Honeywell International (NASDAQ:HON) Issues Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Honeywell reported Q1 adjusted EPS of $2.45, beating estimates by $0.13, but revenue missed at $9.14B versus ~ $9.3B; management set FY2026 EPS guidance of $10.35–$10.65 and Q2 EPS guidance of $2.35–$2.45.
• The company will complete the Aerospace spin‑off on June 29 backed by $20 billion of spin financing, while selling noncore units and pursuing a Quantinuum IPO to simplify the conglomerate and unlock value.
• Demand fundamentals look healthy—organic orders rose ~7% and backlog exceeds $38B with segment margins up ~90 bps—but near‑term revenue is pressured by temporary aerospace supply constraints and Middle East shipping disruptions.

Honeywell International (NASDAQ:HON - Get Free Report) announced its quarterly earnings data on Thursday. The conglomerate reported $2.45 EPS for the quarter, beating analysts' consensus estimates of $2.32 by $0.13, FiscalAI reports. Honeywell International had a net margin of 12.74% and a return on equity of 40.64%. The firm had revenue of $9.14 billion during the quarter, compared to the consensus estimate of $9.30 billion. During the same quarter last year, the firm earned $2.21 earnings per share. The firm's revenue was up 2.4% compared to the same quarter last year. Honeywell International updated its FY 2026 guidance to 10.350-10.650 EPS and its Q2 2026 guidance to 2.350-2.450 EPS.

Here are the key takeaways from Honeywell International's conference call:

• Honeywell will complete the Honeywell Aerospace spin‑off on June 29, creating two pure‑play companies and backed by $20 billion of spin financing and investment‑grade ratings.
• Strong Q1 results — organic orders +7%, backlog above $38 billion with book‑to‑bill >1.1, segment margin expanded ~90 bps, and adjusted EPS rose 11%.
• Aerospace faced temporary mechanical supply‑chain constraints that depressed January–February output (recovered in March), causing near‑term revenue pressure despite management maintaining high‑single‑digit full‑year growth guidance.
• The Middle East conflict reduced revenue by ~0.5% in Q1 (management assumes ~1% impact in Q2), mainly affecting Process Automation & Technology via shipment/logistics delays, but leadership expects a second‑half ramp as backlog converts.
• Portfolio reshaping continues — agreements to sell Productivity Solutions & Services and Warehouse & Workflow (expected H2‑2026 close), plus an amended Johnson Matthey Catalyst Technologies acquisition, which should simplify RemainCo and focus growth priorities.

Honeywell International Price Performance

HON stock opened at $214.34 on Friday. The stock's 50 day moving average price is $233.35 and its 200 day moving average price is $215.37. The firm has a market cap of $135.82 billion, a P/E ratio of 26.83, a PEG ratio of 3.19 and a beta of 0.93. The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.03 and a current ratio of 1.30. Honeywell International has a 1 year low of $185.13 and a 1 year high of $248.18.

Honeywell International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 27th were paid a $1.19 dividend. The ex-dividend date of this dividend was Friday, February 27th. This represents a $4.76 dividend on an annualized basis and a yield of 2.2%. Honeywell International's dividend payout ratio is presently 59.57%.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Morgan Stanley increased their target price on Honeywell International from $235.00 to $245.00 and gave the stock an "equal weight" rating in a research note on Thursday, March 12th. Daiwa Securities Group lifted their price target on Honeywell International from $230.00 to $240.00 in a research note on Tuesday, February 3rd. Robert W. Baird upped their price objective on Honeywell International from $220.00 to $240.00 and gave the stock a "neutral" rating in a report on Friday, January 30th. Barclays cut their price objective on Honeywell International from $275.00 to $255.00 and set an "overweight" rating for the company in a research report on Wednesday, April 1st. Finally, BMO Capital Markets assumed coverage on Honeywell International in a report on Friday, March 27th. They issued an "outperform" rating and a $273.00 target price for the company. Thirteen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $251.83.

