| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 10.5x | 17.8x | Top tier | |
Growth | 35 | 11.0% | 7.1% | Bottom tier | |
Quality | 68 | 11.8% | 4.5% | Top tier | |
Safety | 56 | 2.6x | 2.6x | Around median | |
Capital Return | 60 | 2.39% | 2.12% | Around median | |
Momentum | 41 | 14.9% | 2.9% | Around median | |
Sentiment | 78 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Following the spin-off of Honeywell Aerospace on June 29, 2026 and the completion of portfolio divestitures, Honeywell International Inc. (HON) has become an automation-focused company centered on three segments: Building Automation, Industrial Automation, and Process Automation and Technology. Its model is based on expanding the installed equipment base and then generating additional revenue from it through services, software, and outcome-based solutions, while targeting sectors such as data centers, liquefied natural gas, grid infrastructure, and life sciences. Annual recurring revenue associated with the Honeywell Forge platform reached approximately $900 million, and the company aims to exceed $1 billion during fiscal year 2026.
In Q2 of fiscal year 2026, statements filed with EDGAR recorded revenue of $9.7 billion and gross profit of $3.7 billion, equivalent to a gross margin of approximately 38.1%. Reported net income was $5.7 billion and earnings per share were $17.83, and news reports indicated that the surge in net income included exceptional gains related to the Quantinuum initial public offering; therefore, these figures alone do not represent recurring operating profitability. On an adjusted basis excluding items identified by the company, earnings per share were $1.95 and grew 10%, while segment profit rose 9% and segment margin expanded 100 basis points to 19%.
Organic sales growth of 4% came from a varied segment mix: Building Automation grew 9%, Industrial Automation increased 4%, while Process Automation and Technology sales declined 1%. Building Automation margin reached 27.1% after improving 90 basis points, and Industrial Automation margin reached 17.2% after a similar improvement, while Process Automation and Technology margin contracted 180 basis points to 22.1% due to lower catalyst volumes and sales mix. The company generated approximately $0.5 billion in free cash flow during the quarter, distributed approximately $800 million in cash dividends, and invested approximately $200 million in capital expenditures.
Analyst consensus rates HON shares as “Buy,” with an average target of $263 and a wide range from $239 to $293. The average target is only approximately 1% above the 52-week range high of $260.28317, while the highest target exceeds that high by approximately 12.6%, reflecting considerable variation in analyst estimates. A reliable price-to-earnings ratio is not available in the data, and net income for Q2 of fiscal year 2026 included exceptional gains related to the Quantinuum offering; therefore, the reported earnings per share of $17.83 should not be used alone to infer a sustainable multiple.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Since the spin-off of Honeywell Aerospace on June 29, 2026, Honeywell has focused on Building Automation, Industrial Automation, and Process Automation and Technology. The strategy is based on expanding the installed base and then generating revenue from it through services, software, and outcome-based solutions. In Q2 of fiscal year 2026, organic sales increased 4%, organic orders rose 16%, and backlog grew 9%. Management also targets organic growth between 4% and 6% in the second half of fiscal year 2026.
Not all reported earnings reflect recurring operating performance; EDGAR recorded net income of $5.7 billion and earnings per share of $17.83 on revenue of $9.7 billion. News reports indicated that the surge in net income included exceptional gains related to the Quantinuum initial public offering in June 2026. On the adjusted basis presented by the company, earnings per share were $1.95 and grew 10%. Segment profit grew 9%, with segment margin expanding 100 basis points to 19%.
Automated analysis for informational purposes only — not investment advice.
Honeywell completed the transaction on July 17, 2026 and incorporated the business into the Process Automation and Technology segment. The business adds hydrogen, methanol, and ammonia technologies and complements Honeywell UOP's capabilities in refining, petrochemicals, liquefied natural gas, and renewable fuels. Management said the price equaled approximately 13 times expected 2027 earnings before interest, taxes, depreciation, and amortization after cost savings, excluding sales synergies. The company sees opportunities to connect the new installed base with the Honeywell Forge platform and automation services, but it did not include sales synergies in that estimate.
Data centers represented 5% of the Building Automation business according to the July 23, 2026 call, after contributing almost nothing three or four years earlier, according to management. Current products include fire detection, security, and building management systems. Honeywell is also working on offerings to automate on-site power generation and storage facilities, in addition to sensors required for liquid cooling. The new energy automation proposals had not entered orders as of the call date, so they remain a future opportunity not yet demonstrated in recorded revenue.
Process Automation and Technology sales declined 1% organically in Q2 of fiscal year 2026, and the segment's margin contracted 180 basis points to 22.1% because of catalyst mix. The early closing of the PSS and WWS divestitures also reduced the revenue outlook by approximately $400 million. The company faces inflation of approximately 4% in the second half, according to management's estimate, along with regional exposure to Middle East disruptions and limited collection delays. The outlook assumes no major escalation or additional supply-chain disruption compared with the conditions prevailing on July 23, 2026.
The company raised its fiscal year 2026 organic sales growth outlook to 3%–4% and increased the midpoint of adjusted earnings per share to $8.20. It targets segment margin expansion between 250 and 290 basis points and aims to exit fiscal year 2026 with a margin exceeding 22%. It also maintained its free cash flow outlook at approximately $2 billion, with a conversion rate of approximately 95%. Over the longer term, it targets approximately $12 in adjusted earnings per share and a margin of 24%, with these targets based on organic growth and assuming no additional acquisitions.
