Honeywell Technologies Q2 2026: sales up 4.3%, GAAP EPS $17.83 on a gain
Honeywell Technologies' quarter looks spectacular only at the GAAP line: the $17.83 per-share profit leans on a $6.629 billion gain on deconsolidating Quantinuum. Strip that out and adjusted EPS of $4.52 came in below the $4.86 consensus, while sales of $9.719 billion rose 4.3%. Sales grew, gross margin did not, and guidance shifted from volume to margin. Neutral until adjusted profit and margin turn back up.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $17.83 is not an operating result: it contains a $6.629 billion pre-tax gain on the Quantinuum deconsolidation. Adjusted EPS of $4.52 missed the $4.86 consensus by about 7.0% and fell 4.2% from $4.72 a year ago. Judged on the cash-earning business, this was a soft quarter.
Sales of $9.719 billion were up 4.3% from $9.322 billion a year ago, with 4% organic growth. The problem is cost: cost of revenue of $6.066 billion left a 37.6% gross margin, down from 39.3% in the same quarter last year. The top line grew while the gross profit rate shrank.
Management trimmed the full-year sales range to $19.8–$20.0 billion from $19.9–$20.2 billion, but raised adjusted EPS to $8.05–$8.35 from $7.90–$8.30. Segment margin guidance moved up to 20.1%–20.5% and organic growth to 3%–4%. Lower sales with higher profit means the mix is improving, not the volume.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.