Honeywell International News Summary

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

• Positive Sentiment: Q1 adjusted EPS beat and underlying strength: Honeywell reported adjusted EPS of $2.45 (above consensus) with solid margins and ROE, showing profit resilience despite a tough top line. HONEYWELL REPORTS FIRST-QUARTER RESULTS AND REAFFIRMS 2026 OUTLOOK; ANNOUNCES SALE OF WAREHOUSE AND WORKFLOW SOLUTIONS
• Positive Sentiment: Order growth and backlog support near-term revenue visibility: Orders rose ~7% and backlog stands near $38B, which helps revenue visibility as restructuring proceeds. HONEYWELL REPORTS FIRST-QUARTER RESULTS AND REAFFIRMS 2026 OUTLOOK; ANNOUNCES SALE OF WAREHOUSE AND WORKFLOW SOLUTIONS
• Positive Sentiment: Asset-sale and spinoff progress could unlock value: Honeywell signed a definitive agreement to sell its Warehouse & Workflow Solutions unit to American Industrial Partners and confirmed an Aerospace spinoff date, reducing conglomerate complexity. American Industrial Partners to Acquire Honeywell's Warehouse and Workflow Solutions Business
• Positive Sentiment: Quantinuum IPO underway: The company’s majority-owned quantum unit has confidentially filed for a U.S. IPO, a potential future catalyst for value realization. Honeywell's Quantinuum confidentially files for US IPO
• Neutral Sentiment: Segment realignment and reporting changes: Honeywell recast historical segment data and updated automation reporting — improves transparency but is not an immediate earnings driver. Honeywell Realigns Segments, Updates Automation Reporting Structure
• Negative Sentiment: Revenue miss and softer guidance weighed on sentiment: Q1 revenue missed estimates ($9.14B vs. ~$9.3B expected), and Q2 revenue/EPS guidance came in below Street forecasts, prompting investor concern. Honeywell declines after revenue miss, cash flow cut clouds profit beat
• Negative Sentiment: Geopolitical supply/shipping disruptions hit near-term outlook: Management flagged Middle East shipping disruptions that hurt visibility for Q2, a key driver of the trimmed near-term outlook. Honeywell stock falls as Middle East conflict hits Q2 outlook
• Negative Sentiment: Lowered operating cash-flow expectations and investor reaction: Management trimmed near-term cash-flow expectations and the market reacted negatively with elevated volume, amplifying the stock decline. Honeywell falls on revenue miss despite earnings beat

Insider Buying and Selling at Honeywell International

In other news, VP Robert D. Mailloux sold 10,549 shares of the company's stock in a transaction on Friday, January 30th. The stock was sold at an average price of $229.00, for a total value of $2,415,721.00. Following the sale, the vice president directly owned 4,803 shares in the company, valued at $1,099,887. This represents a 68.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director D Scott Davis sold 2,367 shares of the stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $240.00, for a total value of $568,080.00. Following the sale, the director directly owned 31,081 shares in the company, valued at approximately $7,459,440. The trade was a 7.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 18,190 shares of company stock valued at $4,244,287 in the last three months. 0.15% of the stock is currently owned by company insiders.

Institutional Trading of Honeywell International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its position in shares of Honeywell International by 9.1% in the fourth quarter. Brighton Jones LLC now owns 19,047 shares of the conglomerate's stock valued at $4,302,000 after buying an additional 1,582 shares during the last quarter. Acadian Asset Management LLC boosted its position in Honeywell International by 145.7% during the first quarter. Acadian Asset Management LLC now owns 4,433 shares of the conglomerate's stock worth $937,000 after acquiring an additional 2,629 shares during the last quarter. Schnieders Capital Management LLC. grew its stake in Honeywell International by 18.3% in the 2nd quarter. Schnieders Capital Management LLC. now owns 7,920 shares of the conglomerate's stock worth $1,844,000 after acquiring an additional 1,223 shares during the period. Nebula Research & Development LLC grew its stake in Honeywell International by 3.1% in the 2nd quarter. Nebula Research & Development LLC now owns 5,901 shares of the conglomerate's stock worth $1,374,000 after acquiring an additional 176 shares during the period. Finally, Main Street Financial Solutions LLC raised its holdings in Honeywell International by 4.4% in the 2nd quarter. Main Street Financial Solutions LLC now owns 4,488 shares of the conglomerate's stock valued at $1,045,000 after acquiring an additional 188 shares during the last quarter. Hedge funds and other institutional investors own 75.91% of the company's stock.

Honeywell International Company Profile

Honeywell International Inc is a diversified, publicly traded multinational conglomerate NASDAQ: HON that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.

Honeywell's aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.