How did Carrier Global (NYSE:CARR) perform in Q1 2026?

Carrier Global reported Q1 2026 net sales of $5.34 billion, a 2% year-over-year increase, beating Wall Street expectations. Despite a 59% drop in GAAP operating profit to $259 million, the company posted strong commercial segment growth, particularly from a 500% surge in data center orders. Adjusted EPS came in at $0.57, exceeding analyst expectations of $0.51.

What drove Carrier’s revenue growth in Q1 2026?

Carrier’s revenue growth was primarily driven by a 500% surge in data center orders, significantly boosting its commercial segment. This growth in the infrastructure cooling market, particularly AI-driven data centers, helped offset challenges in the residential HVAC sector, where sales continued to decline.

How did Carrier’s operating profit perform in Q1 2026?

Carrier’s GAAP operating profit fell 59% year-over-year to $259 million, mainly due to higher restructuring costs and continued downturn in the residential HVAC sector. However, on an adjusted basis, operating profit was $594 million, down 30% from the prior year, reflecting the impact of both sector-specific headwinds and higher costs.

What caused the decline in Carrier’s operating profit?

The decline in Carrier’s operating profit was mainly attributed to a 12% drop in sales in its "Climate Solutions Americas" residential segment, along with higher restructuring costs. These factors overshadowed the strong performance from its commercial HVAC and data center sectors, leading to a significant profit drop.

How did Carrier’s adjusted EPS perform in Q1 2026?

Carrier’s adjusted earnings per share (EPS) came in at $0.57, a 12% year-over-year decline but comfortably exceeding the analyst consensus of $0.51. Despite the challenges in the residential HVAC sector, the company's strong performance in commercial HVAC and data center cooling contributed to this positive surprise.

Carrier profit hit by residential slump as data center orders explode 500%

Written by Heidi Cuthbert Published Apr. 30 2026Last Updated Apr. 30 2026

Carrier Global (NYSE:CARR) reported first-quarter 2026 results that beat Wall Street expectations on the top and bottom lines, despite significant headwinds in the residential HVAC sector.

The Florida-based company posted net sales of $5.34 billion, a 2% increase year-over-year, as a staggering 500% surge in data center orders bolstered its commercial segment.

While revenue grew, the company’s GAAP operating profit fell 59% to $259 million, impacted by higher restructuring costs and a continued downturn in the "Climate Solutions Americas" residential segment, where sales dropped approximately 12%.

On an adjusted basis, operating profit was $594 million, down 30% from the prior year.

Adjusted earnings per share (EPS) came in at $0.57, declining 12% year-over-year but comfortably exceeding the analyst consensus of $0.51.

The standout narrative for the quarter was the explosive growth in infrastructure cooling.

Carrier’s Commercial HVAC orders jumped 35%, driven almost entirely by the rapid expansion of AI-driven data centers.

Management noted that the current backlog now fully covers the company’s expected data center sales for the remainder of 2026.

Looking ahead, Carrier reaffirmed its full-year 2026 guidance, projecting total revenue of approximately $22 billion and adjusted EPS of roughly $2.80.