Otis Worldwide (OTIS) is back in focus after reporting first quarter 2026 earnings, with sales of US$3,566 million and net income of US$340 million, alongside a 5% dividend increase and confirmed full year sales guidance.

Despite the solid first quarter result, the 90 day share price return of 8.83% and year to date share price return of 11.84% are both negative. The 1 year total shareholder return of a 17.71% decline suggests momentum has been fading over a longer horizon.

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So with earnings, dividends, and buybacks all moving, yet the share price posting a 17.71% 1 year total return decline, is Otis trading at an attractive discount, or is the market already pricing in future growth?

Most Popular Narrative: 19.7% Undervalued

At a last close of $77.88 against a narrative fair value of $96.93, the most followed view frames Otis as trading at a sizeable discount while still tying that upside to measured growth and margin assumptions rather than aggressive blue sky forecasts.

The accelerating momentum in modernization orders, up 22% in the quarter and supported by a record-high backlog, positions Otis to benefit from the global trend of aging building infrastructure, which is expected to drive a multi-year growth cycle for modernization and associated high-margin service revenue, positively impacting both revenue and earnings.

Want to see what is baked into that valuation gap? The narrative leans heavily on steady top line growth, firmer margins, and a richer multiple tied to those trends.

Result: Fair Value of $96.93 (UNDERVALUED)

However, this depends on China headwinds and softer commercial real estate demand not worsening to the point where new equipment orders and margins undercut the thesis.

Next Steps

If this mix of optimism and concern feels familiar, use it as a prompt to move quickly, check the data for yourself, and weigh up the 4 key rewards and 3 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.