Carrier Reports First Quarter 2026 Results

Rhea-AI Summary

Carrier (NYSE: CARR) reported Q1 2026 results: net sales $5.34B (+2%), GAAP EPS $0.28 and adjusted EPS $0.57. GAAP operating profit fell to $259M (−59%); adjusted operating profit was $594M (−30%). Orders rose, led by Commercial HVAC up 35% and data center orders up over 500%. Free cash flow was ($15M). Carrier returned ~$500M to shareholders and reaffirmed full-year 2026 guidance.

Positive

• Total company orders increased by 11%
• Commercial HVAC orders rose 35%, led by data centers >500%
• Backlog fully covers expected 2026 data center sales
• Returned approximately $500M to shareholders (dividends and repurchases)
• Company reaffirmed full-year 2026 guidance: adjusted EPS ~$2.80

Negative

• GAAP operating profit declined 59% to $259M
• GAAP EPS from continuing operations fell 40% to $0.28
• Adjusted operating profit down 30% to $594M
• Free cash flow swung to ($15M) from $420M prior year
• Adjusted operating margin declined 520 bps to 11.1%

News Market Reaction – CARR

+8.79%

117 alerts

+8.79% News Effect

+7.4% Peak in 5 hr 7 min

+$4.66B Valuation Impact

$57.66B Market Cap

1.0x Rel. Volume

On the day this news was published, CARR gained 8.79%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.4% during that session. Our momentum scanner triggered 117 alerts that day, indicating very high trading interest and price volatility. This price movement added approximately $4.66B to the company's valuation, bringing the market cap to $57.66B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net sales: $5,341 million Operating profit: $259 million Adjusted operating profit: $594 million +5 more

8 metrics

Net sales $5,341 million Q1 2026, up 2% vs Q1 2025

Operating profit $259 million Q1 2026, down 59% vs Q1 2025

Adjusted operating profit $594 million Q1 2026, down 30% vs Q1 2025

GAAP EPS $0.28 Continuing operations, Q1 2026, down 40% year-over-year

Adjusted EPS $0.57 Continuing operations, Q1 2026, down 12% year-over-year

Free cash flow ($15) million Q1 2026, vs $420 million in Q1 2025

Data center orders growth Over 500% Q1 2026 data center orders within Commercial HVAC

Capital returned ~$500 million Q1 2026 dividends and share repurchases

Market Reality Check

Price: $67.09 Vol: Volume 7425789 vs 20-day ...

normal vol

$67.09 Last Close

Volume Volume 7425789 vs 20-day average 6565685 (relative volume 1.13). normal

Technical Trading above 200-day MA: price 61.81 vs MA200 60.22.

Peers on Argus

Ahead of this release, CARR was down 0.42%. Key peers were flat to lower: JCI 0%...

Ahead of this release, CARR was down 0.42%. Key peers were flat to lower: JCI 0%, TT -0.78%, LII -1%, CSL -3.9%, BLDR -5.1%, but the real-time momentum scanner did not flag a coordinated sector move.

Previous Earnings Reports

5 past events · Latest: Apr 09 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 09	Earnings advisory	Neutral	+3.1%	Scheduled Q1 2026 earnings release and conference call details.
Oct 28	Quarterly results	Positive	+0.8%	Q3 2025 results with detailed EPS, profit and cash flow metrics.
Oct 07	Earnings advisory	Neutral	+1.1%	Announcement of Q3 2025 earnings date and call logistics.
Jul 29	Quarterly results	Positive	-10.6%	Strong Q2 2025 growth in sales, EPS and margins across segments.
Jul 08	Earnings advisory	Neutral	+1.3%	Scheduling and access details for Q2 2025 earnings call.

Pattern Detected

Earnings and related advisories have usually seen modest, directionally aligned moves, with one notable selloff on strong Q2 2025 results.

Recent Company History

Recent earnings-related news for CARR shows generally steady communication cadence. In Q2 2025, strong results with higher sales and EPS were followed by a -10.61% move, contrasting with mostly positive reactions around other earnings releases and advisories. Q3 2025 results showed declining sales but maintained guidance, with a small gain. Advisory releases in July 2025, October 2025 and April 2026 saw modest positive moves, suggesting expectations setting itself has not been disruptive ahead of results.

