Honeywell International (NASDAQ:HON) Issues Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Key Points

• Honeywell beat earnings expectations for the quarter, reporting $1.95 EPS versus the $1.80 consensus estimate. Revenue also came in strong at $9.72 billion, and quarterly revenue rose 3.4% year over year.
• The company raised guidance for upcoming periods, updating Q3 2026 EPS to $2.05-$2.20 and Q4 2026 EPS to $2.28-$2.43. Management also lifted full-year expectations for organic sales growth, segment margin, and adjusted EPS.
• Despite the strong quarter, Honeywell said its earlier-than-planned divestitures of Productivity Solutions & Services and Warehouse & Workflow Solutions will reduce 2026 revenue by about $400 million. Shares still rose sharply, gaining 5.9% on the news.

Honeywell International (NASDAQ:HON - Get Free Report) released its earnings results on Thursday. The conglomerate reported $1.95 EPS for the quarter, topping the consensus estimate of $1.80 by $0.15, Zacks reports. The business had revenue of $9.72 billion for the quarter, compared to the consensus estimate of $5.02 billion. Honeywell International had a return on equity of 42.29% and a net margin of 11.37%.The company's revenue for the quarter was up 3.4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.77 earnings per share. Honeywell International updated its Q3 2026 guidance to 2.050-2.200 EPS and its Q4 2026 guidance to 2.280-2.430 EPS.

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

• Honeywell Technologies reported 4% organic sales growth, 16% organic orders growth, and a 100 basis point margin expansion in Q2, with results coming in above expectations.
• The company raised full-year guidance for organic sales growth, segment margin, and adjusted EPS, now targeting $8.20 midpoint EPS and expecting to exit 2026 above 22% segment margin.
• Management highlighted strong momentum in Building Automation and an expected sharp second-half inflection in Process Automation & Technology, supported by backlog conversion, LNG activity, and stronger catalyst shipments.
• The company completed the Johnson Matthey Catalyst Technologies acquisition and said it adds strategic capability in refining, petrochemicals, and renewable fuels, with management expecting commercial and cost synergies over time.
• Honeywell expects the earlier-than-planned divestitures of Productivity Solutions & Services and Warehouse & Workflow Solutions to reduce 2026 revenue by about $400 million, even as the portfolio becomes more focused.

Honeywell International Stock Up 5.9%

HON stock traded up $13.71 during trading on Thursday, reaching $246.69. 2,654,889 shares of the stock were exchanged, compared to its average volume of 4,276,437. The company has a current ratio of 1.39, a quick ratio of 1.10 and a debt-to-equity ratio of 1.98. The firm's 50 day moving average is $224.98 and its 200 day moving average is $226.15. Honeywell International has a twelve month low of $196.59 and a twelve month high of $261.24. The firm has a market cap of $78.16 billion, a P/E ratio of 17.50, a price-to-earnings-growth ratio of 5.18 and a beta of 0.90.

Honeywell International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 15th were paid a dividend of $1.19 per share. This represents a $4.76 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Friday, May 15th. Honeywell International's dividend payout ratio (DPR) is currently 67.42%.

Analyst Ratings Changes

HON has been the subject of several research analyst reports. Jefferies Financial Group decreased their price objective on shares of Honeywell International from $245.00 to $240.00 and set a "hold" rating for the company in a research report on Monday, April 27th. Citigroup cut their price objective on shares of Honeywell International from $269.40 to $260.00 and set a "buy" rating on the stock in a report on Wednesday, July 1st. Rothschild & Co Redburn dropped their target price on shares of Honeywell International from $235.00 to $225.00 and set a "neutral" rating for the company in a report on Thursday, May 21st. TD Cowen dropped their target price on shares of Honeywell International from $240.00 to $230.00 and set a "buy" rating for the company in a research report on Friday, April 24th. Finally, JPMorgan Chase & Co. lowered their price objective on Honeywell International from $260.00 to $250.00 and set an "overweight" rating for the company in a report on Tuesday, July 7th. Thirteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Honeywell International has an average rating of "Hold" and an average target price of $257.79.

Institutional Investors Weigh In On Honeywell International

Several institutional investors have recently added to or reduced their stakes in HON. Compound Planning Inc. increased its stake in shares of Honeywell International by 3.8% in the 4th quarter. Compound Planning Inc. now owns 7,041 shares of the conglomerate's stock worth $1,374,000 after purchasing an additional 256 shares in the last quarter. First Growth Capital LLC purchased a new stake in shares of Honeywell International in the fourth quarter worth about $239,000. Axxcess Wealth Management LLC grew its stake in Honeywell International by 14.9% in the 4th quarter. Axxcess Wealth Management LLC now owns 33,003 shares of the conglomerate's stock valued at $6,439,000 after acquiring an additional 4,269 shares during the period. Birchwood Financial Partners Inc. purchased a new position in Honeywell International during the fourth quarter worth about $37,000. Finally, Ameriflex Group Inc. increased its stake in Honeywell International by 14.1% during the fourth quarter. Ameriflex Group Inc. now owns 3,533 shares of the conglomerate's stock worth $689,000 after purchasing an additional 437 shares during the period. Hedge funds and other institutional investors own 75.91% of the company's stock.

Key Honeywell International News

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

• Positive Sentiment: Honeywell reported Q2 EPS of $1.95, topping consensus estimates, and revenue also came in above expectations, signaling better-than-expected operating performance. Article Title
• Positive Sentiment: The company said orders rose 4% and backlog remained around $38 billion, pointing to healthy demand in industrial and building automation. Article Title
• Neutral Sentiment: Investors are also digesting Honeywell’s recent restructuring and the completed Aerospace spin-off, which changes how results are being compared and reported going forward. Article Title
• Negative Sentiment: Management’s Q3 and Q4 EPS guidance came in below Wall Street expectations, and revenue guidance for Q3 also missed consensus, which may be limiting upside. Article Title
• Negative Sentiment: Commentary around the Aerospace spin-off suggests some of the stronger historical earnings base is gone, which can pressure investor sentiment even after a solid quarter. Article Title

About Honeywell International

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.

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