Companies · OTIS
Otis
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Latest analysis
Updated Oct 29, 2026
Otis Q3 2026: Service modernization surge drives 6% total revenue growth while New Equipment China drag and labor cost inflation compress margins 120bps
Otis delivered Q3 2026 net sales of $3.914 billion, up 6% year-over-year on 6% organic volume growth, with Service segment modernization revenues accelerating 20% organically — the strongest sub-segment result in the filing. The structural story is the widening divergence between Service (growing, margin-diluted by labor) and New Equipment (China down greater than 20%, operating margin contracting to 3.2% from 4.7%). Gross margin compression of 120 basis points in the quarter reflects a cost structure where labor and commodity inflation is outpacing volume-driven absorption, and no new pricing lever is disclosed.
Tone: mixedRevenue
$14.4B
OTIS 10-K · FY 2025
Employees
72,000
Revenue FY2024
$14.3B
Headquarters
Farmington, CT
Profile
OTIS 10-K Item 1 · Feb 5, 2026Otis Worldwide Corporation is the world's leading elevator and escalator manufacturing, installation, service and modernization company, serving customers in over 200 countries and territories. The company operates through two segments — New Equipment and Service — with Service representing 65% of net sales and 91% of segment operating profit in 2025. Otis maintains a global maintenance portfolio of approximately 2.5 million units and operates through more than 1,400 branches and offices with a direct physical presence in more than 70 countries.
Read filing description ↓ Collapse description ↑
Otis is the world's leading elevator and escalator manufacturing, installation, service and modernization company. We serve customers in over 200 countries and territories around the world. Otis has global scale and local focus, with more than 1,400 branches and offices, and a direct physical presence in more than 70 countries. Our Company is organized into two segments, New Equipment and Service, which, for 2025, contributed 35% and 65% of our net sales, and 9% and 91% of our segment operating profit, respectively. Our international operations represented approximately 71% of our net sales for 2025. Through our New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways for residential, commercial and infrastructure projects. Through our Service segment, we perform maintenance and repair services, as well as modernization services to upgrade elevators and escalators. We have a maintenance portfolio of approximately 2.5 million units globally, which includes Otis equipment manufactured and sold by us, as well as equipment from other original equipment manufacturers. We provide our Service offerings to our customers through a global network of 37,000 Service mechanics operating out of more than 1,400 branches and offices. Otis ONE is our latest cloud-based IoT technology, designed to continuously monitor equipment health and performance in real time to provide proactive, predictive and transparent information to our technicians and customers. As of December 31, 2025, approximately 1.1 million units of our global portfolio are connected.
Primary products
- Gen2
- Gen3
- Gen360
- SkyRise
- Escalators and Moving Walkways
- Otis ONE
Business segments
End markets
Geographies
Named customers
Given the breadth of our customer base and the large number of customers to whom we deliver new equipment on an annual basis, we are not dependent on any single customer and do not have any contracts material to Otis as a whole with any single customer.
Named competitors
“We believe our global presence, local relationships and proven track record in executing complex elevator and escalator solutions contribute to our iconic brand, reputation and competitive position in the industry.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Net sales increased from $14,261 million in 2024 to $14,431 million in 2025, driven by growth in Service sales which rose from $8,894 million to $9,442 million, partially offset by a decline in Product sales from $5,367 million to $4,989 million.
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