Historical Comparison

-0.9% avg move · Historically, CARR’s earnings and related advisories have led to relatively modest average moves of ...

earnings

-0.9%

Average Historical Move earnings

Historically, CARR’s earnings and related advisories have led to relatively modest average moves of about -0.88%, with one sharp Q2 2025 selloff contrasting otherwise small, mostly positive reactions.

Earnings history shows strong Q2 2025 growth followed by softer Q3 2025 sales and continued use of advisories. The current Q1 2026 release fits into this pattern of detailed quarterly financial updates and maintained full‑year guidance messaging.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-02-05

An effective S-3ASR resale shelf filed on Feb 05, 2026 covers up to 50,074,109 shares of CARR common stock held by Viessmann Traeger HoldCo GmbH and affiliates. Carrier is not selling shares under this registration and will receive no proceeds from any stockholder sales.

Market Pulse Summary

The stock moved +8.8% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +8.8% in the session following this news. A strong positive reaction aligns with the mix of resilient top-line performance and weaker profitability. Net sales grew to $5.3 billion, but GAAP operating profit fell 59% and adjusted EPS declined to $0.57. Markets in the past have sometimes sold off even on strong quarters, as in Q2 2025, so enthusiasm could face tests if margin pressure or negative free cash flow of ($15) million persists or if selling from the 50,074,109-share resale shelf emerges.

Key Terms

organic sales, free cash flow, adjusted operating profit, adjusted EPS, +4 more

8 terms

organic sales financial

"Net sales up 2%; organic sales down 1%"

Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.

free cash flow financial

"Net cash flows from operating activities of $79 million and free cash flow of ($15) million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

adjusted operating profit financial

"Adjusted operating profit of $594 million was down 30% from last year"

Adjusted operating profit is a measure of a company’s routine profit from its core business activities after removing one‑time events, unusual costs or non‑cash items so the result reflects ongoing operations. Think of it like judging a car’s normal fuel efficiency after ignoring a single visit to the body shop; investors use it to compare underlying profitability across periods or peers and to judge whether the business is sustainably earning money, but the specific exclusions can be subjective.

adjusted EPS financial

"GAAP EPS of $0.28 and adjusted EPS of $0.57"

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

segment operating margin financial

"Segment operating margin | 14.9 % | 22.2 % | (730) bps"

Segment operating margin measures how much profit a specific part of a company keeps from its sales after paying the costs to run that part, expressed as a percentage. Investors use it like a slice-size indicator to compare which divisions are more efficient at turning revenue into operating profit, helping spot strengths, weaknesses, and where management might focus resources or improvements.

non-GAAP financial

"Use and Definitions of Non-GAAP Financial Measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

net debt financial

"Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

basis points financial

"Operating margin | 4.8 % | 12.1 % | (730) bps"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

• Data center orders up over 500%; backlog fully covers expected 2026 data center sales
• Total company orders¹ up 11%; Commercial HVAC¹ up 35%
• Net sales up 2%; organic sales down 1%
• GAAP EPS of $0.28 and adjusted EPS of $0.57
• Net cash flows from operating activities of $79 million and free cash flow of ($15) million
• Returned ~$500 million to shareholders through dividends and repurchases
• Reaffirms full year outlook

PALM BEACH GARDENS, Fla., April 30, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported financial results for the first quarter of 2026.

"We started the year with better-than-expected sales performance across the portfolio," said Carrier Chairman & CEO David Gitlin. "Orders in our global Commercial HVAC¹ business increased 35%, helped by data centers which were up over 500% in the quarter. The strong double-digit sequential increase in Commercial HVAC backlog gives us the confidence to drive our sixth consecutive year of double-digit growth in this business. CSA Light Commercial and CSE Residential both delivered growth, while CSA Residential came in better than expected. I am pleased with the team's performance in the first quarter, and we are reaffirming our full-year outlook."

1 Excludes NORESCO

First Quarter 2026 Results

Total Company

	(Unaudited)
	Three Months Ended March 31,
(In millions)	2026	2025	Change
Net sales	$    5,341	$    5,218	2 %
Organic sales	(1) %
Operating profit	$      259	$      629	(59) %
Operating margin	4.8 %	12.1 %	(730) bps
Adjusted operating profit	$      594	$      848	(30) %
Adjusted operating margin	11.1 %	16.3 %	(520) bps
Diluted earnings per share:
Continuing operations	$     0.28	$     0.47	(40) %
Continuing operations - Adjusted	$     0.57	$     0.65	(12) %

Carrier's first-quarter sales of $5.3 billion increased 2% compared to the prior year. Organic sales declined 1%, more than offset by a 3% tailwind from foreign currency translation.

