Track market-moving stories before they get noisy

Investors in Danaher Corporation (DHR - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $145 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Danaher shares, but what is the fundamental picture for the company? Currently, Danaher is a Zacks Rank #3 (Hold) in the Medical Services industry that ranks in the Top 43% of our Zacks Industry Rank. Over the last 60 days, no analyst increased the earnings estimates for the current quarter, while seven have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.89 per share to $1.84 in that period.

Given the way analysts feel about Danaher right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Key Takeaways MDT reported Q4 revenues of $9.81 billion, up 9.9%, and topped earnings and sales estimates.MDT's Cardiac Ablation Solutions revenues surged 78% globally, including 124% growth in the United States.Medtronic guided FY27 organic revenue growth of 6.75%-7.25% and raised its quarterly dividend. Medtronic plc (MDT - Free Report) posted fourth-quarter fiscal 2026 adjusted earnings of $1.55 per share, down 4.3% from the year-ago quarter but above the Zacks Consensus Estimate by 0.58%.

For full-year fiscal 2026, adjusted EPS was $5.53, up 0.7% year over year. The figure missed the Zacks Consensus Estimate by 0.2%.

Revenue rose 9.9% year over year to $9.81 billion and beat the consensus mark by 1.48%. The upside came as procedure-driven demand stayed firm across key franchises. Cardiac Ablation Solutions revenues surged 78% globally, including 124% growth in the United States, while multiple portfolios delivered healthy gains.

Full-year worldwide revenues totaled $36.4 billion, up 8.4% year over year. The top line marginally surpassed the Zacks Consensus Estimate by 0.6%.

Following the announcement today, MDT shares rose nearly 2% in the pre-market trading. 

MDT’s Portfolio Mix Banks on CardiovascularCardiovascular generated $3.80 billion in the quarter, underscoring the importance of the company’s largest portfolio to overall momentum. Neuroscience contributed $2.75 billion, and Medical Surgical added $2.39 billion, reflecting steady demand across hospital-based therapy areas.

Diabetes produced $837 million of revenues and remained a meaningful growth lever alongside the broader portfolios. The mix shows Medtronic’s exposure to both large, recurring procedural categories and faster-moving product cycles in areas like diabetes management.

MDT’s Geographic Split Favors International GrowthU.S. revenues increased 7.1% year over year to $4.87 billion, supported by gains across major portfolios and continued procedure volume resilience.

International revenues advanced 12.8% to $4.94 billion. The overseas outperformance was broad-based and included a notable lift in Diabetes internationally, reinforcing how global scale can amplify Medtronic’s reported results when demand is healthy.

Medtronic’s Adjusted Margins Appear MixedOn an adjusted basis, Medtronic posted a gross margin of 65.4% in fourth-quarter fiscal 2026, up 30 basis points year over year, reflecting a modest improvement in profitability at the product level.

However, operating leverage moved the other way. The adjusted operating margin fell to 25.5%, down 230 basis points from the prior-year quarter, as the company absorbed notable headwinds, including margin impacts tied to the MiniMed Blackstone payment and tariffs.

Medtronic’s Cash Generation Supports Returns and InvestmentOperating cash flow totaled $7.33 billion in fiscal 2026, providing the financial flexibility to fund both portfolio investment and shareholder distributions. Free cash flow was $5.43 billion for the year, equal to 76% free cash flow conversion from adjusted net earnings.

Medtronic also returned $4.2 billion to shareholders in fiscal 2026 and ended the year with $9.2 billion in cash and investments.

Medtronic’s FY27 Guidance and Shareholder ReturnsMDT guided for fiscal 2027 organic revenue growth of 6.75% to 7.25% and adjusted earnings of $5.90 to $6.00 per share. The outlook reflects the benefits of a 53rd week, additional M&A and a full-year contribution from the Diabetes business while also considering tariffs, interest and tax expense. The Zacks Consensus Estimate expects fiscal 2027 revenues of $38.39 billion, up 6.1% from the fiscal 2026 levels, while EPS is expected to rise 9.7% to $6.08.

Medtronic also increased its quarterly dividend to $0.72 per share, implying an annual rate of $2.88 and marking its 49th consecutive year of dividend increases.

Our Take on MDTMedtronic exited the fourth quarter of fiscal 2026 with earnings and revenue beat.The company highlighted share gains and product traction in several cardiovascular franchises. The company cited continued strength in Cardiac Pacing Therapies and Defibrillation Solutions, including momentum in Micra and the U.S. launch of OmniaSecure. However, the contraction of the adjusted operating margin in the quarter is discouraging.

On the innovation front, management pointed to a U.S. FDA submission for Hugo robotic-assisted surgery in general surgery and gynecology, along with FDA clearance for ProGrip Advanced and regulatory wins for the Stealth AXiS Surgical System. Medtronic also executed a tuck-in activity, including the completed CathWorks acquisition in Coronary and Renal Denervation, and plans to acquire Scientia Vascular and SPR Therapeutics, complemented by select venture investments.

MDT’s Zacks Rank & Key PicksMedtronic currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Align Technology (ALGN - Free Report) . Intuitive Surgical (ISRG - Free Report) and Integra LifeSciences (IART - Free Report) .

Align Technology, currently sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted EPS of $2.58, which surpassed the Zacks Consensus Estimate by 14.41%. Revenues of $1.04 billion beat the Zacks Consensus Estimate by 1.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ALGN has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 9.5% growth. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Intuitive Surgical,carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term earnings growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.

Integra LifeSciences,carrying a Zacks Rank #2 at present, posted a first-quarter 2026 adjusted EPS of 54 cents, exceeding the Zacks Consensus Estimate by 32.78%. Revenues of $391.9 million outperformed the Zacks Consensus Estimate by 2.7%.

IART has an earnings yield of 15.4% against the industry’s negative 1.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.8%.

Medtronic (MDT 0.27%) stock jumped 5.3% through 1:25 p.m. ET Wednesday after it "beat by a penny" on fiscal Q4 2026 earnings this morning, and beat on revenue as well.

Heading into the report, analysts predicted Medtronic would earn $1.54 per share on sales just over $9.6 billion. In fact, earnings were $1.55 per share, and sales reached $9.8 billion.

Image source: Getty Images.

Medtronic Q4 earnings Sales at the Ireland-domiciled medical equipment-maker surged 9.9% year over year, of which 6.6% was organic growth and the rest from acquisitions, leading to the company's "highest annual revenue growth in 10 years." Earnings under generally accepted accounting principles (GAAP) weren't quite as good as the "$1.55" noted above. But at $0.96 per share, earnings still grew 17% -- nearly twice as fast as sales.

For the full year, sales grew 8.4% to $36.4 billion, while earnings were up only 3.3%. So while the full year performance wasn't quite as impressive as the final quarter, growth in both sales and earnings accelerated substantially in that final quarter.

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What's next for Medtronic? Turning to guidance, Medtronic forecasts about 7% organic sales growth for the coming year, a bit slower than we saw in both Q4 and in the annual result.

Management didn't give GAAP earnings guidance, but noted that non-GAAP profits should range from $5.90 to $6.00 in fiscal 2027, which works out to better than 7% earnings growth at the midpoint. That's twice the income growth the company had in fiscal 2026.

I still have my doubts that Medtronic deserves to trade at more than a 20-times price-to-earnings ratio on only mid-single-digit growth. But at least it is growing. Add a 3.8% dividend yield, and the stock's arguably not too overpriced today.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Medtronic. The Motley Fool has a disclosure policy.

Medtronic plc (MDT) Q4 2026 Earnings Call Transcript

Medtronic Today

$80.11 -0.22 (-0.27%)

As of 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$73.31▼

$106.33Dividend Yield3.60%

P/E Ratio21.48

Price Target$99.00

Medtronic's NYSE: MDT primary catalyst as mid-year approaches is that headwinds are not impairing results as much as feared. Rising costs, margin compression, and general uncertainty linked to macroeconomic headwinds were reflected in the company's June 3 earnings results, but the results were inherently strong and expected to remain so.

The impact on share prices will be a rise, as the market is deeply oversold and ripe for a rebound. The only question is how high the stock price might go, and the signs suggest a 25% upside is easy.

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Medtronic is trading within a long-term range, with critical resistance near $95. The $95 level is more than 25% above the critical support level, at which MDT stock trades as of early June. While lower prices remain a possibility, the response to MDT’s fiscal Q4 2026 earnings report suggests a bottom is in place, and the rebound has begun.

Analysts and Institutions Reflect Confidence in MDT Capital ReturnAnalyst trends also indicate that a 25% stock price increase is an easy target. Trends leading into the release were mixed, with numerous price target reductions, but the data reveal they simply trimmed targets, rather than making drastic price changes. The net result is that while consensus fell incrementally, it still forecasts a robust 20% upside and the potential for fresh highs. The likely outcome is that the Q4 results will trigger renewed confidence in the company’s ability to generate cash flow, which is significant to this story.

Medtronic Dividend PaymentsDividend Yield3.60%

Annual Dividend$2.88

Dividend Increase Track Record49 Years

Annualized 5-Year Dividend Growth4.13%

Dividend Payout Ratio77.21%

Next Dividend PaymentJul. 17

MDT Dividend History

Medtronic is a known dividend grower on track to be crowned Dividend King. Q4 results included the 49th consecutive distribution increase, worth about 1.4% to investors, putting it on track for inclusion in more indexes and enhanced institutional ownership, a catalyst for share prices. As it stands, the yield is about 3.5%, with shares at the low end of the trading range and only 50% of the earnings outlook. The likely outcome is that Medtronic sustains growth over time, both in the business and in the dividend, although the pace may never be robust.

