has become one of the market's most dramatic artificial intelligence infrastructure stories. The stock has soared, revenue growth is accelerating, and Wall Street still sees upside. But with expectations already sky-high, investors now face a critical question: can the company grow fast enough to justify the rally?

Stock prices used were the market prices of June 1, 2026. The video was published on June 11, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

For the quarter ended March 2026, Thomson Reuters (TRI - Free Report) reported revenue of $2.09 billion, up 9.8% over the same period last year. EPS came in at $1.23, compared to $1.12 in the year-ago quarter.

The reported revenue represents a surprise of +1.12% over the Zacks Consensus Estimate of $2.06 billion. With the consensus EPS estimate being $1.21, the EPS surprise was +1.49%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Thomson Reuters performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenues- Legal Professionals: $756 million versus $749.85 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.Revenues- Tax & Accounting Professionals: $410 million versus the two-analyst average estimate of $403.3 million. The reported number represents a year-over-year change of +13.9%.Revenues- Global Print: $112 million compared to the $110.2 million average estimate based on two analysts. The reported number represents a change of -3.5% year over year.Revenues- Eliminations: $-11 million compared to the $-5.5 million average estimate based on two analysts. The reported number represents a change of +83.3% year over year.Revenues- Reuters News: $212 million versus the two-analyst average estimate of $200.9 million. The reported number represents a year-over-year change of +8.2%.Revenues- Corporates: $608 million compared to the $588.09 million average estimate based on two analysts. The reported number represents a change of +12.4% year over year.Adjusted EBITDA- Legal Professionals: $365 million versus $357.63 million estimated by two analysts on average.Adjusted EBITDA- Corporates: $243 million versus $229.35 million estimated by two analysts on average.Adjusted EBITDA- Corporate costs: $-25 million versus the two-analyst average estimate of $-29.62 million.Adjusted EBITDA- Reuters News: $34 million versus $30.54 million estimated by two analysts on average.Adjusted EBITDA- Global Print: $43 million compared to the $43.66 million average estimate based on two analysts.Adjusted EBITDA- Tax & Accounting Professionals: $221 million versus $225.44 million estimated by two analysts on average.View all Key Company Metrics for Thomson Reuters here>>>

Shares of Thomson Reuters have returned +4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Thomson Reuters Corporation (TRI:CA) Q1 2026 Earnings Call Transcript

2 hours ago

MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in StockMarketBeat

MSA Safety Incorporporated (NYSE:MSA - Get Free Report) CFO Julie Beck bought 448 shares of the stock in a transaction dated Thursday, June 11th. The stock was acquired at an average price of $158.69 per share, with a total value of $71,093.12. Following the completion of the purchase, the chief financial officer owned 3,825 shares of the company's stock, valued at $606,989.25. This represents a 13.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

NYSE:MSA

Read MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in Stock

2 hours ago

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NBT Bancorp Inc. (NASDAQ:NBTB - Get Free Report) Director Heidi Hoeller sold 2,100 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $48.03, for a total transaction of $100,863.00. Following the transaction, the director owned 11,560 shares of the company's stock, valued at approximately $555,226.80. This represents a 15.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

NASDAQ:NBTB

Read Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of Stock

2 hours ago

Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) StockMarketBeat

IGM Financial Inc. (TSE:IGM - Get Free Report) Director Douglas Milne sold 1,600 shares of the business's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of C$80.61, for a total value of C$128,976.00. Following the sale, the director directly owned 800 shares in the company, valued at C$64,488. The trade was a 66.67% decrease in their ownership of the stock.

