Carrier Global Corp

Trane Technologies and Carrier Worldwide are both reporting record backlogs driven by surging demand for cooling equipment from AI data centers. Trane's second-quarter 2026 backlog reached $12.1 billion, up 70% year over year, with a book-to-bill ratio of 135%, while Carrier's backlog hit $8 billion, up 40% year over year and 20% sequentially. Carrier's data center orders jumped 300% year over year, and its commercial orders rose 65%, underscoring the AI-driven cooling boom. Both companies' valuations are above their five-year averages, suggesting Wall Street has already priced in much of the opportunity.

U.S. shipments of central air conditioners and air-source heat pumps surged 21.7% in June to a combined 1.02 million units, according to the Air-Conditioning, Heating and Refrigeration Institute. Central air-conditioner shipments rose 26.8% to 605,033 units, while heat-pump shipments increased 15.1% to 418,538. For the first half of the year, combined shipments rose 3% to 4.72 million units, nearly unchanged from the same period in 2024. Gas warm-air furnace shipments increased 15.2% in June to 320,281 units, but fell 6.2% for the first half to 1.55 million units. Residential gas storage water heater shipments rose 6.7% in June to 363,347 units, while electric models edged up 0.8% to 422,813, though first-half shipments for both categories remained lower than a year earlier.

A new mini-documentary series by Nicely Done Productions reveals the hidden infrastructure of modern life, hosted on National Geographic's global digital platform. The series, Threads of Connectivity, follows five companies building the systems that keep modern life moving, with each episode focusing on a global company solving a critical problem. Boldyn Networks is delivering 5G across Rome's metro serving 18 million people in what it calls the largest smart city connectivity project ever built in Italy, while Medtronic is advancing spine surgery through its AiBLE smart ecosystem. Genesys is redesigning customer service around agentic AI as Europe writes new rules for responsible AI, Carrier is turning homes into intelligent energy systems to reduce grid strain, and OATI builds software to keep the grid stable as renewables and electric vehicles flood networks worldwide. The series is available on NatGeo.com.

Carrier Global Corporation is entering the second half of 2026 with stronger demand signals, as second-quarter orders rose roughly 40% and global commercial HVAC orders increased approximately 65%. Backlog exceeded $8 billion, up about 40% year over year, supporting management's expectation for mid-teens organic sales growth in the second half. The company now expects 2026 sales of approximately $23 billion and raised adjusted earnings guidance to about $2.90 per share, driven by recovering residential and light commercial demand in the Americas and Europe. Data center orders increased more than 300%, prompting Carrier to raise its 2026 data center sales forecast to approximately $2 billion from $1.5 billion, with the forecast covered by backlog and visibility into 2027 and beyond from hyperscaler and colocation relationships. Aftermarket sales increased at a high-single-digit rate in the first half, supported by more than 75,000 connected chillers, about 250,000 Lynx subscriptions, and roughly 110,000 chillers under long-term agreements. However, adjusted operating margin fell 190 basis points to 17.2% in the second quarter due to input-cost pressure and unfavorable business mix, while China residential markets and global truck and trailer sales remain weak spots.

Carrier Global has appointed technology executive Neil Barua as an independent director, adding his software and connected-services expertise to the board. Barua, who leads PTC Inc. and previously ran ServiceMax and IPC Systems, will serve on the Compensation Committee and the Technology & Innovation Committee. The appointment comes as Carrier emphasizes digital offerings and AI-linked cooling solutions, with shares at $59.92, up 12% year to date but down 18.4% over the past 30 days. His background in industrial software and recurring revenue models is directly relevant to Carrier's focus on data center cooling and aftermarket services. Investors will watch how Barua's influence shapes product strategy, compensation incentives, and capital allocation amid ongoing earnings pressure, with second quarter 2026 net income at $501 million compared to $591 million a year earlier.

U.S. stock futures were mixed on Tuesday as renewed concerns over artificial intelligence spending weighed on semiconductor stocks ahead of a pivotal week featuring mega-cap technology earnings and the Federal Reserve's latest interest rate decision. Dow Jones Futures rose 143 points, or 0.3%, while S&P 500 Futures slipped 9 points, or 0.1%, and Nasdaq 100 Futures fell 233 points, or 0.8%. Chipmakers remained under pressure after a broad selloff across Asian semiconductor shares overnight, with investors questioning the sustainability of the AI infrastructure boom amid rising financing costs and intensifying competition from China, further dented by the blockbuster initial public offering of ChangXin Memory Technologies in Shanghai. Among individual movers, United Parcel Service gained 2.1% after reporting second-quarter adjusted earnings of $1.76 per share on revenue of $22.8 billion, both beating estimates, and raising its full-year outlook. Carrier Global rose 3.0% after posting adjusted earnings of $0.86 per share on revenue of $6.35 billion, topping forecasts, and lifting its full-year guidance while announcing the sale of its NORESCO energy-efficiency business. Altimmune surged 18% after its Phase 2 RECLAIM trial of pemvidutide for alcohol use disorder met its primary endpoint with a statistically significant reduction in heavy drinking days. ProMIS Neurosciences climbed 13% after reporting positive six-month interim safety and biomarker data from its Phase 1b Alzheimer's disease trial for PMN310, with no cases of amyloid-related imaging abnormalities with oedema observed. BuzzFeed jumped 14.2% after unveiling a restructuring plan that will eliminate about 35% of its workforce across its BuzzFeed, HuffPost and Tasty brands. Cadence Design Systems gained 2.7% after beating second-quarter expectations and raising its full-year guidance, citing accelerating demand for AI-driven chip design tools. Amkor Technology fell 5.3% despite record second-quarter results, as its third-quarter revenue guidance came in below Wall Street forecasts. Chipmakers broadly declined, with Micron, SanDisk and Western Digital each falling around 4%, Intel dropping 3.2%, AMD losing more than 3%, Applied Materials and Marvell Technology each declining about 2.8%, Super Micro Computer slipping 2.9%, and newly listed U.S. shares of SK Hynix also falling more than 3%.