Institutions signal confidence in the dividend and the company’s intrinsic value, owning more than 80% of the stock. Index-related holdings are high, but the ownership base is broad, and the group is accumulating. MarketBeat data reveals six consecutive quarters of bullish behavior, including Q2 2026 so far. The likely outcome from this vector is that buying activity continues to accumulate as institutions take advantage of the value-to-yield combination. Trading at 13X this year’s earnings outlook, the stock is cheap compared to the S&P 500, provides nearly four times the yield of the S&P 500 Index Tracking ETF NYSEARCA: SPY, and provides low-beta exposure to physical AI and the Internet of Things.

Medtronic’s Portfolio Stands TallMedtronic had a good quarter with revenue rising by 9.9% to over $9.8 billion. The top line came in 200 basis points (bps) better than expected, underpinned by strength in all segments. Cardiovascular led with a 10.1% gain, driven by Cardiac Ablation Solutions' 78% increase, while diabetic care grew by 8.1%, medical-surgical by 5.1%, and neuroscience by 3%.

Margin news was mixed, but the market feared the worst, as evidenced by the downtrend in revisions leading into the release. Adjusted diluted earnings declined 4.3% to $1.55, offset by a 65-basis-point outperformance and sufficient cash flow and earnings to sustain balance sheet health.

Guidance is another factor pointing to a robust increase in stock price. The company’s initial guidance for fiscal 2027 includes 7% organic revenue growth and slightly faster earnings growth. The bad news is that both targets were slightly below the consensus forecast, but, again, the market was fearing worse.

This year’s catalysts include the MiniMedNASDAQ: MMED spin-off. The initial IPO has been completed, with the final step expected later this year. In it, Medtronic will enable existing shareholders to exchange shares for MMED shares, effectively canceling one in favor of the other. The net result will be the distribution of the remaining 80% of MMED and a reduction in MDT shares. The move is also expected to drive higher net margins while enabling more focused companies to execute their strategies effectively.

Medtronic’s risks remain unchanged. While traditional recall and competition risk are omnipresent for the industry, it also faces tariff threats and a rising need for cybersecurity. AI changed the game in cybersecurity, introducing new challenges such as data poisoning. Incorrect, incoherent, and otherwise malicious data has a devastating impact on AI models and agentic-influenced health outcomes.

Should You Invest $1,000 in Medtronic Right Now?Before you consider Medtronic, you'll want to hear this.

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Dividend stocks that raise their payouts routinely can be money-making machines for investors. You effectively get an increase in your dividend income from these investments by doing nothing, simply holding on.

Three solid dividend-growth stocks that also pay high yields are Lowe's (LOW 0.12%), Medtronic (MDT 0.27%), and UnitedHealth Group (UNH +0.73%). They recently raised their payouts, again. Here's a look at how much they raised their dividend payments and how much the stocks are yielding right now.

Image source: Getty Images.

Lowe's Last week, home improvement giant Lowe's announced that it would be increasing its dividend by 4%, to $1.25 per quarter. The company has an excellent track record for paying dividends going back to 1961, and it has been raising its payout for decades. With the new dividend rate, the stock now yields a solid 2.4%, which is more than double the S&P 500 average of just around 1%.

The stock has been struggling this year, and it's down 14% thus far, as consumers have been cutting back on discretionary spending. But this can be a fantastic stock to own because while spending on home repairs and renovations may not be necessary in the short term, they are essential and inevitable expenses for homeowners in the long run.

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Meanwhile, with the stock trading at a lower price, now can be an ideal time to start a position in this solid retail stock. Lowe's currently trades at a forward price-to-earnings (P/E) multiple of 16 (based on analyst estimates), which is far less than the S&P 500 average of 22.

Medtronic Another great place to invest for the long run is in medical devices, which are crucial for the healthcare sector. Medtronic is a big player in that area of healthcare, as its technologies are used to help people with 70 different health conditions. The company recently reported its year-end numbers, and for fiscal 2026 (which ended on April 24), Medtronic reported its best annual revenue growth in a decade. Its top line came in at $36.4 billion, which was an increase of 8.4% from the previous year.

The company also announced it would be increasing its dividend by one cent, to $0.72. While it's a minor increase, it represents the 49th consecutive year that it has raised its payout, showcasing to investors what a quality dividend stock it is to own. Although its rate increase wasn't significant, Medtronic already pays a fairly high yield of 3.5%.

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This year, the stock has fallen by 15%, and it's another attractive option for income investors, as its forward P/E is only 12.

UnitedHealth Group Health insurance giant UnitedHealth Group also recently announced an increase to its dividend. For the second quarter, its quarterly dividend will be $2.32 per share, which is an increase of 5% from the $2.21 it was previously paying. That's the highest rate of increase on this list. And with the new payout, the healthcare stock now yields 2.3%. It's another solid above-average payout for investors.

UnitedHealth has been generous with dividend increases in the past, and in five years, its quarterly dividend has risen by 60%, which averages out to a compounded annual growth rate of right around 10%. That's a healthy rate of increase, which is crucial to offset the effects of inflation chipping away at dividend income over time.

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The company has been generating better results recently, giving investors confidence that its business is going in a more positive direction as it's getting a better handle on medical expenses, which in the past led to worse-than-expected results. But in the first quarter, the company beat expectations, and its medical benefits ratio, which is a key metric for health insurers, came down.

The stock has risen by 20% this year, but with a poor performance in recent years, it's still a fairly reasonably priced option for dividend investors, as it's trading at a forward P/E of 21.

Medtronic (MDT 0.27%) is one of the world's largest medical technology companies, but it spent years on the outside looking in at the robotic-assisted surgery market. That officially changed in December 2025, when the U.S. Food and Drug Administration (FDA) approved its Hugo robotic-assisted surgery platform for urologic procedures.

A couple of months later, doctors at the Cleveland Clinic successfully used it for the first time. The FDA's approval indicates use for prostatectomy, nephrectomy, and cystectomy procedures. Hospitals perform approximately 230,000 of these annually in the United States.

Image source: Getty Images.

The approval was a shot across the bow at Intuitive Surgical, which pioneered the industry with its da Vinci system and now dominates the market. Now the real work begins, as Medtronic fights for its share of a market that researchers estimate could grow from $13.8 billion last year to $63.7 billion by 2035.

Can Medtronic finally establish itself as a successful challenger and unlock the potential of this fast-growing market? Here's why it could have an uphill battle -- and why that's not as bad as it sounds.

Intuitive Surgical's head start truly matters Medtronic's FDA approval for Hugo comes roughly 26 years after Intuitive Surgical got its first approval for the da Vinci system, its flagship robotic-assisted surgery platform.

Intuitive Surgical was one of the only games in town for many years, allowing the company to amass a massive user base. Today there are 11,395 da Vinci systems installed in hospitals worldwide, and they have performed millions of procedures. Hospitals spend up front on the system, then invest money for years in supplies, parts, and maintenance. Each hospital's staff also requires extensive training to use the platform. Those monetary costs and the learning curve make switching difficult.

As Intuitive Surgical installs more systems, it further cements its position as the market leader. Medtronic's Hugo is still only approved for urologic procedures, while the da Vinci system performs urologic, gynecologic, and general surgery procedures. While Medtronic just applied to expand Hugo to gynecologic and general surgeries in the U.S., that happened only days ago.

Medtronic may struggle to sell Hugo against the da Vinci system until it has the approvals to perform all the procedures that the da Vinci can. Intuitive Surgical continues to place systems, including 431 in the first quarter of 2026 alone. The gap in installed bases is widening, and Medtronic probably won't change that in the foreseeable future.

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Why there's hope for Medtronic yet Medtronic can still enjoy tremendous success with Hugo, even if it's not a market leader.

Hugo is only getting started in the United States, but the system is already available in more than 35 countries. Hospitals worldwide have performed tens of thousands of procedures with Hugo to date, and Medtronic CEO Geoff Martha disclosed on the company's recent earnings call (for the fourth quarter of its fiscal 2026, which ended April 24) that procedure volumes are growing two to three times as fast as the market. It's fast growth on small numbers, but it is promising.

Those numbers could grow for years to come. Robotic-assisted procedures account for just 5% of the world's surgeries at this point, so there's still a lot of the eventual market up for grabs. Medtronic probably won't overtake Intuitive Surgical, but it can grow alongside it.

Remember, Medtronic is a diversified healthcare giant with sprawling product portfolios across its cardiovascular, neuroscience, and medical-surgical segments. It's hardly an underdog, and still much larger than Intuitive Surgical. Analysts estimate that Medtronic will generate $38.8 billion in total revenue this fiscal year, more than triple Intuitive Surgical's $11.7 billion in revenue.

No, Medtronic may not challenge Intuitive Surgical's dominance in surgical robotics, but it doesn't need to. Simply having a presence and growing alongside the robotics-assisted surgery market can be a win for one of the world's top healthcare stocks.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MDT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways MDT enters fiscal 2027 with 6.75%-7.25% organic growth guidance and EPS between $5.9 and $6.00.MDT trades at 13.7x forward earnings, below peers and its own 5-year median of 15.8x.Cardiac Ablation Solutions grew 78% worldwide, while tariffs add about $250M cost headwind for MDT. Medtronic plc (MDT - Free Report) enters fiscal 2027 with guidance calling for continued organic growth and modest adjusted earnings expansion. At roughly the mid-teens on forward earnings and with a 3.5% dividend yield, the setup can appeal to investors seeking steadier medical-device exposure.

The long-term stance is Neutral because progress in growth platforms is being weighed against near-term headwinds. Tariffs, fuel and transportation costs, mix drag, currency exposure and competition remain the main checks on upside.

