Why Did Carrier Global Plunge 7.94% Despite Strong Q2 Earnings?

On July 29, 2025, Carrier Global's stock experienced a significant drop of 7.94% in pre-market trading, reflecting investor sentiment following the release of its second-quarter financial results.

Carrier Global reported strong financial performance for the second quarter of 2025, with net sales increasing by 3% to $6.1 billion and organic sales growth of 6%. The company's adjusted earnings per share (EPS) were $0.92, exceeding analyst expectations by $0.02. Despite these positive figures, the stock price decline suggests that investors were disappointed with the revenue, which fell short of estimates by approximately 1.7%.

The company reaffirmed its full-year 2025 guidance, including adjusted earnings of $3.00 to $3.10, which implies up to 21% growth. This reaffirmation indicates confidence in its long-term strategy despite the Q2 revenue miss. However, the immediate market reaction suggests skepticism about near-term growth prospects, with the stock price dropping nearly 4.84% in pre-market trading.

Carrier Global's performance in the commercial HVAC segment was particularly noteworthy, with a substantial 26% increase in adjusted earnings. This segment's strong performance contributed to the overall positive financial results for the quarter. The company's ability to meet or exceed future estimates will be critical in determining whether the current dip is a buying opportunity or a sign of deeper challenges.