Operating margins have deteriorated significantly to 9.7% in 2026Q1, down from the 20% levels maintained throughout 2024, as sticky SG&A expenses fail to adjust to the recent 6.9% revenue decline.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 36.76B | 37.44B | 34.72B | 33.01B | 35.47B | 34.39B | 32.64B | 36.71B | 41.8B | 40.53B | 39.3B | 38.58B | 40.31B | 39.05B | 37.66B | 36.53B | 32.35B | 30.91B | 36.56B | 34.59B | 31.37B | 27.65B | 25.59B | 23.1B | 22.27B | 23.65B | 25.02B | 23.73B | 23.55B | 22.5B | 13.97B |
| Revenue Growth % | -6.25% | 7.85% | 5.17% | -6.93% | 3.12% | 5.38% | -11.09% | -12.18% | 3.13% | 3.13% | 1.87% | -4.28% | 3.2% | 3.69% | 3.11% | 12.92% | 4.67% | -15.45% | 5.69% | 10.27% | 13.43% | 8.05% | 10.78% | 3.72% | -5.83% | -5.48% | 5.43% | 0.76% | 4.69% | 61.04% | -2.61% |
| Cost of Goods Sold | 23.18B | 23.61B | 21.36B | 20.64B | 22.35B | 22.06B | 22.17B | 24.34B | 29.05B | 28.14B | 27.68B | 26.75B | 28.96B | 28.36B | 28.29B | 28.56B | 24.72B | 24.01B | 27.99B | 26.3B | 24.1B | 21.52B | 20.75B | 18.23B | 17.61B | 20.43B | 19.09B | 18.5B | 17.69B | 17.44B | 11.61B |
| COGS % of Revenue | - | 63.07% | 61.53% | 62.52% | 63.01% | 64.15% | 67.93% | 66.3% | 69.48% | 69.43% | 70.42% | 69.33% | 71.84% | 72.63% | 75.11% | 78.17% | 76.42% | 77.69% | 76.58% | 76.04% | 76.82% | 77.84% | 81.08% | 78.93% | 79.08% | 86.37% | 76.29% | 77.92% | 75.1% | 77.53% | 83.07% |
| Gross Profit | 13.58B | 13.83B | 13.36B | 12.37B | 13.12B | 12.33B | 10.47B | 12.37B | 12.76B | 12.39B | 11.63B | 11.83B | 11.35B | 10.69B | 9.37B | 7.97B | 7.63B | 6.9B | 8.56B | 8.29B | 7.27B | 6.13B | 4.84B | 4.87B | 4.66B | 3.22B | 5.93B | 5.24B | 5.87B | 5.05B | 2.37B |
| Gross Margin % | 36.95% | 36.93% | 38.47% | 37.48% | 36.99% | 35.85% | 32.07% | 33.7% | 30.52% | 30.57% | 29.58% | 30.67% | 28.16% | 27.37% | 24.89% | 21.83% | 23.58% | 22.31% | 23.42% | 23.96% | 23.18% | 22.16% | 18.92% | 21.07% | 20.92% | 13.63% | 23.71% | 22.08% | 24.9% | 22.47% | 16.93% |
| Gross Profit Growth % | - | 3.53% | 7.96% | -5.69% | 6.39% | 17.8% | -15.38% | -3.03% | 2.95% | 6.58% | -1.77% | 4.27% | 6.15% | 14.05% | 17.57% | 4.51% | 10.63% | -19.46% | 3.29% | 14% | 18.63% | 26.61% | -0.55% | 4.49% | 44.55% | -45.68% | 13.23% | -10.67% | 16.04% | 113.74% | -15.75% |
| Operating Expenses | 8.12B | 7.26B | 6.69B | 6.26B | 6.69B | 6.13B | 4.77B | 5.52B | 6.05B | 6.09B | 5.57B | 5.01B | 5.52B | 5.19B | 5.22B | 5.4B | 4.62B | 4.44B | 5.03B | 4.57B | 4.21B | 3.71B | 3.32B | 2.95B | 2.76B | 3.06B | 3.13B | 3.22B | 3.01B | 2.94B | 856M |
| OpEx % of Revenue | - | 19.4% | 19.27% | 18.97% | 18.87% | 17.83% | 14.62% | 15.03% | 14.48% | 15.02% | 14.18% | 12.98% | 13.69% | 13.29% | 13.85% | 14.78% | 14.28% | 14.37% | 13.77% | 13.2% | 13.42% | 13.41% | 12.96% | 12.77% | 12.38% | 12.95% | 12.52% | 13.55% | 12.77% | 13.07% | 6.13% |