MDT Setup: Guidance Points Up, but Risks PersistFor fiscal 2027, Medtronic guided for organic revenue growth of 6.75% to 7.25% and adjusted earnings per share of $5.90 to $6.00. The outlook includes a 53rd week and a full-year contribution from the Diabetes business while separation plans remain on track.

Consensus expectations call for fiscal 2027 revenue of $38.62 billion and earnings per share of $5.96. With guidance and consensus close, the decision hinges on whether execution can hold up as costs and mix pressure the model.

Image Source: Zacks Investment Research

Medtronic Valuation vs Peers and Its Own HistoryMDT trades at 13.7 times forward 12-month earnings versus 15.5 times for the Zacks sub-industry, 19.9 times for the Zacks sector and 21.5 times for the S&P 500. The discount suggests investors want clearer margin traction before paying up.

Over the past five years, the stock has traded between 12.1 times and 22.9 times, with a median of 15.8 times. The $86 price target assumes 14.4 times forward earnings, implying only modest multiple support.

Image Source: Zacks Investment Research

MDT What’s Working: CAS, CRM, and Procedure DemandProcedure-driven demand has been resilient. Fourth-quarter fiscal 2026 revenue rose 9.9% year over year to $9.81 billion and topped expectations as volumes stayed firm.

Cardiac Ablation Solutions is the clearest growth driver, with sales up 78% worldwide and 124% in the United States, supported by Affera and Sphere-9 adoption. Cardiac Rhythm Management grew in the mid-single digits, supported by Micra, Aurora EV-ICD and OmniaSecure, keeping cardiovascular momentum constructive.

Medtronic What’s Not: Mix, Coronary, and U.S. VariabilityStructural Heart has been uneven in the United States. The category was flat in the fourth quarter, and softer U.S. performance contributed to the variability in the outlook.

Coronary declined, and stents fell into the low double digits due to multi-region pricing declines. Medical Surgical also faces bariatric and advanced stapling weakness tied to the shift toward robotic surgery, which can pressure mix and leverage.

MDT Margin and Cost Headwinds to UnderwriteFourth-quarter fiscal 2026 margins were mixed. Adjusted gross margin improved 30 basis points to 65.4%, but adjusted operating margin fell 230 basis points to 25.5% amid notable headwinds, including tariffs.

For fiscal 2027, management expects about $250 million of tariff impact to cost of goods sold, up $65 million year over year, plus roughly a one-point earnings drag from higher fuel and transportation costs. Gross margin is expected to decline about 20 basis points, including tariffs, making “can growth outpace cost drag” the key question.

Medtronic Balance Sheet and Shareholder Returns MatterMedtronic ended fiscal 2026 with $9.2 billion in cash and investments. It issued $1.75 billion of long-term debt and repaid $2.93 billion, and generated $7.33 billion of operating cash flow and $5.43 billion of free cash flow.

The company returned $4.2 billion to shareholders in fiscal 2026 and raised the quarterly dividend to $0.72 for the first quarter of fiscal 2027, marking the 49th consecutive year of dividend increases. That capacity supports both tuck-in deals and ongoing returns.

MDT Short-Term Signal: What the Rank ImpliesMDT carries a Zacks Rank #4 (Sell), with Style Scores of Value: C, Growth: D, Momentum: C and VGM: C. The signal points to weaker near-term sentiment and revision dynamics despite longer-cycle product catalysts.

Investors may see the platform story, but the short-term signal suggests the market wants proof that margins and weaker categories are improving before rewarding the stock.

Medtronic Decision Framework: Who MDT Fits NowMDT may suit investors prioritizing income and steadier medical-device exposure with identifiable growth platforms, including Cardiac Ablation Solutions, Symplicity Spyral, Hugo robotic-assisted surgery and Neuroscience innovations such as Stealth AXiS and Neuroguard.

The tradeoff is that tariffs, currency sensitivity, competition, and mix and coronary pressures may limit near-term valuation upside. Investors weighing alternatives may also compare Abbott Laboratories (ABT - Free Report) and Stryker Corporation (SYK - Free Report) as different ways to gain procedure-driven exposure. For MDT, patience may be required until costs and mix stabilize.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Acquisition delivers simplicity and access, supporting physicians across the full procedural workflow

, /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced it has completed its acquisition of Scientia Vascular, a privately-held medical device company in Salt Lake City. The acquisition is valued at $550 million, subject to customary adjustments, with potential undisclosed earn-out and milestone payments post-acquisition.

Scientia has developed best-in-class access products that enable simplicity and access for physicians treating complex neurovascular conditions. Scientia's portfolio of guidewires and catheters can be seamlessly integrated with Medtronic's existing suite of neurovascular products, strengthening the company's ability to support physicians across the full procedural workflow.

"Since its founding, Scientia has been driven by a commitment to improving patients' lives and supporting the physicians who care for them," said Rick Randall, CEO of Scientia. "Joining Medtronic is an exciting next step for our team, as their Mission closely aligns with the values that have guided Scientia from the beginning. With Medtronic's global scale, we look forward to bringing this technology to more physicians and reaching more patients around the world."

"The addition of Scientia's access technologies strengthens our ability to simplify complex neurovascular procedures and support physicians with more seamless solutions," said Linnea Burman, senior vice president and president of Medtronic's Neurovascular business, part of the Neuroscience Portfolio at Medtronic. "By bringing together highly complementary technologies, we are building a more integrated platform that will help advance the future of neurovascular care and enable physicians to treat more patients with greater efficiency and confidence."

In stroke treatment, every second matters. With each second of restricted blood flow, the brain loses millions of brain cells. Today, stroke is the third leading cause of death and leading cause of disability worldwide. 

Unlike vessels in many other parts of the body, cerebral vasculature is highly complex and tortuous, creating significant challenges for physicians attempting to reach the site of an occlusion or aneurysm. Difficult access can delay therapy delivery and impact procedural success.

Scientia's novel access platform is designed to address these challenges by improving navigability through complex anatomy and simplifying neurovascular procedures. By enabling faster and more reliable access, these technologies improve procedural efficiency.

This acquisition reflects Medtronic's continued focus on strategic deals that strengthen its leadership across core businesses. The company remains committed to pursuing high-growth opportunities that complement its portfolio and enhance value for physicians and hospital partners.

Financial Impact
This acquisition is expected to be minimally dilutive to Medtronic adjusted EPS in FY27 and accretive thereafter.

About Scientia Vascular
Scientia is a private company operating in Salt Lake City, with approximately 310 employees. Under founder and chief technology officer John Lippert, the company has developed best-in-class access products that enable simplicity and access for physicians treating complex neurovascular conditions. Scientia's portfolio of guidewires and catheters can be seamlessly integrated with Medtronic's existing suite of neurovascular products, strengthening the company's ability to support physicians across the full procedural workflow.

About the Neurovascular Business at Medtronic
Medtronic helped create the neurovascular market – introducing innovations like liquid embolic, stent retrievers, and flow diverters. Today, with products covering multiple conditions and disease states, we work to eliminate the burden of stroke and other neurovascular diseases globally by transforming care, one breakthrough at a time. Together with our partners, including physicians, hospitals, governments and patients, we're expanding into new disease states and stages of care. Our unwavering focus on better outcomes fuels our drive to deliver life-changing therapies and transform the future of care for patients worldwide. For more information, follow Medtronic Neurovascular on LinkedIn.

About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic, visit www.Medtronic.com and follow Medtronic on LinkedIn.

Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.

Contacts:

Justin Paquette

Ingrid Goldberg

Public Relations

Investor Relations

+1-612-271-7935

+1-612-505-2696

SOURCE Medtronic plc

Shares of Texas Instruments (NASDAQ:TXN | TXN Price Prediction) are up 4% at midday Tuesday, trading near $304, while NVIDIA (NASDAQ:NVDA) stock is down 1% near $222.

A Texas Instruments logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

June 2 (Reuters) - Texas Instruments (TXN.O), opens new tab on Tuesday named insider Julie Knecht as its ​finance chief, succeeding Rafael Lizardi, who ‌will retire after 25 years with the analog chipmaker.

Knecht, currently chief accounting officer and vice president of ​accounting and tax, will assume the role ​on August 1, while Lizardi will take ⁠an advisory role through Aug. 31 to ​support the transition.

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CEO Haviv Ilan said Lizardi ​helped steer the company's capital allocation strategy, including investments in 300-millimeter manufacturing capacity and a focus on returning ​free cash flow to shareholders.

Knecht joined Texas ​Instruments in 1999 and has held several finance and accounting ‌positions, ⁠including as vice president of accounting for more than a decade before becoming chief accounting officer in 2021.

"Having been part of this ​company for ​more than ⁠25 years, I appreciate TI's high-performance culture and long-standing commitment to technology ​leadership," Knecht said.

Texas Instruments has benefited ​from ⁠growing demand for analog chips used in power regulation and data conversion systems inside AI ⁠data ​centers.

The company will report its ​second-quarter results on July 22.

Reporting by Harshita Mary Varghese in ​Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways Texas Instruments stock surged 69.1% in six months, beating the semiconductor industry's 29.8% gain.TXN Q1 revenues rose 18.6% and non-GAAP EPS jumped 31.3%, while Q2 guidance signals more growth.With data center revenues jumping 90% YoY in Q1, the end market is becoming a key growth engine for TXN. Texas Instruments Incorporated (TXN - Free Report) has been one of the strongest performers in the semiconductor industry lately, supported by solid financial execution, growing demand for its analog and embedded chips and increasing exposure to artificial intelligence (AI)-related opportunities. Over the past six months, TXN shares have surged 69.1%, significantly outperforming the broader Zacks Semiconductor – General industry’s 29.8% gain. This impressive rally has established Texas Instruments as one of the standout names in the chip sector.

