Honeywell Technologies HON is scheduled to release second-quarter 2026 results on July 23, before market open. The Zacks Consensus Estimate for quarterly earnings is currently pegged at $1.80 per share on revenues of $4.98 billion.
HON’s second-quarter earnings estimates have declined 60.9% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year decline of 51.9%.
It is worth noting that on June 29, 2026, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The spin-off is likely to have weighed on its year-over-year top and-bottom-line comparison.
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Earnings Surprise History
Honeywell Technologies’ earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.7%. In the last reported quarter, it delivered an earnings surprise of 6.1%.
Honeywell Price and EPS Surprise
Honeywell price-eps-surprise | Honeywell Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Honeywell Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: HON has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $1.80. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: HON presently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note Ahead of Honeywell Technologies’ Q2 Results
Honeywell Technologies’ Process Automation and Technology segment is expected to have put up a weak show in the quarter due to softness in the aftermarket business with lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions is likely to have hurt the segment’s performance in the second quarter. Honeywell Technologies anticipates the Middle East conflict to have an adverse impact on sales by 1% in the second quarter. However, growth in orders across petrochemical and refining verticals in the segment bodes well.
Recovery in the Industrial Automation segment, driven by favorable project timing, is likely to augment its results. However, the divestment of its Personal Protective Equipment business is anticipated to weigh on the segment’s results.
Nevertheless, healthy demand for its products and solutions, led by increasing building projects, particularly in North America, is expected to drive the Building Automation segment’s results. Increasing order rates and capex investments in data centers and health care projects are likely to have been a tailwind as well.
Over time, HON’s performance has been adversely impacted by high costs and expenses. Higher direct and indirect material costs and investments in digital infrastructure and business restructuring activities are expected to have pushed up the company’s operating expenses, which are likely to have reflected in its margins.
Also, given HON's extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt its overseas business.
HON’s Price Performance
Following the spin-off of the Aerospace business, HON’s shares have inched down 1.2% compared with the Zacks Diversified Operations industry’s 3.1% decline and the S&P 500’s 0.1% growth. Shares of its key rivals like Rockwell Automation ROK and Emerson Electric Co. EMR are down 4.2% and 2.3%, respectively, over the same time frame.
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Stock Valuation
Honeywell Technologies is currently trading at a forward 12-month P/E of 25.00X, a premium compared with the industry’s 15.08X. In comparison with HON’s valuation, Emerson Electric is trading cheaper, while Rockwell Automation is trading at a premium. Notably, Emerson Electric and Rockwell Automation are currently trading at 19.91X and 32.20X, respectively.
Price-to-Earnings (Forward 12 Months)
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Investment Thesis
The persistence of Honeywell Technologies’ near-term challenges, such as weakness in the Process Automation and Technology and Industrial Automation units along with rising costs and expenses, is limiting its near-term prospects.
Although the separation of the Aerospace business will likely provide HON with improved operational focus on the industrial automation business, the spin-off is likely to weigh on its top and-bottom-line results in the quarters ahead.
Final Take on HON
Honeywell Technologies’ market leadership position, diversified product portfolio and strong dealer network provide it with a competitive advantage to leverage the long-term demand prospects in industrial markets. However, weakness in aftermarket business, project delays and rising operating expenses pose a threat to the company’s near-term catalysts.
The downward estimate revision activity in earnings and expensive valuation warrant a cautious approach for existing investors. Potential investors should consider waiting for HON’s earnings report and clearer signs of recovery before investing in the stock.
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Honeywell International Inc. (HON): Free Stock Analysis Report
Emerson Electric Co. (EMR): Free Stock Analysis Report
Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).