| Selling, General & Admin | 5.4B | 5.45B | 5.24B | 4.89B | 5.21B | 4.8B | 4.77B | 5.52B | 6.05B | 6.09B | 5.57B | 5.01B | 5.52B | 5.19B | 5.22B | 5.4B | 4.62B | 4.44B | 5.03B | 4.57B | 4.21B | 3.71B | 3.32B | 2.95B | 2.76B | 3.06B | 3.13B | 3.22B | 3.01B | 2.94B | 1.51B |
| SG&A % of Revenue | - | 14.56% | 15.08% | 14.81% | 14.7% | 13.95% | 14.62% | 15.03% | 14.48% | 15.02% | 14.18% | 12.98% | 13.69% | 13.29% | 13.85% | 14.78% | 14.28% | 14.37% | 13.77% | 13.2% | 13.42% | 13.41% | 12.96% | 12.77% | 12.38% | 12.95% | 12.52% | 13.55% | 12.77% | 13.07% | 10.82% |
| Research & Development | 1.86B | 1.81B | 1.45B | 1.38B | 1.48B | 1.33B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 4.84% | 4.19% | 4.17% | 4.17% | 3.88% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -655M |
| Operating Income | 5.47B | 6.57B | 6.67B | 6.11B | 6.43B | 6.2B | 5.7B | 6.85B | 6.71B | 6.3B | 6.05B | 6.83B | 5.83B | 5.5B | 4.16B | 2.57B | 3.01B | 2.45B | 3.53B | 3.72B | 3.06B | 2.42B | 1.52B | 1.92B | 1.9B | 159M | 2.8B | 2.02B | 2.86B | 2.12B | 1.51B |
| Operating Margin % | 14.87% | 17.54% | 19.21% | 18.51% | 18.12% | 18.03% | 17.45% | 18.66% | 16.04% | 15.55% | 15.4% | 17.7% | 14.47% | 14.09% | 11.03% | 7.05% | 9.31% | 7.94% | 9.65% | 10.77% | 9.76% | 8.76% | 5.96% | 8.3% | 8.54% | 0.67% | 11.19% | 8.53% | 12.13% | 9.4% | 10.8% |
| Operating Income Growth % | - | -1.51% | 9.13% | -4.93% | 3.66% | 8.85% | -16.86% | 2.18% | 6.38% | 4.16% | -11.38% | 17.1% | 6% | 32.36% | 61.46% | -14.51% | 22.75% | -30.49% | -5.24% | 21.66% | 26.38% | 58.82% | -20.49% | 0.84% | 1096.23% | -94.32% | 38.29% | -29.18% | 35.13% | 40.16% | 19.76% |
| EBITDA | 6.48B | 7.96B | 7.82B | 7.11B | 7.63B | 7.42B | 6.7B | 7.94B | 7.82B | 7.42B | 7.08B | 7.71B | 6.75B | 6.49B | 5.08B | 3.53B | 4B | 3.41B | 4.43B | 4.56B | 3.85B | 3.08B | 2.14B | 2.58B | 2.57B | 1.08B | 3.79B | 2.9B | 3.75B | 3B | 2.11B |
| EBITDA Margin % | 17.63% | 21.25% | 22.53% | 21.55% | 21.52% | 21.58% | 20.52% | 21.63% | 18.71% | 18.3% | 18.02% | 19.99% | 16.76% | 16.62% | 13.49% | 9.67% | 12.36% | 11.03% | 12.12% | 13.19% | 12.29% | 11.12% | 8.36% | 11.16% | 11.55% | 4.59% | 15.16% | 12.24% | 15.94% | 13.35% | 15.11% |
| EBITDA Growth % | -29.56% | 1.73% | 9.92% | -6.78% | 2.8% | 10.82% | -15.63% | 1.51% | 5.43% | 4.76% | -8.17% | 14.15% | 4.08% | 27.71% | 43.93% | -11.68% | 17.24% | -23.06% | -2.83% | 18.31% | 25.37% | 43.76% | -17.06% | 0.23% | 137.14% | -71.4% | 30.6% | -22.64% | 25.04% | 42.25% | 12.77% |
| D&A (Non-Cash Add-back) | 1.01B | 1.39B | 1.15B | 1B | 1.2B | 1.22B | 1B | 1.09B | 1.12B | 1.11B | 1.03B | 883M | 924M | 989M | 926M | 957M | 987M | 957M | 903M | 837M | 794M | 653M | 614M | 661M | 671M | 926M | 995M | 881M | 897M | 888M | 602M |
| EBIT | 5.54B | 6.82B | 7.29B | 6.94B | 6.79B | 7.58B | 6.37B | 7.92B | 7.85B | 7.27B | 6.79B | 6.9B | 6.14B | 5.74B | 4.23B | 2.66B | 3.11B | 2.51B | 4.28B | 3.72B | 3.06B | 2.42B | 1.52B | 1.92B | 1.9B | 159M | 2.8B | 2.02B | 2.86B | 2.12B | 1.51B |
