Shares of Otis Worldwide Corp (OTIS) plunged 12.58% in early trading on Wednesday following the release of disappointing second-quarter results and a reduction in full-year revenue guidance. The elevator and escalator manufacturing giant's stock movement reflects growing investor concerns about the company's performance amid global economic uncertainties.

Otis reported Q2 net sales of $3.6 billion, falling short of analyst expectations of $3.71 billion. The revenue miss was primarily attributed to a decline in new equipment sales, particularly in China and the Americas. While the company's adjusted earnings per share of $1.05 slightly beat estimates of $1.03, it still marked a 1% decrease from the previous year.

Adding to the negative sentiment, Otis lowered its full-year 2025 revenue forecast to a range of $14.5 billion to $14.6 billion, down from its earlier projection of $14.6 billion to $14.8 billion. This reduction places the new guidance below analysts' expectations of $14.73 billion. The company, however, maintained its adjusted EPS outlook of $4.00 to $4.10 for the year.

Judy Marks, chair, president and CEO of Otis, commented on the results, stating, "Otis delivered solid performance led by the strength of our Service segment that continues our steady growth trajectory." However, the market's reaction suggests that investors are more focused on the challenges in the new equipment segment and the potential impact of global macroeconomic headwinds on future growth.

The sharp stock decline reflects growing concerns about Otis's ability to navigate the challenging economic environment, particularly in key markets like China, where a slow recovery in the property market is affecting demand for new equipment. As Otis continues to face these headwinds, investors will be closely monitoring the company's ability to adapt and maintain growth in its service segment while addressing the challenges in new equipment sales.