TSE:IGM

Read Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) Stock

2 hours ago

GlobalFoundries (NASDAQ:GFS) Insider Michael James Hogan Sells 2,800 SharesMarketBeat

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) insider Michael James Hogan sold 2,800 shares of GlobalFoundries stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $75.17, for a total value of $210,476.00. Following the transaction, the insider owned 6,695 shares in the company, valued at $503,263.15. This trade represents a 29.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NASDAQ:GFS

Read GlobalFoundries (NASDAQ:GFS) Insider Michael James Hogan Sells 2,800 Shares

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New MCP integration brings CoCounsel Legal into Claude workflows to help legal work meet fiduciary-grade standards

, /PRNewswire/ -- Thomson Reuters (TSX/Nasdaq: TRI), a global content and technology company, today announced a new Model Context Protocol (MCP) integration with Anthropic that connects Claude directly to CoCounsel Legal. Legal professionals can now move seamlessly between general-purpose AI and citation-grounded legal work, from either working environment. As MCP integrations proliferate across the legal market, Thomson Reuters is bringing something distinct: fiduciary-grade AI, our standard for accuracy, accountability and trust.

Adoption of legal AI continues to accelerate, alongside a widening gap between the speed and convenience of general-purpose AI and the accuracy and verifiability of professional-grade systems. CoCounsel Legal is designed to meet the standards of legal professionals, where almost right is not good enough. Now Thomson Reuters is bringing that industry standard to professionals working in Claude, making it possible to seamlessly move work between Claude and CoCounsel Legal's comprehensive, fiduciary-grade workflows. 

"Thomson Reuters is building CoCounsel Legal to be the fiduciary-grade system at the center of how legal work gets done, connected to the tools lawyers use and built to the standard their work demands," said David Wong, Chief Product Officer, Thomson Reuters. "Today's integration with Claude is one example of how those connections will continue to grow as we move toward general availability for the next generation of CoCounsel Legal expected this summer."

The Standard Follows the Work
CoCounsel Legal is already trusted by legal professionals across law firms, corporate legal departments, and government agencies for the work that matters most. It reasons across 1.9 billion Westlaw and Practical Law documents, 1.4 billion KeyCite validity signals, and a patent-pending citation ledger that makes every source traceable in one click. That content is not a database to be searched. It is the foundation on which CoCounsel Legal reasons, plans, and delivers. That is the difference between AI that retrieves information and AI that helps complete professional work.

Built with Anthropic for What Comes Next
The next generation of CoCounsel Legal is rebuilt on Anthropic's Claude Agent SDK and marks a fundamental shift to a system that plans, selects tools, retrieves authoritative content, and adapts mid-workflow. Lawyers will be able to describe a matter in plain language and have CoCounsel Legal pursue the right inquiry, draft with citations, and include validated references in the fiduciary-grade work product.

"Our work with Thomson Reuters reflects a deeper strategic partnership to deliver AI that can operate in high-stakes professional environments," said Scott White, Head of Product, Enterprise at Anthropic. "Integrating Claude with CoCounsel Legal brings together leading AI with trusted legal content and workflows, enabling users to move from exploration to execution with confidence."

"Legal professionals deserve AI they can trust with their most important work. In professional environments, trust in AI is a property of the system itself, built into the architecture and verifiable at every step," said Joel Hron, Chief Technology Officer, Thomson Reuters. "We are actively building integrations that connect general-purpose AI to professional environments, ensuring that wherever lawyers are working, the full power of CoCounsel Legal is available to them. Today's integration is the first place lawyers will experience that."

What 175 Years Makes Possible
Thomson Reuters brings to this partnership capabilities that have taken 175 years to build: authoritative professional content across Westlaw, Practical Law, and KeyCite, curated and validated by practicing attorneys and legal specialists. More than 2,600 experts shape how CoCounsel reasons, ensuring outputs reflect the standards of real professional work. Customer data is not used to train third-party models and is not shared beyond a customer's own environment. In professions where confidentiality is both a legal and ethical obligation, that commitment is a baseline requirement. Today, one million professionals across 107 countries and territories use CoCounsel, Thomson Reuters AI technology.

