A maker of elevators, escalators, and moving walkways, Otis builds and services the machines that move people in buildings around the world, including popular lines like Gen2 and Gen360 and the Otis ONE monitoring system. Founded by inventor Elisha Otis in 1853 after he invented the safety brake that stops a falling elevator, the company returned to independence in 2020 as a spinoff from United Technologies. Its most famous moment came at New York's 1854 Crystal Palace exhibition, when Otis had an axman cut the rope under his hoisted platform to prove the brake worked.
Q2 2026 revenue rose 6.4% to $3.6B as Service growth offset a New Equipment profit drop
Service growth carried the quarter while New Equipment profit stayed under pressure. rose 6.4% to $3,566M and rose 42.6% to $0.87 as prior-year one-off costs did not repeat, though was 15.1% and New Equipment margin fell to 3.3%. The business is growing on services, but equipment weakness in China remains unresolved.
Key takeaways
rose 6.4% to $3,566M, with the quarter driven by 5% organic Service growth and a 5% foreign currency benefit, partially offset by a 5% organic New Equipment decline (Q1 10-Q).
rose 31.1% to $539M from $411M as Corporate and Unallocated expenses fell $137M, reflecting the absence of prior-year UpLift restructuring, transformation, and litigation costs (Q1 10-Q).
New Equipment dropped 42% to $38M with margin at 3.3%, led by a greater than 20% China decline (Q1 10-Q).
Section summaries
Management's Discussion and Analysis
Otis Q2 2026 net sales rose 7% to $3.9B driven by 9% organic Service growth, while New Equipment profit fell 41% on China weakness.
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Total Q2 grew 7% to $3,859 million, with up 6%, led by a 9% increase in the Service .
Service organic sales rose 9%, including 24% growth in modernization and 6% in maintenance and repair, while New Equipment organic sales declined 1% due to a high-teens drop in China.
Service rose 4% to $556M on 5% , though margin contracted 160 to 23.0% on higher costs (Q1 10-Q).
more than doubled to $413M, up 117.4% , from inflows and German tax litigation refunds; the company repurchased $400M of stock (Q1 10-Q).
rose 42.6% to $0.87 and rose 39.9% to $340M versus Q2 2025 (table).
What changed
Q2 2026 New Equipment organic sales in China: the over-20% decline flagged for Q2 did not reverse — Q1 showed a greater than 20% China drop and Q2 MD&A cites a high-teens China drop in New Equipment, so the weakness persisted rather than widened.
UpLift program: reached its $200M annual target by mid-2025 per the FY2025 10-K; Q1 2026 benefited from absence of prior-year UpLift costs, confirming the program's cost phase ended.
: Q1 2026 was $413M, up 117.4% on tax refunds and ; the flagged Q2 normalization question is now answered by Q2 MD&A showing $680M, up from $405M, so the strength held and improved.
Tariff impact: the $45M–$75M estimated range from Q1 2025 was not updated with an actual figure in this filing; FY2025 noted tariff and labor inflation partly offset gains.
: ended Q1 2026 at $6,879M, down from the $7,592M Q3 2025 peak and near the $6,900M year-end 2025 level, after the $500M 2035 note issuance and $1.3B repayment cycle.
What to watch
Q3 2026 New Equipment organic sales in China to see if the high-teens-to-over-20% decline reverses or widens further.
Q3 2026 to confirm the $680M Q2 figure holds or normalizes after tax refunds and movements.
Actual 2026 tariff cost against the $45M–$75M estimated range as new trade policies take fuller effect.
Pace of the program after $400M used in Q1 against $413M and $380M Q2 .
New Equipment fell 41% to $40 million, with margin down 220 to 3.1%, pressured by lower volume, unfavorable price/mix, and higher organizational costs.
Service increased 4% to $599 million, but margin contracted 170 to 23.2% as higher labor and material costs offset volume and pricing gains.
Consolidated declined 90 to 29.4%, while SG&A as a percentage of sales improved 40 bps to 13.5%, aided by restructuring savings.
improved to $680 million from $405 million, driven by higher and favorable , including contract asset timing and German tax refunds.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the Company’s market risk during the quarter and six months ended June 30, 2026. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Item 7A "Quantitative and Qualitative Di…
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There have been no material changes to the Company’s market risk during the quarter and six months ended June 30, 2026. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our 2025 Form 10-K.
For a discussion regarding material legal proceedings, see "Note 15: Contingent Liabilities" to the Condensed Consolidated Financial Statements. Except as otherwise noted above, there have been no material developments in legal proceedings. For previously reported information ab…
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For a discussion regarding material legal proceedings, see "Note 15: Contingent Liabilities" to the Condensed Consolidated Financial Statements.
Except as otherwise noted above, there have been no material developments in legal proceedings. For previously reported information about legal proceedings refer to Item 3 "Legal Proceedings" in our Form 10-Q for the quarter ended March 31, 2026 and 2025 Form 10-K.
Additional information regarding risk factors can be found under "Recent Developments" in the "Business Overview" and "Cautionary Note Concerning Factors That May Affect Future Results" sections of Management's Discussion and Analysis of Financial Condition and Results of Operat…
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Additional information regarding risk factors can be found under "Recent Developments" in the "Business Overview" and "Cautionary Note Concerning Factors That May Affect Future Results" sections of Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.
Except as otherwise noted above, there have been no material changes in the Company's risk factors from those disclosed in Item 1A "Risk Factors," in our 2025 Form 10-K.