Honeywell Analysts Raise Their Forecasts After Q4 Results

Core Insights - Honeywell International Inc. reported mixed fourth-quarter 2025 results, with adjusted earnings per share (EPS) of $2.59, exceeding analysts' estimates of $2.54, while revenue rose 6% year over year to $9.76 billion, falling short of expectations of $9.85 billion [1] Financial Performance - For fiscal 2026, Honeywell anticipates adjusted EPS between $10.35 and $10.65, slightly below analyst estimates of $10.38, and expects sales to range from $38.8 billion to $39.8 billion, compared to the street view of $39.62 billion [2] - In the first quarter of 2026, the company projects adjusted EPS of $2.25 to $2.35, compared to the consensus estimate of $2.34, and revenue expectations of $9.1 billion to $9.4 billion, versus consensus of $9.29 billion [2] Strategic Outlook - Honeywell's CEO, Vimal Kapur, highlighted a record backlog of over $37 billion as a strong position for 2026, with plans to complete the separation of its automation and aerospace businesses by the third quarter of 2026 [3] - The company has established a new segment structure aimed at driving cross-portfolio synergies and accelerating long-term profitable growth, along with announcing the leadership team for Honeywell Aerospace [3] Analyst Ratings and Price Targets - Following the earnings announcement, analysts adjusted their price targets for Honeywell, with Wells Fargo maintaining an Equal-Weight rating and raising the target from $215 to $235 [5] - Barclays maintained an Overweight rating, increasing the price target from $250 to $259 [5] - RBC Capital kept an Outperform rating and raised the price target from $249 to $268 [5]