Honeywell Aerospace Earnings Preview: What to Expect

With a market cap of $51.7 billion, Honeywell Aerospace Inc. (HONA) is a global aerospace and defense company, providing critical technologies for commercial aviation, business aviation, defense, and space platforms. With more than 36,000 employees and over 10,000 customers worldwide, the company specializes in avionics, navigation, engines, power systems, and aircraft controls to improve safety, efficiency, and reliability.

The Phoenix, Arizona-based company is expected to release its fiscal Q3 2026 results after the market closes on Wednesday, Oct. 28. Ahead of this event, analysts project HONA to report an adjusted EPS of $1.90, a 99.8% decline. The company has missed Wall Street's bottom-line estimates in the last quarter. 

For fiscal 2026, analysts forecast the maker of engineered products to post adjusted EPS of $7.77, down 99.2%. However, adjusted EPS is anticipated to grow 12.6% year-over-year to $8.75 in fiscal 2027.

HONA stock has fallen 14.6% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 3% return. However, the stock has shown a less pronounced decline than the State Street SPDR S&P Aerospace & Defense ETF's (XAR) 19.7% decrease over the same period. 

Honeywell Aerospace shares tumbled 23.2% following its Q2 2026 results on Aug. 5 after the company cut its 2026 organic sales growth forecast to 4% - 5% and projected adjusted EPS of $7.60 - $7.90, well below analysts’ estimate. Supply-chain bottlenecks continued to constrain production despite strong demand, forcing the company to prioritize lower-margin original equipment deliveries to Boeing and Airbus over higher-margin aftermarket sales, while favoring domestic defense and space contracts over more profitable international business. 

The sell-off was compounded by Q2 adjusted EPS falling 32% to $1.87 and revenue of $4.52 billion both missing estimates, as higher costs, an unfavorable sales mix, and separation-related costs and inventory obsolescence charges of approximately $100 million weighed on performance.

Analysts' consensus view on HONA stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, four suggest a "Strong Buy," one gives a "Moderate Buy," 10 provide a "Hold" rating, and one has a "Strong Sell." This configuration is slightly more bullish than three months ago, with three analysts suggesting a "Strong Buy." 

The average analyst price target is $191.40, suggesting a potential upside of 14.6% from current levels. 

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.