Honeywell Technologies beats Q2 estimates, raises guidance

Investing.com -- Honeywell Technologies (NASDAQ: HON) reported second-quarter results that exceeded analyst expectations and raised its full-year guidance, marking its first earnings report as a standalone automation company following the spin-off of its aerospace business.

The company posted adjusted earnings per share of $1.95, beating the analyst consensus of $1.82 by $0.13. Revenue reached $5.2 billion, up 3% from $5.0 billion in the prior-year quarter and above the $5.02 billion analyst estimate. Organic sales grew 4% YoY. Segment margin expanded 100 basis points to 19.0%, while adjusted EPS increased 10% from $1.77 in the second quarter of 2025.

Shares rose 1.3% following the announcement. The company completed the separation of Honeywell Aerospace on June 29, transitioning to a pure-play automation business.

"The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company," said Vimal Kapur, chairman and chief executive officer. "Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter."

For fiscal 2026, Honeywell raised its adjusted EPS guidance to a range of $8.05 to $8.35, up from the previous range of $7.90 to $8.30. The midpoint of $8.20 compares favorably to the prior midpoint of $8.10.

The company also updated its revenue outlook to $19.8 billion to $20.0 billion, with the midpoint of $19.9 billion slightly below the previous midpoint of $20.05 billion. Organic sales growth expectations increased to 3% to 4% from 2% to 3%.

Building Automation led segment performance with 9% organic sales growth and 90 basis points of margin expansion to 27.1%. Process Automation and Technology sales declined 1% organically, while Industrial Automation grew 4% organically.

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