The stock has also delivered stronger returns than several major semiconductor peers, including QUALCOMM Incorporated (QCOM - Free Report) , Broadcom Inc. (AVGO - Free Report) and NVIDIA Corporation (NVDA - Free Report) . Over the past six months, shares of QUALCOMM, Broadcom and NVIDIA have risen 43%, 22.8% and 17.8%, respectively.

Texas Instruments is benefiting from the ongoing AI boom, even though it does not manufacture high-end AI processors. Instead, the company provides analog and embedded chips that play a critical role in data centers, industrial equipment and automotive systems. As demand for AI infrastructure and high-performance computing continues to expand, Texas Instruments is well-positioned to capture a growing share of this market. This makes the stock increasingly attractive for long-term investors.

Texas Instruments Six-Month Price Return Performance
Image Source: Zacks Investment Research

Texas Instruments’ Resilient Financial PerformanceDespite macroeconomic uncertainty, geopolitical tensions and trade-related challenges, Texas Instruments continues to deliver impressive financial results. In the first quarter of 2026, revenues increased 18.6% year over year, while non-GAAP earnings per share jumped 31.3%.

Management’s outlook for the second quarter suggests that this momentum is far from over. Texas Instruments expects revenues between $5 billion and $5.4 billion, representing year-over-year growth of 12-21%. The projected earnings range of $1.77-$2.05 per share implies growth of 25-45%, reflecting continued strength across key markets, particularly those benefiting from AI-driven investments.

The Zacks Consensus Estimate for 2026 and 2027 also points to continued expansion in both revenue and earnings, reinforcing confidence in the company’s growth trajectory.

Image Source: Zacks Investment Research

Texas Instruments continues to generate substantial cash, which remains one of its biggest strengths. Over the past 12 months, operating cash flow totaled $7.8 billion, while free cash flow reached $4.35 billion. The company ended the first quarter of 2026 with $5.1 billion in cash and short-term investments, up from $4.88 billion at the end of 2025.

This financial strength gives Texas Instruments significant flexibility. The company can continue investing in research, expanding manufacturing capacity and rewarding shareholders simultaneously. During the first quarter alone, Texas Instruments repurchased $158 million worth of shares and distributed $1.29 billion in dividends. Over the past year, total shareholder returns through dividends and buybacks reached approximately $6 billion. These actions not only reward investors but also support long-term earnings growth.

Data Centers to Aid TXN’s Long-Term ProspectsThe data center market is becoming an increasingly important growth engine for Texas Instruments. On the first-quarter earnings call, management highlighted industrial and data center demand as major contributors to growth. This trend is particularly encouraging because global data center investments continue to accelerate due to cloud computing, AI applications and growing enterprise workloads.

Unlike companies that compete directly in AI accelerators, Texas Instruments focuses on the supporting infrastructure required to run these systems efficiently. Its analog and embedded chips help manage power distribution, cooling systems, battery backup solutions, motor controls, signal conversion and connectivity within data centers.

As data centers become larger and consume more power, the need for efficient power management solutions becomes increasingly critical. Texas Instruments is well-positioned to benefit from this trend.

The company's data center business reached an annual revenue run rate of roughly $1.2 billion in 2025, growing more than 50% year over year. In the first quarter of 2026, data center revenues jumped 90% from the prior-year period and increased 25% sequentially. These growth rates highlight the company’s growing importance in AI infrastructure and suggest that this market could remain a major contributor for years.

Internal Manufacturing Strategy Adds Long-Term Value for TXNTexas Instruments serves a broad range of end markets, including personal electronics, industrial, communications, automotive and data centers. This diversification reduces reliance on any single market and helps stabilize results during economic cycles.

To strengthen its competitive position and capitalize on opportunities tied to AI, 5G and high-performance computing, Texas Instruments continues to invest heavily in internal manufacturing. Rather than depending on third-party foundries, the company plans to produce more than 95% of its wafers internally by 2030.

This strategy provides greater control over production, costs and supply-chain reliability. It can also improve profitability over the long run as manufacturing scale increases.

Texas Instruments is expected to receive up to $1.6 billion in CHIPS Act funding, with total lifetime benefits estimated between $7.5 billion and $9.5 billion. These incentives should help reduce expansion costs and support future margin improvement.

Steady Growth Outlook Justifies TXN’s Premium ValuationFrom a valuation standpoint, Texas Instruments is not cheap. The company currently carries a Zacks Value Score of F, indicating that the stock trades at a premium relative to traditional valuation metrics.

TXN currently trades at a forward 12-month P/E ratio of 37.94, well above the industry average of 27.38X. However, premium valuations are often justified when companies combine durable growth, strong profitability and consistent cash generation.

Texas Instruments checks many of these boxes. The company continues to benefit from expanding AI-related demand, generates substantial free cash flow, maintains a strong balance sheet and consistently returns cash to shareholders through dividends and buybacks.

Texas Instruments Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

Compared with other semiconductor leaders, Texas Instruments also trades at a higher earnings multiple than NVIDIA, QUALCOMM and Broadcom. At present, NVIDIA, QUALCOMM and Broadcom are trading at P/E multiples of 22.87, 23.17 and 31.37, respectively. While this premium leaves less room for error, investors appear willing to pay up for the company’s stability, manufacturing advantages and long-term growth potential.

Final Thoughts: Buy Texas Instruments Stock NowTexas Instruments has built a compelling investment case through its strong financial performance, growing exposure to AI-driven infrastructure spending, expanding data center business and disciplined capital allocation strategy. The company’s focus on internal manufacturing should further strengthen its competitive position and profitability over time.

Although the stock trades at a premium valuation, that premium appears justified, given its consistent earnings growth, robust cash flows and shareholder-friendly approach. With AI infrastructure spending still in the early stages of a multi-year expansion cycle, Texas Instruments looks well-positioned to deliver steady growth for years to come.

Currently, Texas Instruments sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Texas Instruments (TXN - Free Report) closed the most recent trading day at $305.37, moving -1.04% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow saw an upswing of 1.73%, while the tech-heavy Nasdaq depreciated by 0.09%.

Shares of the chipmaker have appreciated by 6.62% over the course of the past month, underperforming the Computer and Technology sector's gain of 10.03%, and outperforming the S&P 500's gain of 4.59%.

Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 17.39% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.66 per share and revenue of $20.76 billion. These totals would mark changes of +40.55% and +17.38%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.79% upward. Texas Instruments is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 40.26. This signifies a discount in comparison to the average Forward P/E of 65.84 for its industry.

We can also see that TXN currently has a PEG ratio of 1.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry had an average PEG ratio of 1.03 as trading concluded yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

The original semiconductor ETF has delivered even more than the 69% year-to-date return many headlines cite. VanEck Semiconductor ETF (NYSEARCA:SMH) opened 2026 at $360 and closed June 3 at $638, a 77.13% run in just over five months. Over the trailing year the fund went from $248 to that same $638, a 157.19% total. Over the same windows, SPDR S&P 500 ETF Trust (NYSEARCA:SPY) returned 10.61% year-to-date and 26.53% on the year. That spread is the article.

The arithmetic, in plain dollars SMH is a market-cap-weighted basket of U.S.-listed semiconductor names with an expense ratio of 0.35%, cheap enough that fees do not blur the math. The fund’s yield is modest, so price return and total return read close enough that we can talk about one share moving from $360 to $638 and call it the honest picture. Five months of trading. No leverage. No structured product. Just the underlying basket repricing.

Compared with the S&P 500, SMH delivered ~7x the YTD move and ~6x the one-year move. That is a regime, not a rotation. And before anyone asks, SMH is unlevered, not a 3x leveraged product compounding in a low-vol uptrend. The constituents simply went up that much.

Recent weeks have been the loudest stretch. SMH rose 26% in the month ending June 3 and 7% in the final week alone, which is the kind of late-cycle acceleration that tends to produce kitchen-table conversations about whether your friend who bought in January is now retired.

What actually did the work The simple answer is AI capex. The interesting answer is that SMH captured it through a basket that owns the design houses, the foundry, the memory makers, and the equipment vendors together, so when capital spending shows up at any layer of the stack, the fund collects rent from it.

The top of the book reads like an AI supply chain in order of importance: AMD near 10%, Broadcom and Micron near 9%, Taiwan Semiconductor, NVIDIA, ASML, and Intel clustered around 8%, with Lam Research, Applied Materials, and Texas Instruments rounding out the top ten. Note what is missing here: a single name does not carry the fund. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is up 15% year-to-date and 52% on the year, both of which are good numbers, neither of which gets you to SMH’s 77% and 157%. Memory (Micron), networking and custom silicon (Broadcom), advanced lithography (ASML), and the broader equipment complex did the heavy lifting on top of that.

NVIDIA’s most recent earnings explain why everything around it is also bid. Q1 FY27, reported May 20, put revenue at $81.61 billion, up 85.2% year over year, with Data Center revenue at $75.25 billion (up 92%) and Data Center networking at $14.8 billion (up 199%). Management guided next quarter to $91.0 billion in revenue and disclosed total supply commitments of $119.0 billion, which is the kind of forward booking number that pulls every fab, memory house, and tool maker in the basket along with it. CEO Jensen Huang called it "the largest infrastructure expansion in human history", which is the sort of thing CEOs say, except this time the order book is corroborating.

The mechanism, then, is sector concentration meeting a sustained, multi-vendor capex cycle that pays the whole stack. That is a structurally different (and more durable) setup than what carried, say, SMH’s 423% five-year run, where NVIDIA’s 1,125% ascent over the same window did a lot of the talking.