About Thomson Reuters
Thomson Reuters (TSX/Nasdaq: TRI) powers business-critical professions with trusted AI technology built for high-stakes work. The company serves professionals across legal, tax, audit, accounting, compliance, government, and media with products that combine highly specialized software, authoritative content, and deep domain expertise. Reuters, part of Thomson Reuters, is a world-leading provider of trusted journalism and news. For more information, visit thomsonreuters.com/cocounsel.

Media Contact
Ali Hughes, Director, AI and Innovation Communications
[email protected]

SOURCE Thomson Reuters

AI disruption fears have compressed multiples across Information Services players, but TRI's exclusive data and regulatory integration reduce substitution risk. Stable 2026 EPS estimates across the sector indicate AI has not yet materially impacted revenues, with valuation compression driving stock declines. I see a buying opportunity in Thomas Reuters due to the disconnect between earnings stability and bearish sentiment.

Thomson Reuters Corporation (TRI) remains a hold as AI workflow risk persists despite strong Q1 results and improved AI adoption metrics. Q1 saw 9% organic growth in Legal Professionals, with GenAI products now comprising 30% of annual contract value and notable user growth in AI tools. AI is enhancing Thomson's value proposition, but ongoing workflow ownership uncertainty and margin pressure temper the re-rating case.

On June 01, 2026, Thomson Reuters Corp TRI shares rose 8.6% to a current price of $93.96. Despite today's positive movement, the stock remains significantly below its 52-week high of $221.85, highlighting the volatility it has experienced over the past year, where it has declined by 51.6%. The stock has traded between $78.60 and $221.85 during the past 52 weeks.

GF Value™ verdict: Current price is $93.96 vs GF Value™ of $196.54, indicating a 52.2% upside.GF Score™ of 73/100 suggests the stock is above average in terms of overall fundamentals.Most notable signal: No insider transactions in the last 3 months, indicating stable management sentiment. Is TRI Overvalued or Undervalued? Thomson Reuters Corp TRI is currently trading at $93.96, which is significantly below its GF Value™ of $196.54, reflecting a potential margin of safety of 52.2%. This substantial difference suggests that TRI is undervalued according to the GF Value™ assessment. The GF Valuation label indicates that the stock is "Significantly Undervalued," which presents an opportunity for potential investors. However, it's crucial to consider the broader market and economic conditions that could impact future performance, despite the attractive valuation.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation presents a possible opportunity, investors should be mindful of the volatility reflected in TRI's recent price performance, especially given its year-to-date decline of 27.7%.

How Does TRI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.2x 32.6x Forward P/E 21.2x N/A Currently, TRI's P/E (TTM) of 27.2x is 17% below its 5-year median P/E of 32.6x. The forward P/E of 21.2x suggests a more favorable valuation outlook. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that TRI is undervalued in relation to its historical valuation metrics.

What Does TRI's GF Score™ Tell Us? Metric Rating GF Score™ 73 Financial Strength 7/10 Profitability 8/10 Growth 8/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 73/100 indicates that TRI is above average in terms of overall fundamentals. The strongest aspects of the company are its Profitability and Growth scores, both rated at 8/10, suggesting stable earnings and growth potential. However, the low Valuation and Momentum ranks of 2/10 indicate that the stock may have faced significant pricing pressure recently, which could affect investor sentiment moving forward.

What Are Insiders Doing with TRI Stock? There have been no insider transactions in the last three months for Thomson Reuters Corp TRI . The absence of insider buying or selling might suggest that management is confident in the company's current valuation and future prospects, or it could indicate a wait-and-see approach amid market volatility.

What This Means for Investors Based on the GF Value™ assessment, Thomson Reuters Corp TRI is currently undervalued. The significant difference between the current stock price and the GF Value™ suggests potential opportunities, but investors should remain cautious given the recent stock performance and overall market conditions.

For the complete analysis, visit the Thomson Reuters Corp TRI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is TRI's GF Score™?

