Johnson Controls Earnings Forecast and Market Impact
Feb 4 (Reuters) – Johnson Controls International forecast 2026 profit above Wall Street expectations on Wednesday, anticipating sustained demand for its thermal management and cooling equipment used in data centers.
The role of AI in the demand for cooling equipment
U.S.-listed shares of the Cork, Ireland-based company rose 9.2% in premarket trading. They had gained 51.7% in 2025.
Financial performance and adjusted profit
The industrial supplier, whose portfolio spans IT cooling, security and fire systems, is benefiting from data center expansion fueled by artificial intelligence companies, part of a broader recovery in industrial companies providing the infrastructure behind the AI boom.
Industrial and customer applications
With more and more computing AI coming online, the demand for cooling infrastructure is increasing and customers are prioritizing robust, energy-efficient thermal management.
“As rack density increases and hardware content per rack increases, thermal load increases, ultimately leading to increased cooling infrastructure spending,” Stephen Volkmann, an analyst at Jefferies, wrote in a note.
Johnson Controls raised its full-year adjusted earnings forecast to $4.70 per share from $4.55 per share, beating analysts’ average estimate of $4.61 per share, according to data compiled by LSEG.
The company caters to companies in the aerospace manufacturing, healthcare and commercial construction sectors. Its products include heating, ventilation and cooling (HVAC) systems, security systems, fire systems and refrigeration equipment.
The company’s second-quarter adjusted earnings forecast of $1.11 per share also topped analysts’ average estimates of $1.05 per share.
It reported adjusted earnings of 89 cents per share for the quarter ended Dec. 31, compared with 64 cents per share last year.
First-quarter revenue was $5.79 billion, up from $5.43 billion a year earlier.
(Reporting by Abhinav Parmar and Aishwarya Jain in Bangalore; Editing by Sahal Muhammed)