What has to keep happening For SMH to keep printing numbers like these, three conditions need to hold, and a thoughtful reader can watch all three.

The first is hyperscaler capex guidance. The cloud platforms (NVIDIA’s named partners include Meta, Anthropic, Google Cloud, and AWS) need to keep raising rather than trimming their data center build numbers. The quarterly capex disclosures are public and they are the cleanest leading indicator the basket has. The second is the Data Center revenue line at NVIDIA and the networking segment specifically, because networking grew 263% in Q4 FY26 and 199% in Q1 FY27, and a deceleration there would be the first crack in the "the whole stack is paid" thesis. The third is the supply commitment figure. $119 billion is forward-booked demand. When that number stops climbing, the fund’s tailwind stops climbing with it.

The risks worth taking seriously are the quieter ones. China revenue is already excluded from NVIDIA’s guidance, with H20 shipments zeroed out, so any further restriction is mostly priced. The real risk is valuation. SMH is up 77% in five months against an S&P that is up 11%, and at some point the multiple does the thing multiples do. Reddit’s r/investing has been circulating threads about U.S. stocks surpassing 1929 valuation levels, along with Michael Burry’s "Fugazi" critique of the AI complex, which tells you the skepticism is already loud enough to be a contrary indicator on either side depending on your priors. GPU rental prices for H200s declined 38% through the second half of May, which is the kind of granular data point worth watching, because it is what a glut would look like before earnings catch up to it.

The one thing to take with you SMH is the original semiconductor ETF, launched in 2000, and it has spent twenty-six years being a reasonably boring way to own the chip cycle. A 2,347% ten-year return tells you the basket compounds when the cycle is on. What is different this time is that the cycle is being driven by capex commitments that are already on the books, from buyers who have already raised the money, for chips that are already on order. The mechanism is durable enough to keep watching. The valuation is no longer the bargain it was on December 31. If you are reading this trying to decide whether you missed it, the honest answer is that you missed the easy 77%. Whether you missed the next leg depends entirely on whether hyperscaler capex guidance for 2027 comes in above or below the numbers already priced in, and that data will arrive in quarterly increments that anyone can read.

 Engineers can build safer, higher-performing electric vehicles and energy storage systems with TI's new BQ79826Z-Q1 battery monitor

News highlights:

The industry's first 26-cells-in-series channel battery monitor delivers best-in-class sensing accuracy, reducing system costs by supporting more cells per device than competing solutions. Integrated smart EIS engine enables early warning of thermal runaway from inside battery cells, helping ensure safety in EVs and ESSs. Designed to help engineers create safer, higher-performing automotive and industrial applications, the BQ79826Z-Q1 is the latest addition to TI's portfolio of BMS devices. , /PRNewswire/ -- Texas Instruments (TI) (Nasdaq: TXN) today introduced the industry's highest-cell-count battery monitor with an integrated electrochemical impedance spectroscopy (EIS) engine, bringing predictive intelligence, comprehensive data and real-time diagnostics to battery monitoring in electric vehicles (EV) and energy storage system (ESS) applications.

TI’s new BQ79826Z-Q1 battery monitor enables increased safety and performance in EVs and ESSs. The BQ79826Z-Q1 battery monitor enhances safety and extends battery life by detecting potential failures from within battery cells. The single chip delivers the highest-cell-count monitoring in its class, tracking up to 44% more channels than previous generations. With this increase in channels, the device significantly decreases the number of components required in a battery pack, reducing system complexity and cost without compromising reliability. TI is showcasing this innovation at the 2026 Power Conversion, Intelligent Motion Expo and Conference (PCIM), June 9-11, in Nuremberg, Germany.

"The electrification of transportation and the rapid expansion of energy storage are redefining what battery performance must deliver, and as a leader in battery management technology, TI is uniquely positioned to meet that challenge," said Wenjia Liu, vice president and general manager, battery management systems (BMS) at TI. "Our high-cell-count battery monitor with a built-in EIS engine helps 'shine a light' inside battery cells, delivering rich chemical-state data that enables systems' software to make informed, real-time decisions on safety and performance of the battery pack, allowing engineers to address the most critical challenges in battery management."

For more information, see ti.com/BQ79826Z-Q1.

Delivering safety and performance with EIS technology
Just as an electrocardiogram (EKG) monitors the heart, EIS monitors a battery. It delivers continuous, real-time insight that reveals the battery's health and warns of issues before they become critical. Integrated EIS technology enables the BQ78926Z-Q1 to detect fault conditions earlier – from inside the cells – helping maintain safety and notifying passengers of potential vehicle hazards such as thermal runaway.

These same benefits extend to ESSs, where reliable battery monitoring is critical to meeting the growing power demands of artificial intelligence data centers. As effective storage solutions become increasingly vital in the grid-to-gate ecosystem, EIS gives engineers real-time visibility into the state of charge and state of health of each battery cell, regardless of system size.

Maximizing efficiency with industry-leading cell count
The performance of an EV or ESS is fundamentally affected by the quality and efficiency of its batteries. The BQ79826Z-Q1 supports up to 26 cells per device, eight more than any competing solution, setting a new industry standard. Fewer monitoring devices means a lower bill of materials, simplified architecture and reduced board space requirements, translating to meaningful cost savings per channel without sacrificing quality or reliability.

When paired with the BQ79881-Q1 pack monitor and optional TI communications bridge, these devices create a powerful chipset that works across different module sizes, battery chemistries and mechanical designs, giving engineers the flexibility to design once and deploy everywhere. This scalability reduces engineering overhead and accelerates time to market for automotive and energy storage designers.

Calculating charge readings with the best-in-class accuracy
With a voltage accuracy of <2mV across a full temperature range of –40°C to +125°C, higher resolution analog-to-digital converters and ultra-low noise, the BQ78926Z-Q1 enables more accurate state-of-charge calculations, directly addressing one of the biggest concerns for EV drivers: range anxiety. Utilizing EIS technology, this device enables more accurate temperature and state-of-charge estimation, helping designers achieve longer battery life and faster charging without compromising battery health. With an EIS measurement time that is five times faster than previous solutions, this device delivers the highest functional safety voltage reading per cell. Compliance with Automotive Safety Integrity Level D and International Organization for Standardization 26262 gives designers a smarter, more efficient path to safer, longer-lasting batteries.

For more information on the BQ79826Z-Q1, see technical article "Enabling the next phase of battery intelligence."

Innovating what's next in power at PCIM 2026
Visitors to PCIM can see new products and solutions from TI that are enabling engineers to innovate what's next in power in Hall 7, Booth No. 652. The new BQ79826Z-Q1 battery monitor will be featured in an EIS-enabled BMS reference design, alongside other innovations such as an 11kW single-stage bidirectional onboard charger, a 50kVA solid-state transformer cell stack with Ethernet and Fast Serial Interface communication and short-circuit protection for silicon carbide power metal-oxide semiconductor field-effect transistors with technology from Flex.

For more information about TI at PCIM, see ti.com/pcim.

Availability

Preproduction quantities of the BQ79826Z-Q1 battery monitor with integrated EIS engine are now available on TI.com, with production quantities expected by the end of 2026. To support designers, complete development support including evaluation modules and reference designs are available. About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.

SOURCE Texas Instruments

Key Takeaways Honeywell's Building Automation revenues rose 11% year over year to $1.88 billion in Q1 2026.HON delivered 8% organic sales growth, with both building solutions and products up 8%.HON reported 9% order growth, aided by data center, healthcare and fire product demand. Honeywell International Inc. (HON - Free Report) continues to benefit from sustained strength in its Building Automation segment, which has become a major growth driver for it. Solid demand for its products and solutions, led by increasing building projects, particularly in North America, is supporting the segment’s revenues. The segment’s revenues totaled $1.88 billion, up 11% year over year in the first quarter of 2026. Its organic sales increased 8% year over year in the same period.

The upside was driven by ongoing strength in both the building solutions and building products businesses. While sales from the building solutions business grew 8%, the same from the building products business also increased 8% in the first quarter.

Increasing order rates and capex investments in data centers and health care projects also bode well for the segment. The Building Automation segment reported strong order growth of 9% in the first quarter, driven by double-digit increases in projects, services and strong demand for fire products.

With healthy order trends, robust demand across key end markets and continued investment in data center and healthcare infrastructure, the Building Automation segment is well-positioned to sustain its growth momentum in the coming quarters.

Segmental Snapshot of HON’s PeersAmong HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 6.8% year over year in the first quarter of 2026.

Honeywell’s another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is plagued by lower commercial new construction activity. Volume declines owing to adverse winter weather conditions are also adversely affecting Carlisle’s segment. Revenues from Carlisle’s unit decreased 5.1% year over year in the first quarter of 2026.

HON's Price Performance, Valuation and EstimatesShares of Honeywell have gained 13.4% in the past six months against the industry’s decline of 1.1%.

Image Source: Zacks Investment Research

From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 19.99X, above the industry’s average of 15.23X. Honeywell carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HON’s 2026 earnings has increased 1.1% over the past 60 days.

Image Source: Zacks Investment Research

Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced it was reaffirming its full-year 2026 guidance ahead of the planned Honeywell Aerospace spin-off on June 29, 2026. The company also provided a preliminary 2026 outlook for the remaining company post spin, which will conduct business under the name Honeywell Technologies. The company will discuss its latest outlook for 2026 during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today, which precedes its 2026 Investor Day on June 11, 2026.

