Johnson Controls (JCI) AI Stock Analysis

• Market Cap: $81.56B
• Dividend Yield: 1.27%
• Average Volume (3M): 4.47M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 1.16
• Revenue Growth: -10.19%
• EPS Growth: 100.65%
• Country: US
• Employees: 94,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.89
• Shares Outstanding: 612,066,200
• 10 Day Avg. Volume: 4,291,411
• 30 Day Avg. Volume: 4,465,407
• PEG Ratio: 5.01
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 74.26
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.69
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 26.36
• 1Y Price Target: $140.55
• Price Target Upside: 5.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.73
• Revenue Forecast (FY): $25.13B

• Rating: 70 Outperform
• Price Target: $151.00 ▲(13.32% Upside)
• Action: Upgraded Date: 03/07/26
• Date: Action: Upgraded 03/07/26

The score is driven primarily by solid financial performance (strong profitability and earnings rebound, though cash flow consistency is a watch item) and a notably positive earnings update with raised guidance and strong order/backlog momentum. Technicals are supportive but mixed near-term, while valuation is the main constraint due to a high P/E and modest dividend yield.

Positive Factors

Margin Expansion

Sustained margin expansion indicates improving operational leverage and cost discipline. Higher adjusted EBIT margin and EPS growth reflect better mix, pricing and execution that can persist as the firm scales services and high-margin data‑center products, supporting durable profitability over multiple cycles.

Record Orders & Backlog

A record backlog provides multi‑period revenue visibility and underpins capacity utilization and planning. Large, diversified backlog across regions and segments supports predictable future revenue and service contract growth, strengthening long‑term top‑line stability despite near‑term timing variability.

Data‑Center Tech & Strategic M&A

Acquiring specialized thermal management capabilities and launching higher‑density chillers deepens tech leadership in a rapidly growing, high-margin niche. Strategic deals and product launches (with NVIDIA collaborations) expand addressable market and create durable competitive advantages in energy‑efficient data‑center cooling.

Negative Factors

Inconsistent Cash Generation

Weak and volatile cash conversion relative to revenue signals working‑capital sensitivity and timing risk. Inconsistent free cash flow constrains reinvestment, debt reduction and shareholder returns, making capital allocation and financing plans more vulnerable during cyclical slowdowns.

Backlog Conversion Timing

A sizable portion of orders being long‑dated creates a mismatch between order intake and revenue recognition. This timing lag increases forecast uncertainty, can delay cash realization, and may amplify volatility in quarterly growth and margin metrics as projects move through engineering and delivery.

Elevated SG&A & Scaling Risks

Persistently high SG&A and planned higher R&D investment can compress near‑term operating leverage. Combined with execution and capacity scaling risks from accelerating orders, this may pressure margins and require continued operational improvements to sustain profitability as volume grows.

Johnson Controls Business Overview & Revenue Model

Company Description

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. It operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. The company designs, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and fire protection and security products for commercial, industrial, retail, small business, institutional, and governmental customers; and provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven smart building solutions to non-residential building and industrial applications. It also offers controls software and software services for residential and commercial applications. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland.

How the Company Makes Money

Johnson Controls generates revenue through several key streams. The Building Solutions segment is a significant contributor, as it provides HVAC systems, building automation, security, and fire protection services to commercial, industrial, and residential markets. The Power Solutions segment, which focuses on advanced battery systems for vehicles, also plays a crucial role in the company's earnings. JCI benefits from long-term service contracts and maintenance agreements, ensuring recurring revenue. Additionally, strategic partnerships with technology firms and collaborations with construction companies bolster its market position and expand its reach. The company also emphasizes innovation in energy efficiency and sustainability, aligning with global trends towards greener technologies, which contributes to increased demand and revenue growth.

Johnson Controls Financial Statement Overview

Summary

Profitability is strong with a meaningful TTM earnings rebound and improved operating margin, and leverage appears serviceable with strong ROE. Offsetting this, revenue trends have been uneven over the multi-year period and cash generation is a key watch item: operating cash flow as a share of revenue is low and annual free cash flow has been choppy.

