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.
Key Takeaways MDT's CAS grew 78% globally and 124% in the U.S., gaining share and scaling rapidly toward $2B annualized.Medtronic's Hugo drives surgical robotics growth with rising procedures and expanding digital workflow.MDT Symplicity procedures doubled after reimbursement clarity, now annualizing at $100M sustained BP drops. Medtronic plc (MDT - Free Report) is lining up its next product cycle around platforms that can compound across procedure-driven markets.Cardiac ablation is scaling quickly, robotic-assisted surgery is building an ecosystem, and hypertension therapy is moving into broader commercialization.
These are multi-year opportunities, but the near-term backdrop still matters. Medtronic carries a Zacks Rank #4 (Sell), as tariffs, pricing and currency exposure can limit upside even when execution stays solid.
MDT Three Trends Driving the Next Product CycleMedtronic’s Cardiac Ablation Solutions (CAS) is the sharpest growth lever today, supported by the Affera mapping system and Sphere-9 dual-energy catheter. Robotics is the second pillar, with Hugo procedure growth paired with a digital workflow layer through Touch Surgery. Hypertension is the third, with Symplicity Spyral moving from limited adoption to broader access after reimbursement clarity.
Medtronic’s Cardiac Ablation Scaling FastCAS sales grew 78% worldwide in the fourth quarter, including 124% U.S. growth. Management said CAS gained 8 U.S. share points and is annualizing at more than $2 billion, with a goal of reaching $2 billion on a trailing basis in the first quarter of fiscal 2027.
The pipeline is advancing alongside geographic expansion. Sphere-9 launched in Japan, the FDA approved a U.S. ventricular tachycardia pivotal trial, and the Sphere-360 U.S. pivotal study is enrolling after the CE Mark in Europe. Medtronic also highlighted investments in intracardiac echocardiography catheter technologies that deepen exposure to electrophysiology imaging.
MDT Robotics: Hugo and the Digital LayerIn Medical Surgical, Hugo is contributing as global procedure volumes expand, supporting Surgical and Endoscopy performance and broadening Medtronic’s robotics footprint. The near-term question is whether utilization continues to rise as tooling and indications expand.
Medtronic also submitted Hugo to the FDA for general surgery and gynecologic indications and filed the LigaSure robotic-assisted surgery vessel sealer. It received FDA clearance for ProGrip Advanced, a mesh optimized for robotic-assisted ventral hernia repair. Touch Surgery adds the digital layer, with installations above 1,400 and up more than 30% sequentially.
In context, Intuitive Surgical, Inc. (ISRG - Free Report) remains a key benchmark for ecosystem-driven adoption in robotics, while Stryker Corporation (SYK - Free Report) highlights how procedure-centric portfolios can sustain demand when workflows shift. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Medtronic Hypertension Therapy Moves into a New PhaseSymplicity Spyral is changing the commercial outlook for hypertension therapy. The final Medicare National Coverage Determination expanded access, and management said average weekly procedures doubled after reimbursement clarity. Symplicity is now annualizing at $100 million.
Long-term data in more than 2,000 patients showed sustained mean systolic blood pressure reductions of 13.3 millimeters of mercury in ambulatory settings and 18.1 millimeters of mercury in office settings at three years. Medtronic estimates roughly 18 million U.S. people live with uncontrolled hypertension despite multiple medications. Management views renal denervation as a potential multi-billion-dollar opportunity over time.
MDT Neuroscience Adds Breadth Through New PlatformsIn Neuroscience, Medtronic’s Stealth AXiS secured the FDA clearance for spine, cranial and ear, nose and throat indications, plus CE Mark for spine and cranial indications, which expands the platform’s contribution to AiBLE.
Hemorrhagic products advanced 11% with Neuroguard and Artisse adoption, while Altaviva is gaining traction with active implanters up threefold sequentially. Management expects Neuroscience to accelerate in fiscal 2027, supported by Stealth AXiS pull-through, Neuroguard, MMA, Altaviva and tuck-in additions including SPR Therapeutics and ViaVerte that expand chronic pain and basivertebral nerve ablation exposure.
Medtronic’s Near-Term Variable: Diabetes TransitionThe Diabetes business completed the MiniMed initial public offering during fiscal 2026, establishing MiniMed as a standalone, publicly traded company, while Medtronic continues to include Diabetes in fiscal 2027 guidance until separation.
MiniMed Flex was cleared ahead of schedule, and MiniMed Fit is on track for U.S. FDA submission by fall 2026.
MDT What Could Disrupt These TrendsManagement expects approximately $250 million of tariff impact to cost of goods sold in fiscal 2027, plus an earnings-per-share drag from higher fuel and transportation costs tied to the geopolitical environment.
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In addition, fiscal 2027 guidance assumes a neutral to $100 million revenue drag from foreign exchange. Competitive pressure is visible in uneven U.S. Structural Heart performance and pricing weakness in coronary products, with stents falling into the low double digits due to multi-region pricing declines.
Medtronic’s Key Milestones Investors Should WatchIn ablation, investors should monitor sustained CAS share gains, continued progress in the U.S. ventricular tachycardia pivotal trial, and execution in the Sphere-360 U.S. pivotal study.
Image Source: Zacks Investment Research
In robotics, the key markers are Hugo utilization and procedure volumes, plus progress on FDA filings and related tooling. In hypertension, Symplicity procedure momentum post-coverage clarity is the signal. In Neuroscience, look for pull-through from Stealth AXiS and continued gains from Neuroguard and Altaviva. Across all platforms, costs and pricing pressures must stay manageable for the growth narrative to translate into stronger investor appetite.
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.
On June 01, 2026, Texas Instruments Inc TXN shares fell 4.1% to $293.20, marking a notable decline in the context of its recent performance. The stock has experienced significant volatility, with a 52-week range of $152.73 to $331.51.
GF Value™ verdict: The current price of $293.20 is 39.6% above the GF Value™ of $209.96, indicating that the stock is overvalued.GF Score™: TXN has a GF Score™ of 81/100, which is considered strong and suggests solid fundamentals.Most notable signal: Insiders have sold $88.9M in TXN stock over the last three months, indicating a lack of buying interest from those close to the company. Is TXN Overvalued or Undervalued? The current price of Texas Instruments Inc TXN at $293.20 significantly exceeds its GF Value™ of $209.96, signaling that the stock is overvalued by approximately 39.6%. This overvaluation presents a risk for potential investors, as it implies limited upside and potential downside should the market adjust. The GF Valuation label of "Significantly Overvalued" reinforces this assessment. The margin of safety is notably absent at this price level, as the stock trades well above its intrinsic value.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The substantial gap between the current price and GF Value™ raises concerns about the sustainability of TXN's current valuation, especially in a market characterized by increasing scrutiny over high-growth stocks.
How Does TXN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 50.2x 25.2x Forward P/E 37.9x N/A Texas Instruments' current P/E (TTM) of 50.2x is 100% above its 5-year median P/E of 25.2x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict of overvaluation, suggesting that TXN may be priced significantly higher than its historical trading norms.
What Does TXN's GF Score™ Tell Us? Metric Rating GF Score™ 81/100 Financial Strength 6/10 Profitability 8/10 Growth 7/10 Valuation 3/10 Momentum 9/10 The GF Score™ of 81/100 indicates that Texas Instruments has strong fundamentals, particularly in profitability (8/10) and momentum (9/10). However, the valuation score of 3/10 suggests significant concerns regarding its current price level. The financial strength rating of 6/10 reflects a stable foundation, but the low valuation score reinforces the notion that the stock may be overpriced relative to its intrinsic value.
