Otis Worldwide is expected to report Q1 revenue of $3.51 billion (up 4.7% YoY) and EPS of $0.92 (flat YoY), with the stock trading at $81.43 against an average analyst target of $98.90. Investors are primarily focused on the growth of the company’s modernization backlog and service margins, which are critical for offsetting persistent weakness in the Chinese new equipment market.
The company’s "Service Flywheel" strategy remains the core story, as digital maintenance tools and high-margin repair work continue to drive recurring revenue stability. While new construction headwinds in Asia remain a drag on equipment sales, the 30% increase in modernization backlog exiting 2025 provides a significant buffer for the 2026 fiscal year.