Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Honeywell delivered modest 2.4% revenue growth to $9.14B in Q1 2026 with improved operating margins, but net income plunged 43.3% to $821M and operating cash flow turned sharply negative at -$650M, signaling significant one-time charges and working capital headwinds.
Revenue
$9.14B
+2.44% YoY
EPS (Diluted)
$1.29
-41.89% YoY
Operating Income
$2.13B
+6.34% YoY
Source: SEC XBRL
Honeywell International (HON) reported Q1 FY2026 revenue of $9.14B, up 2.4% year over year. Operating margin was 23.3%, up 0.9 points from 22.4% a year earlier. Operating cash flow was negative $650M. HON's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.52 | 4.86 | Miss -7.0% |
| Mar 2026 | 4.90 | 4.69 | Beat +4.4% |
| Dec 2025 | 5.18 | 5.13 | Beat +1.0% |
| Sep 2025 | 5.64 | 5.18 | Beat +8.8% |
Compiled by AI from this SEC filing
Total revenue grew 2.4% year-over-year to $9.14B in Q1 2026 from $8.93B in Q1 2025, suggesting steady demand across Honeywell's diversified industrial and technology segments despite a challenging macro environment.
Source: 10-Q Income Statement
Operating income rose 6.3% to $2.13B, pushing operating margin up approximately 85 basis points to 23.3% from 22.4%, indicating effective cost discipline and pricing power even as cost of revenue grew 2.6% and R&D spending surged 18.3% to $492M.
Source: 10-Q Income Statement
Net income fell 43.3% to $821M from $1.45B, while operating income grew — implying substantial non-operating charges, restructuring costs, or tax items totaling roughly $1.3B that weighed heavily on the bottom line in Q1 2026.
Source: 10-Q Income Statement
Operating cash flow swung to -$650M from +$597M in Q1 2025, a deterioration of over $1.2B, likely driven by working capital build-up, increased cash taxes, or one-time payments; this is a key concern for near-term liquidity management.
Source: 10-Q Cash Flow Statement
Long-term debt rose 18.6% to $32.11B from $27.08B, while stockholders' equity declined 22.2% to $13.59B, suggesting Honeywell may have funded acquisitions, share buybacks, or operational needs through debt issuance in the period.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 3 high, 1 medium, 1 low
Operating cash flow turned negative at -$650M in Q1 2026 versus +$597M a year ago, a swing of over $1.2B. While cash balances remain healthy at $11.98B, sustained negative operating cash flow could pressure Honeywell's ability to fund dividends, buybacks, and capital expenditures without further debt issuance.
Source: 10-Q Cash Flow Statement
Operating income of $2.13B contrasts sharply with net income of only $821M, implying approximately $1.3B in below-the-line charges such as interest expense, restructuring, impairments, or tax provisions. The nature and recurrence of these charges represent a material earnings quality risk.
Source: 10-Q Income Statement
Long-term debt increased by over $5B to $32.11B while stockholders' equity fell 22.2% to $13.59B, significantly increasing financial leverage. Higher debt servicing costs could constrain future capital allocation flexibility and increase sensitivity to interest rate movements.
Source: 10-Q Balance Sheet
R&D expenses jumped 18.3% year-over-year to $492M, outpacing revenue growth of 2.4%. While investment in innovation is strategically important, accelerating R&D spend without commensurate near-term revenue contribution compresses margins and may not yield returns in the short term.
Source: 10-Q Income Statement
Share repurchases declined 47.4% to $1.0B from $1.9B in Q1 2025, potentially reflecting capital being redirected toward debt service or strategic investments. Reduced buybacks may disappoint income-oriented investors who rely on capital return programs.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 9.14 $B | 8.93 $B | +2.44% |
Cost of Revenue $B | 5.60 $B | 5.46 $B | +2.58% |
Operating Income $B | 2.13 $B | 2.00 $B | +6.34% |
Net Income $B | 0.82 $B | 1.45 $B | -43.34% |
EPS (Basic) $ | 1.29 $ | 2.24 $ | -42.41% |
EPS (Diluted) $ | 1.29 $ | 2.22 $ | -41.89% |
R&D Expense $M | 492.00 $M | 416.00 $M | +18.27% |
SG&A Expense $B | 1.31 $B | 1.31 $B | 0.00% |
Answers draw on this SEC filing and the data on this page
Honeywell's Q2 FY2026 net income surged 262% YoY to $5.68B, driven primarily by a $6.63B gain on the Quantinuum IPO/deconsolidation, while core operating results grew modestly (revenue +4.3%, operating income +5.3%) amid the completed Aerospace Spin-Off and one-for-two reverse stock split.
Honeywell (HON) delivered FY2025 revenue growth of 7.8% to $37.4B, but net income fell 17.1% to $4.7B, pressured by higher costs, a 24.6% surge in R&D spending, and a significant decline in stockholders' equity amid aggressive share buybacks.
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