Earnings season is almost over, with about 97% of S&P 500 companies having reported as of Friday. Many knocked it out of the park, delivering earnings and revenue numbers that were well ahead of expectations. We always look at trends and, as usual, there are companies increasing guidance. Raising guidance is one of our Investing Themes for the second half of 2026. We view management's ability to raise guidance consistently as a catalyst for possible market-beating returns in the quarters ahead. It's even harder for companies to lift guidance during uncertain economic times, as vision is murky. This is true now, as the war in the Middle East drags on. As well, Wall Street has a new chairman of the Federal Reserve, one with a different view about forward-looking guidance (or in this case, a lack thereof). As many companies increased guidance during this earnings cycle, we put out two lists. The first was back on August 3 -- and now we offer up our second list, made up of companies in Argus' fundamental Universe of Coverage. Many of the names in this latest list are in the consumer space, as these companies tend to report at the end of earnings season.

Johnson Controls is a global industrial company founded in 1885 and headquartered in Cork, Ireland. The company, which employs approximately 87,000 people across 150 countries, creates intelligent buildings, efficient energy solutions, integrated infrastructure, and transportation systems. The shares are a component of the S&P 500.

The major stock indices all finished the session lower on Thursday, but not by significant amounts. The recently surging Dow Jones Industrial Average took the biggest hit, down 0.85%. Earnings reports are still driving individual names higher and lower, but other headlines got attention as well. For one, oil moved almost 4% higher on news that Iran will seek to bar U.S. and Israeli ships from using the Strait of Hormuz. Investors also spent the day looking ahead to the nonfarm payrolls report, which will be released before the bell today.

Following Johnson Controls’ divestiture of its residential and light commercial HVAC businesses to Bosch in 2025, nearly all of its revenue comes from commercial HVAC (60%) and fire and security products and services (40%). A 2016 merger joined Johnson Controls’ HVAC and Tyco’s fire and security businesses with the premise that there is synergy in offering a broader variety of automation products and solutions to commercial buildings. We estimate Johnson Controls’ pro forma revenue mix will be one-third products, one-third installation, and one-third services.