2026 Outlook
Honeywell continues to expect sales of $38.8 billion to $39.8 billion with organic1 sales growth in the range of 3% to 6%. Segment margin2 is expected to be 22.7% to 23.1%, with segment margin2,5 expansion of 20 to 60 basis points. Adjusted earnings per share3 is expected to be $10.35 to $10.65, up 6% to 9%. The company expects operating cash flow of $4.7 billion to $5.0 billion, while free cash flow1,4 is expected to be $5.3 billion to $5.6 billion, representing growth of 4% to 10% for the full year. A summary of the company's 2026 guidance can be found below in Table 1.

Honeywell Technologies Guidance Framework
The company also provided a preliminary guidance framework for the company that will remain after the Honeywell Aerospace spin-off, which is expected to be completed on June 29, 2026. This framework excludes full-year expected results for the aerospace segment. The outlook incorporates the impact of the planned divestitures of Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions, which the company announced it had reached agreements to sell in the second quarter and expects to close by the fourth quarter. The outlook includes estimated results for the Johnson Matthey Catalyst Technologies acquisition, which it announced in May 2025 and expects to close in the third quarter. Finally, the company announced that it intends to make certain changes to the presentation of its adjusted results, including removing the income stemming from an overfunded pension liability and removing the consolidated results of Quantinuum following the June 4 initial public offering. The company believes these changes provide investors with a better basis for evaluating performance going forward.

Considering these updates, Honeywell Technologies expects 2026 sales of $19.9 billion to $20.2 billion with organic1 sales growth in the range of 2% to 3%. Segment margin2 is expected to be 19.8% to 20.3%, with segment margin2 expansion of 220 to 270 basis points. Adjusted earnings per share3 is expected to be $3.95 to $4.15, up 22% to 28%. Finally, the company expects free cash flow1,4 of approximately $2.0 billion. A summary of Honeywell Technologies' 2026 guidance can also be found below in Table 1.

Table 1: Full-Year 2026 and 2H 2026 Guidance1

Prior Guidance

(Honeywell International)

2026 Guidance

(Honeywell Technologies)

2H 2026 Guidance

(Honeywell Technologies)

Sales

$38.8B - $39.8B

$19.9B - $20.2B

$10.1B - $10.3B

Organic1 Growth

3% - 6%

2% - 3%

3% - 5%

Segment Margin

22.7% - 23.1%

19.8% - 20.3%

20.9% - 21.6%

Expansion

20 - 60 bps5

220 - 270 bps

310 - 380 bps

Adjusted Earnings Per Share3

$10.35 - $10.65

$3.95 - $4.15

$2.20 - $2.35

Adjusted Earnings Growth3

6% - 9%

22% - 28%

   22% - 31%

Operating Cash Flow

$4.7B - $5.0B

 ~$2.1B

 ~$2.3B

Free Cash Flow1,4

          $5.3B - $5.6B

~$2.0B

   ~$1.5B

1

See additional information at the end of this release regarding non-GAAP financial measures.

2

Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin or adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS.

3

Adjusted EPS and adjusted EPS V% guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate.

4

With respect to historical periods, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, Resideo indemnification and reimbursement agreement termination payment, cash payment for settlement of the divestiture of asbestos liabilities, and cash payment for settlement of Flexjet-related litigation matters. With respect to the company's outlook for 2026, free cash flow adjusts for capital expenditures, spin-off and separation-related cost payments, and cash payment for settlement of Flexjet-related litigation matters.

5

Segment margin expansion as compared to Adjusted segment margin in 2025.

Conference Call and 2026 Investor Day Details
Honeywell will discuss its 2026 guidance during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company's website (www.honeywell.com/investor). A replay of the webcast will be available for 30 days following the presentation. The company will also host a live video webcast of its investor conference which will take place in New York City on Thursday, June 11, 2026. The event will feature presentations and Q&A panels with the management team. A real-time webcast of this presentation and related presentation materials can also be accessed at the company's website, and a replay of this webcast will be available for 30 days following the presentation.

About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

Honeywell uses our Investor Relations website, www.honeywell.com/investor, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.

We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the proposed separation of Honeywell and Honeywell Aerospace and the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell's current expectations, estimates, and projections regarding the proposed separation of Honeywell and Honeywell Aerospace and the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the proposed separation of Honeywell and Honeywell Aerospace and the planned sales of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved.

These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

This release contains financial measures presented on a non-GAAP basis. Honeywell's non-GAAP financial measures used in this release are as follows:

Adjusted net sales; Adjusted net sales excluding spin-off and divestiture impact; Segment profit, on an overall Honeywell basis; Segment profit excluding spin-off and divestiture impact; Adjusted segment profit, on an overall Honeywell basis; Adjusted segment profit excluding spin-off and divestiture impact; Segment profit margin, on an overall Honeywell basis; Segment profit margin excluding spin-off and divestiture impact; Organic sales growth; Free cash flow; Free cash flow excluding spin-off and divestiture impact; and Adjusted earnings per share; Adjusted earnings per share excluding spin-off and Quantinuum divestiture impact; Adjusted earnings per share excluding spin-off and divestiture impact. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

Appendix

Non-GAAP Financial Measures

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell's business.

As indicated herein, certain forward-looking non-GAAP financial measures are not reconciled because management cannot reliably predict or estimate certain items for the reasons specified herein with respect to each non-GAAP financial measure.

Honeywell International Inc.

Reconciliation of Operating Income to Segment Profit and Adjusted Segment Profit, Net Sales to Adjusted Net Sales, Calculation of
Segment Profit Margin and Adjusted Segment Profit Margin, on an Overall Honeywell Basis and Excluding Spin-off and Divestiture Impact

(Unaudited)

(Dollars in millions)

Twelve Months Ended December 31, 2025

As Reported

Less: Spin-off and
Divestiture Impact(1)

Excluding Spin-off and
Divestiture Impact

Operating income

$                5,573

$                  4,268

$                1,305

Stock compensation expense(4)

196

43

153

Repositioning, Other(2),(3)

675

231

444

Amortization of acquisition-related intangibles(6)

570

62

508

Pension and other postretirement service costs(3)

73

16

57

Acquisition-related costs(5)

2

—

2

Indefinite-lived intangible asset impairment(6)

44

—

44

Impairment of goodwill

724

—

724

Impairment of assets held for sale

270

—

270

Segment profit

$                8,127

$                  4,620

$                3,507

Flexjet-related litigation matters

373

373

—

Adjusted segment profit

$                8,500

$                  4,993

$                3,507

Net sales

$              37,442

$                17,527

$              19,915

Flexjet-related litigation matters

312

312

—

Adjusted net sales

$              37,754

$                17,839

$              19,915

Adjusted segment profit

$                8,500

$                3,507

÷ Adjusted net sales

$              37,754

$              19,915

Adjusted segment profit margin

22.5 %

17.6 %

1

Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026

2

Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges

3

Included in Cost of products and services sold and Selling, general and administrative expenses

4

Included in Selling, general and administrative expenses

5

Included in Other (income) expense. Includes acquisition-related fair value adjustments to inventory and third-party transaction and integration costs.

6

Included in Cost of products and services sold.

Six Months Ended December 31, 2025

As Reported

Less: Spin-off and
Divestiture Impact(1)

Excluding Spin-off
and Divestiture Impact

Operating income

$                2,009

$                  1,955

$                   54

Stock compensation expense(4)

82

21

61

Repositioning, Other(2),(3)

574

228

346

Amortization of acquisition-related intangibles(6)

303

23

280

Pension and other postretirement service costs(3)

46

8

38

Acquisition-related costs(5)

9

—

9

Indefinite-lived intangible asset impairment(6)

44

—

44

Impairment of goodwill

724

—

724

Impairment of assets held for sale

255

—

255

Segment profit

$                4,046

$                  2,235

$                1,811

Flexjet-related litigation matters

373

373

—

Adjusted segment profit

$                4,419

$                  2,608

$                1,811

Net sales

$              19,196

$                  9,034

$              10,162

Flexjet-related litigation matters

312

312

—

Adjusted net sales

$              19,508

$                  9,346

$              10,162

Adjusted segment profit

$                4,419

$                1,811

÷ Adjusted net sales

$               19,508

$               10,162

Adjusted segment profit margin

22.7 %

17.8 %

1

Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026

2

Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges

3

Included in Cost of products and services sold and Selling, general and administrative expense

4

Included in Selling, general and administrative expenses

5

Included in Other (income) expense. Includes acquisition-related fair value adjustments to inventory and third-party transaction and integration costs.

6

Included in Cost of products and services sold.

We define operating income as net sales less total cost of products and services sold, research and development expenses, selling, general and administrative expenses, impairment of goodwill, and impairment of assets held for sale. We define segment profit, on an overall Honeywell basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, amortization of acquisition-related intangibles, certain acquisition- and divestiture-related costs and impairments, and repositioning and other charges. We define adjusted segment profit, on an overall Honeywell basis, as segment profit excluding the segment profit impact of the Flexjet-related litigation matters. We define segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. We define adjusted net sales as net sales less the sales impact of the Flexjet-related litigation matters. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company's ongoing performance. We define adjusted segment profit margin, on an overall Honeywell basis, as adjusted segment profit divided by adjusted net sales. These measures are each shown on an overall Honeywell basis and excluding spin-off and divestiture impacts, which we define as less the respective impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

A quantitative reconciliation of operating income to segment profit, on an overall Honeywell basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of operating income to segment profit will be included within future filings.

Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.

Honeywell International Inc.