What Are Insiders Doing with TXN Stock? Recent insider activity for Texas Instruments shows that insiders have sold $88.9 million worth of shares in the last three months, with no reported buying activity. This pattern may suggest a lack of confidence among those closest to the company regarding its future price performance. The absence of insider buying could be perceived as a bearish signal, indicating that even those with the most insight into the company's operations are not confident in the stock at current prices.
What This Means for Investors Based on the GF Value™ assessment, Texas Instruments Inc TXN is currently overvalued. The significant gap between its current price and the intrinsic value indicates potential risks for investors. Caution is advised when considering an investment in TXN at this time.
For the complete analysis, visit the Texas Instruments Inc TXN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TXN's GF Score™?
TXN's GF Score™ is 81/100, indicating strong fundamentals that suggest a higher potential for long-term returns.
Is TXN overvalued or undervalued?
TXN is currently overvalued, with its price significantly exceeding the GF Value™ of $209.96.
What is TXN's P/E ratio?
TXN's P/E (TTM) is 50.2x, which is double its 5-year median P/E of 25.2x, indicating a premium valuation compared to its historical norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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.
Julie Knecht named senior vice president and chief financial officer; Rafael Lizardi to retire in August 2026
, /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today announced that Julie Knecht has been named the company's next chief financial officer, effective August 1, 2026. Knecht succeeds Rafael Lizardi, who will retire after 25 years with the company. Lizardi will provide continued support in an advisory role until August 31, 2026, to facilitate the transition.
"I want to thank Rafael for his many years of leadership and dedication to TI," said Haviv Ilan, TI's chairman, president and CEO. "His focus on disciplined capital allocation, including our investments in 300mm manufacturing capacity, and commitment to return all free cash flow to shareholders have positioned our company for continued long-term growth and value creation."
Ilan continued, "We are pleased to promote Julie to CFO from within our finance team. Rafael and Julie have worked together closely for more than a decade, and they share a commitment to financial and operational excellence. She is a demonstrated leader with a strong track record of financial leadership, strategic planning and business acumen, and I am excited to welcome Julie to our leadership team."
"I am proud to have served as CFO during a period when our investments in our business and relentless focus on driving free cash flow per share growth drove sustained value for TI's shareholders," Lizardi said. "It has been a privilege to be a part of TI's leadership team and dedicate my career to helping shape TI into the global semiconductor leader it is today."
"I am honored to be appointed as the company's next CFO," Knecht said. "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. I look forward to building on our success as we continue to execute our strategy and generate long-term value for our customers, employees and shareholders."
Texas Instruments intends to announce its second quarter 2026 financial results and hold a conference call on July 22, 2026, at 3:30 p.m. Central time.
About Julie Knecht
Knecht joined Texas Instruments in 1999 and has held a number of finance and accounting roles, most recently serving as chief accounting officer and vice president of accounting and tax since 2021. Prior to that, she was vice president of accounting for more than 10 years. Knecht has a bachelor's degree in accounting from Texas A&M University, a Master of Business Administration from the University of Texas at Austin and is a licensed certified public accountant.
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.
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.
Learn about the latest breakthroughs in AI and tech with the Reuters Artificial Intelligencer newsletter. Sign up here.
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
After reaching an important support level, Texas Instruments (TXN - Free Report) could be a good stock pick from a technical perspective. TXN surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
TXN could be on the verge of another rally after moving 9.7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
Once investors consider TXN's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 12 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TXN for more gains in the near future.
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’ 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.
Broadcom (AVGO 0.85%), which designs and supplies semiconductor devices and infrastructure software solutions, closed Thursday at $418.91, down 12.59%. The stock fell after fiscal Q2 results and AI guidance, which showed strong growth but disappointed lofty expectations. Investors are watching how AI chip demand and software margins support the multiyear growth outlook.
Trading volume reached 79.9 million shares, about 214% above its three-month average of 25.5 million shares. Broadcom IPO'd in 2009 and has grown 25,759% since going public.
How the markets moved todayThe S&P 500 (^GSPC +0.50%) added 0.41% to finish at 7,585, while the Nasdaq Composite (^IXIC +0.31%) slipped 0.09% to close at 26,831. Among semiconductors, Nvidia (NVDA +0.15%) closed at $218.66, up 1.94%, while Texas Instruments (TXN +1.35%) finished at $305.37, down 1.04%, underscoring diverging reactions across the sector.
What this means for investorsInvestors have recently been balancing the strong demand and AI-related growth in semiconductor companies with concerns about overspending and potentially disappointing returns on large capital investments.
Broadcom creates, produces, and provides an extensive array of semiconductor and infrastructure software solutions, giving it a foothold in a large part of the AI universe.
Today’s market move, though, was a classic example of investors selling the news. Broadcom reported quarterly records in earnings and revenue, and predicted fiscal Q3 revenue that would represent about 84% year-over-year growth. That wasn’t enough, however, after shares had soared leading up to the report.
Even with today’s drop, the stock is trading at a forward price-to-earnings (P/E) ratio of about 37, above its three-year average. With strong prospects ahead, though, today’s drop represents a good entry opportunity for those with a long-term view as Broadcom could surprise to the upside in future quarters. That makes today’s valuation compelling.
Howard Smith has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Texas Instruments. The Motley Fool has a disclosure policy.
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 Schwab U.S. Dividend Equity ETF (SCHD +0.81%) may appeal to income-oriented investors seeking a higher yield and lower volatility, while the Vanguard Dividend Appreciation ETF (VIG +0.53%) offers broader market exposure and a heavier tilt toward technology growth.
Investors often look to dividend-focused strategies for a combination of income and relative stability. VIG prioritizes dividend consistency, requiring 10 years of growth, while SCHD uses a multi-factor screen based on cash flow and return on equity. These nuances result in distinct sector weightings and performance profiles.
Snapshot (cost & size)MetricVIGSCHDIssuerVanguardSchwabExpense ratio0.04%0.06%1-yr return (as of June 3, 2026)19.60%27.10%Dividend yield1.50%3.20%Beta0.820.68AUM$124.7 billion$95.0 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both funds are extremely cost-efficient, though the Vanguard fund carries a slightly lower 0.04% expense ratio. The Schwab fund offers a much more robust payout, providing a trailing-12-month dividend yield more than double that of its Vanguard counterpart. A lower beta suggests that SCHD may provide a smoother ride during market turbulence compared to the broader market and VIG.
Performance & risk comparisonMetricVIGSCHDMax drawdown (5 yr)(20.40%)(16.80%)Growth of $1,000 over 5 years (total return)$1,656$1,494What's insideThe Schwab U.S. Dividend Equity ETF (SCHD) tracks the total return of the Dow Jones U.S. Dividend 100 Index, focusing on 103 high-quality dividend payers with sustainable distributions. Its portfolio allocation features 19.00% in consumer defensive, 19.00% in healthcare, and 16.00% in technology. Its largest positions include Qualcomm (QCOM +4.28%) at 6.51%, Texas Instrument (TXN +1.35%) at 5.99%, and Unitedhealth Group (UNH +0.73%) at 5.09%. This fund, which was launched in 2011, has a trailing-12-month dividend of $1.06 per share and avoids more complex investment quirks.
