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Johnson Controls
(NYSE:JCI)
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Rating:71Outperform
Price Target:
$157.00
▲(11.45% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by improved financial performance (material margin expansion with solid, though somewhat uneven, cash generation) and a strong, guidance-raising earnings call supported by robust orders and record backlog. This is tempered by mixed technical momentum (negative MACD despite an uptrend) and a relatively full valuation (P/E ~24 with a modest ~1.1% yield).
Positive Factors
Margin Expansion
Sustained margin expansion reflects structural improvements—better pricing, mix shift and operational discipline—boosting cash generation and free cash flow conversion. Higher margins increase internal reinvestment capacity and resiliency to cyclical slowdowns over the next 2–6 months.
Negative Factors
Service Revenue Softness
Weakness in recurring service, especially lower-differentiated security, undermines stable recurring revenue and predictable cash flow. Repricing to restore margins can improve returns but may depress volumes and near-term service revenue and cash conversion for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained margin expansion reflects structural improvements—better pricing, mix shift and operational discipline—boosting cash generation and free cash flow conversion. Higher margins increase internal reinvestment capacity and resiliency to cyclical slowdowns over the next 2–6 months.
Read all positive factors
Johnson Controls Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, indicating which parts of the company are driving growth and which may need strategic adjustments.
Breaks down revenue across different business segments, indicating which parts of the company are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyJohnson Controls (JCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.74B
Dividend Yield1.27%
Average Volume (3M)4.79M
Price to Earnings (P/E)25.7
Beta (1Y)1.02
Revenue Growth-0.60%
EPS Growth49.11%
CountryUS
Employees87,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)5.61
Shares Outstanding610,115,600
10 Day Avg. Volume5,106,721
30 Day Avg. Volume4,787,957
Financial Highlights & Ratios
PEG Ratio9.58
Price to Book (P/B)5.54
Price to Sales (P/S)3.04
P/FCF Ratio74.26
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.95
Enterprise Value/Gross Profit10.80
Enterprise Value/Ebitda27.06
Forecast
1Y Price Target
$164.87Price Target Upside17.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.9
Revenue Forecast (FY)$25.27B
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 Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The co...
How the Company Makes Money
Johnson Controls primarily makes money by selling building systems and providing ongoing services across the building lifecycle. A major revenue stream comes from equipment and systems sales, including HVAC units (e.g., chillers and air handling e...
Johnson Controls Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial and financial momentum: robust order flow, record backlog, revenue growth, significant margin expansion, EPS beat and a raised full-year guide. The company also highlighted structural strengths—proprietary technology, IP, an emerging CDU business and early benefits from a company-wide business system. Headwinds include service softness (notably security), regional disruption in the Middle East, timing risks on backlog conversion (power/infrastructure delays) and short-term productivity impacts from capacity ramping. Management provided concrete actions (service repricing, business system scaling, capacity planning) and maintained conservative guidance assumptions.Positive Updates
Strong Order Momentum
Orders grew 30% this quarter (following nearly 40% last quarter), led by large data center activity and a double-digit pipeline growth; regional order growth: Americas +40% (systems ~+60%), EMEA +11%, APAC +4%.
Negative Updates
Service Revenue Softness, Especially Security
Service (about one-third of revenue) was softer this quarter; security service volumes declined as management rebalances price/volume mix in that less-differentiated subcategory. Management expects to rebalance pricing and volume to improve margins despite near-term revenue impact.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Order Momentum
Orders grew 30% this quarter (following nearly 40% last quarter), led by large data center activity and a double-digit pipeline growth; regional order growth: Americas +40% (systems ~+60%), EMEA +11%, APAC +4%.
