Honeywell International (HON) Q3 2026 earnings summary

Executive summary

• First quarter as a standalone automation business: sales of $4.994B, up 7% organically; segment margin of 21.3%, up 370 bps; adjusted EPS of $2.27, up 34%.

• Strong results lifted FY26 guidance; backlog of nearly $19B, up 7% excluding divestitures, supported the 2027 growth setup.

Financial highlights

• Q3 reported sales rose 1% to $4.994B, while organic sales grew 7%.

• Operating income rose 79% to $740M; segment profit increased 23% to $1.062B.

• Free cash flow was $688M, up 15%, with 95% adjusted conversion.

• Continuing-operations diluted EPS was $2.40, down 20% YoY, while adjusted EPS rose 34% to $2.27; the comparison reflects a prior-year Resideo gain.

Outlook and guidance

• FY26 sales guidance: $20.0B–$20.1B; organic growth 4%–5%; segment margin ~20.5%, with ~290 bps expansion.

• FY26 adjusted EPS guidance rose to $8.40–$8.45, growth of 30%–31%; midpoint increased $0.23.

• FY26 free cash flow guidance increased to ~$2.1B; Q4 conversion is expected above 100%.

• Q4 outlook: sales of $5.0B–$5.1B, organic growth of 5%–6%, segment margin near 22%, and adjusted EPS of $2.42–$2.47.

• 2027 organic growth is expected at or above the long-term algorithm; the 2029 adjusted EPS target is $12 or higher.