Johnson Controls International plc

Strong Q3 performance + major momentum signals - Organic revenue +10% YoY; systems +11% and service +7% (applied HVAC high-teens growth, data center demand cited). - Adjusted EBIT margin +260 bps to 17%; adjusted segment EBITDA margin +220 bps to 20%. - Adjusted EPS $1.42, +35% YoY (ahead of guidance). - Orders +27%; backlog +32% YoY to a record ~$21B (this is central to near-term visibility and confidence).

Guidance raised (clear upside) - Q4 guidance: organic revenue +9% to +10%, operating leverage 45%–50%, adjusted EPS ~$1.55. - FY2026 guidance raised: organic revenue ~8% (up from prior ~6%); operating leverage 45%–50%. - FY2026 adjusted EPS raised to ~$5.05 (about ~35% growth; +$0.50 vs original guide). - Free cash flow conversion targeted ~100% for full-year, continuing to translate higher earnings into cash.

Demand outlook: thermal management for AI/data centers remains the growth engine - Management frames the macro as “thermal management” becoming more critical as AI infrastructure scales, heat loads rise, and customers need performance + precision + energy efficiency. - They cite backlog and healthy pipeline as supporting continued growth into FY27 with an expectation of high single-digit top-line growth (no detailed FY27 numbers yet). - Management also argues demand is sustainable given how early AI utilization still is (they expect compute demand and adoption to keep rising).