Why Honeywell (HON) Stock Is Up Today

What Happened?

Shares of industrial conglomerate Honeywell (NASDAQ:HON) jumped 4.6% in the afternoon session after the company reported mixed fourth-quarter 2025 results that featured a profit beat but a revenue miss. 

For the quarter, Honeywell posted an adjusted profit of $2.59 per share, which was 2.1% above Wall Street's expectations. However, revenue of $9.76 billion fell short of the $9.91 billion consensus estimate, despite growing 6.4% year-over-year. A key positive for investors was the company's strong organic revenue growth of 11%. Looking ahead, Honeywell's financial outlook for 2026 was also mixed. The company guided for full-year revenue of $39.3 billion at the midpoint, slightly below analyst forecasts. In contrast, its adjusted earnings per share guidance of $10.50 at the midpoint was ahead of expectations, suggesting confidence in its profitability. Investors appeared to focus on the better-than-expected profits and strong underlying growth, overlooking the slight revenue shortfalls.

After the initial pop the shares cooled down to $226.75, up 4.7% from previous close.

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What Is The Market Telling Us

Honeywell’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 5% on the news that the company reported second-quarter results that showed contracting margins and a decline in cash flow, which overshadowed a sales beat and raised full-year guidance. 

While the company exceeded sales expectations with 8% year-over-year growth and raised its full-year outlook for revenue and adjusted earnings per share, investors focused on signs of weakening profitability. The company's operating margin contracted by 30 basis points, and its overall segment margin also declined. This pressure was notable in key divisions, including the Aerospace Technologies segment. Furthermore, Honeywell lowered its full-year segment margin guidance and reported that its GAAP earnings per share missed analyst estimates. Weaker cash flow, with operating cash flow down 4%, added to the concerns.

Honeywell is up 15.8% since the beginning of the year, and at $226.75 per share, it is trading close to its 52-week high of $240.40 from July 2025. Investors who bought $1,000 worth of Honeywell’s shares 5 years ago would now be looking at an investment worth $1,161.

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