TLDR
- HON rebounds after-hours as reverse split lifts adjusted EPS guidance.
- Honeywell keeps 2026 sales outlook steady after share count reset.
- Adjusted EPS guidance doubles as post-split share count falls sharply.
- Margin and organic growth targets remain unchanged after split update.
- July earnings call will give more detail on Honeywell’s Q2 results.
Honeywell International Inc. (HON) stock recovered slightly after-hours as the company adjusted 2026 guidance for its reverse split. HON closed down 2.08% at $220.36, then rose 0.40% to $221.24 after the bell. The update lifted adjusted EPS guidance while leaving sales, organic growth, and margins unchanged.
Honeywell International Inc., HON
Honeywell Updates 2026 Outlook After Reverse Split
Honeywell Technologies revised its 2026 guidance after completing a 1-for-2 reverse stock split on June 29. The move cut outstanding common shares from 634 million to 317 million as of that date. As a result, the company updated its weighted average diluted share count assumptions.
The reverse split changed per-share guidance, but it did not alter the company’s broader operating targets. Honeywell still expects 2026 sales between $19.9 billion and $20.2 billion. It also kept organic growth guidance at 2% to 3% for the full year.
Honeywell raised adjusted earnings per share guidance to $7.90 to $8.30 from $3.95 to $4.15. The change reflects the lower share count after the split. The company kept adjusted earnings growth guidance unchanged at 22% to 28%.
Margin and Cash Flow Targets Stay Mostly Stable
Honeywell also maintained its full-year segment margin outlook between 19.8% and 20.3%. The company still expects margin expansion of 220 to 270 basis points. The update points mainly to share-count mechanics rather than operating changes.
For the second half of 2026, Honeywell kept sales guidance at $10.1 billion to $10.3 billion. It also retained organic growth expectations of 3% to 5%. Second-half segment margin guidance remained between 20.9% and 21.6%.
The company raised second-half adjusted EPS guidance to $4.40 to $4.70 from $2.20 to $2.35. Honeywell also kept second-half adjusted earnings growth guidance at 22% to 31%. In addition, the second-half share count estimate moved to 319 million from 639 million.
Honeywell Sets Focus on July Earnings Call
Honeywell said it will discuss second-quarter 2026 performance during its earnings call on July 23. The update gives the market a clearer view of post-split per-share expectations. It also sets a cleaner base for analysts before the quarterly report.
The company kept full-year operating cash flow guidance near $2.1 billion. It also maintained free cash flow guidance near $2.0 billion. Honeywell lowered second-half operating cash flow guidance to about $1.7 billion from about $2.3 billion.
The company linked the second-half cash flow change to capital expenditure estimates and separation-related payments. It kept second-half free cash flow guidance near $1.5 billion. Overall, the guidance update pushed EPS higher after the reverse split while core operating targets stayed steady.
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