Reconciliation of Earnings per Share to Adjusted Earnings per Share Excluding Spin-off and Quantinuum Divestiture Impact

(Unaudited)

Twelve Months Ended December 31, 2025

As Reported

Less: Spin-off
and
Quantinuum
Divestiture
Impact(1)

Excluding
Spin-off and
Quantinuum
Divestiture
Impact

Earnings per share of common stock from continuing operation - diluted(2)

$         6.94

$         5.19

$         1.75

Pension income(3)

(0.46)

(0.39)

(0.07)

Amortization of acquisition-related intangibles(4)

0.67

0.08

0.59

Acquisition-related costs(5)

0.05

—

0.05

Divestiture-related costs(6)

0.72

0.31

0.41

Indefinite-lived intangible asset impairment(7)

0.07

—

0.07

Impairment of goodwill(8)

1.13

—

1.13

Impairment of assets held for sale(9)

0.32

—

0.32

Loss (gain) on sale of business(10)

0.04

—

0.04

Gain related to Resideo indemnification and reimbursement agreement termination(11)

(1.25)

—

(1.25)

Adjustment to estimated future environmental liabilities(12)

0.25

0.22

0.03

Loss on expected settlement of divestiture of asbestos liabilities(13)

0.17

—

0.17

Flexjet-related litigation matters(14)

0.48

0.48

—

Adjusted earnings per share of common stock from continuing operations - diluted

$         9.13

5.89

$         3.24

1

Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026.

2

For the twelve months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of approximately $642.8 million.

3

For the twelve ended December 31, 2025, pension income as reported was $293 million, net of tax expense of $88 million. For the twelve months ended December 31, 2025, pension income excluding spin-off and Quantinuum divestiture impact was $44 million, net of tax expense of $24 million.

4

For the twelve months ended December 31, 2025, acquisition-related intangibles amortization as reported was $432 million, net of tax benefit of $138 million.  For the twelve months ended December 31, 2025, acquisition-related intangibles amortization excluding spin-off and Quantinuum divestiture impact was $382 million, net of tax benefit of $121 million.

5

For the twelve months ended December 31, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is $35 million, net of tax benefit of $10 million.

6

For the twelve months ended December 31, 2025, the adjustment for divestiture-related costs, which is principally comprised of third-party transaction costs, was $460 million as reported, net of tax benefit of approximately $61 million. For the twelve months ended December 31, 2025, divestiture-related costs excluding spin-off and Quantinuum divestiture impact was $261 million, net of tax expense of approximately $31 million.

7

For the twelve months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit.

8

For the twelve months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit.

9

For the twelve months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million.

10

For the twelve months ended December 31, 2025, the adjustment for loss on sale of the personal protective equipment business was $28 million, net of tax benefit of $2 million.

11

For the twelve months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax expense.

12

In the twelve months ended December 31, 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation, which led to earlier recognition of the estimated probable liabilities and an increase to estimated environmental liabilities. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities as reported was $161 million, net of tax benefit of $50 million. For the twelve months ended December 31, 2025, the adjustment to increase environmental liabilities excluding spin-off and Quantinuum divestiture impact was $22 million, net of tax benefit $7 million.

13

For the twelve months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million.

14

For the twelve months ended December 31, 2025, the adjustment for the Flexjet-related litigation matters was $302 million, net of tax benefit of $71 million. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company's ongoing performance.

Six Months Ended December 31, 2025

As Reported

Less: Spin-off
and
Quantinuum
Divestiture
Impact(1)

Excluding
Spin-off and
Quantinuum
Divestiture
Impact

Earnings per share of common stock from continuing operation - diluted(2)

$         2.80

$         2.11

$         0.69

Pension income(3)

(0.19)

(0.21)

0.02

Amortization of acquisition-related intangibles(4)

0.36

0.03

0.33

Acquisition-related costs(5)

0.05

—

0.05

Divestiture-related costs(6)

0.61

0.37

0.24

Indefinite-lived intangible asset impairment(7)

0.07

—

0.07

Impairment of goodwill(8)

1.13

—

1.13

Impairment of assets held for sale(9)

0.32

—

0.32

Loss (gain) on sale of business

—

—

—

Gain related to Resideo indemnification and reimbursement agreement termination(10)

(1.25)

—

(1.25)

Adjustment to estimated future environmental liabilities(11)

0.25

0.22

0.03

Loss on expected settlement of divestiture of asbestos liabilities(12)

0.17

—

0.17

Flexjet-related litigation matters(13)

0.48

0.48

0.00

Adjusted earnings per share of common stock from continuing operations - diluted

$         4.80

$         3.00

$         1.80

1

Excludes the impacts attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026

2

For the six months ended December 31, 2025, adjusted earnings per share utilizes weighted average shares of approximately $640.8 million.

3

For the six months ended December 31, 2025, pension income as reported was $120 million, net of tax expense of $36 million. For the six months ended December 31, 2025, pension expense excluding spin-off and Quantinuum divestiture impact was $16 million, net of tax expense of $6 million.

4

For the six months ended December 31, 2025, acquisition-related intangibles amortization as reported was $230 million, net of tax benefit $73 million. For the six months ended December 31, 2025, acquisition-related intangibles amortization excluding spin-off and Quantinuum divestiture impact was $210 million, net of tax benefit $67 million.

5

For the six months ended December 31, 2025, the adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is $30 million, net of tax benefit of $9 million.

6

For the six months ended December 31, 2025, divestiture-related costs as reported was $393 million, net of tax benefit of approximately $59 million. For the six months ended December 31, 2025, divestiture-related costs excluding spin-off and Quantinuum divestiture impact was $154 million, net of tax benefit of approximately $28 million.

7

For the six months ended December 31, 2025, the impairment charge of indefinite-lived intangible assets associated with the Industrial Automation reportable segment was $44 million, without tax benefit.

8

For the six months ended December 31, 2025, the impairment charge of goodwill associated with the Industrial Automation reportable segment was $724 million, without tax benefit.

9

For the six months ended December 31, 2025, the impairment charge of assets held for sale was $209 million, net of tax benefit of $61 million.

10

For the six months ended December 31, 2025, the gain related to the Resideo indemnification and reimbursement agreement termination was $802 million, without tax expense.

11

In the six months ended December 31, 2025, the Company enhanced its process for estimating environmental liabilities at sites undergoing active remediation, which led to earlier recognition of the estimated probable liabilities and an increase to estimated environmental liabilities. For the six months ended December 31, 2025, the adjustment to increase environmental liabilities as reported was $161 million, net of tax benefit of $50 million. For the six months ended December 31, 2025, the adjustment to increase environmental liabilities excluding spin-off and Quantinuum divestiture impact was $22 million, net of tax benefit $7 million.

12

For the six months ended December 31, 2025, the adjustment for loss on settlement of divestiture of asbestos liabilities was $112 million, net of tax benefit of $36 million.

13

For the six months ended December 31, 2025, the adjustment for the Flexjet-related litigation matters was $302 million, net of tax benefit of $71 million. Management considers the nature and significance of these litigation matters to be unusual and not indicative of the Company's ongoing performance.

We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We define adjusted earnings per share excluding spin-off and Quantinuum divestiture impact as adjusted earnings per share less impact of adjusted earnings per share attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, and attributable to Quantinuum, due to its initial public offering on June 4, 2026. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.

Reconciliation of Earnings per Share to Adjusted Earnings per Share Excluding Spin-off and Divestiture Impact

(Unaudited)

Twelve Months Ended December 31, 2026(E)

Six Months
Ended
December 31,
2026(E)

Previous
Guidance

Less: Spin-off
and Divestiture
Impact(1)

Guidance
Excluding Spin-
off and
Divestiture
Impact

Guidance

Earnings per share of common stock from continuing operation - diluted(2)

$8.87 - $9.17

$5.98-$6.08

$2.89 - $3.09

$1.84 - $1.99

Pension income(3)

No Forecast

No Forecast

No Forecast

No Forecast

Amortization of acquisition-related intangibles(4)

0.75

0.11

0.64

0.32

Acquisition-related costs(5)

0.05

—

0.05

0.02

Divestiture-related costs

No Forecast

No Forecast

No Forecast

No Forecast

Debt restructuring costs(6)

0.36

—

0.36

—

ERP implementation costs(7)

0.02

—

0.02

0.02

Impairment of assets held for sale(8)

0.31

0.31

—

—

Loss (gain) on sale of business(9)

(0.01)

—

(0.01)

—

Adjusted earnings per share of common stock from continuing operations - diluted

$10.35 - $10.65

$6.40 - $6.50

$3.95 - $4.15

$2.20 - $2.35

1

Excludes the forecasted earnings attributable to the Aerospace Technologies business, due to the expected spin-off on June 29, 2026, attributable to Quantinuum, due to its initial public offering on June 4, 2026, and attributable to Productivity Solutions and Services and Warehouse and Workflow Solutions 2H26, which is expected to be sold during the second half of 2026.

2

For the twelve and six months ended December 31, 2026, expected earnings per share utilizes weighted average shares of approximately 639 million.

3

Beginning second quarter 2026, we will exclude the full amount of pension income, including the related tax effects, from adjusted earnings per share. Prior to the second quarter 2026, we excluded only pension mark-to-market expense, including the related tax effects, from adjusted earnings per share.

4

For the twelve months ended December 31, 2026, expected acquisition-related intangibles amortization excluding spin and divestiture impact includes approximately $480 million, net of tax benefit of approximately $115 million. For the twelve months ended December 31, 2026, expected adjusted acquisition-related intangibles amortization includes $405 million, net of tax benefit of approximately $95 million. For the six months ended December 31, 2026, expected acquisition-related intangibles amortization includes approximately $205 million, net of tax benefit of approximately $45 million.

5

For the twelve months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is principally comprised of third-party transaction and integration costs and acquisition-related fair value adjustments to inventory, is approximately $35 million, net of tax benefit of approximately $10 million. For the six months ended December 31, 2026, the expected adjustment for acquisition-related costs, which is comprised of third-party transaction and integration costs, is approximately $10 million, without tax benefit.

