JCI

AI Research

Backlog +11% to $14.6B + EPS Guide Raised to $4.70 → Morgan Stanley Lifts PT to $140

Johnson Controls reported strong fiscal Q1 2026 results with 11% year-over-year backlog growth to $14.6 billion, driven by robust data center and service segment demand, and free cash flow nearly doubled to $1.8 billion year-to-date. Management raised full-year 2026 EPS guidance to $4.70 and Q2 2026 EPS guidance to $1.11, reflecting disciplined execution and meaningful margin expansion across the portfolio. Morgan Stanley raised its price target from $130 to $140 with an Overweight rating, and the company declared a quarterly dividend of $0.40 per share payable April 10, with the stock closing at $130.17 on March 16.