Honeywell International (NASDAQ:HON) Issues Earnings Results, Beats Expectations By $0.10 EPS

Honeywell International (NASDAQ:HON) announced its quarterly earnings results on Thursday. The conglomerate reported $2.27 EPS for the quarter, topping analysts’ consensus estimates of $2.17 by $0.10, FiscalAI reports. The company had revenue of $4.99 billion during the quarter, compared to analyst estimates of $5.01 billion. Honeywell International had a return on equity of 34.00% and a net margin of 23.90%. The firm’s revenue was up 1.3% on a year-over-year basis. During the same quarter last year, the firm posted $2.82 earnings per share.

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 Trading Up 1.7%

Shares of HON stock opened at $218.31 on Friday. The company has a current ratio of 1.21, a quick ratio of 0.93 and a debt-to-equity ratio of 1.39. Honeywell International has a 12-month low of $196.59 and a 12-month high of $261.24. The stock has a market capitalization of $69.19 billion, a P/E ratio of 12.15, a P/E/G ratio of 1.60 and a beta of 0.86. The firm’s 50 day moving average is $212.07 and its 200 day moving average is $221.91.

Honeywell International Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be given a dividend of $0.70 per share. The ex-dividend date of this dividend 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 27.60%.

Insider Activity

In related news, CEO Kenneth West sold 17,032 shares of the business’s stock in a transaction that occurred 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 sale, the chief executive officer directly owned 2,132 shares in the company, valued at approximately $519,717.64. The trade was a 88.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.15% of the company’s stock.

Key Headlines Impacting Honeywell International

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

• Positive Sentiment: Honeywell reported third-quarter adjusted earnings of $2.27 per share, exceeding the $2.17 consensus estimate. Management also raised its 2026 sales, earnings and operating cash-flow guidance, signaling confidence in the business outlook. Honeywell raises annual outlook as Q3 profit tops expectations
• Positive Sentiment: Organic sales growth reached approximately 7%, led by automation demand, energy projects and data-center activity. The results suggest Honeywell’s more focused industrial platform is entering a stronger growth phase relative to larger diversified peers. HON Q3 Earnings Beat on Automation Strength, Outlook Raised
• Positive Sentiment: Chief Executive Vimal Kapur highlighted opportunities in physical AI, Honeywell’s Forge Cognition platform and partnerships with Nvidia, Dell and Google. Honeywell is positioning its industrial automation and software businesses to benefit from long-term AI and infrastructure investment. Cyber Vulnerability: Honeywell CEO Warns about growing AI security challenge
• Positive Sentiment: Honeywell expanded AI-based complaint-processing capabilities for life-sciences customers, providing another potential software and services growth avenue. Honeywell Technologies expands AI complaint processing for life sciences
• Neutral Sentiment: Quarterly revenue of roughly $4.99 billion slightly missed the $5.01 billion estimate, while earnings declined from $2.82 per share a year earlier. The earnings beat and higher guidance outweighed the modest top-line shortfall, but investors will watch whether growth accelerates. Honeywell International reports third-quarter results
• Neutral Sentiment: Resideo plans a 2027 software update for Honeywell Home smart thermostats to support Apple HomeView features. The announcement could benefit the Honeywell brand, but Resideo is a separate publicly traded company and the direct impact on HON is limited. Resideo announces Honeywell Home thermostat update
• Negative Sentiment: Management warned that AI is creating new cyber vulnerabilities for industrial infrastructure. Greater security requirements could increase costs and execution risk even as Honeywell develops AI-enabled products. Honeywell CEO cybersecurity interview
• Negative Sentiment: Mizuho lowered its price target to $255, indicating a more cautious valuation view despite the earnings beat and improved guidance. Mizuho cuts Honeywell price target

Wall Street Analyst Weigh In

Several brokerages have commented on HON. Rothschild & Co Redburn decreased their price objective on shares of Honeywell International from $237.00 to $234.00 and set a “neutral” rating for the company in a report on Friday, September 25th. Wells Fargo & Company assumed coverage on shares of Honeywell International in a research report on Friday, September 25th. They issued an “equal weight” rating and a $231.00 target price for the company. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Honeywell International from $250.00 to $263.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. Bank of America upgraded shares of Honeywell International from an “underperform” rating to a “neutral” rating and raised their price objective for the stock from $205.00 to $265.00 in a report on Tuesday, July 28th. Finally, Wolfe Research upgraded shares of Honeywell International to a “hold” rating in a research note on Monday, June 29th. Thirteen investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $249.60.

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.