Honeywell Technologies outlined its growth strategy at Morgan Stanley’s 14th Annual Laguna Conference on Sept. 15, 2026. The company, which has been operating as a "new company" for roughly 75 days after spinning off its aerospace and advanced materials businesses, reaffirmed an organic growth target of 4% to 6% and set a $12 earnings‑per‑share (EPS) floor for 2029.
Management highlighted that high‑growth markets, which currently represent about 20% of revenue and expand at roughly 15% annually, will be a key driver. The remaining 80% of mature markets are expected to grow at 3%‑4%, aligning with global GDP trends. The mix of high‑growth revenue is targeted to rise to 21%‑22% by the end of 2026 and eventually to 25%.
Honeywell Forge, the firm’s software platform, is projected to reach roughly $1 bn in annual recurring revenue (ARR) by the end of 2026, growing at about 15% a year. Software and services already account for about 40% of total revenue, with a goal of 45%.
Margin expansion of approximately 60 basis points is anticipated, supported by pricing increases of about 4% annually. Inflation pressures in electronics, memory, commodities and labor are expected to stay in the 3%‑4% range.
Segment updates showed a 25% rise in backlog for Process Automation Technology, with book‑to‑bill ratios of 1.1‑1.2. Building Automation posted 8% organic growth for the eighth consecutive quarter, while its data‑center segment grew north of 20%. Industrial Automation orders were up 11% in the second quarter, and short‑cycle orders continued high‑single‑digit growth into Q3.
The company also noted that proprietary LNG equipment is sold out through 2028‑2029, and renewable fuels currently represent less than 1% of the energy mix, with a longer‑term target of about 5%.
At the time of reporting, Honeywell shares traded at $203.44, near a 52‑week low of $196.98, giving the firm a market capitalization of $64.5 bn. The stock’s price‑to‑earnings ratio stood at 7.8, based on LTM revenue of $38.06 bn, a gross profit margin of 36.5% and diluted EPS of $25.90.
"The 20% grows at a 15% rate, and that's the math. If 80% grows at 3% and 20% grow at 15%, we are going to hit that 6% mark," CEO Vimal Kapur said. He added, "We committed, $12 earnings by 2029. I should have said it earlier… that's more of a floor. We are here to beat that floor and perform at a better rate over time."
