Honeywell Q3 Net Income Falls on Prior-Year Gain, Raises FY26 Adjusted EPS Guidance

Honeywell Technologies (HON) reported a sharp decline in third-quarter net income Thursday, attributed to the absence of a prior-year one-time gain, while raising its fiscal 2026 adjusted earnings outlook. Shares fell about 0.34% in pre-market Nasdaq trading to $214.00. Net income attributable to the company dropped to $664 million, or $2.08 per share, from $1.825 billion, or $5.71 per share, a year earlier. The prior-year result included a one-time gain from the Resideo termination agreement. Adjusted EPS rose to $2.27 from $1.70, driven by organic sales growth, higher segment profit and lower net interest expense. Operating income climbed 79%, segment profit rose 23%, and operating margin expanded 640 basis points to 14.8%. Third-quarter sales were $4.99 billion, up 1% from $4.93 billion, with 7% organic growth. For fiscal 2026, Honeywell now expects adjusted EPS of $8.40 to $8.45, up 30% to 31% year over year, and sales of $20.0 billion to $20.1 billion with 4% to 5% organic growth.