Honeywell International Inc. Q3 2026 Earnings Recap

Honeywell Technologies shares rose 1.7% after earnings, with the company reporting 7% organic sales growth and raising its full-year 2026 guidance across all metrics. The outlook also points to continued momentum: management expects fourth-quarter orders to grow at a high-single-digit rate and 2027 organic growth to meet or exceed its long-term algorithm.

Key Takeaways

• Organic sales grew 7%, above the high end of targets set at Investor Day; short-cycle orders rose 8% excluding divestitures.
• Process Automation and Technology grew 8% organically. Its backlog was up more than 10% year over year, while total company backlog reached nearly $19 billion, up 7% excluding divestitures.
• Adjusted margins expanded 370 basis points to above 21%; adjusted EPS was $2.27, up 34% year over year.
• Free-cash-flow conversion was 95% for the quarter; management expects it to exceed 100% in Q4 and to eliminate remaining stranded costs by year-end.
• Orders were up 3% organically excluding the prior-year impact of large project awards. Management flagged those awards as a tough comparison for Process Automation and Technology.