Carrier Global Corporation has signed a definitive agreement to sell its NORESCO business to OPTERRA Energy Services, a subsidiary of LS Power. The transaction is expected to close shortly. Carrier Chairman and CEO David Gitlin said the sale reflects the company's commitment to portfolio simplification and focus on core businesses. Jefferies LLC is serving as financial advisor to Carrier, with Akerman LLP as external legal counsel.

Chinese retail group JD.com has signed a co-operation agreement with US-based Carrier to create a joint omnichannel digital retail ecosystem centred on home comfort products. Carrier's brands, including Toshiba HVAC and Carrier Residential & Light Commercial, will deepen their existing relationship with JD.com by combining the retailer's online commerce infrastructure with its physical store network. The announcement comes as JD.com faces increasing regulatory attention in Europe, with the European Commission issuing a statement of grounds in its in-depth investigation into potential foreign subsidies linked to JD.com's proposed acquisition of German retailer Ceconomy. Late last month, the Conservative Party reportedly urged the UK Government to review JD.com's activities, citing concerns that the company's growth in Britain could threaten high street retailers.

Carrier Global Corporation has completed the sale of its Riello business to Ariston Group for gross proceeds of approximately $440 million. The divestiture is part of Carrier's portfolio management strategy to refocus on core climate and energy solutions. Proceeds will support innovation, core business growth, and shareholder value creation. BofA Securities served as exclusive financial advisor, with Linklaters LLP providing external legal counsel.

Citi analysts say persistently higher temperatures in Europe could create a significant long-term opportunity for U.S. HVAC manufacturers as demand for cooling systems rises. The bank noted that only around 20% of European households had air conditioning in 2018, compared with about 90% in the U.S. and Japan, and that increasingly frequent heatwaves may accelerate adoption. Carrier Global was identified as having the greatest exposure, with more than one-fifth of its revenue from its Climate Solutions Europe division, and it is the market leader in Europe's commercial HVAC sector. Citi also highlighted continued momentum in Carrier's European heat-pump business, where first-quarter sales rose by a low-teens percentage, and pointed to healthy demand indicated by German heat-pump subsidy applications. Trane Technologies and Johnson Controls, while generating a smaller share of revenue from Europe, are also seen as well positioned to benefit from greater investment in cooling technology and energy-efficient climate solutions.

Carrier Global has completed the sale of its Riello business to Ariston Group, marking another step in its portfolio realignment around core climate and energy solutions. The divestiture allows Carrier to exit a non-core burner and boiler operation, freeing up capital that management plans to direct into core platforms such as HVAC, heat pumps, and data center cooling. Investors will watch how the proceeds are used, whether for debt reduction, acquisitions, or product development, as the company sharpens its focus on higher-priority segments. The stock trades around $70.07, with shares up 30.9% year to date and 47.4% over three years, though performance over the past year has declined 6%.

Carrier Global shares have surged 9.4% over the past five trading days, driven by a more than 500% jump in global data center orders, but the stock’s long-term behavior shows it tends to amplify market downturns. Over the past year, Carrier captured about 119% of the S&P 500’s losses on down days while capturing only 99% of gains on up days, and its five-year correlation with the index stands at 0.61. The company’s data center backlog fully covers its expected $1.5 billion in sales this year, yet it faces margin pressure from new tariffs and a 12% drop in residential sales in the first quarter, prompting management to reaffirm its full-year guidance despite the strong start.

The nine HVAC and water systems stocks tracked by StockStory reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 6.9%. Trane Technologies posted revenues of $4.97 billion, up 6% year on year and exceeding expectations by 3.1%, while AAON delivered the biggest beat and fastest growth with revenues of $496.9 million, up 54.3% and surpassing estimates by 29.5%. A. O. Smith was the weakest performer, with revenues of $945.6 million, down 1.9% and missing estimates by 3.5%, along with full-year EPS guidance that fell short. Carrier Global reported $5.34 billion in revenues, up 2.4% and beating estimates by 6.8%, and Advanced Drainage Systems posted $676.8 million, up 9.9% and beating by 3.8%, while also delivering the highest full-year guidance raise among peers. Share prices across the group have risen 14.6% on average since the latest earnings results.