Johnson Controls forecast 11% to 12% organic sales growth in fiscal 2027 after organic orders in its Solutions and Services businesses rose 44% year over year, with data-center demand supporting the increase.
For the quarter ended Sept. 30, 2026, Johnson Controls reported net sales of $7.113 billion, up 10% from $6.442 billion a year earlier; organic sales increased 12%. The quarter produced $1.60 in GAAP earnings per share and $1.66 on an adjusted basis. Operating cash flow was $1.3 billion, while free cash flow was $1.1 billion.
Solutions and Services recorded 44% organic order growth year over year, and their backlog stood at $23 billion, up 43% organically. Johnson Controls pointed to continued demand from data-center projects as a factor behind the gains. It said comparisons with periods before fiscal 2026 have a reporting caveat: earlier order counts left out some equipment-only sales tied to longer-cycle projects, while the company later revised backlog reporting to include that category.
Regional organic sales rose 14% in the Americas, 13% in APAC and 3% in EMEA. EMEA reported sales fell 2%; Johnson Controls cited Middle East conflicts as a continuing source of pressure in the region.
For fiscal 2026, net sales were $25.666 billion, compared with $23.596 billion in fiscal 2025. Diluted earnings per share from continuing operations were $4.72, versus $2.63. The company’s release labels its financial statements unaudited and says its financial highlights exclude discontinued operations. Johnson Controls sold its Residential and Light Commercial HVAC business in July 2025 and treated it as a discontinued operation.
The fiscal 2027 outlook also includes adjusted EPS of $6.15 to $6.30, operating leverage of 30% or more and adjusted free cash flow conversion of about 95%. For the first quarter, the company forecast organic sales growth of 12% to 14%, operating leverage of 30% to 35% and adjusted EPS of $1.15 to $1.20. Johnson Controls said it could not reliably estimate the components needed to reconcile its non-GAAP projections with GAAP without unreasonable effort or expense.
