Honeywell Technologies raises 2026 outlook on strong AI and data center demand

Honeywell Technologies raised its full-year 2026 guidance following a strong third quarter, the company said on an earnings call Thursday, according to Manufacturing Dive.

CEO Vimal Kapur noted that results surpassed expectations across most metrics and positioned the company for a strong 2027. This was Honeywell Technologies' first earnings report after spinning off its aerospace operations in late June.

The company's year-over-year sales growth was driven by 8% growth in Building Automation and 16% growth in Process Automation and Technology, partially offset by a decline in Industrial Automation sales.

Honeywell Technologies also divested Solstice Advanced Materials in October 2025 to focus on industrial automation solutions in the era of physical artificial intelligence.

Operating income rose 79% year over year to $740 million, and segment profit increased 23% to $1.1 billion. The company highlighted broad-based demand and an 8% growth in short-cycle orders, led by industrial and building automation.

Kapur emphasized that Process Automation and Technology is on a multi-year growth trajectory supported by a robust project backlog and ongoing global energy investments.