Johnson Controls Gears Up to Report Q3 Earnings: What to Expect?

The consensus estimate for revenues is pegged at $6.43 billion, indicating an increase of 6.2% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $1.32 per share, indicating an increase of 25.7% from the year-ago quarter’s figure.

Key Factors and Estimates to Note Ahead of JCI’s Earnings Release

The Americas segment is expected to have benefited from solid demand for heating, ventilation and air conditioning (HVAC) platforms in data centers and strength in services businesses in the fiscal third quarter. The Zacks Consensus Estimate for the segment’s revenues is pegged at $4.34 billion, indicating a 7.4% increase from the year-ago figure.

The Europe, the Middle East, and Africa (EMEA) segment is expected to have benefited from strength in products and systems businesses. However, disruptions caused by the Middle East conflicts and lower non-recurring services volumes are likely to mar the segment’s results. The Zacks Consensus Estimate for the segment’s revenues is pegged at $1.25 billion, indicating a 1.6% decrease from the year-ago figure.

Solid momentum in the applied HVAC business, driven by data center application growth, is expected to have driven the performance of the Asia Pacific segment. The Zacks Consensus Estimate for the segment’s revenues is pegged at $777 million, indicating a 5.4% increase from the year-ago figure.

Investments in digital offerings, like the OpenBlue platform that plays an integral part in meeting customer needs, are expected to have driven the company’s revenues.

However, the escalating selling, general and administrative (SG&A) expenses pose a threat to Johnson Controls’ bottom line. High organizational realignment and transaction/separation costs are expected to have pushed up the SG&A expenses, which are likely to have impacted its margins in the fiscal third quarter.

JCI has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its profitability.

Earnings Whispers

Our proven model predicts an earnings beat for JCI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 

Earnings ESP: JCI has an Earnings ESP of +1.85% as the Most Accurate Estimate is pegged at $1.34 per share, which is higher than the Zacks Consensus Estimate of $1.32. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: JCI currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some companies, which according to our model, also have the right combination of elements to beat on earnings in this reporting cycle.

Boise Cascade Company BCC has an Earnings ESP of +6.50% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on Aug. 3.

Boise Cascade’s earnings surpassed the Zacks Consensus Estimate in two of the preceding four quarters, missing one and matching the other, the average surprise being 40.2%.

Ferguson Enterprises Inc. FERG has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on Aug. 10.

Ferguson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.

Ingersoll Rand Inc. IR has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.

Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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