The GF Score™ for Thomson Reuters Corp TRI is 73/100, indicating that it ranks above average based on key fundamental factors.

Is TRI overvalued or undervalued?

Thomson Reuters Corp TRI is considered undervalued, with a current price of $93.96 that is significantly below the GF Value™ of $196.54.

What is TRI's P/E ratio?

Thomson Reuters Corp TRI has a P/E (TTM) ratio of 27.2x, which is 17% below its 5-year median P/E of 32.6x, indicating that it is trading below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The Thomson Reuters logo is displayed on the company's building in Times Square, New York City, U.S., August 6, 2025. REUTERS/Jeenah Moon Purchase Licensing Rights, opens new tab

CompaniesJune 10 (Reuters) - A shareholder resolution calling on content and technology company Thomson Reuters to review the human rights implications of its work with ​U.S. immigration authorities won only about 3% support at the firm's annual meeting on Wednesday.

The ‌vote on the resolution, proposed by a British Columbia government workers union, centered on products and services sold to law enforcement by the Toronto-based company that some investors and employees say may help power the Trump administration’s crackdown on undocumented ​immigrants.

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Thomson Reuters had opposed the proposal, and at the meeting its chairman, David Thomson, said "over ​95%" had voted against the shareholder measure, while "over 3%" supported it.

"We welcome the ⁠outcome of today's vote, which reflects shareholders' confidence in the board's recommendation to vote against the ​proposal," a Thomson Reuters spokesperson said.

An example of government work cited by supporters of the failed resolution was ​a $22.8 million contract set to have ended in May with the Department of Homeland Security that in part provided the Immigration and Customs Enforcement (ICE) agency with license plate reader data.

According to federal spending records, that and other contracts were ​awarded to Thomson Reuters Special Services (TRSS), a unit of Thomson Reuters based in McLean, Virginia. The ​unit says its products help prevent financial crimes, identify foreign influence and help law enforcement and national security officials analyze ‌data.

The ⁠company's Reuters news organization is independent, operating separately from the other parts of Thomson Reuters' business.

One corporate governance expert said the vote showed that Thomson Reuters' biggest investors either felt the measure was unnecessary, or had no appetite for confrontation with the Trump administration over its immigration policies.

"With this vote you ​have investors not interested in ​signaling anything" about ⁠the company’s work with immigration authorities, said Douglas Chia, president of independent corporate governance firm Soundboard Governance.

One major investor, Norway's sovereign wealth fund, said it voted ​against the measure because it could not support a proposal "where the company ​does not appear ⁠to have significant gaps in their management or reporting of the relevant sustainability risk."

After the vote, resolution proponent Emma Pullman, head of shareholder engagement for the British Columbia General Employees' Union, commended Thomson Reuters for ⁠certain existing ​disclosures but said a specialized audit of products for law ​and immigration enforcement could help investors.

The company's "disclosure still falls short of our expectations. Thomson Reuters can further demonstrate its commitment to upholding ​human rights through additional disclosure," Pullman said in an email.

Reporting by Ross Kerber; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Ross Kerber is U.S. Sustainable Business Correspondent for Reuters News, a beat he created to cover investors’ growing concern for environmental, social and governance (ESG) issues, and the response from executives and policymakers. Ross joined Reuters in 2009 after a decade at The Boston Globe and has written on topics including proxy voting by the largest asset managers, the corporate response to social movements like Black Lives Matter, and the backlash to ESG efforts by conservatives. He writes the weekly Reuters Sustainable Finance Newsletter.

Thomson Reuters Corporation (TRI:CA) Shareholder/Analyst Call Transcript

Rapid Q1 2026 expansion benefits communities and customers by enabling remote work, gaming, streaming, agriculture and telehealth

SUGAR LAND, Texas, May 13, 2026 (GLOBE NEWSWIRE) -- Kinetic today announced a major broadband expansion in Texas, delivering multi-gig fiber internet to an additional 9,000 homes across 100 communities in the first quarter of 2026. The expansion highlights Kinetic’s commitment to delivering better technology, at a better value for customers.