The Vanguard Dividend Appreciation ETF (VIG) tracks the S&P U.S. Dividend Growers Index, holding 338 stocks with at least 10 consecutive years of dividend growth. It provides significant exposure to technology at 26.00%, financial services at 21.00%, and healthcare at 17.00%. Its top holdings include Broadcom (AVGO 0.85%) at 5.18%, Apple (AAPL 1.52%) at 4.08%, and Microsoft (MSFT +0.11%) at 3.97%. The fund was launched in 2006 and paid $3.45 per share over the trailing 12 months. Like the Schwab fund, it does not employ leverage or other complex structural quirks.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buyThe Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG) are both income-oriented exchange-traded funds (ETFs). Here’s how they stack up with one another.
First, there’s SCHD. This fund provides investors with exposure to U.S. dividend-paying stocks. It holds about 100 stocks, with top holdings including Qualcomm, Texas Instruments, Unitedhealth Group, Chevron (CVX +0.75%), Coca-Cola (KO +0.13%), and Merck (MRK 1.44%). The fund currently boasts a dividend yield of 3.2% and an expense ratio of only 0.06%. As for performance, the fund has underperformed the S&P 500 since its inception in 2011. Over those 15 years, it has generated a total return of 520%, equating to a compound annual growth rate (CAGR) of 13.3%. The S&P 500, by contrast, has delivered a total return of 705%, with a CAGR of 15.3%.
Then, there’s VIG. This fund also targets American dividend-paying stocks, though it leans more toward the tech sector. Roughly 30% of its holdings are classified as tech stocks, while only about 21% of SCHD’s holdings are in tech. With so much of its portfolio in tech, VIG has a lower dividend yield of about 1.5%. Similar to SCHD, it has a very low expense ratio of only 0.04%. Turning to performance, it has delivered a total return of 602% and a CAGR of 10.2% since its debut in 2006.
In summary, both funds have underperformed the S&P 500 over the long term. However, for investors seeking income from their portfolios, these are two funds worth considering. SCHD delivers greater cash flow with its superior dividend yield.
Jake Lerch has positions in Coca-Cola and Merck. The Motley Fool has positions in and recommends Apple, Broadcom, Chevron, Merck, Microsoft, Qualcomm, Texas Instruments, and Vanguard Dividend Appreciation ETF. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
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.
Key Takeaways TXN trailing-12-month free cash flow rose to $4.35B from $1.72B, with margin up to 23.6%.Higher revenues, profitability and CHIPS Act incentives helped Texas Instruments generate higher cash flows.TXN returned $6.03B to shareholders in 12 months and expects 2026 capex of $2B-$3B, boosting cash returns. Texas Instruments Incorporated’s (TXN - Free Report) improving free cash flow generation is strengthening its ability to reward shareholders through dividends and share repurchases. After several years of heavy manufacturing investments, the company is beginning to see stronger cash generation as revenue growth returns and capital spending moderates.
During the first quarter of 2026, Texas Instruments reported generating $4.35 billion of free cash flow in the trailing 12 months, a sharp increase from $1.72 billion reported a year earlier. Free cash flow margin also improved significantly to 23.6% from 10.7% in the prior-year period. The improvement was driven by higher revenues, better profitability and contributions from CHIPS Act incentives. In the first quarter, TXN’s revenues grew 18.6% year over year to $4.83 billion, while earnings jumped 31.3% to $1.68 per share.
During the past 12 months, Texas Instruments returned $6.03 billion to shareholders through dividends and share repurchases. Dividends accounted for $5.05 billion of that amount, highlighting management’s commitment to returning cash to investors. In the first quarter alone, the company paid $1.29 billion in dividends and repurchased $158 million of stock.
Texas Instruments’ aggressive capital return policy is anticipated to continue in the near term. A key reason for optimism is that capital expenditures are expected to decline from recent peak levels. Capital spending totaled $4.1 billion over the past 12 months, but management expects 2026 capital expenditure to be between $2 billion and $3 billion. Lower investment requirements should allow a larger portion of operating cash flow to convert into free cash flow.
During the first-quarter earnings call, management also indicated that free cash flow per share could exceed $8 in 2026 if current demand trends continue. Supported by growth in industrial, automotive and data center markets, Texas Instruments appears well-positioned to generate higher cash returns for shareholders in the coming years.
How Do TXN’s Competitors Compare on Cash Returns?Analog Devices, Inc. (ADI - Free Report) is one of Texas Instruments’ closest rivals in the analog semiconductor market and has also built a strong shareholder-return profile. Over the trailing 12 months ended second-quarter fiscal 2026, ADI generated $4.6 billion of free cash flow, equal to 36% of total revenues.
Analog Devices has increased its dividend for more than two decades and regularly returns excess cash through stock repurchases. In the trailing 12 months, the company has returned $5 billion to shareholders through share repurchases and dividend payments. Analog Devices targets returning 100% of free cash flow over the long term, with 40% to 60% allocated to dividends and the remainder to repurchases.
NXP Semiconductor (NXPI - Free Report) is another important competitor with a strong focus on automotive and industrial chips. The company has consistently generated healthy free cash flow, exceeding $2 billion annually in recent years, enabling it to return substantial capital to shareholders through dividends and share repurchases.
In 2025, NXP Semiconductor generated free cash flow of $2.43 billion and returned $1.93 billion to its shareholders through share repurchases and dividends. In the first quarter of 2026, NXP Semiconductor generated free cash flow of $714 million and distributed approximately $256 million through dividend payments and repurchased shares worth $102 million.
While both companies, Analog Devices and NXP Semiconductor, prioritize shareholder returns, Texas Instruments currently benefits from improving free cash flow, driven by recovering industrial demand and moderating capital expenditures.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have soared 64.3% year to date compared with the Zacks Semiconductor - General industry’s rise of 18.4%.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 35.00, significantly higher than the industry’s average of 23.61.
Texas Instruments Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 44.6% and 14.4%, respectively. Estimates for 2026 have been revised upward in the past 60 days, while 2027 earnings estimates have been raised northward in the past 30 days.
Image Source: Zacks Investment Research
Texas Instruments currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
Texas Instruments (TXN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this chipmaker have returned -2.2% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Semiconductor - General industry, to which Texas Instruments belongs, has lost 3.9% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Texas Instruments is expected to post earnings of $1.90 per share for the current quarter, representing a year-over-year change of +34.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $7.66 for the current fiscal year indicates a year-over-year change of +40.6%. This estimate has changed -0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $8.77 indicates a change of +14.4% from what Texas Instruments is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Texas Instruments is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Texas Instruments, the consensus sales estimate of $5.22 billion for the current quarter points to a year-over-year change of +17.4%. The $20.76 billion and $22.81 billion estimates for the current and next fiscal years indicate changes of +17.4% and +9.9%, respectively.
Last Reported Results and Surprise HistoryTexas Instruments reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +18.6%. EPS of $1.68 for the same period compares with $1.28 a year ago.
Compared to the Zacks Consensus Estimate of $4.52 billion, the reported revenues represent a surprise of +6.79%. The EPS surprise was +22.63%.
Over the last four quarters, Texas Instruments surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Texas Instruments is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Texas Instruments. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
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.
Record date set for June 15, 2026 Distribution expected to occur on June 29, 2026, with shareowners of record expected to receive one share of Honeywell Aerospace common stock for every two shares of Honeywell common stock owned Honeywell Aerospace expected to begin trading on Nasdaq on June 29, 2026, under the ticker symbol "HONA" Honeywell reverse stock split expected to occur on June 29, 2026 , /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced that its Board of Directors has set a record date of June 15, 2026 (the "Record Date") for the previously announced spin-off of Honeywell Aerospace.