GAAP operating profit of $259 million in the quarter declined 59% from last year, driven by the CSA, CSE and CSAME segments. 

Adjusted operating profit of $594 million was down 30% from last year, predominantly due to lower sales in our CSA Residential business and continued headwinds in China Residential and Light Commercial (RLC).

Net earnings from continuing operations were $239 million and adjusted net earnings from continuing operations were $482 million. GAAP EPS from continuing operations was $0.28 and adjusted EPS was $0.57, down 40% and 12% year-over-year, respectively. The declines were primarily driven by lower operating profit, partially offset by a lower tax rate and benefits of a lower share count.

Climate Solutions Americas (CSA)

	(Unaudited)
	Three Months Ended March 31,
(In millions)	2026	2025	Change
Net sales	$    2,501	$    2,572	(3) %
Organic sales	(3) %
Segment operating profit	$      373	$      570	(35) %
Segment operating margin	14.9 %	22.2 %	(730) bps

CSA segment sales declined 3%. Organic sales were down 3% driven by Residential, down about 12%, partially offset by strength in Light Commercial and Commercial¹, up 9% and 1% respectively.

Segment operating margin decreased 730 basis points largely reflecting lower Residential sales and associated factory under-absorption.

1 Excludes NORESCO

Climate Solutions Europe (CSE)

	(Unaudited)
	Three Months Ended March 31,
(In millions)	2026	2025	Change
Net sales	$    1,293	$    1,169	11 %
Organic sales	— %
Segment operating profit	$         89	$       105	(15) %
Segment operating margin	6.9 %	9.0 %	(210) bps

CSE segment sales increased 11%. Organic sales were flat with RLC up low-single digits and Commercial down mid-single digits.

Segment operating margin decreased 210 basis points driven by lower Commercial volume and higher promotions partially offset by RLC volume growth and strong productivity.

Climate Solutions Asia Pacific, Middle East & Africa (CSAME)

	(Unaudited)
	Three Months Ended March 31,
(In millions)	2026	2025	Change
Net sales	$      834	$      826	1 %
Organic sales	(1) %
Segment operating profit	$        81	$      121	(33) %
Segment operating margin	9.7 %	14.6 %	(490) bps

CSAME segment sales increased 1%. Organic sales were down 1% mainly driven by RLC in China, partially offset by strong Commercial growth outside of China, particularly in India and Australia.

Segment operating margin decreased 490 basis points as expected, driven mainly by China RLC.

Climate Solutions Transportation (CST)

	(Unaudited)
	Three Months Ended March 31,
(In millions)	2026	2025	Change
Net sales	$      713	$      651	10 %
Organic sales	5 %
Segment operating profit	$      101	$        97	4 %
Segment operating margin	14.2 %	14.9 %	(70) bps

CST sales increased 10% driven by strong growth in Container. Organic sales increased 5% with 38% growth in Container, partially offset by a decline in Global Truck and Trailer, down high-single digits.

Segment operating margin declined 70 basis points, due to unfavorable mix. 

Cash Flow

		(Unaudited)
		Three Months Ended  March 31,
(In millions)		2026		2025
Net cash flows provided by operating activities		$         79		$       483
Less: Capital expenditures		(94)		(63)
Free cash flow		$        (15)		$       420

Net cash flows generated from operating activities were $79 million and capital expenditures were $94 million, resulting in free cash flow of ($15) million.

Full-Year 2026 Guidance**

	Current Guidance**	Prior Guidance
Sales	~$22 billion ~$250 million revenue headwind from Riello exit Organic* flat to up LSD FX 1% Net, Acquisitions / Divestitures (1%)	~$22 billion ~$350 million revenue headwind from Riello exit Organic* flat to up LSD FX 1% Net, Acquisitions / Divestitures (1%)
Adjusted Operating Profit*	~$3.4 billion	~$3.4 billion
Adjusted EPS*	~$2.80	~$2.80
Free Cash Flow*	~$2 billion	~$2 billion

	Riello divestiture expected to close by the end of Q2 2026; prior guidance assumed the divestiture closed by the end of Q1 2026.
*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information.

**As of April 30, 2026

Conference Call

Carrier will host a webcast of its earnings conference call today, Thursday, April 30, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations. For alternative dial-in information, please contact Carrier Investor Relations at InvestorRelations@Carrier.com.

Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, expectations relating to our sales backlog, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, expectations concerning the mitigation and net impact of tariffs during 2026, Carrier's guidance for full-year 2026, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation) or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC.

About Carrier
Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit www.carrier.com or follow Carrier on social media at @Carrier.

Carrier. For the World We Share

CARR-IR

Contact:
	Investor Relations
	Michael Rednor
	561-365-2020
	InvestorRelations@Carrier.com
	Media Inquiries
	Rob Six
	561-281-2362
	Robert.Six@Carrier.com

SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following are tables that present selected financial data of Carrier Global Corporation ("Carrier"). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures.

Use and Definitions of Non-GAAP Financial Measures

Carrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Organic sales, adjusted operating profit, adjusted operating margin, adjusted earnings per share ("EPS"), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted.

Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure).

Segment operating profit is the measure of profit and loss that the Chief Operating Decision Maker uses to evaluate segment profitability. Segment operating profit represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature.

Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled.

When Carrier provides our expectations for organic sales, adjusted operating profit (including on a segment basis), adjusted operating margin (including on a segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and interest expense, net on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Carrier Global Corporation Condensed Consolidated Statement of Operations
		(Unaudited)
		Three Months Ended  March 31,
(In millions, except per share amounts)		2026		2025
Net sales
Product sales		$     4,667		$     4,652
Service sales		674		566
Total Net sales		5,341		5,218
Costs and expenses
Cost of products sold		(3,591)		(3,358)
Cost of services sold		(506)		(415)
Research and development		(143)		(153)
Selling, general and administrative		(861)		(729)
Total Costs and expenses		(5,101)		(4,655)
Equity method investment net earnings		31		44
Other income (expense), net		(12)		22
Operating profit		259		629
Non-service pension benefit (expense)		1		1
Interest (expense) income, net		(90)		(82)
Earnings before income taxes		170		548
Income tax (expense) benefit		96		(111)
Earnings from continuing operations		266		437
Discontinued operations, net of tax		(1)		—
Net earnings (loss)		265		437
Less: Non-controlling interest in subsidiaries'		27		25
Net earnings (loss) attributable to common shareowners		$       238		$       412
Amounts attributable to common shareowners:
Continuing operations		$       239		$       412
Discontinued operations		(1)		—
Net earnings (loss) attributable to common shareowners		$       238		$       412
Earnings per share
Basic:
Continuing operations		$       0.29		$       0.47
Discontinued operations		—		—
Net earnings (loss)		$       0.29		$       0.47
Diluted:
Continuing operations		$       0.28		$       0.47
Discontinued operations		—		—
Net earnings (loss)		$       0.28		$       0.47
Weighted-average number of shares outstanding
Basic		835.0		866.9
Diluted		842.8		878.3

 

Carrier Global Corporation Condensed Consolidated Balance Sheet
		(Unaudited)
(In millions)		March 31, 2026		December 31, 2025
Assets
Cash and cash equivalents		$            1,371		$              1,555
Accounts receivable, net		3,130		2,639
Inventories, net		2,581		2,483
Assets held for sale		621		592
Other current assets		1,315		1,264
Total current assets		9,018		8,533
Future income tax benefits		1,137		1,074
Fixed assets, net		3,122		3,165
Operating lease right-of-use assets		551		546
Intangible assets, net		5,987		6,326
Goodwill		15,313		15,501
Pension and post-retirement assets		58		56
Equity method investments		1,331		1,321
Other assets		669		668
Total Assets		$           37,186		$             37,190
Liabilities and Equity
Accounts payable		$            2,979		$              2,702
Accrued liabilities		3,700		3,774
Liabilities held for sale		170		170
Short-term borrowings and current portion of long-term debt		1,736		468
Total current liabilities		8,585		7,114
Long-term debt		10,422		11,365
Future pension and post-retirement obligations		188		192
Future income tax obligations		1,688		1,833
Operating lease liabilities		415		418
Other long-term liabilities		2,087		2,140
Total Liabilities		23,385		23,062
Equity
Common stock		10		10
Treasury stock		(7,104)		(6,795)
Additional paid-in capital		8,675		8,665
Retained earnings		12,431		12,193
Accumulated other comprehensive income (loss)		(560)		(269)
Non-controlling interest		349		324
Total Equity		13,801		14,128
Total Liabilities and Equity		$           37,186		$             37,190

