Honeywell (HON) · Industrials
Honeywell Q2 2026 earnings: summary, key numbers & outlook
Results filed 23 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Honeywell reported second quarter 2026 sales of $9.7 billion, up 4%, with EPS of $17.83 reflecting a one-time gain on deconsolidation of Quantinuum, and adjusted EPS of $4.52.
Honeywell completed the spin-off of Honeywell Aerospace on June 29, 2026, and now calls itself a pure-play automation company. Including the former Aerospace business, sales were $9.7 billion, up 4%. Reported EPS of $17.83 was inflated by a one-time gain on deconsolidating Quantinuum, while adjusted EPS fell 4% to $4.52. For Honeywell Technologies alone, sales were $5.2 billion, orders rose 16% and segment margin rose 100 basis points to 19.0%.
Management raised its full-year 2026 outlook for Honeywell Technologies. It now expects organic growth of 3% to 4%, segment margin of 20.1% to 20.5% and adjusted EPS of $8.05 to $8.35. It lowered the sales range to $19.8 billion to $20.0 billion and left free cash flow at about $2.0 billion. The main tension is the second half, where organic growth must accelerate to 4% to 6%. Process Automation sales fell 1% organically and its margin shrank.
Key numbers
- Consolidated sales (including legacy Aerospace Technologies) · GAAP
- $9.7 billion
- Net income attributable to Honeywell Technologies · GAAP
- $5.7B
- Diluted EPS from continuing operations · GAAP
- $17.83
- Adjusted EPS · non-GAAP
- $4.52
- Operating income · GAAP
- $1.7B
- Operating margin · GAAP
- 17.9%
- Cash flow from operations, continuing operations · GAAP
- $1.3B
- Free cash flow · non-GAAP
- $1.3B
up 4% from a year ago
up 312% from a year ago
down 4% from a year ago
down 6% from a year ago
down 190 bps from a year ago
up 20% from a year ago
up 43% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Building Automation sales | $2.0B | up 10% reported, 9% organic |
| Process Automation and Technology sales | $1.7B | up 4% reported, down 1% organic |
| Industrial Automation sales | $1.5B | down 5% reported, up 4% organic |
| Aerospace Technologies sales (former segment) | $4.5 billion | up 5% organically |
| Honeywell Technologies sales | $5.2B | up 3% reported, 4% organic |
| Honeywell Technologies segment margin | 19.0% | up 100 bps from a year ago |
Where each number comes from
- Consolidated sales (including legacy Aerospace Technologies): “Sales of $9.7 billion, reported sales up 4% and organic1 sales up 4%”
- Net income attributable to Honeywell Technologies: “Net income attributable to Honeywell Technologies | $5,682 | $1,570 | $6,503 | $3,019 Earnings per share of common stock—basic”
- Diluted EPS from continuing operations: “Earnings per share (EPS) of $17.83, which reflects the impact of a one-time gain on deconsolidation of Quantinuum, and adjusted EPS1 of $4.52”
- Adjusted EPS: “Earnings per share (EPS) of $17.83, which reflects the impact of a one-time gain on deconsolidation of Quantinuum, and adjusted EPS1 of $4.52”
- Operating income: “Operating Income | $1,737 | $1,843 | (6%) Operating Income Margin | 17.9% | 19.8% | (190 bps) Segment Profit1 | $2,240 | $2,128 | 5%”
- Operating margin: “Operating margin of 17.9% and segment margin1 of 23.1%”
- Cash flow from operations, continuing operations: “Cash Flow from Operations - Continuing Operations | $1,276 | $1,064 | 20% Free Cash Flow1,4 | $1,252 | $878 | 43%”
- Free cash flow: “Cash Flow from Operations - Continuing Operations | $1,276 | $1,064 | 20% Free Cash Flow1,4 | $1,252 | $878 | 43%”
- Building Automation sales: “BUILDING AUTOMATION | 2Q 2026 | 2Q 2025 | Change Sales | $2,002 | $1,826 | 10% Organic1 Growth | 9% Segment Profit | $542”
- Process Automation and Technology sales: “PROCESS AUTOMATION AND TECHNOLOGY Sales | $1,679 | $1,613 | 4% Organic1 Growth | (1%) Segment Profit | $371 | $386 | (4%)”
- Industrial Automation sales: “INDUSTRIAL AUTOMATION Sales | $1,501 | $1,577 | (5%) Organic1 Growth | 4% Segment Profit | $258 | $257 | —% Segment Margin”
- Aerospace Technologies sales (former segment): “In the second quarter, Aerospace Technologies segment sales of $4.5 billion grew 5% organically year over year.”