To execute the spin-off, Honeywell will distribute all of the issued and outstanding shares of Honeywell Aerospace common stock pro rata to Honeywell shareowners of record on the Record Date. The Board expects the distribution to occur at 12:01 a.m., New York City time, on June 29, 2026 (the "Distribution Date"), on the basis of a distribution ratio of one share of Honeywell Aerospace common stock for every two shares of Honeywell common stock held as of the close of business on the Record Date.
Following the distribution, Honeywell Aerospace common stock is expected to begin trading on the Nasdaq Stock Market LLC ("Nasdaq") on June 29, 2026, under the ticker symbol "HONA." Honeywell will continue to trade on Nasdaq under the ticker symbol "HON."
"Honeywell Aerospace is entering an exciting new chapter that will allow us to accelerate innovation as we shape the future of aviation," said Jim Currier, President and CEO of Honeywell Aerospace. "As a standalone pure-play aerospace supplier, we will be able to capitalize on emerging opportunities across both commercial and defense markets, deepen our customer partnerships and deliver long-term value for our shareowners."
"As we approach the historic separation of Honeywell Aerospace and Honeywell Technologies, we are confident that both businesses are well positioned to accelerate value creation as independent companies," said Vimal Kapur, Chairman and CEO of Honeywell. "This moment not only builds on our portfolio transformation over the past three years, but it also builds on Honeywell's 140-year legacy that shaped these businesses into the market-leaders they are today."
Completion of the spin-off is conditioned upon the satisfaction or waiver of certain conditions, including, among other things, the Board having declared the distribution, as set forth in the form of Separation and Distribution Agreement filed with the U.S. Securities and Exchange Commission (the "SEC") as part of the registration statement on Form 10.
The spin-off is expected to be tax-free to Honeywell shareowners for U.S. federal income tax purposes, except for cash that shareowners may receive in lieu of fractional shares.
When-Issued Trading Market
Honeywell anticipates that Honeywell Aerospace common stock will begin trading on Nasdaq under the ticker symbol "HONAV" on a "when-issued" basis on or about June 15, 2026. Honeywell Aerospace common stock is expected to begin "regular-way" trading on Nasdaq under the ticker symbol "HONA" on June 29, 2026.
Shares of Honeywell common stock are expected to continue to trade "regular-way" on Nasdaq under the current ticker symbol "HON" from the Record Date through the Distribution Date. However, beginning on June 15, 2026 and continuing through June 26, 2026, it is expected that there will be two markets in Honeywell common stock onNasdaq: a "regular-way" market under Honeywell's current ticker symbol "HON," in which Honeywell shares will trade with the right to receive shares of Honeywell Aerospace common stock on the Distribution Date, and an "ex distribution" market under the ticker symbol "HONIV", in which Honeywell shares will trade without the right to receive shares of Honeywell Aerospace common stock on the Distribution Date.
Honeywell shareowners are encouraged to consult their financial advisors regarding the specific implications of buying, selling or holding shares of Honeywell common stock on or before the Distribution Date.
Reverse Stock Split
Honeywell also announced today that it has determined to proceed with a 1-for-2 reverse stock split and a proportionate reduction in Honeywell's number of authorized shares of common stock, subject to and contingent upon the completion of the Honeywell Aerospace spin-off.
When the reverse stock split becomes effective, which is expected to occur at 12:02 a.m., New York City time, on June 29, 2026, every two shares of Honeywell common stock issued and outstanding or held by Honeywell as treasury shares will be automatically combined into one share of Honeywell common stock. This will reduce the number of issued and outstanding shares of Honeywell common stock from approximately 634 million to approximately 317 million. Concurrently with the reverse stock split, the number of shares of Honeywell common stock authorized for issuance will also be reduced from 2 billion to 1 billion. The par value of Honeywell common stock will not change.
No fractional shares will be issued in connection with the reverse stock split. As soon as practicable after the effective time of the reverse stock split, Honeywell's transfer agent will aggregate such fractional shares into whole shares and sell the whole shares at the then-prevailing trading prices in the open market on behalf of those shareowners who would otherwise be entitled to receive a fractional share, and after Honeywell's transfer agent's completion of such sale, such shareowners will receive a cash payment (without interest or deduction) from Honeywell's transfer agent in an amount equal to their respective pro rata shares of the total net proceeds of that sale and, where shares are held in certificated form, upon the surrender of such shareowners' stock certificates.
Outstanding Honeywell equity-based awards and shares or share units under Honeywell's benefit plans will be proportionately adjusted.
Honeywell common stock will continue trading on Nasdaq (under the symbol "HON"). The new CUSIP number for Honeywell common stock following the reverse stock split will be 438516205.
Additional information concerning the reverse stock split can be found in Honeywell's definitive proxy statement filed with the SEC on April 10, 2026.
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.
About Honeywell Aerospace
Honeywell Aerospace Inc. is a leading global tier-1 aerospace and defense supplier of mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Its systems and technologies support original equipment manufacturers, government, defense prime contractor and aircraft operator customers across the Commercial Air Transport, Defense and Space, and Business Aviation end markets. The company's comprehensive portfolio of market leading systems and technologies are organized into the following segments: Electronic Solutions, Engines & Power Systems and Control Systems.
Additional Information
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.
Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, or anticipates 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. 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. 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, 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. Some of the important factors that could cause Honeywell's actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: (i) the ability of Honeywell to effect the spin-off transaction described above and to meet the conditions related thereto; (ii) the possibility that the spin-off transaction will not be completed within the anticipated time period or at all; (iii) the possibility that the spin-off transaction will not achieve its intended benefits; (iv) the impact of the spin-off transaction on Honeywell's businesses and the risk that the spin-off transaction may be more difficult, time-consuming or costly than expected, including the impact on Honeywell's resources, systems, procedures and controls, diversion of management's attention and the impact and possible disruption of existing relationships with regulators, customers, suppliers, employees and other business counterparties; (v) the possibility of disruption, including disputes, litigation or unanticipated costs, in connection with the spin-off transaction; (vi) the uncertainty of the expected financial performance of Honeywell or Honeywell Aerospace following completion of the spin-off transaction; (vii) negative effects of the announcement or pendency of the spin-off transaction on the market price of Honeywell's securities and/or on the financial performance of Honeywell; (viii) the ability to achieve anticipated capital structures in connection with the spin-off transaction, including the future availability of credit and factors that may affect such availability; (ix) the ability to achieve anticipated tax treatments in connection with the spin-off transaction and future, if any, divestitures, mergers, acquisitions and other portfolio changes and the impact of changes in relevant tax and other laws; (x) the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the spin-off transaction and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; and (xi) the possibility that the reverse stock split and authorized share reduction will not be completed within the anticipated time period or at all, including due to a failure of the spin-off transaction to occur. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K and other filings with the SEC. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.
, /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.
A HTF-7000 engine in a test cell area as Honeywell Aerospace hosts a media tour of their facility ahead of their investor day, in Phoenix, Arizona, U.S. June 2, 2026. REUTERS/Caitlin O’Hara Purchase Licensing Rights, opens new tab
June 8 (Reuters) - Honeywell (HON.O), opens new tab reaffirmed its annual adjusted profit and sales forecast on Monday, as it prepares for a spinoff of its aerospace business in the coming weeks.
Honeywell Aerospace, which makes aircraft engines, parts and defense systems, will be spun off on June 29, marking a key step in the conglomerate's previously announced three-way split to focus on automation, aerospace and advanced materials.
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Honeywell expects its full-year 2026 adjusted profit between $10.35 and $10.65 per share, and annual revenue in the range of $38.8 billion to $39.8 billion.
