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Otis Worldwide Balances Margin Pressure With Strong Service
Otis Worldwide’s Q1 2026 earnings call revealed robust service growth and a strong modernization backlog, largely driven by demand for existing elevator maintenance and upgrades, particularly in the Americas. While facing margin pressure and softness in new equipment sales, especially from China, the company maintained its full-year sales outlook and upgraded its profit range, expecting a rebound in the second half of 2026. Strategic investments in digital capabilities and new product introductions, coupled with strong cash generation and capital returns, underscore confidence in long-term growth despite near-term headwinds.