JCI Filings — Johnson Controls International Plc - FilingSpy
JCI
Johnson Controls International Plc
A global provider of commercial-building systems, Johnson Controls designs, makes, installs and services heating, cooling, fire-safety, security and refrigeration equipment sold under well-known brands like YORK, Metasys, Simplex and Grinnell. It traces its roots to 1885, when professor Warren Johnson invented the first electric room thermostat after tiring of janitors constantly interrupting his class to adjust the furnace. The modern company took shape through a 2016 merger with Tyco, and its OpenBlue software platform uses AI to run smart buildings.
Backlog rose 32% to $21.0B on data center demand, while organic revenue grew 10% and gross margin reached 37.4%.
Orders and hit new highs as data center investment accelerated. rose 9% to $6.6 billion, reached 10%, and widened 0.4 points to 37.4%, driven by Applied HVAC and data center cooling demand. The company is now a pure-play commercial buildings business with a $21 billion backlog, but still has no permanent CEO.
Key takeaways
Total rose 32% to $21.0 billion, and orders rose 27% to $6.8 billion, driven by sustained large-project demand, especially for data center cooling.
rose 10%, with Products and Systems up 11% and Services up 7%, led by strength in Applied HVAC.
widened 0.4 points to 37.4%, supported by , productivity improvements, and better .
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 9% to $6.6B, driven by 10% organic growth led by Applied HVAC and data center demand.
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Consolidated grew 10% in Q3, with Products and Systems up 11% and Services up 7%, led by strength in Applied HVAC.
rose 47.3% to $738 million, entirely because the prior-year quarter included a $750 million AFFF water-systems settlement charge that did not recur; SG&A fell 1% aided by $16 million in AFFF insurance recoveries.
reached $2.6 billion year-to-date, and fell to $8.8 billion after the company completed its $5.0 billion program.
Cybersecurity and AI risks were newly emphasized in the risk factors, including zero-day vulnerabilities, connected-product exposure, and generative AI compliance and IP threats.
What changed
The $5.0 billion flagged in Q3 FY2025 and FY2025 has been completed, removing the question of how proceeds would be split between buybacks and debt reduction.
growth accelerated from 26% in Q2 FY2026 to 32% in Q3, and orders rose 27% after a 39% increase the prior quarter, confirming that data center demand is still building rather than peaking.
reached 37.4%, above the 36.8% in Q2 FY2026 and the 37.1% peak in Q3 FY2025, suggesting the mix of large data center projects is not yet pressuring profitability as work converts.
The permanent CEO position flagged in every filing since Q1 FY2025 remains unfilled, now over 16 months after the February 2025 succession announcement.
AFFF insurance recoveries continued with $16 million in Q3, following $130 million in Q1 FY2026, indicating the recovery stream is ongoing rather than one-time.
What to watch
Whether the $21.0 billion , increasingly weighted toward large data center projects, converts to at or above the 37.4% , or whether project mix begins to pressure profitability as execution scales.
The naming of a permanent CEO and any resulting shift in the pure-play commercial buildings strategy, the $400 million restructuring plan, or capital-allocation priorities.
The financial impact of U.S. tariffs on Mexico, China, and Canada on and margins, particularly in the Global Products , now that the risk is active and the company is more concentrated in commercial building solutions.
Whether the AFFF insurance recovery stream continues and whether any further settlement payments are required beyond what has been accrued.
expanded 30 to 37.4% on , productivity improvements, and better .
SG&A fell 1% in Q3, aided by $16M in AFFF insurance recoveries; year-to-date SG&A dropped 5% on $135M in recoveries and a $70M divestiture gain.
Orders surged 27% to $6.8B and rose 32% to $21.0B, reflecting sustained large-project demand, especially for data center cooling.
increased to $2.6B year-to-date, while fell to $8.8B; the company completed a $5.0B accelerated program.
Quantitative and Qualitative Disclosures About Market Risk
As of June 30, 2026, the Company had not experienced any adverse changes in market risk exposures that materially affected the quantitative and qualitative disclosures presented in its Annual Report on Form 10-K for the year ended September 30, 2025.
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As of June 30, 2026, the Company had not experienced any adverse changes in market risk exposures that materially affected the quantitative and qualitative disclosures presented in its Annual Report on Form 10-K for the year ended September 30, 2025.
Gumm v. Molinaroli, et al. In May 2024, stockholders of Johnson Controls, Inc., filed a putative class action Complaint against Johnson Controls, Inc., certain former officers and directors of Johnson Controls, Inc., and two related entities (Jagara Merger Sub LLC and Johnson Co…
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Gumm v. Molinaroli, et al.
In May 2024, stockholders of Johnson Controls, Inc., filed a putative class action Complaint against Johnson Controls, Inc., certain former officers and directors of Johnson Controls, Inc., and two related entities (Jagara Merger Sub LLC and Johnson Controls International plc) in Wisconsin state court relating to the 2016 merger of Johnson Controls and Tyco (Gumm et al. v. Molinaroli et al., Case No. 30106, filed May 23, 2024 in the Circuit Court for Milwaukee County, Wisconsin). The filing of the state court Complaint follows the dismissal of a related lawsuit originally filed in federal court in 2016, which dismissal was affirmed on appeal in November 2023. On March 28, 2025, the Court dismissed the complaint in its entirety. Plaintiffs have appealed the decision, though the timing of the decision by the court is currently unknown.
Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for discussion of environmental, asbestos, self-insured liabilities and other litigation matters, which is incorporated by reference herein and is considered an integral part of Part II, Item 1, "Legal Proceedings."
Cybersecurity and AI risks are newly emphasized, with expanded detail on zero-day attacks, connected-product exposure, and AI-driven compliance and IP threats.
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Threat actors are using AI to find zero-day vulnerabilities faster, shrinking the window to detect and respond to attacks on IT and cloud systems.
The company's digital platforms and connected devices, including OpenBlue, heighten lifecycle cybersecurity risk and potential third-party liability for product failures.
A September 2023 cybersecurity event involving employee and applicant data led to notifications and regulatory outreach, illustrating ongoing exposure.
Divergent U.S. state and foreign data privacy laws, plus proposed biometric restrictions, create compliance complexity and risk of fines or lost sales.
Incorporating generative AI into products and processes raises new IP, confidentiality, bias, and regulatory risks, and competitors may gain an edge if they adopt AI more effectively.