Texas is the 8th largest economy in the world and will continue to grow in various industries like aerospace, manufacturing, technology, and more. Kinetic’s fast, 99.95% reliable internet can help support this growth in tech, as well as help enhance work, school, streaming, and everyday life for residents.

“We love the service so far; everything has gone smoothly. We have been very impressed with Kinetic,” said Tracey Maney, a Kinetic customer in Kerrville, Texas.

In the first quarter of 2026, Kinetic continued building in Sugar Land, Texarkana, Whitney, Pineland, New Boston, Maud, Kerrville, Garrison, Fairmount, Denver City, Clyde, Brownfield, Abernathy and more.

To date, more than 225,000 homes and businesses across the Lone Star State have access to Kinetic’s high-speed, next-generation connectivity.

Research shows that fiber-connected communities experience 213% higher business growth, 10% higher self-employment and a 14-17% increase in home values. Fiber is also significantly more sustainable and uses up to 95% less energy per gigabit. It requires less maintenance over time, which reduces environmental impacts and community disruptions.

“Fiber is powering the next generation of opportunity, and as more of our daily activities happen online, we’re focused on ensuring more communities have access to the reliable, high-speed connectivity they need to thrive,” said Stacy Hale, Kinetic’s state operations president. “We’re committed to building a future-proof infrastructure to help more residents, business owners, students and families stay connected and prepared both now and for many years to come.”

Kinetic fiber customers can benefit from seamless 4K+ streaming across multiple devices with no data caps and no usage charges. Multi-gigabit connections support remote work, online learning and low-latency gaming and, through partnerships with YouTube TV, AT&T for cellular bundles, and Signal for reliable VoIP, households and businesses receive a unified high-performance connectivity experience.

More Texas residents and businesses now have access to:

Wi-Fi 7 – The newest, most advanced secure connection with equipment from manufacturers like eero, an Amazon company. Wi-Fi 7 delivers faster speeds and lower latency and supports up to 200+ connected devices at the same time, creating a better internet experience with wall-to-wall coverage and less tech stress.Whole-Home Wi-Fi Set-Up – Professional new fiber installs coupled with the Kinetic PromiseTM, which is a pledge that technicians will not leave the home until Wi-Fi works in every area and on every device where needed.Business Ready Internet – A unified fiber connectivity service for small businesses that offers Gig speeds with integrated security and managed Wi-Fi to keep daily operations efficient and secure. Kinetic, which was named CNET’s Best Rural Fiber Internet Provider in 2026, will continue expanding its future-proof fiber network in Texas in 2026. With approximately 11.5 million fiber strand miles and approximately 1.9 million homes passed to date across its 18-state footprint, Kinetic’s network is expected to reach 3.5 million homes and businesses by 2029.

“We're investing in communities and rapidly expanding our fiber-optic network, reaching farther and moving faster, to deliver technology that better supports entertainment, rising entrepreneurship, digital work and economic opportunity,” said Hale.

Residents interested in Kinetic Fiber Internet can check service availability and construction updates at www.gokinetic.com or call 1- 877-90-FIBER (877-903-4237).

About Kinetic: Kinetic, a business unit of Uniti (NASDAQ: UNIT), is a premier insurgent provider of multi-gigabit fiber internet, whole-home Wi-Fi, internet security, and voice services in 1,400 markets across 18 states in the Southwestern, Southeastern, Midwestern, and Northeastern U.S. Additional information is available at gokinetic.com.

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and management’s current expectations with respect to the future, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding the strategic expansion of the Kinetic fiber network. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “predicts” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Uniti may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Uniti makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to the Company’s indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as the Company’s predecessor’s registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. Uniti does not assume any obligation to update any forward-looking statements.

