Honeywell (HON) Stock Forecast & Price Target

Honeywell International's stock outlook is bolstered by impressive financial performance, as evidenced by a 22% year-over-year growth in organic orders in the third quarter of 2025, with particularly strong contributions from Aerospace and Building Automation segments. The company's organic sales growth of 6.0% exceeded both estimates and guidance, and the Building Automation segment demonstrated an 80 basis point margin expansion year-over-year, indicating effective volume leverage and operational improvements. Moreover, Honeywell has significantly enhanced its margins over the past decade, reaching new highs, while continued growth in the commercial aftermarket signals robust demand and a solid pipeline for future orders.

Honeywell's segment margin has experienced a decline of 50 basis points year-over-year to 23.1%, despite being at the high end of its guidance range for the upcoming quarter, indicating underlying softness in its operational efficiency. The firm's 2026 guidance, while generally in line with consensus for key metrics, reflects significant challenges with margins falling approximately 70 basis points short, primarily due to headwinds from investments in Quantinuum. Additionally, a 2% year-over-year decline in organic sales within its Energy and Sustainability Solutions (ESS) segment suggests persistent growth challenges, raising concerns about potential earnings per share downside into 2026 amidst lackluster growth and operational execution issues.