JPMorgan raised its price target on Johnson Controls (NYSE:JCI) to $158.00 from $138.00 and kept an Overweight rating on the shares. The bank’s action follows Johnson Controls’ fiscal first-quarter 2026 report and comes as the stock trades near recent highs.
At the time of JPMorgan’s revision, Johnson Controls was trading at $135.33 and has climbed roughly 11.12% over the past week, trading close to a 52-week high of $136.24. JPMorgan described the company’s quarterly results as "another proof point of a break out in performance" under the current CEO.
Data shows three analysts have pushed up their earnings forecasts for the upcoming period, with FY2026 earnings per share now expected at $4.72. JPMorgan highlighted that Johnson Controls was the only HVAC company to beat its fourth-quarter expectations, a performance the firm said reflected "the best growth and visibility on further earnings revisions." The brokerage emphasized a 6% earnings beat for the quarter, noting that result was particularly notable compared with HVAC peers that missed.
JPMorgan also pointed out that the quarter was "not perfect," calling attention to $0.03 of negative items in results, which the firm suggested would likely have been recorded as some sort of gain in prior periods. Despite that small negative adjustment, the firm treated the overall beat and guidance trends as supportive of a higher valuation.
Market metrics cited in JPMorgan’s analysis underscore the company’s scale and valuation: Johnson Controls is a major participant in the Building Products industry with a market capitalization of $83.03 billion, and it trades at a PEG ratio of 0.4, indicating a relatively low price-to-earnings ratio relative to near-term earnings growth assumptions.
Johnson Controls’ fiscal first-quarter 2026 results exceeded analyst expectations, and the company raised its full-year outlook. Those moves prompted a positive reaction from investors and helped sustain momentum in the stock. The guidance raise and quarterly beat were presented by the company as signals of operational strength and trajectory under current management.
While JPMorgan framed its price-target increase and Overweight stance around better-than-expected fundamentals and improving earnings visibility, it also acknowledged elements in the quarter that were less than ideal. The bank’s commentary balances recognition of the company’s progress with a note that not all items in the quarter were straightforward.
What this means for markets and sectors
The update is a notable datapoint for investors tracking building products manufacturers and HVAC equipment suppliers, and it may influence analyst coverage and investor expectations within those sectors as earnings revisions continue to unfold.