Media Contact:
Megan Krtek
[email protected]

99.9% Network Reliability: Kinetic Network Reliability based on monthly service availability scores from March 2023 to March 2024 as measured by the Kinetic Network Operations Center using the formula Available Customer Hours divided by Total Customer Hours (Available Customer Hours plus Customer Outage Hours). Customer Outage Hours does not include planned maintenance, emergency events (hurricanes, winter storms, mass flooding, etc.). 

Kinetic PromiseTM relies on reasonable effort to confirm Wi‑Fi works in living spaces where customer grants technician access. Wi‑Fi coverage & performance vary by layout, building materials, interference, & device capability. Not a guarantee of uniform coverage, speed, or error‑free service. Add. equipment or wiring may be required & incur charges; certain areas/devices (e.g., detached structures or outdoor spaces) may be excluded. Customer may cancel any time.

New customer agreements and infrastructure investments in Mississippi, Alabama, and Oklahoma underscore momentum with hyperscale and neo-cloud providers.

LITTLE ROCK, Ark., May 18, 2026 (GLOBE NEWSWIRE) -- Uniti Wholesale today announced a series of strategic infrastructure expansions and new customer agreements, further strengthening its position as a premier infrastructure partner for hyperscale and neo-cloud providers. These developments reflect Uniti’s strategy and its commitment to scaling high-capacity fiber and colocation infrastructure in key growth markets.

Strategic Market Highlights:

Jackson, Miss.: signed new metro dark fiber agreements representing 4,313 contracted fiber miles, including an expanded award from a major hyperscaler and a neo-cloud provider. These agreements demonstrate Uniti’s ability to capture additional demand and drive incremental growth from infrastructure deployed in 2024.Birmingham, Ala.: initiated a new 69-route-mile metro build featuring high-count fiber and multiple conduits, further expanding Uniti’s network investments in Alabama alongside existing builds in Huntsville and Montgomery.Tulsa, Okla.: secured a new 50-rack colocation agreement, further advancing Uniti’s market expansion and supporting its previously announced ultra-high-capacity routes connecting Tulsa to Dallas and Amarillo. In parallel, Uniti is building a metro-ring between its long-haul POPs to enhance connectivity and support future growth.
These wins build on Uniti Wholesale’s recent momentum, including a landmark 20-year, $500 million customer contract—the largest contract in company history – and its broader strategic expansion of 1,100 route miles of ultra-high-capacity fiber and upgrades across the South-Central U.S. 

“We build where we live, and that creates a different level of commitment,” said Greg Ortyl, executive vice president and president, Strategic Accounts at Uniti Wholesale. “We don’t just build infrastructure and move on — we design, build, operate, and maintain these networks ourselves, so every decision is driven by delivering long-term performance, operational reliability, and the evolving needs of our customers.”

The Owner-Operator Advantage:

Unlike providers that focus solely on construction, Uniti Wholesale builds, operates and maintains the fiber infrastructure and interconnection assets it deploys. That owner-operator model creates a higher level of accountability and allows Uniti Wholesale to engineer for scalability, resilience, and long-term service performance rather than short-term deployment economics.

That distinction is becoming increasingly important as AI and cloud deployments reshape network requirements. Uniti Wholesale emphasized that next-generation infrastructure demands higher fiber counts, scalable facilities, and network architecture built to support sustained growth in Tier 2 and Tier 3 markets.  The company’s strategy is to invest ahead of demand by placing high-capacity fiber and colocation infrastructure where customers need it, while managing the engineering complexity behind the scenes.

The deployment of high-count fiber and multiple conduits expands Uniti Wholesale’s metro footprint in markets where customers increasingly need scalable, future-ready connectivity options.

With the scale and financial strength to invest proactively, upgrade infrastructure early, and expand in strategic markets, Uniti Wholesale is focused on being easy to do business with while delivering the transparency, and execution customers expect.