CEO Vimal Kapur in April had flagged a 0.5% reduction in first-quarter revenue due to the Middle East conflict and said he expects roughly a 1% drop during the second quarter, largely in its process automation and technology segment.
Kapur said on an investor call on Monday the company has "very high conviction" the conflict will not weigh on the second half of 2026, assuming "no significant re-escalation", instead it could turn into a "tailwind" as customers lift spending on energy security and reconstruction.
Honeywell completed the spinoff of its advanced materials unit into a standalone company called Solstice Advanced Materials (SOLS.O), opens new tab in October last year, while the remaining automation business will operate as Honeywell Technologies.
Honeywell Technologies expects to post 2026 adjusted profit between $3.95 and $4.15 per share, and forecast revenue in the range of $19.9 billion to $20.2 billion.
It expects annual free cash flow of about $2 billion.
Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Vijay Kishore and Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways Honeywell plans to complete its Aerospace spinoff on June 29, 2026, creating an independent public company.Honeywell shareholders of record June 15 get one Aerospace share for every two common shares held.Honeywell also plans a 1-for-2 reverse stock split, pending completion of the Aerospace separation. Honeywell International Inc. (HON - Free Report) has taken a major step toward separating its Aerospace business. The spinoff is scheduled to be completed on June 29, 2026, after which Honeywell Aerospace will operate as an independent public company.
The Aerospace business is a provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations. It develops laser communication products for satellite communication.
Inside the HeadlinesHoneywell plans to allocate all outstanding shares of Honeywell Aerospace common stock to its shareholders on June 29, 2026. Shareholders of record as of June 15, 2026, will receive one share of Honeywell Aerospace for every two shares of Honeywell common stock they hold. The separation will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.
At the first instance, Honeywell Aerospace shares are likely to commence trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on or about June 15, 2026. However, regular-way trading under the ticker "HONA" is expected to start on June 29, 2026. Honeywell shares are expected to trade in two markets, under the regular ticker "HON" with the right to receive Honeywell Aerospace shares and under the ticker "HONIV" without that right.
Also, HON announced plans to proceed with a one-for-two reverse stock split, contingent upon the completion of the Aerospace spin-off. The move will reduce the company's outstanding shares from roughly 634 million to approximately 317 million, while maintaining its Nasdaq listing under the ticker "HON." The separation and related corporate actions are expected to restructure Honeywell's portfolio, enhance strategic focus and support long-term value creation for shareholders.
HON’s Zacks RankSolid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects bode well for it.
In the past six months, this Zacks Rank #3 (Hold) company’s shares have risen 12.5% against the industry’s 3.6% decline.
Image Source: Zacks Investment Research
However, weakness in the Process Automation and Technology segment, due to lower petrochemical catalyst shipments, is worrisome. Also, the company has been dealing with increasing operating costs, which might hurt its margins and profitability.
Stocks to ConsiderBetter-ranked companies are discussed below.
GPGI, Inc. (GPGI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.8%.
The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 8.1% in the past 60 days.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has increased 2.6%.
Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
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 Intl stock is among today’s weakest performers. What’s behind HON decline? Higher energy costs tend to increase inflation risk, which can keep interest rates elevated and weigh on demand for industrial equipment and services.
Markets React To Trump's Escalation Toward IranThe downturn intensified after President Donald Trump issued a series of forceful statements about Iran early Wednesday. He described Iran as a failing state and said the country would face consequences for delaying nuclear negotiations. He also claimed Iran's military had been weakened and highlighted a U.S. naval blockade that he said had cut off the country's ability to conduct business.
Broader Market Weakness Adds To The DeclineMajor indexes fell across the board. The S&P 500 dropped 0.9% to 7,319.63. The Dow Jones Industrial Average lost about 592 points or 1.2% to 50,280. The Nasdaq 100 slid 1.4% to 28,670. The Russell 2000 held up better with a 0.3% dip.
Inflation Data Adds Another HeadwindFresh macro data added to the pressure. The annual inflation rate rose from 3.8% to 4.2% in May, matching expectations but marking the highest reading since April 2023. Higher inflation increases the risk that interest rates stay elevated, which typically weighs on industrial demand.
Honeywell has slipped into a weaker short-term trend. The stock trades 6.8% under its 20-day simple moving average at $222.96 and 6.7% under its 50-day simple moving average at $222.59. That setup keeps near-term rallies running into overhead supply. HON is also 2.4% under the 200-day simple moving average at $212.89, a level many longer-term traders watch to judge whether a trend is healthy or entering a repair phase.
The broader structure is mixed. The 20-day simple moving average still sits above the 50-day simple moving average, which leans constructive for the short-term. The 50-day simple moving average remains above the 200-day simple moving average, which keeps the longer-term backdrop positive. Even so, the break under support in June and the fade from the May swing high show that buyers have been less willing to chase strength at prior breakout zones.
Momentum readings lean soft. MACD is below its signal line and the histogram is negative, which signals that buying pressure has cooled compared to the prior advance. When MACD stays under the signal line, rebounds often lose traction unless buyers step in with enough force to shift momentum back upward.
Key levels help frame the next move. Key resistance is 221, which aligns with a round-number zone near the short-term moving averages where rallies have stalled. Key support is 208, which sits near a recent pivot where buyers previously stepped in
HON Shares Are SlidingHON Price Action: Honeywell shares were down 3.88% at $207.33 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
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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.
, /PRNewswire/ -- Honeywell (NASDAQ: HON) announced it will host an investor day for Honeywell Technologies in New York City today, June 11, ahead of the planned June 29 spin-off of Honeywell Aerospace.
Honeywell Chairman and Chief Executive Officer Vimal Kapur and members of the leadership team will introduce Honeywell Technologies, provide a new growth and margin expansion framework following the planned separation of Honeywell Aerospace, demonstrate core capabilities and offerings in each strategic business segment, and introduce three-year financial targets that will lay the foundation for the company's future growth.
"We are at a historic moment in Honeywell's transformation as we take the final steps to become a leading, pure-play automation company with innovative offerings that operate in industries where resiliency and reliability are paramount. We have a revamped innovation machine and simplified business model approach, underpinned by our ongoing commitment to operational excellence and strategic capital deployment. Following a three-year process to simplify our portfolio, we have the foundation in place to accelerate profitable growth by leveraging our vast installed base and deep domain expertise in mission-critical environments. We expect our enhanced strategic focus will deliver 4% - 6% organic growth, more than 60 basis points of margin expansion annually, and over 10% earnings growth annually at over 90% free cash flow conversion over the next three years," said Vimal Kapur, Chairman and CEO of Honeywell.
A live video webcast of its investor conference, which begins at 1:00 p.m. EDT, will be available through the investor relations section of Honeywell's website at http://www.honeywell.com/investor, and a replay of this webcast will be available for 30 days following the presentation. The presentation will showcase deep dives into the company's products and solutions, growth drivers, end markets and customer case studies, along with financial targets for Honeywell Technologies and each strategic business segment. The event will also feature extensive technology demonstrations and interactive Q&A with the leadership team.
Earlier this week, the company provided a preliminary 2026 financial outlook for Honeywell Technologies and made several changes to the presentation of its adjusted results that it believes will provide a simpler, more effective basis for explaining the company's operational performance. A link to the presentation materials and replay of the webcast from June 8 can be found at http://www.honeywell.com/investor.
