Johnson Controls International plc (JCI) reported fiscal fourth-quarter 2026 sales of $7.1 billion, up 10%, with organic sales up 12%. GAAP earnings from continuing operations were $1.60 a share and adjusted EPS was $1.66.

Organic orders growth accelerated to 44% year-over-year from 27% in the third quarter. Backlog reached a record $23.0 billion, up 43% organically, from $21.0 billion up 32% organically in the prior quarter.

Chief Executive Officer Joakim Weidemanis said the company finished fiscal 2026 with more than 8% organic revenue growth, double-digit adjusted EPS growth and strong free cash flow conversion, and that strong topline growth plus productivity and simplification led to margin expansion across all three segments.

Americas sales were $4.93 billion, up 14% reported and organically. Products and Systems sales increased 16% organically and Services 10%. Organic orders in the region rose 58% year-over-year and backlog was $17.8 billion, up 54% organically. The company said the increase in orders and backlog was supported by sustained demand for data centers and its differentiated technology. Segment EBIT margin was 20.1% and adjusted Segment EBITA margin 22.0%.

EMEA sales were $1.31 billion, down 2% reported and up 3% organically, with continued pressure from conflicts in the Middle East. Products and Systems sales remained flat and Services increased 6% organically. Organic orders rose 12% and backlog was $3.1 billion, up 18% organically. Segment EBIT margin was 15.1% and adjusted Segment EBITA margin 16.4%. The company attributed the margin increases primarily to favorable pricing and productivity improvements, partially offset by the impact of business divestitures.

APAC sales were $871 million, up 12% reported and 13% organically, led by 15% growth in Product and Systems and continued strength in Applied HVAC. Organic orders rose 11% and backlog was $2.1 billion, up 12% organically. Segment EBIT margin was 18.6% and adjusted Segment EBITA margin 18.9%, which the company said was driven primarily by productivity improvements and higher revenues.

Adjusted corporate expense was $80 million, down 35% year-over-year, which the company said was primarily due to ongoing cost reduction actions across corporate functions and the timing of certain corporate expenses. Restructuring and impairment costs were $87 million in the quarter.

Cash provided by operating activities from continuing operations was $1.30 billion. Free cash flow was $1.08 billion and adjusted free cash flow was $1.10 billion, with adjusted free cash flow conversion of 112%. The company paid dividends of $242 million and spent $655 million on stock repurchases and retirements.

The company initiated fiscal 2027 first-quarter continuing-operations guidance of 12% to 14% organic sales growth, 30% to 35% operating leverage, and adjusted EPS of $1.15 to $1.20. Full-year fiscal 2027 continuing-operations guidance is 11% to 12% organic sales growth, 30% or more operating leverage, adjusted EPS of $6.15 to $6.30, and about 95% adjusted free cash flow conversion.