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Johnson Controls Is Partnering With NVIDIA—Can This Redefine Data Center Cooling Leadership?

Johnson Controls highlighted both positive and challenging aspects in its latest financial results. On the positive side, the company demonstrated notable momentum in its order intake, reporting a substantial 40% increase over the previous year. This growth was largely attributed to a robust performance within the data center sector, which experienced high demand for energy-efficient and precise operating solutions. Given the ongoing demand in data centers and other sectors such as life sciences, Johnson Controls is positioned with a strong backlog growing 20% to $18 billion, providing solid revenue visibility. Furthermore, the company reported a healthy 6% increase in revenue and achieved a significant improvement in adjusted EBIT margins, which expanded by 190 basis points, reaching 12.4%. This margin expansion was a testament to the successful execution of productivity measures and effective pricing strategies.