EL7.AI
StocksMedium•27 October 2026•
3 min read

Johnson Controls Orders Jump 44%, Backlog Reaches $23 Billion

Key Facts

1Orders rose 44% organically, and backlog reached $23 billion, up 43% organically.
2Quarterly sales rose 10% to $7.1 billion, and organic sales increased 12%.
3Fourth-quarter earnings per share were $1.60 under GAAP and $1.66 on an adjusted basis.
4The company expects organic sales growth of 11% to 12% and adjusted earnings per share of $6.15 to $6.30 in fiscal 2027.

Johnson Controls said orders rose 44% organically year over year in the fourth quarter of fiscal 2026, while its backlog reached $23 billion, up 43% organically from the same period. The company said quarterly sales increased 10% to $7.1 billion, while organic sales rose 12%. Earnings per share were $1.60 under generally accepted accounting principles, while adjusted earnings were $1.66 per share. The order and backlog figures provide a picture of the volume of business booked by the company at quarter-end, alongside revenue generated during the quarter. The results cover the final quarter of fiscal 2026, while the guidance announced by the company covers the following fiscal year.

For the full fiscal year, sales were $25.666 billion in 2026, compared with $23.596 billion in 2025. Chief Executive Joachim Weidmanis said the company finished 2026 with "strong momentum," with organic revenue growth exceeding 8% and adjusted earnings per share growth in the double digits. The annual comparison places the quarter's performance within a year in which reported sales rose from the prior year. Weidmanis also linked his description of momentum to organic revenue and adjusted earnings results, without providing an earnings growth rate in that statement. In the same quarter, cash from operating activities was $1.3 billion, and free cash flow reached $1.1 billion.

Sales growth varied by region. In Asia-Pacific, sales rose 12% to $871 million, while organic sales increased 13%, driven by 15% growth in products and systems, the company said. The latter figure shows that growth in products and systems exceeded the region's organic sales growth rate for the quarter. More broadly, quarterly sales rose 10%, compared with organic growth of 12%. Orders, meanwhile, rose 44% organically, a faster pace than organic sales growth over the same period. The picture is completed by a $23 billion backlog, which was up 43% organically year over year at quarter-end.

Johnson Controls issued its fiscal 2027 guidance, setting organic sales growth at 11% to 12% and adjusted earnings per share at $6.15 to $6.30, alongside adjusted free cash flow conversion of about 95%. The statement did not describe the guidance as an increase over previous guidance, so the figures represent the company's ranges for the coming year as announced. For the first quarter of 2027, the company expects organic sales growth of 12% to 14% and adjusted earnings per share of $1.15 to $1.20. The first-quarter range puts expected organic sales growth above the annual range, while the quarterly earnings estimate remains separate from the full-year range. The company is scheduled to discuss the results on a conference call at 8:30 a.m. Eastern time on October 27, 2026, with a recording to be available about two hours after the call ends.