6

For the twelve months ended December 31, 2026, the expected adjustment for debt restructuring costs is $230 million, net of tax benefit of $70 million.

7

For the twelve months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $15 million, net of tax benefit of approximately $5 million. For the six months ended December 31, 2026, the expected adjustment for ERP implementation costs is approximately $10 million, without tax benefit.

8

For the twelve months ended December 31, 2026, the expected impairment charge of assets held for sale is $200 million, net of tax benefit of $63 million.

9

For the twelve months ended December 31, 2026, the expected gain on sale of personal protection equipment business is $5 million, net of tax expense of $1 million.

We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges as listed above. We define adjusted earnings per share excluding spin-off and divestiture impact as adjusted earnings per share less impact of adjusted earnings per share attributable to the Aerospace Technologies business, attributable to Quantinuum, and attributable to the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, which are held for sale. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, pension income or the divestiture-related costs. Pension income is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The divestiture-related costs are subject to detailed development and execution of separation restructuring plans for the announced separation of Honeywell from Honeywell Aerospace and sales of Productivity Solutions and Services and Warehouse and Workflow Solutions. We therefore do not include an estimate for pension income or divestiture-related costs. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change.

Acquisition amortization and acquisition- and divestiture-related costs are significantly impacted by the timing, size, and number of acquisitions or divestitures we complete and are not on a predictable cycle and we make no comment as to when or whether any future acquisitions or divestitures may occur. We believe excluding these costs provides investors with a more meaningful comparison of operating performance over time and with both acquisitive and other peer companies.

We define adjusted income before taxes as income before taxes from continuing operations adjusted for items presented above. We define adjusted income tax expense as income tax expense adjusted for tax impact of items presented above. We define adjusted effective tax rate as adjusted income tax expense divided by adjusted income before taxes.

We believe that adjusted effective tax rate is a non-GAAP measure that is useful to investors and management as an ongoing representation of our tax rate excluding one-off and unusual transactions. This measure can be used to evaluate our tax rate on our recurring operations. For forward looking information, we do not provide effective tax rate guidance on a GAAP basis as management cannot reliably predict or estimate, without unreasonable effort, the pension mark-to-market expenses and other one-off and unusual transactions.

Honeywell International Inc.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow Excluding Spin-off and Divestiture Impact

(Unaudited)

(Dollars in millions)

Twelve Months Ended December 31, 2026 (E)

Six Months
Ended
December 31,
2026(E)

Previous
Guidance

Less: Spin-
off and
Divestiture
Impact(1)

Guidance
Excluding
Spin-off and
Divestiture
Impact

Guidance

Cash provided by operating activities from continuing operations

~$4.4 - $4.7

~(2.4)

~$2.0 - $2.3

$2.2 - $2.4

Capital expenditures

~(1.3)

~0.7

~(0.6)

~(1.0)

Spin-off and separation-related cost payments

~1.8

~(1.4)

~0.4

~0.2

Settlement of Flexjet-related litigation matters

~0.4

~(0.4)

—

—

Free cash flow

~$5.3 - $5.6

~$3.5

~$1.8 - $2.1

~$1.4 - $1.6

1

The forecasted cash flows attributable to the Aerospace Technologies business are excluded due to the expected spin-off on June 29, 2026. The forecasted cash flows attributable to Productivity Solutions and Services and Warehouse and Workflow Solutions are excluded due to divestitures expected to close during the second half of 2026. The forecasted cash flows attributable to Quantinuum are excluded due to its initial public offering on June 4,2026.

We define free cash flow as cash provided by operating activities from continuing operations less cash for capital expenditures and excluding spin-off and separation-related cost payments and the cash payment for settlement of Flexjet-related litigation matters. We define free cash flow excluding spin-off and divestiture impact as free cash flow less free cash flow attributable to the Aerospace Technologies business, which is expected to spin-off on June 29, 2026, attributable to the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, which are held for sale, and attributable to Quantinuum, due to its initial public offering on June 4, 2026.

We believe that free cash flow and free cash flow excluding spin-off and divestiture impact are non-GAAP measures that are useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. These measures can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.

SOURCE Honeywell

Honeywell backed its full-year guidance as it looks to close a spinoff of its aerospace division.

Honeywell International Inc. (HON) Q4 2026 Guidance Call Transcript

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Honeywell (NASDAQ:HON | HON Price Prediction) fits a multi-decade hold thesis because it pairs a diversified, mission-critical industrial portfolio with a 27-year record of uninterrupted dividend growth, and the recent 10.04% one-week pullback to $213.97 marks a notable pullback for long-term investors ahead of the June 29, 2026 Aerospace spin-off. This is a hold for the next 20 years.

Pillar One: Durability That Outlasts Cycles The forever case starts with Honeywell’s record backlog of over $38 billion and a book-to-bill above 1.1, both signs that customers are committing to multi-year contracts in aerospace, building automation, process automation, and industrial automation. Wall Street still treats Honeywell as a cyclical manufacturer, yet weakness in one segment is naturally offset by strength in another, and the Honeywell Forge platform plus sticky multiyear corporate contracts with massive switching costs turn one-time equipment sales into recurring revenue. Q1 2026 segment margin expanded 90 basis points to 23.3%, evidence of pricing power even with pricing trending toward 4% against inflation.

Pillar Two: Income That Compounds Quietly Honeywell has paid and raised its dividend without a single cut across the entire 27-year history from 1999 to 2026. The current quarterly payout of $1.19 annualizes to $4.76, more than double the $0.595 quarterly rate from 2016. Underwriting that income is industrial-strength cash generation: operating cash flow of $6.38 billion in 2025, free cash flow guidance of $5.3 billion to $5.6 billion for 2026, and $6.78 billion returned to shareholders through dividends and buybacks in 2025 alone. A $2,000 position today buys roughly nine shares throwing off predictable quarterly cash that can be reinvested for decades.

Pillar Three: Built To Survive Every Market Honeywell sits on $11.98 billion in cash, carries a beta of 0.843, and trades at a forward earnings multiple of 20. Defense replenishment, LNG buildouts (over $2 billion in project wins over the past three quarters), and data center demand inside Building Automation (11% growth in Q1 2026) offset weakness anywhere else in the global economy. CEO Vimal Kapur called the Q1 print “a testament to the resiliency of the Honeywell portfolio.”

Where It Will Lag, And Why The Thesis Holds Honeywell will underperform during pure tech-led bull markets when capital chases high-multiple names. That is the price of owning a steady compounder. Near-term GAAP optics also look noisy: Q1 2026 operating cash flow was negative $650 million because of spin-off separation costs and litigation settlements. Both items are transitory and consistent with the forever thesis. The Aerospace spin gives shareholders equity in two focused leaders, and the cash flow normalizes inside guidance.

For long-term investors, the thesis rests on reinvesting the dividend and letting the position compound across decades.

Honeywell International Inc. (HON - Free Report) ended the recent trading session at $205.88, demonstrating a -4.55% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.

Shares of the company have depreciated by 1.3% over the course of the past month, underperforming the Conglomerates sector's gain of 1.04%, and the S&P 500's loss of 0.03%.

Analysts and investors alike will be keeping a close eye on the performance of Honeywell International Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.42, signifying a 12.00% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.56 billion, indicating a 7.66% downward movement from the same quarter last year.

HON's full-year Zacks Consensus Estimates are calling for earnings of $10.54 per share and revenue of $39.35 billion. These results would represent year-over-year changes of +7.77% and -2.46%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Honeywell International Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, Honeywell International Inc. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Honeywell International Inc. is holding a Forward P/E ratio of 20.47. This signifies a premium in comparison to the average Forward P/E of 12.3 for its industry.

It is also worth noting that HON currently has a PEG ratio of 3.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Diversified Operations industry currently had an average PEG ratio of 1.54 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

A Honeywell aircraft. The company is splitting into two stocks. Both are worth buying. (Carla Gottgens/Bloomberg)

Investors are creatures of habit. They look to find situations that have worked in the past, buy in, and hope history repeats itself. One such situation is staring them in the face right now. Honeywell International circa 2026 can be like General Electric circa 2024.

Honeywell HON is getting more specific about how it plans to grow its automation business, with management signaling that acquisitions worth between $2 billion and $4 billion are likely to be a key part of the strategy.

At the company's investor day in New York, Industrial Automation President Peter Lau said Honeywell sees plenty of room for dealmaking in what he described as a roughly $35 billion market. "There is a ton of opportunity for M&A," Lau said, highlighting the fragmented nature of the automation space. The company is now narrowing its preferred acquisition range to $2billion-$4 billion from a broader $1 billion-$7 billion target outlined previously.

The comments come as Honeywell continues a major portfolio reshaping effort. CFO Mike Stepniak said the company remains committed to paying down debt, investing in the business, and returning cash to shareholders before pursuing larger acquisitions. Honeywell is also preparing to separate its aerospace business, a move that could give management greater flexibility to focus on its remaining operations.

Investors with an interest in Diversified Operations stocks have likely encountered both Sumitomo Corp. (SSUMY - Free Report) and Honeywell International Inc. (HON - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Sumitomo Corp. has a Zacks Rank of #2 (Buy), while Honeywell International Inc. has a Zacks Rank of #3 (Hold) right now. This means that SSUMY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SSUMY currently has a forward P/E ratio of 11.40, while HON has a forward P/E of 20.80. We also note that SSUMY has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HON currently has a PEG ratio of 3.13.

Another notable valuation metric for SSUMY is its P/B ratio of 1.51. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HON has a P/B of 9.47.

These are just a few of the metrics contributing to SSUMY's Value grade of A and HON's Value grade of D.

SSUMY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SSUMY is likely the superior value option right now.