Based in Phoenix, Arizona, Honeywell Aerospace Inc. (HONA), with a market capitalization of approximately $53.4 billion, is an aerospace company that develops engines, avionics, flight controls, navigation, sensors, propulsion, and other technologies for commercial aviation, defense, business aviation, and space applications. It went public on June 29, 2026, following its spin-off from Honeywell International Inc. (HON).
Shares of this leading aerospace company have considerably underperformed the broader market over the past month. HONA has declined 29.2% over this period, while the broader S&P 500 Index ($SPX) has rallied 3.4%. Over the past five days, HONA has also lagged behind, declining 18.5% compared with the index’s 3.6% gain over the same period.
Narrowing the comparison, HONA has also underperformed the Invesco Aerospace & Defense ETF (PPA), which has gained 2.8% over the past month and 5.4% over the past five days.
On August 5, Honeywell Aerospace reported its second-quarter fiscal 2026 earnings, and shares fell 23.2% in the following session. Net sales reached $4.5 billion, up 5.4% year over year on both a reported and organic basis. Adjusted earnings per share came in at $1.87, down 32% year over year.
Honeywell Aerospace cut its full-year 2026 guidance, now expecting organic sales growth of 4% to 5%, down from 7% to 9%, and pro forma standalone adjusted EBIT of $4.35 billion to $4.45 billion, down from $4.65 billion to $4.75 billion. The company initiated full-year pro forma standalone adjusted EPS guidance of $7.60 to $7.90 and maintained its second-half free cash flow outlook of $1 billion to $1.5 billion.
For the current fiscal year, ending in December 2026, analysts expect HONA’s EPS to decline 99.2% to $7.75 on a diluted basis. The company did not surpass the consensus estimate in its most recent quarter, its first earnings report since it began trading as a standalone company.
Among the 14 analysts covering HONA stock, the consensus rating is a “Moderate Buy.” The rating is based on three “Strong Buy” ratings, one “Moderate Buy” rating, and 10 “Hold” ratings.
HONA’s configuration is more bullish than it was a month ago, when the stock had two "Strong Buy" recommendations. The mean price target of $243.62 implies a 44.6% upside from HONA's current share price. The Street-high target of $306 suggests upside potential of 81.6%.