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 from 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 from 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 from 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:
Segment profit, on an overall Honeywell basis; Segment profit margin, on an overall Honeywell basis; Organic sales growth; Free cash flow; and Adjusted earnings per share. 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 of certain non-GAAP financial measures presented in this press release. 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 when presented and not to rely on any single financial measure to evaluate Honeywell's business.
As indicated herein, the 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.
We define organic sales percent change as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for forward-looking measures of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change.
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 segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. 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.
We define adjusted earnings per share as diluted earnings per share from continuing operations adjusted to exclude various charges, including pension income, amortization of acquisition-related intangibles, acquisition-related costs, divestiture-related costs, impairments of goodwill, indefinite-lived intangibles, and assets held for sale, losses (gains) on sale of business. We believe this is a measure that is 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 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 believe that free cash flow is a measure that is 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. This measure 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.
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 logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, June 11 (Reuters) - Honeywell (HON.O), opens new tab on Thursday said it is targeting deals valued at $2 billion to $4 billion and sees scope for acquisitions in its industrial automation business.
"There is a ton of opportunity for M&A,” Peter Lau, president of Honeywell’s Industrial Automation unit, said during the company's investor day in New York, adding the business operates in a roughly $35 billion market.
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At the group level, Honeywell signaled it will pursue bolt‑on deals within its preferred $2 billion to $4 billion range. That compares with a previous preferred deal size of $1 billion to $7 billion.
Honeywell has deployed about $14 billion on roughly 10 acquisitions in past years, focusing on $1 billion to $2 billion bolt-on deals. The company has paired those deals with divestitures and planned spinoffs to simplify its structure.
Asked if larger acquisitions are off the table, Chief Executive Vimal Kapur told an audience of investors that, while the scenario can always change, the company does not currently "see any necessity to go away from our fundamental strategy."
The price range would rule out an acquisition of precision instruments and sensor maker Ralliant (RAL.N), opens new tab, a $7 billion market cap company that analysts have previously speculated as a potential target.
Lau said Honeywell sees Ralliant as a peer, together with measurement and instrumentation companies like Ametek (AME.N), opens new tab, Teledyne (TDY.N), opens new tab and Idex (IEX.N), opens new tab that operate in similar niche businesses.
CFO Mike Stepniak said Honeywell will prioritize debt reduction, organic investment and shareholder returns before jumping to more sizeable M&A.
"We will be thoughtful and will be patient. There is no urgency," Stepniak said.
Reporting by Sabrina Valle; Editing by Chizu Nomiyama and Chris Reese
Our Standards: The Thomson Reuters Trust Principles., opens new tab
NY-based correspondent reporting on some of the largest deals in Healthcare and Industrials. Previously based in Houston, covering global operations of U.S. oil majors. Sabrina has a two-decade career in Business reporting, with a strong background in source-based enterprise and investigations. She previously worked at Bloomberg, Washington Post and has been based in Rio and D.C. covering large corporations, including finance, corruption and geopolitics.
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.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Omaha, Union Pacific (UNP - Free Report) is a Transportation stock that has seen a price change of 14.94% so far this year. The railroad is currently shelling out a dividend of $1.38 per share, with a dividend yield of 2.08%. This compares to the Transportation - Rail industry's yield of 0.77% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $5.52 is up 1.5% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UNP expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $12.54 per share, representing a year-over-year earnings growth rate of 7.55%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Class I railroads Union Pacific (UNP +1.65%) and CSX (CSX +0.43%) are two prominent companies that transport bulk goods and commodities across the continent on tens of thousands of miles of track.
Railroads are classic industrial stocks, but still a fantastic business to invest in today. The incumbent railroad companies dominate North America, and, combined with regulatory hurdles, make it almost impossible for new entrants to enter the fray. That drives pricing power and strong investment returns. Union Pacific has returned 308% over the past decade, slightly outpacing the S&P 500 index's 326%. Meanwhile, CSX has been a home run, returning over 519%.
But which is the better railroad to own in 2026? There's a ton to like about Union Pacific, but much of that depends on a blockbuster acquisition. That's why CSX remains the better railroad stock in 2026. Here is what you need to know.
Image source: Getty Images.
CSX's operational improvement is the 2026 headline CSX operates approximately 20,000 miles of rail and provides rail and intermodal transport services throughout the eastern and southeastern United States and the Canadian provinces of Ontario and Quebec. CSX appointed Steve Angel as CEO in September 2025. He was the former CEO of Linde, an industrial gases giant where operational efficiency is paramount to success. That influence has shown up pretty quickly. CSX's operating margin rose by 560 basis points year over year in the first quarter of 2026, driven largely by a 6% reduction in operating expenses.
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The company also recently completed its project at the Howard Street Tunnel in Baltimore, which will boost intermodal volumes. Intermodal volumes rose 6% in the first quarter. The market has rewarded the stock with a forward P/E ratio of 24. It's not a very low valuation, certainly not a bargain. That said, it seems fair given analysts' expectation of approximately 10% annualized earnings growth over the next three to five years. It makes CSX a safe, steady investment.
Union Pacific's pending merger could transform the company Union Pacific is larger, with about 32,000 miles of railroad track, but operates in the western and central United States, touching parts of Mexico. It's the only railroad with access to all six gateways between the two countries. It's a major advantage, given the significant manufacturing and trade flows between these nations. However, the big story with Union Pacific right now is its pending $85 billion merger with Norfolk Southern, which both parties agreed to last summer.
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The merger is currently in regulatory review. Regulators could approve, reject, or impose conditions on the merger, such as requiring asset sales. If approved as is, the merger would create a behemoth in the industry. Its railroad would span over 50,000 miles through 43 states, linking roughly 100 ports across North America. The companies expect a decision on the merger sometime in 2027.
Blockbuster acquisitions come with an assortment of risks Even if regulators approve the merger as is, there are several risks that investors should consider with Union Pacific.
The merger is an enormous deal. Union Pacific's market cap is about $157 billion, so this deal dramatically increases the company's size. Such large mergers almost always raise questions about how well the pieces fit together. A rocky post-merger transition could hurt operating efficiency or margins. There will likely be cost savings as Union Pacific cuts redundant expenses, but identifying, cutting, and realizing those savings can take several years.
On top of that, analysts currently see Union Pacific growing earnings by an average of 7% to 8% annually over the next three to five years, and Norfolk Southern growing earnings by an average of 4% to 5% over the same time period. Yet, Union Pacific trades at a forward P/E ratio of about 21 times 2026 earnings estimates. In other words, investors could be better off paying a slightly higher valuation for CSX, a more stable company with a stronger earnings growth outlook.
Union Pacific could look completely different once this merger saga plays out. Until then, you're buying Union Pacific for its merger story and long-term potential, not its current fundamentals. That makes CSX the better railroad stock to buy in 2026.
On June 02, 2026, we present a DCF analysis for Union Pacific Corp UNP , which has shown a price performance of +15.1% year-to-date and +21.6% over the past year. Despite this positive trend, our analysis indicates some caution regarding its current valuation.
DCF Earnings-based intrinsic value of $154.39 vs current price of $263.50 (margin of safety: -70.7%) DCF FCF-based intrinsic value of $152.67 vs current price (second opinion: -72.6% margin of safety) GF Score™ of 92/100 indicates a high reliability of the DCF inputs What Is UNP Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates Union Pacific's intrinsic value based on its expected future earnings growth. We assume a current EPS of $11.90, with a projected growth rate of 6.8% over the next ten years. The discount rate, calculated as the risk-free rate plus an equity risk premium, is set at 11%. After the growth phase, we apply a terminal growth rate of 4% for the subsequent ten years.