| Net Interest Income | -1.14B | -975M | -618M | -428M | -276M | -241M | -252M | -102M | -150M | -165M | -232M | -206M | -216M | -258M | -293M | -318M | -347M | -459M | -354M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 279M | 369M | 430M | 321M | 138M | 102M | 107M | 255M | 217M | 151M | 106M | 104M | 102M | 69M | 58M | 58M | 39M | 33M | 102M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.41B | 1.34B | 1.05B | 749M | 414M | 343M | 359M | 357M | 367M | 316M | 338M | 310M | 318M | 327M | 351M | 376M | 386M | 459M | 456M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -990M | -1.09B | -424M | 81M | -48M | 1.03B | 316M | 708M | 782M | 647M | 401M | -242M | -13M | -89M | -281M | -292M | -289M | -404M | 292M | -403M | -263M | -126M | 98M | -278M | -2.85B | -581M | -401M | 224M | -86M | 304M | 44M |
| Pretax Income | 4.48B | 5.48B | 6.24B | 6.19B | 6.38B | 7.24B | 6.01B | 7.56B | 7.49B | 6.95B | 6.45B | 6.59B | 5.82B | 5.41B | 3.88B | 2.28B | 2.72B | 2.05B | 3.82B | 3.32B | 2.8B | 2.3B | 1.62B | 1.64B | -945M | -422M | 2.4B | 2.25B | 2.77B | 2.42B | 1.55B |
| Pretax Margin % | 12.18% | 14.63% | 17.99% | 18.76% | 17.99% | 21.04% | 18.42% | 20.59% | 17.91% | 17.15% | 16.42% | 17.07% | 14.43% | 13.86% | 10.29% | 6.25% | 8.41% | 6.63% | 10.45% | 9.6% | 8.92% | 8.3% | 6.34% | 7.1% | -4.24% | -1.78% | 9.58% | 9.47% | 11.77% | 10.75% | 11.12% |
| Income Tax | 682M | 1.01B | 1.25B | 1.26B | 1.41B | 1.63B | 1.15B | 1.33B | 659M | 5.36B | 1.6B | 1.74B | 1.49B | 1.45B | 944M | 417M | 765M | 465M | 1.01B | 877M | 720M | 732M | 377M | 296M | -725M | -323M | 739M | 707M | 869M | 778M | 533M |
| Effective Tax Rate % | 15.23% | 18.41% | 20% | 20.38% | 22.14% | 22.46% | 19.08% | 17.58% | 8.8% | 77.15% | 24.85% | 26.4% | 25.59% | 26.79% | 24.36% | 18.27% | 28.1% | 22.69% | 26.41% | 26.41% | 25.73% | 31.88% | 23.23% | 18.05% | 76.72% | 76.54% | 30.82% | 31.45% | 31.35% | 32.16% | 34.32% |
| Net Income | 4.1B | 4.73B | 5.71B | 5.66B | 4.97B | 5.54B | 4.78B | 6.14B | 6.76B | 1.54B | 4.81B | 4.77B | 4.24B | 3.92B | 2.93B | 2.07B | 2.02B | 1.55B | 2.79B | 2.44B | 2.08B | 1.64B | 1.25B | 1.32B | -220M | -99M | 1.66B | 1.54B | 1.9B | 1.64B | 1.02B |
| Net Margin % | 11.16% | 12.63% | 16.43% | 17.14% | 14% | 16.11% | 14.64% | 16.73% | 16.18% | 3.81% | 12.24% | 12.36% | 10.52% | 10.05% | 7.77% | 5.66% | 6.25% | 5.01% | 7.64% | 7.07% | 6.64% | 5.92% | 4.87% | 5.73% | -0.99% | -0.42% | 6.63% | 6.49% | 8.08% | 7.29% | 7.3% |
| Net Income Growth % | -27.94% | -17.11% | 0.83% | 13.93% | -10.39% | 15.97% | -22.2% | -9.19% | 337.86% | -67.89% | 0.92% | 12.48% | 8.03% | 34.11% | 41.56% | 2.23% | 30.62% | -44.56% | 14.24% | 17.33% | 27.17% | 31.46% | -5.89% | 701.82% | -122.22% | -105.97% | 7.66% | -19.02% | 15.97% | 60.88% | 16.57% |