Read all positive updates
Company Guidance
Johnson Controls raised its full‑year outlook after a strong Q2 and is guiding Q3 to about 6% organic sales growth, roughly 45% operating leverage and adjusted EPS of ~$1.28; for the full year it now expects ~6% organic sales growth, ~50% operating leverage, adjusted EPS of ~ $4.85 (≈30% growth, $0.30 above the prior guide) and ~100% adjusted free cash‑flow conversion. Q2 results that underpin the guide included orders +30%, revenue +6% (organic +6%), adjusted EBIT margin +310 bps to 15.5%, segment margin +180 bps to 18.5%, adjusted EPS $1.19 (+45% YoY), a record backlog up ~26% to ~$20B, available cash ≈$700M and net debt ≈2x.Johnson Controls Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.43B | 23.60B | 22.95B | 22.33B | 20.64B | 23.67B |
| Gross Profit | 8.93B | 8.59B | 8.08B | 7.82B | 7.09B | 8.05B |
| EBITDA | 3.56B | 3.15B | 2.80B | 2.10B | 2.05B | 3.88B |
| Net Income | 3.53B | 3.29B | 1.71B | 1.85B | 1.53B | 1.64B |
Balance Sheet | ||||||
| Total Assets | 38.35B | 37.94B | 42.70B | 42.24B | 42.16B | 41.89B |
| Cash, Cash Equivalents and Short-Term Investments | 698.00M | 379.00M | 606.00M | 828.00M | 2.03B | 1.34B |
| Total Debt | 9.52B | 11.19B | 9.49B | 8.82B | 8.96B | 7.74B |
| Total Liabilities | 24.81B | 24.98B | 25.33B | 24.55B | 24.76B | 23.14B |
| Stockholders Equity | 13.52B | 12.93B | 16.10B | 16.55B | 16.27B | 17.56B |
Cash Flow | ||||||
| Free Cash Flow | 1.40B | 965.00M | 1.60B | 1.77B | 1.50B | 1.94B |
| Operating Cash Flow | 1.77B | 1.40B | 2.10B | 2.22B | 1.99B | 2.49B |
| Investing Cash Flow | 6.42B | 6.13B | -221.00M | -1.18B | -693.00M | -1.09B |
| Financing Cash Flow | -7.88B | -7.39B | -2.08B | -2.17B | -516.00M | -2.13B |
Johnson Controls Technical Analysis
Positive
140.87
Price Trends
141.75
Positive
139.42
Positive
127.45
Positive
Market Momentum
-0.08
Positive
50.95
Neutral
33.22
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 140.87 is below the 20-day moving average (MA) of 143.15, below the 50-day MA of 141.75, and above the 200-day MA of 127.45, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 33.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JCI.
Johnson Controls Risk Analysis
Johnson Controls disclosed 37 risk factors in its most recent earnings report. Johnson Controls reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Johnson Controls Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $106.04B | 36.87 | 34.71% | 0.95% | 6.36% | 7.42% | |
71 Outperform | $85.74B | 25.68 | 25.46% | 1.27% | -0.60% | 49.11% | |
69 Neutral | $57.59B | 44.93 | 9.28% | 1.65% | -5.07% | -65.16% | |
67 Neutral | $19.21B | 24.87 | 72.05% | 0.96% | -2.03% | -1.09% | |
66 Neutral | $13.36B | 19.30 | 38.36% | 1.28% | -0.53% | -1.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $8.14B | 28.91 | 6.92% | ― | -8.33% | -66.48% |
* Industrials Sector Average
JCI
Johnson Controls
142.81
37.91
36.14%
BLDR
Builders Firstsource
75.69
-55.34
-42.23%
CSL
Carlisle Companies
330.09
-79.50
-19.41%
TT
Trane Technologies
479.70
44.57
10.24%
LII
Lennox International
552.03
-56.82
-9.33%
CARR
Carrier Global
69.34
-6.16
-8.16%
Johnson Controls Corporate Events
Business Operations and StrategyExecutive/Board Changes
Johnson Controls Adds Finance Leader to Board Amid Transformation
Positive
Jun 3, 2026
On June 3, 2026, Johnson Controls appointed veteran finance executive Irene Esteves to its board of directors, effective immediately, as the company pursues a strategic transformation centered on mission-critical building and thermal management sy...
Business Operations and StrategyExecutive/Board Changes
Johnson Controls Launches Long-Term Value Growth Incentive Program
Positive
May 13, 2026
On May 11, 2026, Johnson Controls’ board Compensation and Talent Development Committee approved a long-term Value Growth Incentive Program aimed at aligning key executives’ pay with aggressive net sales growth and market capitalization...
Business Operations and StrategyExecutive/Board Changes
Johnson Controls Announces Executive Transition Amid Operating Realignment
Neutral
May 4, 2026
On May 1, 2026, Johnson Controls International plc announced that Lei Schlitz, its Vice President and President, Global Products Solutions, will leave the company as part of a planned transition tied to changes in its operating model. Her current...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Johnson Controls Shareholders Approve All Proposals at AGM
Positive
Mar 6, 2026
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 Patric...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.