 

Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited)
		Three Months Ended March 31,
(In millions)		2026		2025
Operating Activities
Net earnings (loss)		$       265		$       437
Discontinued operations, net of tax		1		—
Adjustments for non-cash items, net:
Depreciation and amortization		315		303
Deferred income tax provision		(179)		(69)
Stock-based compensation costs		21		23
Equity method investment net earnings		(31)		(44)
(Gain) loss on sale of investments		(3)		(5)
Changes in operating assets and liabilities
Accounts receivable, net		(509)		(362)
Inventories, net		(138)		(301)
Accounts payable and accrued liabilities		351		481
Distributions from equity method investments		12		77
Other operating activities, net		(39)		(52)
Net cash flows provided by (used in) continuing operating activities		66		488
Net cash flows provided by (used in) discontinued operating activities		13		(5)
Net cash flows provided by (used in) operating activities		79		483
Investing Activities
Capital expenditures		(94)		(63)
Investment in businesses, net of cash acquired		(23)		(12)
Dispositions of businesses		8		8
Settlement of derivative contracts, net		35		36
Other investing activities, net		9		1
Net cash flows provided by (used in) continuing investing activities		(65)		(30)
Net cash flows provided by (used in) discontinued investing activities		—		7
Net cash flows provided by (used in) investing activities		(65)		(23)
Financing Activities
Increase (decrease) in short-term borrowings, net		371		(49)
Issuance of long-term debt		22		9
Repayment of long-term debt		(16)		(1,205)
Repurchases of common stock		(306)		(1,288)
Dividends paid on common stock		(201)		(198)
Dividends paid to non-controlling interest		(1)		—
Other financing activities, net		(10)		(16)
Net cash flows provided by (used in) continuing financing activities		(141)		(2,747)
Net cash flows provided by (used in) discontinued financing activities		—		—
Net cash flows provided by (used in) financing activities		(141)		(2,747)
Effect of foreign exchange rate changes on cash and cash equivalents		(13)		17
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale		(140)		(2,270)
Less: Change in cash balances classified as assets held for sale		43		—
Net increase (decrease) in cash and cash equivalents and restricted cash		(183)		(2,270)
Cash, cash equivalents and restricted cash, beginning of period		1,557		3,972
Cash, cash equivalents and restricted cash, end of period		1,374		1,702
Less: restricted cash		3		4
Cash and cash equivalents, end of period		$     1,371		$     1,698

 

Carrier Global Corporation Segment Summary
	(Unaudited)
	Three Months Ended  March 31,
(In millions)	2026			2025
Segment net sales
Climate Solutions Americas		$   2,501		$   2,572
Climate Solutions Europe		1,293		1,169
Climate Solutions Asia Pacific, Middle East & Africa		834		826
Climate Solutions Transportation		713		651
Segment net sales		$   5,341		$   5,218
Segment operating profit
Climate Solutions Americas		$     373		$     570
Climate Solutions Europe		89		105
Climate Solutions Asia Pacific, Middle East & Africa		81		121
Climate Solutions Transportation		101		97
Segment operating profit		$     644		$     893
Segment operating margin
Climate Solutions Americas		14.9 %		22.2 %
Climate Solutions Europe		6.9 %		9.0 %
Climate Solutions Asia Pacific, Middle East & Africa		9.7 %		14.6 %
Climate Solutions Transportation		14.2 %		14.9 %

 

Components of Changes in Net Sales
Three Months Ended March 31, 2026, Compared withThree Months Ended March 31, 2025
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	(3) %		— %		— %		— %		(3) %
Climate Solutions Europe	— %		11 %		— %		— %		11 %
Climate Solutions Asia Pacific, Middle East & Africa	(1) %		2 %		— %		— %		1 %
Climate Solutions Transportation	5 %		5 %		— %		— %		10 %
Consolidated	(1) %		3 %		— %		— %		2 %

 

