Honeywell Aerospace (NASDAQ:HONA) Trading Down 23.2% After Earnings Miss

Key Points

• Honeywell Aerospace shares plunged 23.2% to about $156 after the company reported adjusted second-quarter EPS of $1.87, below the $2.07 consensus, while revenue also missed expectations. Trading volume surged more than fivefold above average.
• Supply-chain constraints, including casting shortages, limited shipments and pressured the aftermarket business. Honeywell cut its 2026 organic sales-growth outlook to 4%–5% and forecast adjusted EPS of $7.60–$7.90.
• Despite strong aerospace demand, aftermarket momentum and backlog growth, analysts largely remain cautious: the consensus rating is Hold, with several firms lowering price targets to around $210.

Honeywell Aerospace (NASDAQ:HONA - Get Free Report) shares fell 23.2% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $150.03 and last traded at $156.47. Approximately 20,569,070 shares changed hands during trading, an increase of 513% from the average session volume of 3,357,019 shares. The stock had previously closed at $203.64.

The company reported $6,340,000.00 EPS for the quarter. The firm had revenue of $4.35 billion for the quarter.

More Honeywell Aerospace News

Here are the key news stories impacting Honeywell Aerospace this week:

• Positive Sentiment: Second-quarter sales increased 5% year over year to approximately $4.52 billion, while the company cited strong aftermarket demand and backlog growth. Honeywell also maintained its second-half free-cash-flow guidance. Honeywell Aerospace reports second quarter results; updates 2026 outlook
• Positive Sentiment: Honeywell Aerospace continues to benefit from aerospace and defense demand, including a fleetwide weather-radar upgrade agreement with Omni Taxi Aereo. Honeywell Aerospace wins fleetwide weather radar upgrade from Omni Taxi Aereo
• Neutral Sentiment: BNP Paribas Exane maintained a Neutral rating but lowered its price target from $245 to $210. Evercore ISI also kept an In-Line rating while reducing its target to $210, reflecting lower expectations rather than an outright bearish call. Why Is Honeywell Aerospace Stock Falling on Thursday?
• Negative Sentiment: Adjusted second-quarter EPS was $1.87, below the $2.07 consensus estimate, and revenue also fell short of expectations. Supply constraints, including casting shortages, limited shipments and particularly weakened the aftermarket business. Honeywell Aerospace Q2 Earnings Miss Estimates
• Negative Sentiment: Honeywell reduced its 2026 organic sales-growth outlook to 4%–5% and issued adjusted EPS guidance of $7.60–$7.90. The cut suggests that supply-chain bottlenecks and cost pressures may persist, leaving the newly spun-off company “behind the curve” compared with broader sector demand. Honeywell Aerospace shares tank as sales forecast cut, profit miss disappoint
• Negative Sentiment: A securities-fraud investigation announced by a law firm is adding negative headlines and potential legal uncertainty, although the announcement is an investor solicitation and does not establish wrongdoing. Securities Fraud Investigation Into Honeywell Aerospace Announced

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. BNP Paribas Exane reduced their price objective on shares of Honeywell Aerospace from $245.00 to $210.00 and set a "neutral" rating for the company in a report on Thursday. JPMorgan Chase & Co. began coverage on Honeywell Aerospace in a report on Friday, July 10th. They set a "neutral" rating and a $255.00 price objective for the company. Wolfe Research assumed coverage on Honeywell Aerospace in a research report on Monday, June 29th. They set a "hold" rating on the stock. Morgan Stanley set a $235.00 price target on Honeywell Aerospace in a research report on Wednesday, July 15th. Finally, Melius Research raised shares of Honeywell Aerospace to a "strong-buy" rating in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, Honeywell Aerospace presently has a consensus rating of "Hold" and a consensus target price of $241.83.

Institutional Investors Weigh In On Honeywell Aerospace

A number of hedge funds have recently made changes to their positions in HONA. Trifecta Capital Advisors LLC bought a new position in Honeywell Aerospace during the second quarter valued at about $67,000. Kelleher Financial Advisors bought a new position in shares of Honeywell Aerospace during the 2nd quarter valued at approximately $78,000. One Wealth Advisors LLC purchased a new stake in shares of Honeywell Aerospace during the 2nd quarter worth approximately $210,000. Bridgewater Advisors Inc. bought a new stake in shares of Honeywell Aerospace in the 2nd quarter worth approximately $236,000. Finally, Silverlake Wealth Management LLC purchased a new position in Honeywell Aerospace in the second quarter valued at approximately $255,000.

Honeywell Aerospace Trading Down 23.2%

Honeywell Aerospace Company Profile

Honeywell Aerospace Inc manufactures and supplies aircraft components, avionics, engines, and systems for airframe manufacturing, commercial airline, military and defense, business aviation, and space markets, as well as other markets in the aerospace industry. The company offers actuation products, air and thermal management products, auxiliary power units, cabin management and entertainment products, cockpit systems and displays, electric power products, engines, health and usage monitoring products, lighting products, microelectronics, navigation products and radios, recorders and transmitters, satellite communications, sensors, space products, terrain and traffic awareness, vehicle turbochargers, weather radars, and wheels and braking systems.

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