Johnson Controls (JCI)
NYSE:JCI
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Johnson Controls
(NYSE:JCI)
Select Model
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Rating:70Outperform
Price Target:
$151.00
▲(15.01% Upside)
Action:UpgradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Johnson Controls (JCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.36B
Dividend Yield1.27%
Average Volume (3M)4.26M
Price to Earnings (P/E)36.0
Beta (1Y)1.15
Revenue Growth-10.19%
EPS Growth100.65%
CountryUS
Employees94,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)0.89
Shares Outstanding612,066,200
10 Day Avg. Volume4,048,669
30 Day Avg. Volume4,255,888
Financial Highlights & Ratios
PEG Ratio5.01
Price to Book (P/B)5.54
Price to Sales (P/S)3.04
P/FCF Ratio74.26
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue3.71
Enterprise Value/Gross Profit10.18
Enterprise Value/Ebitda26.54
Forecast
1Y Price Target
$140.55Price Target Upside7.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)4.74
Revenue Forecast (FY)$25.12B
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 operat...
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 re...
Johnson Controls Key Performance Indicators (KPIs)
Any
EBITDA by Segment
Shows earnings before interest, taxes, depreciation, and amortization for each business segment, highlighting which areas are most profitable and where operational efficiencies or challenges exist.
Shows earnings before interest, taxes, depreciation, and amortization for each business segment, highlighting which areas are most profitable and where operational efficiencies or challenges exist.
Data provided by:
The Fly
The FlyJohnson Controls Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and financial progress: record order intake (~+40%), revenue growth (+6%), significant margin expansion (+190 bps to 12.4%), EPS growth (~+40% quarterly) and a raised full-year EPS guide (~+25%). Management highlighted product innovation and data center strength, a growing backlog ($18B) and improving factory and field execution under a new business system. Key cautions were that many large orders are longer-dated (limiting immediate revenue conversion), China is stabilizing but not rebounding to prior growth levels, a small periodic $15M reserve headwind impacted North America margins, SG&A remains elevated versus peers, and accelerating orders create execution and capacity scaling risks. On balance, the positive operational and financial developments materially outweigh the listed challenges.Positive Updates
Record Order Growth and Backlog
Orders increased nearly 40% year-over-year; record backlog grew 20% to $18 billion, providing strong revenue visibility across the business.
Negative Updates
Near-Term Revenue Conversion Timing
Many of the larger orders (particularly data center and life sciences projects) are not necessarily shippable within the next 9–12 months, which limits near-term organic revenue translation despite a 20% backlog increase.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Order Growth and Backlog
Orders increased nearly 40% year-over-year; record backlog grew 20% to $18 billion, providing strong revenue visibility across the business.
Read all positive updates
Company Guidance
Management raised full‑year guidance after a strong Q1 start and now expects adjusted EPS of approximately $4.70 (≈25% growth), mid‑single‑digit organic sales growth, operating leverage of ~50% and roughly 100% free‑cash‑flow conversion; for fiscal Q2 they guide organic sales growth of ~5%, operating leverage of ~45% and adjusted EPS of about $1.11. These targets follow Q1 results of orders up nearly 40%, backlog up 20% to $18 billion, organic revenue +6%, adjusted EBIT margin +190 bps to 12.4%, adjusted EPS $0.89 (≈40% YoY), available cash ≈$600 million and net debt at 2.2x.Johnson Controls Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
62
Positive
| 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
Neutral
131.29
Price Trends
131.55
Negative
123.92
Positive
115.05
Positive
Market Momentum
-0.26
Positive
45.60
Neutral
50.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JCI, the sentiment is Neutral. The current price of 131.29 is below the 20-day moving average (MA) of 134.23, below the 50-day MA of 131.55, and above the 200-day MA of 115.05, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 50.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $90.80B | 29.82 | 36.17% | 0.95% | 8.58% | 20.37% | |
77 Outperform | $13.31B | 18.48 | 36.69% | 1.28% | 0.14% | 3.88% | |
70 Outperform | $80.36B | 36.04 | 23.52% | 1.27% | -10.19% | 100.65% | |
69 Neutral | $45.32B | 29.70 | 10.50% | 1.65% | -7.93% | -35.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $15.24B | 21.56 | 78.89% | 0.96% | 3.77% | 12.46% | |
52 Neutral | $8.90B | 90.31 | 10.11% | ― | -6.44% | -48.84% |
* Industrials Sector Average
JCI
Johnson Controls
131.29
52.27
66.16%
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Johnson Controls Corporate Events
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.