Honeywell International Inc.

🇺🇸NASDAQ Global Select
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Honeywell International Inc. stock analysis HON overview
Somewhat Bullish +50

Strength in HON's Building Automation Unit Seems Firm: What's Next?

🏢 Honeywell's Building Automation segment generated $1.88 billion in revenue during the first quarter of 2026, representing an 11% year-over-year increase.

📈 Organic sales within the same segment grew by 8% year over year in the first quarter of 2026.

🏗️ Growth was driven by solid demand from building solutions and building products businesses, both of which saw 8% sales increases.

🔥 Strong order growth of 9% was reported for the quarter, fueled by double-digit project increases and high demand for fire products.

💻 Increasing capital expenditure investments in data centers and healthcare projects are expected to support future segment performance.

📊 Shares of Honeywell have gained 13.4% over the past six months, contrasting with an industry decline of 1.1%.

📉 The company is currently trading at a forward price-to-earnings ratio of 19.99X, which is above the industry average of 15.23X.

🏆 Honeywell carries a Value Score of D and holds a Zacks Rank #3 (Hold) based on current consensus estimates.

📈 The Zacks Consensus Estimate for HON's 2026 earnings has increased by 1.1% over the past 60 days.

🧪 Peer 3M Company is seeing momentum in its Safety and Industrial segment with revenues growing 6.8% year over year in Q1 2026.

❄️ Carlisle Companies Incorporated's Construction Materials segment faced a revenue decrease of 5.1% due to lower commercial construction activity and adverse winter weather.

🤖 The article also highlights quantum computing as an emerging technological revolution that major tech companies are currently integrating into their infrastructure.

📉 Kevin Cook, a Senior Stock Strategist, has identified seven stocks poised to dominate the quantum computing landscape in his report.

📊 Zacks Investment Research offers free stock analysis reports for Honeywell, 3M Company, and Carlisle Companies Incorporated.

Bullish Signals
  • Honeywell's Building Automation segment revenues reached $1.88 billion, representing an 11% year-over-year increase in the first quarter of 2026.
  • Organic sales for the Building Automation segment grew 8% year over year, driven by solid demand from increasing building projects in North America.
  • The segment reported strong order growth of 9% in the first quarter, fueled by double-digit increases in projects and services.
  • Honeywell shares have gained 13.4% over the past six months, significantly outperforming the industry's decline of 1.1%.
  • The Zacks Consensus Estimate for HON's 2026 earnings has increased 1.1% over the past 60 days, indicating rising analyst confidence.
  • Honeywell is well-positioned to sustain its growth momentum in the coming quarters due to robust demand across key end markets and continued investment in data center and healthcare infrastructure.
Risk Factors
  • Honeywell trades at a forward price-to-earnings ratio of 19.99X, which is significantly above the industry average of 15.23X.
  • The company carries a Value Score of D, indicating it may be overvalued relative to peers.
Full Analysis
Honeywell International Inc. (HON) continues to benefit from sustained strength in its Building Automation segment, which has emerged as a major growth driver for the company. In the first quarter of 2026, revenues for this segment totaled $1.88 billion, representing an 11% year-over-year increase, while organic sales grew by 8%. This performance was driven by solid demand across both building solutions and building products businesses, each posting 8% growth in the period. The positive momentum is further supported by increasing order rates and capital expenditure investments in data centers and healthcare projects. The Building Automation segment reported strong order growth of 9% in the first quarter, fueled by double-digit increases in projects and services, alongside robust demand for fire products. With healthy order trends and continued investment in key infrastructure sectors like data centers and healthcare, the segment is well-positioned to sustain its growth momentum in upcoming quarters. In a broader market context, Honeywell shares have gained 13.4% over the past six months, outperforming the industry's decline of 1.1%. The company currently trades at a forward price-to-earnings ratio of 19.99X, which is above the industry average of 15.23X, and carries a Zacks Rank #3 (Hold). Analyst consensus estimates for HON's 2026 earnings have increased by 1.1% over the past 60 days. The article also notes that peers like 3M Company are gaining momentum in their Safety and Industrial segment, while Carlisle Companies Incorporated faces headwinds from lower commercial construction activity and adverse weather conditions.