| Net Income (Continuing) | 3.8B | 4.47B | 5B | 4.93B | 4.97B | 5.61B | 4.87B | 6.23B | 6.83B | 1.59B | 4.85B | 4.85B | 4.33B | 3.96B | 2.93B | 1.86B | 1.96B | 1.58B | 2.81B | 2.44B | 2.08B | 1.56B | 1.25B | 1.34B | -220M | -99M | 1.66B | 1.54B | 1.9B | 1.64B | 1.02B |
| Discontinued Operations | 0 | 304M | 745M | 743M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 209M | 78M | 0 | 0 | 0 | 5M | 95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 542M | 585M | 629M | 680M | 248M | 219M | 185M | 168M | 181M | 425M | 346M | 279M | 240M | 96M | 121M | 110M | 82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.42 | 7.36 | 8.71 | 8.47 | 7.27 | 7.91 | 6.72 | 8.41 | 8.98 | 2.00 | 6.21 | 6.04 | 5.33 | 4.92 | 3.69 | 2.61 | 2.59 | 2.05 | 3.76 | 3.16 | 2.52 | 1.92 | 1.45 | 1.52 | -0.27 | -0.12 | 2.05 | 1.90 | 2.34 | 2.00 | 1.73 |
| EPS Growth % | -18.85% | -15.5% | 2.83% | 16.51% | -8.09% | 17.71% | -20.1% | -6.35% | 349% | -67.79% | 2.81% | 13.32% | 8.33% | 33.33% | 41.38% | 0.77% | 26.34% | -45.48% | 18.99% | 25.4% | 31.25% | 32.41% | -4.61% | 662.96% | -125% | -105.85% | 7.89% | -18.8% | 17% | 15.61% | 11.61% |
| EPS (Basic) | - | 7.40 | 8.76 | 8.53 | 7.33 | 8.01 | 6.79 | 8.52 | 9.10 | 2.03 | 6.30 | 6.11 | 5.40 | 4.99 | 3.74 | 2.65 | 2.61 | 2.06 | 3.79 | 3.20 | 2.54 | 1.93 | 1.45 | 1.52 | -0.27 | -0.12 | 2.07 | 1.95 | 2.38 | 2.04 | 1.77 |
| Diluted Shares Outstanding | 638.4M | 642.8M | 655.3M | 668.2M | 683.1M | 700.4M | 711.2M | 730.3M | 753M | 772.1M | 775.3M | 789.3M | 795.2M | 797.3M | 791.9M | 791.6M | 780.9M | 755.12M | 743.53M | 773.42M | 826.59M | 853.13M | 859.31M | 871.05M | 820.39M | 825M | 809.27M | 811.05M | 575.7M | 581.4M | 589.6M |
| Basic Shares Outstanding | 634.7M | 639M | 650.9M | 663M | 677.1M | 692.3M | 704.1M | 721M | 743M | 762.1M | 764.3M | 779.8M | 784.4M | 786.4M | 782.4M | 780.8M | 773.5M | 752.6M | 736.76M | 763.75M | 820.08M | 848.7M | 859.31M | 871.05M | 820.39M | 825M | 801.45M | 790.26M | 562.5M | 565.6M | 576.27M |
| Dividend Payout Ratio | - | 62.93% | 50.87% | 50.46% | 54.75% | 47.38% | 54.24% | 39.75% | 33.58% | 137.15% | 39.8% | 36.2% | 35.62% | 34.48% | 41.39% | 52.78% | 46.69% | 59.3% | 29.05% | 31.38% | 35.72% | 42.73% | 51.61% | 48.72% | - | - | 36.11% | 34.2% | 25.28% | 26.45% | 25.69% |
Cyclical revenue volatility
As reported in recent financial filings, Honeywell's revenue trajectory has shifted from consistent growth to a contraction of 6.9% in 2026Q1, marking a significant departure from the steady mid-single-digit expansion observed throughout 2024 and early 2025, suggesting heightened sensitivity to current industrial demand cycles.
The sharp reversal in top-line performance indicates that the company's diversified portfolio is struggling to offset softening demand in its more transactional segments. Investors should monitor whether this deceleration reflects temporary supply chain constraints or a more structural weakening in the underlying industrial and warehouse automation markets.
