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Research Alert: Carrier Tops Q1 Expectations; Data Center Orders Surge 500%

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Carrier Global Corporation (CARR) reported mixed Q1 2026 results with net sales rising 2% to $5.3B, though organic sales declined 1% as FX tailwinds offset underlying volume pressure. Adjusted operating margin contracted 520 bps to 11.1%, reflecting lower residential volumes, factory under-absorption, and ongoing China challenges, with CSA segment margins declining 730 bps on a ~12% decline in residential sales. Commercial HVAC emerged as a clear standout with orders surging 35% overall and data center orders jumping over 500%, which led to strong sequential backlog growth. Sales performance exceeded management's expectations, supported by Commercial HVAC and Light Commercial strength, while weakness in Residential was less severe than anticipated. The robust data center order momentum has built a backlog that now fully covers expected 2026 data center sales, positioning CARR well for continued growth in this high-margin segment despite near-term residential headwinds and persistent China market challenges.

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