With a market cap of $53.7 billion, Honeywell Aerospace Inc. (HONA) is a global aerospace and defense company that develops critical technologies for commercial aviation, business aviation, defense, and space platforms, helping make missions safer, more efficient, and reliable. Employing more than 36,000 people worldwide and serving over 10,000 customers, the company offers a broad portfolio of avionics and navigation systems, engines and power systems, and aircraft control systems, with a focus on innovation and long-term growth.
Shares of Honeywell Aerospace have experienced a smaller drop than the broader market over the past three months. HONA stock has fallen marginally over this time frame, while the broader S&P 500 Index ($SPX) has declined 1.4%.
Zooming in further, shares of the Phoenix, Arizona-based company have shown a less pronounced decline than the iShares U.S. Aerospace & Defense ETF's (ITA) nearly 13% decrease over the past three months.
Honeywell Aerospace shares tumbled 9.6% following its Q3 2026 results on Oct. 28. Profitability pressures were evident in the Engines and Power Systems segment, where adjusted EBIT declined 16% to $250 million, and mechanical component shortages continued to constrain Commercial Aftermarket sales growth (2%) and overall production capacity, despite a 12% increase in backlog to $19.3 billion and 9% order growth.
Although the company raised its 2026 adjusted EPS guidance to $7.85 - $8 and increased second-half free cash flow guidance, investors may have been disappointed by its unchanged 4% - 5% organic sales growth outlook and narrower adjusted EBIT guidance of $4.38 billion - $4.43 billion.
For the fiscal year ending in December 2026, analysts expect Honeywell Aerospace's adjusted EPS to decrease 99.2% year-over-year to $7.93. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last quarters while missing on another occasion.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings, one “Moderate Buy,” and 13 “Holds.”
This configuration has remained unchanged over the past three months.
On Oct. 30, BMO Capital downgraded Honeywell Aerospace to “Market Perform” from “Outperform” and cut its price target to $181.
The mean price target of $189.75 represents a 11.9% premium to HONA’s current price levels. The Street-high price target of $215 suggests a 26.8% potential upside.
On the date of publication, Sohini Mondal did not directly have a position 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.