Based on the provided income statement data, Honeywell maintained a gross margin of 38.7% in 2026Q1, demonstrating a degree of pricing power despite the broader revenue contraction, though operating margins have compressed significantly to 9.7% compared to the 20% levels seen in previous periods.
The divergence between stable gross margins and collapsing operating margins suggests that fixed costs are becoming increasingly difficult to absorb as volume declines. This implies that the 'Honeywell Accelerator' operating system may be facing limits in its ability to protect profitability during periods of rapid revenue volatility.
According to the latest quarterly figures, operating income plummeted to $886 million in 2026Q1, representing a sharp decline from the $2 billion levels maintained throughout 2024, which highlights a lack of operating leverage as SG&A expenses remain sticky despite the significant drop in top-line revenue.
The inability to scale SG&A costs downward in proportion to revenue suggests a high degree of operational rigidity within the current cost structure. This trend warrants further investigation into whether management can successfully implement deeper cost-containment measures to prevent further erosion of operating margins in subsequent quarters.
As evidenced by the 2025Q4 net loss of $115 million followed by a rebound in 2026Q1, Honeywell's bottom-line results appear heavily influenced by non-operating items and restructuring charges, making it difficult to discern the true underlying earnings power of the core industrial business segments.
The extreme variance in net income suggests that investors should focus more on adjusted metrics that strip out the impact of legacy liabilities and periodic restructuring. The inconsistency in EPS growth, which swung from a 32.4% increase in 2025Q3 to a 41.9% decline in 2026Q1, underscores the risks associated with relying on GAAP net income for valuation.
Quick answers to the most common questions about buying HON stock.
For fiscal year 2025, Honeywell International Inc. (HON) reported total revenue of $37.44B. This represents a 168.0% increase compared to $13.97B in 1996.
Honeywell International Inc. (HON) is profitable, generating $4.73B in net income for the fiscal year ending 2025 with a net profit margin of 12.6%.
Honeywell International Inc. (HON) reported an operating income of $6.57B, resulting in an operating profit margin of 17.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Honeywell International Inc. (HON) generated $13.83B in gross profit for the year, representing a gross profit margin of 36.9%. This demonstrates the company's core pricing power and production efficiency.