Johnson Controls International plc (JCI) is a Industrials stock trading at $142.22 (as of 2026-09-03), with a market capitalization of $86.77B and a trailing P/E of 24.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.
Johnson Controls International plc designs, manufactures, and installs building products and systems, including HVAC, controls and building management, refrigeration, and integrated electronic security and fire detection/suppression. It also provides energy efficiency solutions and technical services such as inspection, maintenance, repair, and replacement for commercial, industrial, retail, and institutional customers across multiple regions.
Understand Johnson Controls International plc: how it makes money
Johnson Controls designs, installs, and services HVAC, building management, refrigeration, security, and fire systems for commercial buildings worldwide. The profit model pairs a recurring service annuity on its installed base with lumpy project work, and data-center cooling is now the structural growth add-on.
Every system JCI installs becomes a decades-long service contract; the recurring fee stream on the installed base is what turns cyclical project revenue into a durable profit pool.
Business quality (Mixed): Mixed: 12% operating margin and 37% gross margin are workable but unspectacular, and the install side is project-based and cyclical. The service layer adds durability, but the company still rides the building-capex cycle.
Valuation: At 25× earnings, JCI trades 24% below the Machinery average (32×).
Bull case
Data center becomes core pillar: Management projects data-center revenue could become one-third of the company within three to five years, and the CDU opportunity has reached a billion-dollar pipeline with shipments starting this quarter. That is a structural growth vector far larger than the legacy HVAC install base.
Trades at 24% discount to peers: The stock sits at a P/E of 24.7× versus a 32× Machinery industry average (24% below). With revenue growing 8% YoY and orders up 16%, the valuation gap leaves room if the data-center ramp materializes on schedule.
Operating leverage above plan: Management expects operating leverage to remain above its long-term framework, and business-system initiatives are expanding capacity without proportionate capital investment. That means incremental revenue should flow to EBITA at an above-trend rate.
Bear case
CDU still needs validation: CDU commercialization still depends on completing hyperscaler validation, meaning the billion-dollar pipeline is not yet contracted revenue. A slip in hyperscaler sign-off could delay the data-center ramp by a full cycle or more.
EMEA-flat and supply friction: Middle East disruption is expected to keep EMEA growth near flat in Q4, and high growth is producing occasional supply-chain bottlenecks. Together these cap the near-term margin upside management is promising.
Security services under pressure: Security services face competitive volume pressure and weaker backlog, which erodes the recurring-service mix that supports the margin story. If that segment continues to lose share, the annuity layer thins at the same time install revenue is lumpy.
Valuation — source: SEC EDGAR (first-party)
Price
$142.22
Market Cap
$86.77B
P/E Ratio
24.6
EV / EBITDA
25.8
Price / Book
6.41
Price / Sales
3.55
DCF Value (model)
$10.90
DCF Upside vs Price
-92.3%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)
$23.60B
Net Margin
13.9%
Revenue Growth (YoY)
8.2%
EPS Growth (YoY)
38.4%
Financial Health — source: SEC EDGAR
Altman Z-Score
2.86 (grey)
Valuation vs Sector & Industry
Stock P/E
24.6
Sector P/E (Industrials)
25.5
Industry P/E (Machinery)
32.0
vs Sector
-3.6%
vs Industry
-23.2%
Company
Sector
Industrials
Industry
Machinery
CEO
Joakim Weidemanis
Employees
94,000
Country
IE
IPO Date
1987-09-28
Johnson Controls International plc earnings call transcripts