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    Should Carrier Global's (CARR) New Buyback and Cost Cuts Prompt a Closer Look From Investors?

    Simply Wall St·10/31/2025 19:26:48
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    • Carrier Global recently reported third-quarter 2025 results, with revenue of US$5.58 billion and net income of US$428 million, both lower than the previous year, while simultaneously announcing an additional US$5 billion share repurchase authorization and plans for significant cost reductions.
    • Despite weaker sales in residential HVAC, management highlighted strong growth in commercial HVAC and data center systems, offsetting some market softness and reflecting ongoing shifts in business performance.
    • We'll explore how the new US$5 billion share repurchase and cost-cutting measures shape Carrier Global's investment narrative going forward.

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    Carrier Global Investment Narrative Recap

    To own Carrier Global stock, investors need to believe in the company’s ability to navigate short-term headwinds while executing on long-term opportunities in commercial HVAC and data center markets. The recent earnings and guidance cut point to weaker demand in residential HVAC and Europe, but stronger commercial performance remains the key catalyst; this news does not materially change that, while ongoing tariff and margin pressures remain the most important risks to watch. Carrier’s announcement of an increased US$5 billion share repurchase authorization stands out this quarter, directly tying into the company’s focus on returning value to shareholders amid operational adjustments. This buyback signals an intent to support the stock despite softer sales and lower outlook, reinforcing the stock's appeal for those who prioritize capital allocation strategies as a catalyst. However, against these efforts, investors should be aware that risks tied to tariffs and margin compression could become much more relevant if...

    Read the full narrative on Carrier Global (it's free!)

    Carrier Global's narrative projects $26.7 billion in revenue and $2.9 billion in earnings by 2028. This requires 5.9% yearly revenue growth and a $1.4 billion increase in earnings from the current $1.5 billion.

    Uncover how Carrier Global's forecasts yield a $74.29 fair value, a 26% upside to its current price.

    Exploring Other Perspectives

    CARR Community Fair Values as at Oct 2025
    CARR Community Fair Values as at Oct 2025

    The Simply Wall St Community submitted five independent fair value estimates for Carrier Global, spanning from US$26.44 to US$50,066.89 per share. While many are weighing the strength in commercial HVAC as a possible offset, the wide range of views shows how investor opinions can diverge sharply, see more perspectives to inform your decision.

    Explore 5 other fair value estimates on Carrier Global - why the stock might be a potential multi-bagger!

    Build Your Own Carrier Global Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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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.