Honeywell Technologies (NASDAQ:HON) reported stronger-than-expected second-quarter earnings and raised its full-year profit guidance, marking its first quarterly results as a standalone automation company following the separation of its aerospace business.
The results were supported by higher organic sales, expanding margins and continued strength in its Building Automation division, sending shares modestly higher in early trading.
Quarterly earnings surpass expectations
Honeywell Technologies posted adjusted earnings of $1.95 per share for the second quarter, exceeding analysts’ consensus estimate of $1.82.
Revenue increased 3% year over year to $5.2 billion, ahead of market expectations of $5.02 billion, while organic sales grew 4%.
Segment margin improved by 100 basis points to 19.0%, and adjusted earnings per share rose 10% from $1.77 in the same quarter of 2025.
Following the results, the company’s shares gained around 1.3%.
First results as a standalone automation company
The quarter represented a significant milestone for Honeywell Technologies after completing the spin-off of Honeywell Aerospace (NASDAQ:HONAV) on June 29, leaving the company focused exclusively on automation technologies.
Chairman and Chief Executive Officer Vimal Kapur said, “The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company.”
He added, “Honeywell Technologies delivered strong organic orders and sales growth, and 100 basis points of segment margin expansion, leading to double digit earnings growth in the second quarter.”
Company raises full-year earnings outlook
Honeywell increased its adjusted earnings guidance for fiscal 2026 to between $8.05 and $8.35 per share, compared with its previous range of $7.90 to $8.30.
The midpoint of the revised outlook, $8.20 per share, is higher than the previous midpoint of $8.10.
The company updated its full-year revenue forecast to between $19.8 billion and $20.0 billion. Although the midpoint of $19.9 billion is slightly below the previous midpoint of $20.05 billion, Honeywell raised its organic sales growth outlook to between 3% and 4%, up from its earlier forecast of 2% to 3%.
Building Automation drives growth
Building Automation delivered the strongest performance among Honeywell’s business segments, recording 9% organic sales growth while expanding operating margin by 90 basis points to 27.1%.
Industrial Automation also posted solid growth, with organic sales rising 4%.
Meanwhile, Process Automation and Technology reported a 1% decline in organic sales during the quarter.
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