Carrier Global (CARR) reported "solid" Q2 results and raised its 2026 outlook as its Americas residential heating, ventilation and air conditioning business rebounded and data center demand accelerated, RBC Capital Markets said in a note Wednesday.

Organic sales rose 3% compared with a consensus estimate for a 1.7% decline, while Americas revenue increased 4%. Residential sales climbed 9% and orders rose about 70%, prompting Carrier to raise its 2026 Americas residential outlook to high-single-digit growth from a previously expected high-single-digit decline, according to the note.

Carrier also increased its 2026 data center revenue forecast to $2 billion from their previous estimate of $1.5 billion after orders surged 300%. RBC said the rapid expansion could create some near-term margin headwinds as the company adds capacity.

Meanwhile, Carrier raised its 2026 earnings guidance to about $2.90 per share from $2.80 and increased its organic sales growth outlook. The company expects nearly $6 billion in revenue, 10% organic growth, an operating margin of about 16.5% and adjusted EPS of $0.75, with the Americas remaining its most profitable region, the note said.

RBC maintained an outperform rating on Carrier Global and raised its price target to $82 from $81, adding that Carrier's roughly 9% share-price decline appeared tied to a broader "selloff" in data center-related stocks rather than company-specific concerns.

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