NEW YORK, July 23, 2026, 08:03 EDT – Honeywell NASDAQ:HON stock advanced as the company reported a 16% increase in automation orders, pushing shares higher.
- Honeywell ended Wednesday at $232.99 and gained 1.6% ahead of Thursday’s opening.
- Standalone adjusted earnings surpassed expectations, but legacy consolidated earnings fell short.
- The backlog of about $20 billion is almost the same as the midpoint of the sales guidance for 2026.
Honeywell International Inc., trading as Honeywell Technologies NASDAQ:HON, updated its 2026 profit forecast higher on Thursday. Shares advanced in premarket trading, even as U.S. futures slipped.
The main investor cue was found beneath the combined headline. Earnings from the standalone automation business surpassed forecasts following the aerospace spin-off completed on June 29.
Adjusted earnings stood at $1.95 per share, surpassing Wall Street’s forecast of $1.82. Revenue totaled $5.19 billion, exceeding the consensus estimate of $5.02 billion.
The legacy consolidated group reported adjusted earnings of $4.52, falling short of the $4.81 expected by LSEG. Revenues reached $9.72 billion, surpassing the forecast of $9.51 billion.
GAAP earnings were $17.83 per share, reflecting a $6.63 billion gain from Quantinuum deconsolidation.
The percentage differences shown below are based on the reported results and the mentioned consensus forecasts.
| Comparison | Honeywell figure | Benchmark | Difference |
|---|---|---|---|
| Standalone adjusted earnings per share | $1.95 | $1.82 estimate | +7.1% |
| Standalone revenue | $5.187 billion | $5.02 billion estimate | +3.3% |
| Legacy adjusted earnings per share | $4.52 | $4.81 estimate | -6.0% |
| 2026 adjusted earnings per share midpoint | $8.20 | $8.10 prior | +1.2% |
| 2026 revenue midpoint | $19.90 billion | $20.05 billion prior | -0.7% |
The discrepancy in reporting accounts for the early reaction in shares. The quarter previously included two businesses, but HON currently reflects just one.
Honeywell Aerospace NASDAQ:HONA is scheduled to release standalone earnings following the market close on August 5. Investors in HON retain ownership of the building, industrial, and process automation businesses.
The remaining company reported a 16% increase in orders, while organic sales grew by 4%. The resulting 12-point gap boosted backlog to about $20 billion. That figure is close to a full year of forecast sales, but the pace of conversion differs.
Honeywell increased its adjusted EPS midpoint by 1.2% to $8.20 and reduced its sales midpoint by 0.7% to $19.90 billion. The segment-margin midpoint climbed by 25 basis points.
The outlook factors in the catalyst acquisition finalized on July 17, alongside expectations that two divestitures will be completed by early August. These changes make direct comparisons of sales more difficult.
Growth was primarily driven by building automation. Organic sales climbed 9%, and margin improved by 90 basis points, reaching 27.1%. Orders were up 13%, supported by strong demand from data centers and the hospitality sector.
The widest gap between orders and sales appeared in process automation, as orders increased by 24% while organic sales declined by 1%. Margin decreased by 180 basis points, reaching 22.1%.
The 25-point gap highlights the most straightforward chance for conversion, but it also entails the greatest amount of execution effort.
Organic growth in industrial automation reached 4%. The segment’s margin increased by 90 basis points to stand at 17.2%. Standalone free cash flow surged fourfold, hitting $456 million.
Chairman and CEO Vimal Kapur described the split as “a new era as a leading pure-play automation company.” SEC
At the time of publication, U.S. regular trading was yet to begin. Futures for the S&P 500 and Nasdaq 100 slipped roughly 0.3%. Brent crude hovered close to $98 as risks in the Middle East intensified.
Backlog timing, inflation, and project execution still pose risks. Honeywell reported softer process margins and pointed to tariffs, supply chain issues, and regional conflicts as challenges.
The next assessment focuses on conversion. Honeywell projects organic growth of 4%-6% for the latter half. Company executives were scheduled to review the outlook at 08:30 EDT.
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