- Honeywell Technologies sales: “Table 2: Summary of Honeywell Technologies Financial Results (Dollars in millions, except per share amounts) 2Q 2026 | 2Q 2025 | Change Sales | $5,187 | $5,018 | 3%”
- Honeywell Technologies segment margin: “Segment Profit1 | $985 | $904 | 9% Segment Margin1 | 19.0% | 18.0% | 100 bps Earnings Per Share - Continuing Operations | $16.65”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $9.7B | +4.3% | +6.3% |
| Operating income | $2.2B | +5.3% | +5.2% |
| Net income | $5.7B | +261.9% | +592.1% |
| Diluted EPS | $17.83 | +263.9% | +1282.2% |
| Free cash flow | $961.0M | −12.1% | — |
| Operating margin | 23.0% | +0.2 pts | −0.3 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Honeywell Technologies sales | full year 2026 | $19.8 billion to $20.0 billion |
| Organic sales growth | full year 2026 | 3% to 4% |
| Organic sales growth | second half of 2026 | 4% to 6% |
| Segment margin | full year 2026 | 20.1% to 20.5% |
| Adjusted EPS | full year 2026 | $8.05 to $8.35 |
| Operating cash flow | full year 2026 | approximately $2.1 billion |
| Free cash flow | full year 2026 | approximately $2.0 billion |
Key takeaways
Aerospace spin-off completed on June 29, 2026
Honeywell Aerospace now trades separately as HONA, and Honeywell Technologies describes itself as a pure-play automation company. Aerospace will report standalone results after market close on August 5.
Reported EPS inflated by Quantinuum deconsolidation gain
EPS of $17.83 reflects a one-time gain on deconsolidation of Quantinuum. Adjusted EPS of $4.52 was down 4% from $4.72 a year ago.
Building Automation drove Technologies' margin expansion
Building Automation sales grew 9% organically and segment margin rose 90 basis points to 27.1%, with orders up 13% led by data center and hospitality. Process Automation margin fell 180 basis points to 22.1%.
Full-year guidance raised on margin and EPS
Segment margin guidance rose to 20.1% to 20.5% and adjusted EPS to $8.05 to $8.35. The sales range fell to $19.8 billion to $20.0 billion from $19.9B - $20.2B.
Second-half acceleration to 4% to 6% organic growth
Full-year organic growth of 3% to 4% implies 4% to 6% in the second half. Honeywell Technologies orders were up 16%, leading to a ~$20 billion backlog.
Charts
Data
| Q4 2024 | $9.2B |
| Q1 2025 | $8.9B |
| Q2 2025 | $9.3B |
| Q3 2025 | $4.9B |
| Q4 2025 | $9.8B |
| Q1 2026 | $9.1B |
| Q2 2026 | $9.7B |
| Q3 2026 | $5.0B |
Data
| Q4 2024 | $1.96 |
| Q1 2025 | $2.22 |
| Q2 2025 | $4.90 |
| Q3 2025 | $5.71 |
| Q4 2025 | -$0.18 |
| Q1 2026 | $1.29 |
| Q2 2026 | $17.83 |
| Q3 2026 | $2.08 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 11.8% |
| Q1 2025 | 22.4% |
| Q2 2025 | 22.8% |
| Q3 2025 | 17.6% |
| Q4 2025 | 57.0% |
| Q1 2026 | 23.3% |
| Q2 2026 | 23.0% |
| Q3 2026 | 21.3% |
Data
| Q4 2024 | $2.2B |
| Q1 2025 | $407.0M |
| Q2 2025 | $1.1B |
| Q3 2025 | $3.3B |
| Q4 2025 | $593.0M |
| Q1 2026 | -$873.0M |
| Q2 2026 | $961.0M |
| Q3 2026 | $286.0M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Honeywell's headline results for Q2 2026?
Consolidated sales were $9.7 billion, up 4% and up 4% organically, with operating margin of 17.9% and segment margin of 23.1%. EPS was $17.83 and adjusted EPS was $4.52.
Why is reported EPS so much higher than adjusted EPS?
EPS of $17.83 reflects a one-time gain on deconsolidation of Quantinuum, which was $6,629 million in the income statement. Adjusted EPS of $4.52 excludes such items and was down 4% from $4.72 a year ago.
How did Honeywell Technologies perform without Aerospace?
Sales were $5.2 billion, up 3% reported and 4% organic, orders rose 16% and segment margin expanded 100 basis points to 19.0%. Adjusted EPS was $1.95, up 10% from $1.77.
What is the updated full-year 2026 outlook?
Honeywell Technologies expects sales of $19.8 billion to $20.0 billion, organic growth of 3% to 4%, segment margin of 20.1% to 20.5% and adjusted EPS of $8.05 to $8.35. Operating cash flow is about $2.1 billion and free cash flow is unchanged at about $2.0 billion.
Which segments were strong or weak in the quarter?
Building Automation was strongest, with 9% organic growth and a 27.1% segment margin. Process Automation and Technology sales fell 1% organically and its margin fell 180 basis points to 22.1% on lower catalyst volumes and unfavorable product mix.
Documents
SEC filing