Honeywell 8-K
PositiveEarningsGuidance raised
Building Automation growth, pricing and productivity support raised FY2026 adjusted EPS guidance of $8.40-$8.45.
Filed 2026-10-22 06:02 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results and raised FY2026 outlook. Sales grew 1% reported and 7% organically, with broad-based segment growth, pricing and productivity supporting higher margins; adjusted EPS rose 34%. Honeywell raised its full-year organic growth, adjusted EPS and free cash flow outlook, and expects segment margin at the prior range’s high end.
Key Figures
| Metric | Q3 2026 |
|---|---|
| Revenue | $4.99B, +1% Y/Y; organic growth 7% |
| Operating income | $740M, +79% Y/Y |
| Operating margin | 14.8%, vs 8.4% |
| Net income attributable to Honeywell Technologies | $664M, vs $1.83B |
| Diluted EPS from continuing operations | $2.40, vs $2.99 |
| Adjusted diluted EPS, non-GAAP | $2.27, +34% Y/Y |
| Operating cash flow from continuing operations | $607M, down 74% Y/Y |
| Free cash flow, non-GAAP | $688M, +15% Y/Y |
- Segment profit was $1.06B, up 23%, and segment margin was 21.3%, vs 17.6%. Building Automation sales rose 8% organically; Process Automation and Technology rose 8%; Industrial Automation rose 4% organically despite a 23% reported sales decline, reflecting divestitures.
- Backlog increased 7% Y/Y to nearly $19B, excluding the Warehouse and Workflow Solutions and Productivity Solutions and Services divestitures. Lower operating cash flow primarily reflected the prior-year $1.59B Resideo termination settlement; free cash flow increased with higher operating income and lower capital expenditures.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | $20.0B-$20.1B | $19.8B-$20.0B | Raised |
| Organic sales growth | FY2026 | 4%-5% | 3%-4% | Raised |
| Organic sales growth | Q4 2026 | 5%-6% | — | — |
| Segment margin, non-GAAP; expansion | FY2026 | ≈20.5%; up ≈290 bp | 20.1%-20.5%; up 250-290 bp | Reaffirmed at prior range’s high end |
| Adjusted EPS, non-GAAP; growth | FY2026 | $8.40-$8.45; up 30%-31% | $8.05-$8.35; up 25%-29% | Raised |
| Operating cash flow | FY2026 | ≈$2.1B | ≈$2.1B | Reaffirmed |
| Free cash flow, non-GAAP | FY2026 | ≈$2.1B | ≈$2.0B | Raised |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Sales | FY2026 | $19.8B-$20.0B | $20.0B-$20.1B | raised |
| Organic sales growth | FY2026 | 3%-4% | 4%-5% | raised |
| Segment margin, non-GAAP; expansion | FY2026 | 20.1%-20.5% | ≈20.5%; up ≈290 bp | narrowed (raised low end) |
| Adjusted EPS, non-GAAP; growth | FY2026 | $8.05-$8.35 | $8.40-$8.45; up 30%-31% | raised |
| Operating cash flow | FY2026 | ≈$2.1B | ≈$2.1B | reaffirmed |
| Free cash flow, non-GAAP | FY2026 | ≈$2.0B | ≈$2.1B | raised |
Investor Takeaways
- Q4 organic sales growth of 5%-6% and delivery against the raised FY2026 outlook are the next operating benchmarks.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-22 14:33:54Z