Honeywell (HON) Q3 2026 Earnings
GAAP EPS of $2.40 includes a $0.67 gain on sale of personal protection equipment business, $0.35 equity loss of Quantinuum, $0.32 amortization of acquisition-related intangibles, $0.21 pension income benefit, $0.10 acquisition-related costs, and $0.04 divestiture-related cost credit, among other items.
How Did HON Stock React to Q3 2026 Earnings?
Did HON Beat Earnings? Q3 2026 Results
Yes. Honeywell reported Q3 2026 earnings of $2.27 a share on Oct 22, 2026, beating the $2.16 consensus estimate by 4.9%. Revenue was $5.0B against a $5.0B estimate.
Honeywell Technologies posted a strong third quarter in its first earnings report as a standalone company following its separation from Honeywell Aerospace, delivering adjusted EPS of $2.27 against a consensus estimate of $2.17, a beat of 4.86% that extends the company's streak of exceeding EPS expectations to five consecutive quarters. Revenue of $4.99 billion came in just 0.32% below the $5.01 billion consensus, though the reported year-over-year decline of 52.0% largely reflects the impact of divestitures rather than organic deterioration; on an organic basis, sales grew 7%, above the company's own three-year targets. The primary driver of profit outperformance was a 23% surge in segment profit to $1.06 billion, fueled by aggressive cost elimination, pricing actions that more than offset inflation, and volume leverage, pushing segment margins up 370 basis points to 21.3%. Free cash flow rose 15% to $688 million. On the strength of the quarter, management raised full-year 2026 adjusted EPS guidance to $8.40-$8.45 and organic growth expectations to 4%-5%, signaling confidence despite some analyst price target reductions ahead of the print.
- 7% organic sales growth driven by broad-based strength across all three segments
- Pricing actions that more than offset inflation
- Productivity improvements including elimination of stranded costs from prior spin-offs and divestitures
- Volume leverage across Building Automation and Industrial Automation
- Building products grew 11% fueled by fire and security businesses
- LNG and petrochemical project growth drove 14% increase in Process Automation project sales
- Industrial Automation solutions grew 16% driven by industrial measurement and utilities
- Backlog increased 7% year over year to nearly $19 billion
“Honeywell Technologies delivered strong results across the business in our first quarter as a standalone company. Continued momentum across all three segments, together with our improving position in high-growth verticals, translated to 7% organic sales growth, above the three-year target set at our June Investor Day. This performance, coupled with continued progress reducing fixed cost, enabled adjusted operating income to increase at more than three times the rate of sales, while adjusted EPS rose 34%, well ahead of our expectations for the quarter. As a result of this strong performance, we are raising our full-year 2026 outlook, which gives me great confidence in our long-term strategy and our ability to deliver on our 2029 targets.”
Honeywell CEO, on the earnings call
What Is Honeywell's Outlook?
Honeywell Technologies raised its full-year 2026 guidance following strong Q3 performance. Sales are now expected at $20.0B-$20.1B with organic growth of 4%-5% (up from 3%-4%). Q4 organic growth is expected at 5%-6%. Segment margin is now expected at approximately 20.5%, at the upper end of prior guidance, representing approximately 290 basis points of expansion. Adjusted EPS guidance was raised to $8.40-$8.45 (from $8.05-$8.35), representing 30%-31% growth. Operating cash flow and free cash flow are both now expected at approximately $2.1 billion (free cash flow up from ~$2.0B).
HON YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $5.0B | $10.4B | −52.0% |
| Gross Profit | $2.0B | $3.5B | −43.1% |
| Operating Income | $740.0M | $1.8B | −57.8% |
| Net Income | $664.0M | $1.8B | −63.6% |
HON Revenue by Segment
When Does Honeywell Report Next?
Figures from SEC filings and company reports. Not investment advice.