“Customers are looking for more than a contractor — they need an infrastructure partner they can trust to grow with them,” said John Nishimoto, senior vice president, Strategy, Products and Marketing at Uniti Wholesale. “That’s the value of our model: We stay accountable, keep investing, and support our customers long after the network is in service.”

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and management’s current expectations with respect to the future, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding Uniti’s strategic fiber expansion. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “predicts” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Uniti may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Uniti makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to the Company’s indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as the Company’s predecessor’s registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. Uniti does not assume any obligation to update any forward-looking statements.

About Uniti Wholesale: 

Uniti Wholesale, a business unit of Uniti (NASDAQ: UNIT), builds and delivers customer-driven dark fiber infrastructure and high-capacity wavelengths, ethernet and wireless access leveraging our optical transport network reaching nearly every hyperscale and AI firm, communications services provider, Fortune 500 enterprise and federal government customers in the U.S. and Canada. Additional information about Uniti Wholesale is available at unitiwholesale.com. Engage with us on LinkedIn. 

Media Contact:
Scott Morris, 501-748-5342
[email protected]

Uniti Group Inc. (UNIT) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Searchlight Capital Partners, L.P. reported selling its entire holding of 2,273,504 Uniti Group (UNIT +1.36%) shares in the first quarter. The stake’s quarter-end value declined by $15.94 million, reflecting both trade activity and price fluctuation.

What else to knowSearchlight Capital Partners, L.P. sold out of Uniti Group; the position now represents 0% of 13F reportable assets under management

Top holdings after the filing:

LILAK: $108.89 million (99.5% of AUM)NASDAQ: LILA: $527,550 (0.5% of AUM)As of May 14, 2026, Uniti Group shares were priced at $11.25, up 42.6% over the past year, outperforming the S&P 500 by 15.29 percentage points.

Company overviewMetricValueRevenue (TTM)$2.93 billionNet income (TTM)$1.15 billionMarket capitalization$2.59 billionPrice (as of market close May 14, 2026)$11.25Company snapshotUniti Group Inc. is a fiber broadband and communications infrastructure company formed through the Windstream combination, with businesses spanning Kinetic consumer fiber, Fiber Infrastructure, and Uniti Solutions.

Uniti Group Inc. provides communications infrastructure assets, including 6.7 million fiber strand miles and wireless solutions, to the U.S. telecom sector. The company leverages an extensive asset base to provide connectivity for telecom and wireless operators.

Uniti Group Inc. serves telecommunications carriers, wireless operators, and network service providers seeking scalable, mission-critical connectivity solutions.

What this transaction means for investorsUniti Group’s merger with Windstream transformed Uniti into a fiber broadband operator facing two main challenges: expanding Kinetic’s consumer network and monetizing wholesale fiber demand. This marks a shift from the previous fiber REIT model, which emphasized leased communications assets and REIT-style cash-flow metrics. Following the merger, Uniti is no longer a REIT and will not report FFO or AFFO. The stock should now be evaluated based on broadband growth, fiber economics, capital spending, and debt service.

The first quarter demonstrated strong customer growth, but also highlighted the costs of network expansion. Uniti reported record Kinetic consumer fiber gross additions and ongoing Fiber Infrastructure bookings, generating $441.6 million in adjusted EBITDA. However, the company posted a net loss due to high interest expense, depreciation, and significant capital requirements for the fiber buildout. Investors must assess whether this growth can ultimately support the network’s costs and strengthen the balance sheet.

The key question for investors is whether Uniti can translate fiber expansion into improved financial flexibility. Kinetic must convert new fiber passings into paying broadband customers, while Fiber Infrastructure needs to generate sustainable revenue from carrier, enterprise, and hyperscaler demand. Management’s goal to pass 3.5 million homes with fiber by the end of 2029 provides a clear growth target, but the stock’s future depends on whether this growth can close the gap between strong adjusted EBITDA and ongoing net losses.