EL7.AI
StocksMediumUpdated×2•Originally published 22 October 2026•Updated 22 October 2026•
3 min read

Carrier Data Center Orders Jump More Than 300% as Margins Decline

Key Facts

1Carrier's data center orders rose more than 300% in the second quarter of 2026 from a year earlier.
2Carrier raised its 2026 data center sales forecast to about $2 billion from $1.5 billion.
3The adjusted operating margin fell to 17.2% from 19.1%, a decline of 190 basis points.
4Carrier announced an additional $1 billion investment in the United States over 5 years in May 2025.

Carrier reported a more than 300% increase in data center orders in the second quarter of 2026 compared with the same period a year earlier, according to the company's earnings statement. The jump was part of broader growth in demand for its equipment, including commercial HVAC and total orders. Commercial HVAC orders rose about 65% during the period, excluding the Noresco and Riello businesses from the measure. Total company orders increased about 40%, also excluding the same two businesses, according to the statement. Net sales rose to $6,351 million from $6,113 million in the second quarter of 2025. Net sales grew 4% year over year in the quarter that saw the increase in data center orders.

The company raised its forecast for data center cooling sales in 2026 to about $2 billion, according to Investing.com's coverage of the second-quarter earnings presentation. The previous sales estimate for the business was $1.5 billion for the same year. The higher annual forecast coincided with a decline in companywide adjusted operating profitability in the second-quarter results. The adjusted operating margin was 17.2%, according to Carrier's statement, compared with 19.1% in the corresponding period of 2025. That represents a decline of 190 basis points from a year earlier.

On manufacturing expansion, Chief Executive David Gitlin said during the July earnings call, a transcript of which was published by Investing.com, that Carrier was considering a location for a new U.S. factory. He added: "We are primarily focused on Texas and Alabama." On the same call, Gitlin outlined Carrier's total capital expenditure estimate for 2026, saying: "We now expect full-year capital expenditures to be about $600 million." That estimate covers annual spending for the company as a whole. In Fort Worth, Texas, Carrier also posted an opening for a maintenance technician, according to its official careers portal. The job page listed the posting date as September 14, 2026, and classified the position under operations.

Alongside its manufacturing plans, Carrier's investment arm expanded its investment in ZutaCore, which specializes in liquid cooling solutions for AI data centers, according to a company statement. The statement described ZutaCore's solutions as providing direct-to-chip liquid cooling without using water. Carrier said the expanded investment aims to scale the use of these solutions in data centers. ZutaCore's "HyperCool" technology uses a closed-loop, two-phase system, according to the technical description in the statement. The system removes heat at its source as part of the company's approach to direct-to-chip cooling.

Carrier's broader plan to strengthen its U.S. manufacturing presence dates back to May 2025, when it announced an additional $1 billion investment over 5 years. The company identified manufacturing, innovation and workforce expansion within the United States as areas covered by the program. In its announcement, it described the commitment as an additional investment under a multiyear plan. According to the announcement, the industrial expansion includes developing manufacturing capabilities alongside innovation and workforce activities. Carrier expected the plan to create 4,000 highly skilled jobs during the implementation of the U.S. investment program.