Honeywell (HON) Stock Forecast & Price Target

Honeywell International's positive outlook is supported by robust performance metrics, including a 22% year-over-year growth in organic orders for 3Q25, driven by strong contributions across all business segments, particularly Aerospace and Building Automation. The company's organic sales growth of 6.0% surpassed both internal estimates and consensus expectations, indicating solid demand and effective operational execution. Furthermore, Honeywell's persistent margin improvements have reached new highs, reflecting successful strategies in ensuring efficiency and productivity, while a growing backlog in orders suggests sustained long-term growth potential.

Honeywell International's financial outlook is negatively affected by a decline in segment margin, which fell by 50 basis points year-over-year to 23.1%, despite being at the upper end of 3Q25 guidance. The company's guidance for 2026 indicates that segment margins are expected to fall approximately 70 basis points short of prior estimates, largely due to headwinds from investments in Quantinuum. Additionally, organic sales in the Energy and Sustainability Solutions (ESS) segment declined by 2% year-over-year, suggesting a lack of growth momentum that could lead to downside risks for 2026 earnings per share projections.