Johnson Controls stock holds steady as Oppenheimer maintains Perform rating

Published 30/07/2025, 12:26
Johnson Controls stock holds steady as Oppenheimer maintains Perform rating

Investing.com - Oppenheimer maintained its Perform rating on Johnson Controls (NYSE:JCI), a $67.9 billion building technology giant with a perfect Piotroski Score of 9 according to InvestingPro, following the company’s fiscal third-quarter 2025 earnings report.

The building technology company’s shares declined Tuesday despite beating consensus estimates for both revenue and earnings in the quarter, with trailing twelve-month revenue growth of 14.06%. Johnson Controls also provided fiscal fourth-quarter earnings guidance that aligned with market expectations. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 7 analysts recently revising earnings estimates upward.

Oppenheimer highlighted early opportunities for new CEO Joakim Wiedemanis to implement lean practices across customer-facing and production functions. The firm noted that Johnson Controls’ strategic review conclusion remains a potential catalyst that could come with fourth-quarter earnings or fiscal year 2026 guidance. The company’s strong financial health is evidenced by its 55-year track record of consecutive dividend payments.

The research firm observed that demand trends appear healthy outside of China, with Johnson Controls reporting record backlog exiting the third quarter. While the higher growth profile of Systems versus Services poses medium-term mix headwinds, Oppenheimer expects continued margin expansion through existing restructuring and productivity initiatives.

Oppenheimer slightly raised its estimates for Johnson Controls but maintained its neutral stance as it awaits further details on the outcomes of the company’s strategic review.

In other recent news, Johnson Controls International reported third-quarter adjusted earnings that narrowly surpassed analyst expectations. This development came as the company released its financial results, which showed mixed outcomes across various regional segments. Despite the earnings beat, the company’s shares fell slightly in pre-market trading. Investors seemed to have a cautious reaction to the mixed regional performance. These recent developments highlight the importance of earnings and revenue results for investors. No analyst upgrades or downgrades were reported in conjunction with the earnings release.

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