Carrier Global Corporation Reconciliations
		(Unaudited)
		Three Months Ended  March 31,
(In millions)		2026		2025
Reconciliation to Earnings before income taxes
Segment operating profit		$       644		$       893
Corporate and other		(50)		(45)
Restructuring costs		(108)		(8)
Amortization of acquired intangible assets		(213)		(201)
Acquisition/divestiture-related costs		(14)		(10)
Non-service pension (expense) benefit		1		1
Interest (expense) income, net		(90)		(82)
Earnings before income taxes		$       170		$       548
		(Unaudited)
		Three Months Ended  March 31,
(In millions)		2026		2025
Reconciliation of Segment operating profit to Adjusted operating profit
Climate Solutions Americas		$       373		$       570
Climate Solutions Europe		89		105
Climate Solutions Asia Pacific, Middle East & Africa		81		121
Climate Solutions Transportation		101		97
Segment operating profit		$       644		$       893
Corporate and other		(50)		(45)
Adjusted operating profit		$       594		$       848

 

Carrier Global Corporation  Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate
	(Unaudited)
	Three Months Ended March 31, 2026
(In millions, except per share amounts)	Reported		Adjustments		Adjusted
Net sales	$   5,341		$          —		$   5,341
Operating profit	$      259		335	a	$      594
Operating margin	4.8 %				11.1 %
Earnings before income taxes	$      170		335	a	$      505
Income tax (expense) benefit	$        96		(92)	b	$          4
Effective tax rate	(56.5) %				(0.8) %
Earnings from continuing operations attributable to common shareowners	$      239		$         243		$      482
Summary of Adjustments:
Restructuring costs			$         108	a
Amortization of acquired intangible assets			213	a
Acquisition/divestiture-related costs			14	a
Total adjustments			$         335
Tax effect on adjustments above			$          (92)
Total tax adjustments			$          (92)	b
Diluted shares outstanding	842.8				842.8
Diluted earnings per share:
Continuing operations	$    0.28				$    0.57

 

Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate
	(Unaudited)
	Three Months Ended March 31, 2025
(In millions, except per share amounts)	Reported		Adjustments		Adjusted
Net sales	$   5,218		$          —		$   5,218
Operating profit	$      629		219	a	$      848
Operating margin	12.1 %				16.3 %
Earnings before income taxes	$      548		219	a	$      767
Income tax (expense) benefit	$      (111)		(58)	b	$     (169)
Effective tax rate	20.3 %				22.0 %
Earnings from continuing operations attributable to common shareowners	$      412		$         161		$      573
Summary of Adjustments:
Restructuring costs			$            8	a
Amortization of acquired intangible assets			201	a
Acquisition/divestiture-related costs			10	a
Total adjustments			$        219
Tax effect on adjustments above			$         (58)
Total tax adjustments			$         (58)	b
Diluted shares outstanding	878.3				878.3
Diluted earnings per share:
Continuing operations	$    0.47				$    0.65

 

Free Cash Flow Reconciliation
		(Unaudited)
		Three Months Ended  March 31,
(In millions)		2026		2025
Net cash flows provided by operating activities		$         79		$       483
Less: Capital expenditures		(94)		(63)
Free cash flow		$        (15)		$       420

 

Net Debt Reconciliation
		(Unaudited)
(In millions)		March 31, 2026		December 31, 2025
Long-term debt		$             10,422		$             11,365
Short-term borrowings and current portion of long-term debt		1,736		468
Less: Cash and cash equivalents		1,371		1,555
Net debt		$             10,787		$             10,278

 

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SOURCE Carrier Global Corporation

FAQ

What were Carrier's Q1 2026 revenue and EPS (CARR)?

Carrier reported Q1 2026 net sales of $5.34 billion and GAAP EPS $0.28. According to the company, adjusted EPS was $0.57, and organic sales declined about 1% year-over-year.

How did data center demand affect Carrier's Q1 2026 results (CARR)?

Data center orders rose over 500% in the quarter, driving Commercial HVAC strength. According to the company, Commercial HVAC orders were up 35%, and backlog fully covers expected 2026 data center sales.

What was Carrier's Q1 2026 cash flow and shareholder returns (CARR)?

Carrier generated $79M of operating cash flow and ($15M) free cash flow in Q1 2026. According to the company, it returned roughly $500M to shareholders via dividends and repurchases.

Did Carrier update full-year 2026 guidance after Q1 results (CARR)?

Carrier reaffirmed its full-year 2026 guidance, targeting approximately $22B sales and $2.80 adjusted EPS. According to the company, free cash flow remains guided at about $2B for 2026.

What drove the year-over-year profit decline for Carrier in Q1 2026 (CARR)?

The profit decline was driven by lower operating profit across CSA, CSE and CSAME segments and weaker Residential results. According to the company, margin pressure included China residential headwinds and factory under-absorption.