Honeywell International (NASDAQ:HON) Releases Earnings Results, Beats Estimates By $0.10 EPS

Honeywell International (NASDAQ:HON) posted its earnings results on Thursday. The conglomerate reported $2.27 EPS for the quarter, topping the consensus estimate of $2.17 by $0.10, FiscalAI reports. Honeywell International had a net margin of 24.36% and a return on equity of 25.62%. The firm had revenue of $4.99 billion for the quarter, compared to the consensus estimate of $5.01 billion. During the same period in the prior year, the business posted $2.82 earnings per share. The business’s quarterly revenue was up 1.3% on a year-over-year basis.

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

• 2026 guidance was raised across key metrics: organic sales growth is now expected at 4%–5%, adjusted EPS at $8.40–$8.45, and free cash flow at $2.1 billion. Management expects fourth-quarter organic growth of 5%–6% and approximately 30% full-year earnings growth.
• Third-quarter performance was broad-based, with 7% organic sales growth, adjusted EPS up 34% year over year, and segment margins expanding 370 basis points to 21.3%. Building Automation grew 8% organically for its eighth consecutive quarter, while Process Automation & Technology grew 8%.
• Management sees a multiyear growth inflection in Process Automation & Technology, supported by nearly $19 billion of backlog, more than 10% PA&T backlog growth, and strong demand across LNG, refining, petrochemicals, and low-carbon energy. Data-center orders rose more than 100%, with opportunities expanding across Building Automation, process controls, sensing, and liquid cooling.
• Cash generation and balance-sheet execution improved, with quarterly free cash flow of approximately $690 million and 95% conversion; management expects conversion above 100% in the fourth quarter. Gross debt is targeted below $13 billion by year-end, reducing gross leverage below 3 times and creating greater flexibility for disciplined M&A.
• Near-term margins in Process Automation & Technology remain pressured by project mix and dilution from the Johnson Matthey Catalyst Technologies acquisition, with fourth-quarter margin expected around 21.5%. The company also continues to face elevated inflation, while utility meter deployments have been deferred and some refining-related aftermarket work may be delayed by high plant utilization.

Honeywell International Stock Performance

Shares of Honeywell International stock traded up $2.84 during midday trading on Friday, hitting $221.15. The company had a trading volume of 2,619,622 shares, compared to its average volume of 2,395,562. The business’s 50 day simple moving average is $211.82 and its two-hundred day simple moving average is $221.91. The stock has a market cap of $70.09 billion, a PE ratio of 9.95, a P/E/G ratio of 1.59 and a beta of 0.86. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.96 and a quick ratio of 0.93. Honeywell International has a 1-year low of $196.59 and a 1-year high of $261.24.

Honeywell International Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be paid a $0.70 dividend. The ex-dividend date is Friday, November 13th. This represents a $2.80 annualized dividend and a dividend yield of 1.3%. Honeywell International’s dividend payout ratio (DPR) is presently 27.60%.

Honeywell International News Roundup

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

• Positive Sentiment: Honeywell reported third-quarter adjusted EPS of $2.27, ahead of the $2.17 analyst consensus. Organic sales growth reached 7%, supported by stronger automation orders, energy projects and data-center demand. HON Q3 Earnings Beat on Automation Strength, Outlook Raised
• Positive Sentiment: Honeywell raised its 2026 EPS outlook to $8.40-$8.45, above the $8.29 consensus, while also increasing its expectations for organic sales and cash flow. Fourth-quarter EPS guidance of $2.42-$2.47 is modestly above estimates. HON Q3 Earnings Call Highlights Higher Outlook and Energy Demand
• Positive Sentiment: Citigroup raised its price target to $271 and initiated a “buy” rating, while JPMorgan increased its target to $241 and maintained an “overweight” rating. The revisions indicate analysts see additional upside from margin improvement and segment growth.
• Positive Sentiment: Honeywell launched Forge Cognition, an AI and simulation platform developed with NVIDIA and Dell Technologies to improve industrial reliability, energy efficiency and facility operations. The company is also targeting fire-prevention and security products at battery installations and data centers. Honeywell Unveils Forge Cognition
• Neutral Sentiment: Third-quarter revenue of $4.99 billion was slightly below the $5.01 billion consensus, and full-year revenue guidance of $20.0-$20.1 billion trails the $20.2 billion estimate.
• Neutral Sentiment: RBC trimmed its price target to $269 but kept an “outperform” rating, while Morgan Stanley maintained a “hold” view, signaling that valuation and execution remain potential constraints.

Insider Transactions at Honeywell International

In related news, CEO Kenneth West sold 17,032 shares of the company’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $243.77, for a total transaction of $4,151,890.64. Following the completion of the transaction, the chief executive officer directly owned 2,132 shares in the company, valued at $519,717.64. This represents a 88.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.15% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on HON shares. JPMorgan Chase & Co. increased their price objective on Honeywell International from $240.00 to $241.00 and gave the company an “overweight” rating in a report on Friday. Royal Bank Of Canada cut their price objective on Honeywell International from $270.00 to $269.00 and set an “outperform” rating on the stock in a research note on Friday. Daiwa Securities Group upgraded Honeywell International from a “neutral” rating to an “outperform” rating and set a $255.00 target price for the company in a report on Tuesday, June 30th. Morgan Stanley upped their target price on Honeywell International from $245.00 to $250.00 and gave the stock an “equal weight” rating in a research report on Monday, August 31st. Finally, Citigroup upped their target price on Honeywell International from $270.00 to $271.00 and gave the stock a “buy” rating in a research report on Friday. Thirteen analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Honeywell International currently has a consensus rating of “Hold” and an average target price of $249.96.

Honeywell International Company Profile

Honeywell International Inc is a diversified industrial technology company that develops products and systems for the aerospace, building automation, energy and industrial sectors. Its offerings include aircraft engines and avionics, industrial automation and control systems, building management technologies, fire and security products, personal protective equipment, and specialty materials and chemicals.

The company serves commercial aerospace, defense, airlines, building owners, manufacturers, energy producers and other industrial customers.