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Honeywell Raises Full-Year EPS Guidance
Honeywell Technologies boosts 2026 EPS forecast to $8.40-$8.45 after 34% Q3 earnings jump.
In brief
Honeywell Technologies boosts 2026 EPS forecast to $8.40-$8.45 after 34% Q3 earnings jump. Honeywell Technologies raised full-year 2026 EPS guidance to $8.40-$8.45 after reporting 34% year-over-year adjusted EPS growth of $2.27 in Q3. Originally reported by BigGo Finance.
Honeywell Q3 2026 Results
![[Honeywell International Q3 2026 Earnings Call] Honeywell Technologies Raises Full-Year EPS Guidance to $8.40-$8.45 After 34% Q3 Adjusted EPS Jump to $2.27](https://img.biggo.com/BytQuQB8t8YCwkbpSzQbZ7P-DBTLYxywY2AxdGoVb_c/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19IT05fMjAyNi0xMC0yMl8xNzkyNjgxMTQyLndlYnA.webp)
Honeywell Technologies reported its first quarter as a standalone pure-play automation company on October 22, 2026, beating its own Investor Day targets with 7% organic sales growth and adjusted EPS of $2.27.
Q3 EPS Jump
Adjusted EPS rose 34% year-over-year to $2.27, driven by 23% segment profit growth and lower interest expense.
Full-Year Guidance Raised
Honeywell raised full-year 2026 guidance across all metrics: organic growth to 4%-5% from 3%-4%, adjusted EPS to $8.40-$8.45, and free cash flow by $100 million to $2.1 billion.
Segment Performance
Process Automation & Technology grew 8% organically, Industrial Automation improved on-time delivery to 60%, and Building Automation delivered eighth consecutive quarter of high-single-digit growth.
CEO Confidence
CEO Vimal Kapur expressed confidence in achieving the company's 2029 target of $12 or better in EPS, citing a nearly $19 billion backlog and strong short-cycle demand.
Data Center Opportunity
Honeywell is expanding data center content from building automation into process automation and industrial automation, targeting mid-single-digit growth in the vertical.
Q4 Margin Mix
Q4 margin guidance reflects mix changes, with higher project and Catalyst Technologies revenue diluting margins by about 400 basis points.
Industrial Automation Turnaround
Industrial Automation improved on-time delivery from under 40% to 60%, with past dues down 18% and new products well-received by channel partners.
PA&T Margin Trajectory
PA&T margin expected to expand in 2027 and 2028 as Catalyst mix improves, project mix abates, and Johnson Matthey integration completes.
M&A Priorities
Honeywell prioritizes industrial automation, higher-growth verticals, and frontier technologies for M&A, with no compulsion to meet 2029 EPS target through acquisitions.
2029 Target
Honeywell aims to achieve $12 or better in EPS by 2029, supported by a nearly $19 billion backlog and improving short-cycle demand.
Key Risks
Persistent inflation and mix headwinds in PA&T could pressure margins if pricing actions fail to keep pace with inflation.
2027 Setup
Honeywell expects organic growth at or above 4%-6%, margin expansion, and fixed cost savings from accelerated stranded cost elimination by 2027.
Bottom Line
Honeywell's first quarter as a standalone company beat targets, raised guidance, and demonstrated transformation into a pure-play automation leader.
At a glance
Honeywell Technologies raised full-year 2026 EPS guidance to $8.40-$8.45 after reporting 34% year-over-year adjusted EPS growth of $2.27 in Q3.
