Want to see JCI full AI Analyst Report?
Top Page
Johnson Controls
(NYSE:JCI)
Select Model
Select Model
Rating:75Outperform
Price Target:
$173.00
▲(20.67% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong earnings-call momentum (raised FY2026 outlook, record backlog and robust order growth) and a favorable technical uptrend with solid momentum. Financial performance is generally strong on margins, ROE, and improving leverage, but the sharp TTM revenue decline and weak operating cash flow conversion temper the outlook. Valuation is a modest headwind given a 25.42 P/E and ~1.09% dividend yield.
Positive Factors
Record backlog and strong order momentum
A 27% uplift in orders and a record $21B backlog materially extend revenue visibility across quarters. Large backlog helps smooth project timing, supports capacity planning and underpins durable top-line growth as system and service projects convert to revenue over the next 2–6 months.
Negative Factors
Sharp trailing revenue decline
A near-25% TTM revenue contraction is a structural red flag that could reflect portfolio shifts, lost OEM/content share, or timing of large system projects. Sustained top-line weakness pressures absolute earnings and makes margin gains harder to translate into lasting organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and strong order momentum
A 27% uplift in orders and a record $21B backlog materially extend revenue visibility across quarters. Large backlog helps smooth project timing, supports capacity planning and underpins durable top-line growth as system and service projects convert to revenue 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
$88.84B
Dividend Yield1.09%
Average Volume (3M)4.18M
Price to Earnings (P/E)25.4
Beta (1Y)1.01
Revenue Growth6.81%
EPS Growth70.90%
CountryUS
Employees87,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)5.77
Shares Outstanding605,741,460
10 Day Avg. Volume2,902,619
30 Day Avg. Volume4,184,383
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$165.58Price Target Upside15.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.02
Revenue Forecast (FY)$25.48B
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-related equipment and technology, delivering project and systems integration work, and providing recurring service and monitoring over the installed base.
1) Equipment and systems sales (...
Johnson Controls Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: double‑digit organic growth drivers, record backlog, meaningful margin expansion, raised guidance, robust cash generation and tangible manufacturing/productivity improvements. Challenges were present but limited: service and security growth lagging, EMEA exposure to Middle East disruption, occasional supply chain/capacity constraints, and modest mix headwinds from rapid systems/data center expansion. Overall the positives were broad‑based and materially outweighed the headwinds.Positive Updates
Strong Top-Line Growth
Organic revenue grew 10% in Q3 FY2026, driven by system sales (+11%) and service (+7%); applied HVAC delivered high‑teens growth supported by data center demand.
Negative Updates
Service Order and Security Business Pressure
Service orders (+4%) and service revenue growth (+7%) lagged systems growth; service backlog in Americas weakened mostly due to the security business, which faces competitive volume pressure and lower differentiation.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Top-Line Growth
Organic revenue grew 10% in Q3 FY2026, driven by system sales (+11%) and service (+7%); applied HVAC delivered high‑teens growth supported by data center demand.
Read all positive updates
Company Guidance
Johnson Controls raised its fiscal 2026 outlook after a strong Q3: Q4 guidance calls for organic revenue growth of 9–10%, operating leverage of 45–50% and adjusted EPS of ~ $1.55, while full‑year guidance was raised to ~8% organic revenue growth (from ~6%), full‑year operating leverage 45–50%, adjusted EPS of ~ $5.05 (about 35% y/y and $0.50 above the original guide) and adjusted free cash‑flow conversion of ~100%. The company points to a record backlog of $21.0 billion (up ~32% y/y), order momentum +27% (systems +40%, service +4%), Q3 revenue +10%, adjusted EBIT margin 17% (up 260 bps), adjusted segment EBITDA margin 20% (up 220 bps), Q3 adjusted EPS $1.42 (+35% y/y), cash ≈ $600M, net debt ~1.9x and YTD adjusted FCF of $2.1B, and reiterated a long‑term algorithm of high single‑digit revenue growth, >30% incremental operating leverage, double‑digit adjusted EPS growth and ~95–100% FCF conversion.Johnson Controls Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.00B | 23.60B | 22.95B | 22.33B | 20.64B | 23.67B |
| Gross Profit | 9.16B | 8.59B | 8.08B | 7.82B | 7.09B | 8.05B |
| EBITDA | 3.60B | 3.15B | 2.80B | 2.10B | 2.05B | 3.88B |
| Net Income | 3.58B | 3.29B | 1.71B | 1.85B | 1.53B | 1.64B |
Balance Sheet | ||||||
| Total Assets | 38.76B | 37.94B | 42.70B | 42.24B | 42.16B | 41.89B |
| Cash, Cash Equivalents and Short-Term Investments | 641.00M | 379.00M | 606.00M | 828.00M | 2.03B | 1.34B |
| Total Debt | 9.47B | 11.19B | 9.49B | 8.82B | 8.96B | 7.74B |
| Total Liabilities | 25.24B | 24.98B | 25.33B | 24.55B | 24.76B | 23.14B |
| Stockholders Equity | 13.48B | 12.93B | 16.10B | 16.55B | 16.27B | 17.56B |
Cash Flow | ||||||
| Free Cash Flow | 2.00B | 965.00M | 1.60B | 1.77B | 1.50B | 1.94B |
| Operating Cash Flow | 2.37B | 1.40B | 2.10B | 2.22B | 1.99B | 2.49B |
| Investing Cash Flow | 6.25B | 6.13B | -221.00M | -1.18B | -693.00M | -1.09B |
| Financing Cash Flow | -7.79B | -7.39B | -2.08B | -2.17B | -516.00M | -2.13B |
Johnson Controls Technical Analysis
Positive
143.37
Price Trends
143.45
Positive
140.79
Positive
131.21
Positive
Market Momentum
2.65
Negative
62.72
Neutral
82.76
Negative
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 143.37 is below the 20-day moving average (MA) of 144.90, below the 50-day MA of 143.45, and above the 200-day MA of 131.21, indicating a bullish trend. The MACD of 2.65 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 82.76 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $88.84B | 25.42 | 26.94% | 1.12% | 6.81% | 70.90% | |
69 Neutral | $100.10B | 34.31 | 34.49% | 0.83% | 7.04% | 4.58% | |
66 Neutral | $50.95B | 42.53 | 8.89% | 1.37% | -1.58% | -43.59% | |
65 Neutral | $14.29B | 20.54 | 41.06% | 1.31% | 1.90% | -2.79% | |
65 Neutral | $14.37B | 18.75 | 65.30% | 0.97% | -2.11% | -5.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.15B | 72.22 | 2.46% | ― | -9.38% | -86.05% |
* Industrials Sector Average
JCI
Johnson Controls
152.21
47.85
45.86%
BLDR
Builders Firstsource
74.69
-54.07
-41.99%
CSL
Carlisle Companies
387.49
25.65
7.09%
TT
Trane Technologies
482.31
58.19
13.72%
LII
Lennox International
439.77
-136.53
-23.69%
CARR
Carrier Global
64.01
0.11
0.18%
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...
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.