Honeywell third quarter results lift 2026 outlook

Honeywell third quarter sales rose 1 percent to $4.99 billion, the industrial company reported in an October 22, 2026 filing, with organic growth of 7 percent against $4.93 billion a year earlier. Adjusted earnings per share rose 34 percent to $2.27, above the $2.19 consensus estimate reported by AlphaStreet, while reported earnings per share from continuing operations were $2.40, down from $2.99 a year earlier. The company also raised its full-year 2026 outlook, guiding to sales of $20.0 billion to $20.1 billion and adjusted earnings per share of $8.40 to $8.45.

Honeywell, based in Charlotte, North Carolina, now reports three segments after completing its Aerospace spin-off. The quarter was the first full test of that shape, and the results showed profit growing faster than sales. Operating income rose 79 percent to $740 million, and operating margin expanded to 14.8 percent. Segment profit rose 23 percent to $1,062 million, with segment margin up to 21.3 percent. Free cash flow increased 15 percent to $688 million, and backlog climbed 7 percent to nearly $19 billion.

Honeywell third quarter sales by segment

Honeywell third quarter sales grew in each of its three segments on an organic basis. Building Automation grew 8 percent organically, its eighth consecutive quarter of high-single-digit growth, helped by demand for energy-efficient systems. Process Automation and Technology also rose 8 percent organically, led by 14 percent growth in projects, though its margin narrowed as expected on project mix and the Johnson Matthey Catalyst Technologies acquisition. Industrial Automation grew 4 percent organically, with margin up 350 basis points.

The segment detail matters because reported sales and organic sales told different stories. Reported sales rose only 1 percent, held back by divestitures including the Warehouse and Workflow Solutions and Productivity Solutions and Services businesses. Organic sales, which strip out those portfolio changes, rose 7 percent. Investors who looked only at the reported figure would have missed the underlying growth, and the company pointed to pricing actions and demand across its end markets as the drivers.

Honeywell third quarter profit and cash flow

Honeywell third quarter profit grew well ahead of sales. Operating income of $740 million was up 79 percent, and operating margin of 14.8 percent expanded 640 basis points from 8.4 percent in the prior-year quarter. Segment profit of $1,062 million rose 23 percent, and segment margin of 21.3 percent expanded 370 basis points from 17.6 percent, led by Industrial Automation and Building Automation. The company attributed the gains to productivity, including the elimination of stranded costs tied to prior spin-offs and divestitures, pricing actions that more than offset inflation, and volume leverage.

Free cash flow of $688 million rose 15 percent, with conversion of 95 percent. Cash generation is the part of the quarter that supports the raised outlook, since a company can report higher earnings without collecting the cash. Honeywell collected it, and the backlog of nearly $19 billion gives it work already booked for the months ahead. The prior-year earnings comparison was flattered by a one-time gain tied to the termination of the Resideo agreement, which is why reported earnings per share fell even as adjusted earnings per share rose 34 percent.

Honeywell third quarter results and the raised outlook

Honeywell third quarter results led the company to raise its full-year 2026 outlook for organic revenue, adjusted earnings per share and free cash flow. It now expects sales of $20.0 billion to $20.1 billion, adjusted earnings per share of $8.40 to $8.45, and free cash flow of $2.1 billion. The guidance lift rests on the Honeywell third quarter combination of organic sales growth, margin expansion and cash generation rather than on any single segment.

The company also completed the Quantinuum IPO during the quarter, retaining a 48 percent stake, and it acquired Johnson Matthey Catalyst Technologies. Those moves sit beside the Aerospace spin-off in reshaping Honeywell into a three-segment industrial company. The Honeywell third quarter ended September 30, 2026, and Honeywell filed its results on October 22, 2026.