Income Statement

TTM (Trailing-Twelve-Months) profitability is strong, with healthy gross and net margins and improved operating margin versus prior years. Revenue growth in TTM is high, but the longer-term top-line trend has been modest with a notable dip in 2023, suggesting growth can be uneven. Net income has stepped up materially versus 2024, supporting the higher score, though margins have shown some volatility over the multi-year period.

Balance Sheet

Leverage is manageable with debt below equity in both TTM (Trailing-Twelve-Months) and the latest annual period, and returns on equity are strong. However, debt-to-equity has moved around over time (higher in the most recent annual period), and equity is down versus 2024, which reduces balance-sheet cushion. Overall, the capital structure looks serviceable, but not especially conservative for a cyclical/end-market-exposed business.

Cash Flow

Free cash flow conversion is decent in TTM (Trailing-Twelve-Months) (free cash flow is a meaningful share of net income) and free cash flow growth is strong versus the prior period. The key weakness is cash generation relative to revenue: operating cash flow as a share of revenue is low across periods, and annual free cash flow has been choppy (including declines in 2024 and 2025 annual), pointing to working-capital or timing sensitivity.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	23.97B	23.60B	22.95B	22.33B	20.64B	23.67B
Gross Profit	8.74B	8.59B	8.08B	7.82B	7.09B	8.05B
EBITDA	3.35B	3.15B	2.80B	2.10B	2.05B	3.88B
Net Income	3.40B	3.29B	1.71B	1.85B	1.53B	1.64B
Balance Sheet
Total Assets	37.98B	37.94B	42.70B	42.24B	42.16B	41.89B
Cash, Cash Equivalents and Short-Term Investments	552.00M	379.00M	606.00M	828.00M	2.03B	1.34B
Total Debt	9.14B	11.19B	9.49B	8.82B	8.96B	7.74B
Total Liabilities	24.75B	24.98B	25.33B	24.55B	24.76B	23.14B
Stockholders Equity	13.20B	12.93B	16.10B	16.55B	16.27B	17.56B
Cash Flow
Free Cash Flow	1.30B	965.00M	1.60B	1.77B	1.50B	1.94B
Operating Cash Flow	1.70B	1.40B	2.10B	2.22B	1.99B	2.49B
Investing Cash Flow	6.34B	6.13B	-221.00M	-1.18B	-693.00M	-1.09B
Financing Cash Flow	-8.05B	-7.39B	-2.08B	-2.17B	-516.00M	-2.13B

Johnson Controls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JCI, the sentiment is Positive. The current price of 133.25 is below the 20-day moving average (MA) of 137.29, above the 50-day MA of 128.92, and above the 200-day MA of 114.09, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 54.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JCI.

Johnson Controls Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TT	78 Outperform	$93.63B	29.82	36.17%	0.95%	8.58%	20.37%
CSL	77 Outperform	$13.61B	18.48	36.69%	1.28%	0.14%	3.88%
JCI	70 Outperform	$81.56B	36.04	23.52%	1.27%	-10.19%	100.65%
CARR	69 Neutral	$49.27B	29.70	10.50%	1.65%	-7.93%	-35.00%
LII	67 Neutral	$16.61B	21.56	78.89%	0.96%	3.77%	12.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	52 Neutral	$9.35B	90.31	10.11%	―	-6.44%	-48.84%

Johnson Controls Corporate Events

Johnson Controls Shareholders Approve All Proposals at AGM

At its annual general meeting, where 556,390,065 ordinary shares were represented in person or by proxy constituting a quorum, Johnson Controls shareholders approved all management proposals, including the election of 11 directors following Patrick Decker’s decision not to stand for re-election. Investors also backed PricewaterhouseCoopers LLP as independent auditor, authorized the audit committee to set auditor remuneration, and passed resolutions enabling market purchases and re-allotment of treasury shares.

Shareholders supported a non-binding advisory vote on executive compensation and granted the board authority to allot new shares up to roughly 20% of issued capital while waiving statutory pre-emption rights for cash issuances within the same limit. The outcomes consolidate the board’s financial and capital-structure flexibility, signaling continued shareholder confidence in Johnson Controls’ governance framework and its capacity to manage buybacks, equity issuance and executive pay policies in line with strategic objectives.

The most recent analyst rating on (JCI) stock is a Hold with a $136.00 price target. To see the full list of analyst forecasts on Johnson Controls stock, see the JCI Stock Forecast page.