Honeywell EPS Beats but Q1 Revenue Misses Forecast, Orders Up 7%
Honeywell delivered Q1 adjusted EPS of $2.45 versus $2.32 expected but reported $9.14 billion revenue below the $9.28 billion forecast, while organic orders rose 7% lifting backlog to $38.3 billion. Management confirmed sales guidance of $38.8–39.8 billion and Q2 spin-off of its aerospace unit on June 29, 2026.
1. Q1 2026 Results
Honeywell reported adjusted Q1 EPS of $2.45, exceeding the $2.32 consensus, on revenue of $9.14 billion versus a $9.28 billion forecast. Organic orders climbed 7%, boosting backlog to $38.3 billion, while segment profit rose 6% to $2.1 billion and margins expanded to 23.3%.
2. Portfolio Reshaping
The company agreed to divest its Warehouse and Workflow Solutions unit in an all-cash deal and previously announced the sale of Productivity Solutions and Services. Management scheduled the aerospace spin-off for June 29, 2026, positioning the business for independent growth post-separation.
3. Outlook and Guidance
Full-year 2026 guidance was reaffirmed with sales projected between $38.8 billion and $39.8 billion, organic growth of 3%–6%, and segment margins of 22.7%–23.1%. Adjusted EPS is forecasted at $10.35–$10.65, with operating cash flow of $4.4–$4.7 billion and free cash flow of $5.3–$5.6 billion.