Parameter Value Current EPS (TTM, excl. non-recurring) $11.90 10-Year Growth Rate 6.8% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project the EPS growth at 6.8% for ten years, resulting in a discounted value of $96.84 per share. In the second stage, we apply a terminal growth rate of 4% for the next ten years, yielding a discounted value of $57.55 per share. The intrinsic value is thus calculated as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.8%, discounted at 11% $96.84 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $57.55 Intrinsic Value Growth + Terminal $154.39 With a current price of $263.50, the intrinsic value of $154.39 indicates that Union Pacific is modestly overvalued, with a margin of safety of -70.7%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices are more closely correlated with earnings than with free cash flow. For further calculations, you can visit the UNP DCF Calculator.
What Does the Free Cash Flow DCF Say? When we apply the free cash flow (FCF) DCF model, we arrive at an intrinsic value of $152.67. This value is consistent with the earnings-based intrinsic value of $154.39, reinforcing the conclusion that Union Pacific is modestly overvalued, with a margin of safety of -72.6%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Union Pacific is calculated at $244.62, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest that Union Pacific is overvalued, the GF Value™ indicates a different stance, suggesting that the stock may be slightly overvalued at 7.7%. For more insights, visit the GF Value™ page.
What Does UNP's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtesting from 2006 to 2021. Union Pacific has a GF Score™ of 92/100, indicating strong fundamentals. The predictability rank is 3/5 stars, suggesting that the DCF model's reliability for this stock is moderate.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with lower predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions accurately.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that Union Pacific is overvalued. Investors should exercise caution when considering this stock based on current valuations. For the full DCF analysis, visit the UNP DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is UNP's intrinsic value based on DCF?
According to our analysis, the earnings-based intrinsic value is $154.39, while the FCF-based intrinsic value is $152.67.
Is UNP overvalued or undervalued?
Both the DCF models and GF Value™ suggest that UNP is overvalued.
How reliable is the DCF model for UNP?
With a predictability rank of 3/5, the DCF model's reliability for UNP is moderate.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Marking a milestone in innovation and collaboration, Union Pacific Railroad on Tuesday unveiled its newest commemorative locomotive with Northrop Grumman and Wabtec, as No. 4547 began its first mission hauling Space Launch System solid rocket motor segments for NASA’s Artemis III lunar exploration program.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260603422961/en/
Union Pacific Railroad’s newest commemorative locomotive No. 4547 begins its first mission hauling rocket parts for NASA’s Artemis III lunar exploration program.
Departing from a shipping facility near Corinne, Utah, the locomotive carried components supporting NASA’s effort to explore deep space and return humanity to the moon. It was joined by No. 1616, another special commemorative locomotive that honors President Abraham Lincoln and Union Pacific’s rich history. Lincoln founded Union Pacific in 1862 when he signed the Pacific Railway Act, approving construction of the transcontinental railroad.
Union Pacific CEO Jim Vena joined Utah House Speaker Mike Schultz, Utah Senate President J. Stuart Adams, and leaders from Northrop Grumman, NASA and Wabtec for a ceremony marking the shipment and christening of No. 4547, a locomotive that honors President Donald J. Trump and commemorates America’s 250th anniversary.
“We are proud to honor President Donald J. Trump with this commemorative engine while helping advance the Artemis III mission,” Vena said. “As No. 4547 carries these rocket components, it represents the strength of our nation’s supply chain and our role in connecting the country – linking industries, communities and opportunity from our rail network to the surface of the moon.”
“From Northern Utah’s role in building the transcontinental railroad to powering exploration with our Space Launch System boosters, this partnership shows how American industries and innovation are building the future,” said Wendy Williams, vice president and general manager, launch and exploration, Northrop Grumman.
Artemis III is planned as NASA’s second crewed mission in its Artemis lunar exploration program. The mission will test integrated operations between the Orion spacecraft and commercial landers from SpaceX and Blue Origin to lay the groundwork for future missions, including a planned lunar landing as early as 2028.
Built by Wabtec, No. 4547 is the third in Union Pacific’s presidential locomotive series: No. 1616 honors President Abraham Lincoln, who founded Union Pacific in 1862, and No. 4141 recognizes President George H.W. Bush, a noted rail enthusiast.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
NORTHROP GRUMMAN
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260603422961/en/
No. 4547 Celebrates America’s 250th Anniversary and is the Third in Presidential Locomotive Series
CORINNE, Utah--(BUSINESS WIRE)--Marking a milestone in innovation and collaboration, Union Pacific Railroad on Tuesday unveiled its newest commemorative locomotive with Northrop Grumman and Wabtec, as No. 4547 began its first mission hauling Space Launch System solid rocket motor segments for NASA’s Artemis III lunar exploration program.
Departing from a shipping facility near Corinne, Utah, the locomotive carried components supporting NASA’s effort to explore deep space and return humanity to the moon. It was joined by No. 1616, another special commemorative locomotive that honors President Abraham Lincoln and Union Pacific’s rich history. Lincoln founded Union Pacific in 1862 when he signed the Pacific Railway Act, approving construction of the transcontinental railroad.
Union Pacific CEO Jim Vena joined Utah House Speaker Mike Schultz, Utah Senate President J. Stuart Adams, and leaders from Northrop Grumman, NASA and Wabtec for a ceremony marking the shipment and christening of No. 4547, a locomotive that honors President Donald J. Trump and commemorates America’s 250th anniversary.
“We are proud to honor President Donald J. Trump with this commemorative engine while helping advance the Artemis III mission,” Vena said. “As No. 4547 carries these rocket components, it represents the strength of our nation’s supply chain and our role in connecting the country – linking industries, communities and opportunity from our rail network to the surface of the moon.”
“From Northern Utah’s role in building the transcontinental railroad to powering exploration with our Space Launch System boosters, this partnership shows how American industries and innovation are building the future,” said Wendy Williams, vice president and general manager, launch and exploration, Northrop Grumman.
Artemis III is planned as NASA’s second crewed mission in its Artemis lunar exploration program. The mission will test integrated operations between the Orion spacecraft and commercial landers from SpaceX and Blue Origin to lay the groundwork for future missions, including a planned lunar landing as early as 2028.
Built by Wabtec, No. 4547 is the third in Union Pacific’s presidential locomotive series: No. 1616 honors President Abraham Lincoln, who founded Union Pacific in 1862, and No. 4141 recognizes President George H.W. Bush, a noted rail enthusiast.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
NORTHROP GRUMMAN
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
OMAHA, Neb.--(BUSINESS WIRE)--Richard “Dick” Davidson, the former chairman and chief executive officer of Union Pacific Railroad who helped shape the modern railroad by expanding its footprint and advancing its technology, has died at the age of 84.
“Dick dedicated his life to railroading, working his way up from brakeman to CEO,” said Union Pacific CEO Jim Vena. “He loved this industry, believed in railroaders and set a standard for leadership that still guides Union Pacific today. We mourn his loss and extend our deepest condolences to his family and friends.”
A Career Born on the Railroad
Davidson was born on Jan. 9, 1942, in Allen, Kansas. Raised on a family farm by his mother after his father's death when Davidson was six years old, he learned early the values of self-reliance and hard work. To help pay for college, Davidson signed on as a part-time brakeman for the Missouri Pacific Railroad, launching what would become a lifelong career in railroading.
After graduating from Washburn University with a Bachelor of Arts degree, Davidson accepted a position in Missouri Pacific's management training program and rapidly rose through the organization. He continued climbing the ranks, serving as assistant general manager in Kansas City and becoming vice president of operations in 1976.
