Honeywell Technologies raised its full-year outlook after reporting third-quarter sales of $4.994 billion, up 1% from a year earlier. Its 22 October 2026 release shows why the headline earnings comparison needs care: continuing-operations earnings per share fell 20% to $2.40, while adjusted EPS rose 34% to $2.27.
The two measures move in different directions because the prior-year reported result included a one-time gain from the Resideo termination agreement. The company excludes that and other items from adjusted earnings. This report concerns Honeywell Technologies, ticker HON, not the separately listed Honeywell Aerospace business.
The quarterly comparison
| Measure | Q3 2026 | Q3 2025 | Official evidence |
|---|---|---|---|
| Sales | $4.994 billion | $4.929 billion | Issuer results and financial tables |
| Operating income | $740 million | $413 million | Issuer results and financial tables |
| Operating margin | 14.8% | 8.4% | Issuer results and financial tables |
| EPS from continuing operations, reported | $2.40 | $2.99 | Issuer results and financial tables |
| Adjusted EPS, non-GAAP | $2.27 | $1.70 | Issuer results and financial tables |
| Operating cash flow from continuing operations | $607 million | $2.306 billion | Issuer results and financial tables |
| Free cash flow, company-adjusted definition | $688 million | $599 million | Issuer results and financial tables |
What reported and organic growth mean
Reported sales include the business mix actually recorded in the accounts. Honeywell’s 7% organic growth is an alternative comparison that adjusts for specified portfolio and currency effects. It should not replace the 1% reported growth rate. Both are relevant after business disposals and the group’s separation.
Operating margin measures operating income as a share of sales, not a return on the shares. Honeywell attributed its improvement to productivity, pricing and volume leverage. Those are the issuer’s explanations of operating performance, not independently established reasons for a stock-price movement. For another reported-versus-adjusted comparison, see CapKet’s Tesla results report.
Why adjusted free cash flow exceeds operating cash flow
The $688 million free-cash-flow figure is not simply the $607 million operating-cash-flow figure minus capital expenditure. Honeywell’s historical non-GAAP definition also adjusts for separation-related payments, the Resideo agreement termination payment, a payment relating to divested asbestos liabilities and Quantinuum cash flows. Readers should use the issuer’s reconciliation, rather than compare this figure with another company’s differently defined free cash flow.
Operating cash flow fell 74%; the company primarily attributes that comparison to the prior-year Resideo settlement. Its adjusted free cash flow rose 15%. Neither measure is net profit.
Higher guidance is still a forecast
Honeywell now expects 2026 sales of $20.0 billion to $20.1 billion, organic growth of 4% to 5%, and adjusted EPS of $8.40 to $8.45. The previous adjusted EPS range was $8.05 to $8.35. These are management forecasts, not completed annual earnings. The company says it cannot reliably reconcile forward-looking adjusted EPS to reported EPS without unreasonable effort. Execution, costs and demand remain uncertainties.
Official sources and verification
Honeywell Technologies’s 22 October results announcement and its issuer-hosted PDF were checked. These are formats of the same announcement, not independent corroboration. Source observations: HTML at 2026-10-22T14:54:54.238Z; PDF at 2026-10-22T14:55:21.520Z. This is AI-assisted primary-document review, not independent human editorial approval.
Recorded source observation: . This is a source-check timestamp, not a market quote or a new article update.