Leading Union Pacific
When Union Pacific merged with Missouri Pacific in 1982, Davidson became vice president of operations for the combined railroad. He served in a succession of expanding leadership roles before being elevated to president and CEO of Union Pacific Railroad in 1991. He was named chairman and CEO of Union Pacific Corporation in 1997.
During his tenure, Davidson oversaw the acquisitions of Chicago & North Western Railway and Southern Pacific Railroad. The Southern Pacific merger nearly doubled the size of Union Pacific and expanded the railroad's reach in the West and South, but absorbing the struggling railroad created operational challenges. Davidson responded with major investments in capital projects, modernizing the company's technology infrastructure and decentralizing operations. Union Pacific emerged stronger, and the operational framework Davidson put in place endured long after his retirement.
Recognition and Service Beyond the Railroad
Davidson's contributions to American industry were widely recognized. He was inducted into the Horatio Alger Association of Distinguished Americans, named to the Kansas Business Hall of Fame and the Nebraska Business Hall of Fame, and honored as Kansan of the Year by the Native Sons and Daughters of Kansas. He also received an honorary doctorate from Washburn University.
In addition to his positions at Union Pacific, Davidson served as chair of the Greater Omaha Chamber of Commerce, a director at Creighton University, and a member of the boards of the Kroger Company, the Boy Scouts of America, and the Capitol Visitors Center. He also served as chairman of President George W. Bush's National Infrastructure Advisory Board.
Davidson, who lived in Naples, Florida, with his wife Trish, was a loving husband, father and grandfather. A celebration of life will be held at a future date.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
Richard “Dick” Davidson, the former chairman and chief executive officer of Union Pacific Railroad who helped shape the modern railroad by expanding its footprint and advancing its technology, has died at the age of 84.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260605641628/en/
Union Pacific Railroad former Chairman and CEO Dick Davidson
“Dick dedicated his life to railroading, working his way up from brakeman to CEO,” said Union Pacific CEO Jim Vena. “He loved this industry, believed in railroaders and set a standard for leadership that still guides Union Pacific today. We mourn his loss and extend our deepest condolences to his family and friends.”
A Career Born on the Railroad
Davidson was born on Jan. 9, 1942, in Allen, Kansas. Raised on a family farm by his mother after his father's death when Davidson was six years old, he learned early the values of self-reliance and hard work. To help pay for college, Davidson signed on as a part-time brakeman for the Missouri Pacific Railroad, launching what would become a lifelong career in railroading.
After graduating from Washburn University with a Bachelor of Arts degree, Davidson accepted a position in Missouri Pacific's management training program and rapidly rose through the organization. He continued climbing the ranks, serving as assistant general manager in Kansas City and becoming vice president of operations in 1976.
Leading Union Pacific
When Union Pacific merged with Missouri Pacific in 1982, Davidson became vice president of operations for the combined railroad. He served in a succession of expanding leadership roles before being elevated to president and CEO of Union Pacific Railroad in 1991. He was named chairman and CEO of Union Pacific Corporation in 1997.
During his tenure, Davidson oversaw the acquisitions of Chicago & North Western Railway and Southern Pacific Railroad. The Southern Pacific merger nearly doubled the size of Union Pacific and expanded the railroad's reach in the West and South, but absorbing the struggling railroad created operational challenges. Davidson responded with major investments in capital projects, modernizing the company's technology infrastructure and decentralizing operations. Union Pacific emerged stronger, and the operational framework Davidson put in place endured long after his retirement.
Recognition and Service Beyond the Railroad
Davidson's contributions to American industry were widely recognized. He was inducted into the Horatio Alger Association of Distinguished Americans, named to the Kansas Business Hall of Fame and the Nebraska Business Hall of Fame, and honored as Kansan of the Year by the Native Sons and Daughters of Kansas. He also received an honorary doctorate from Washburn University.
In addition to his positions at Union Pacific, Davidson served as chair of the Greater Omaha Chamber of Commerce, a director at Creighton University, and a member of the boards of the Kroger Company, the Boy Scouts of America, and the Capitol Visitors Center. He also served as chairman of President George W. Bush's National Infrastructure Advisory Board.
Davidson, who lived in Naples, Florida, with his wife Trish, was a loving husband, father and grandfather. A celebration of life will be held at a future date.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260605641628/en/
CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs. Insider Cluster Buys: Stocks that multiple company officers and directors have bought. Double Buys: Companies that both Gurus and Insiders are buying Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
The so-called Trump Ballroom Tracker, a financial index used to track the companies that have donated to the president’s new ballroom project, has significantly outperformed the market this year.
More precisely, the tracker, launched by Quiver Quantitative on October 27, 2025, has gained roughly 26% so far in 2026. In comparison, the S&P 500 has gone up just 10.82% in the same time period, according to data from the trading platform Autopilot.
In other words, the Trump Ballroom Tracker has outperformed the S&P 500’s gain by 15.18 percentage points. In relative terms, the portfolio has delivered about 140% more than the benchmark index in more or less five months.
Trump donor portfolio tracker vs. S&P 500 YTD. Source: Autopilot (@Autopilot) Most notable Trump Ballroom Tracker gains Several constituents of the Trump Ballroom Tracker have posted substantial gains since October. Most notably, the memory chip maker Micron Technology (NASDAQ: MU) has led the group with a staggering 352.5% return.
Other noteworthy performers include Caterpillar (NYSE: CAT) with a return of 78.4% and Alphabet (NASDAQ: GOOGL) with 38.2%. Also worth mentioning are gainers such as Union Pacific (NYSE: UNP), which is up 20.9%, Apple (NASDAQ: AAPL), up 15.8%, and Amazon (NASDAQ: AMZN), which has gained 11.8%.
However, the performance across the basket has been far from uniform, as several high-profile technology names have not been so fortunate. For instance, Microsoft (NASDAQ: MSFT) is down 19.4%, Meta Platforms (NASDAQ: META) has fallen 16.4%, while Palantir (NASDAQ: PLTR) has lost 25.1% since the tracker debuted. The worst performer, however, was the cryptocurrency exchange Coinbase, which has declined 54.5%.
Still, despite some of the individual holdings performing more poorly than expected, the strength of the overall tracker cannot be denied, even if it remains just an unconventional experiment in measuring the potential market impact of corporate political engagement.
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Omaha, Union Pacific (UNP - Free Report) is a Transportation stock that has seen a price change of 15.44% so far this year. The railroad is currently shelling out a dividend of $1.38 per share, with a dividend yield of 2.07%. This compares to the Transportation - Rail industry's yield of 0.74% and the S&P 500's yield of 1.46%.
Looking at dividend growth, the company's current annualized dividend of $5.52 is up 1.5% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UNP expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $12.54 per share, which represents a year-over-year growth rate of 7.55%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
ASML reported solid 4Q25 results and record bookings due to strong AI demand for DRAM and advanced logic, and FY2026 guidance is above consensus. Adyen reported December quarter results slightly below consensus expectations, with net revenue growing 19% y/y. For the Baird Chautauqua International Growth Fund, 60% of companies that reported earnings during the quarter were in line with or exceeded consensus estimates.
HDFC Bank Limited (NYSE: HDB - Get Free Report) was the recipient of a significant drop in short interest during the month of March. As of March 31st, there was short interest totaling 8,143,238 shares, a drop of 21.8% from the March 15th total of 10,414,881 shares. Approximately 0.2% of the shares of the company are
Investors looking for stocks in the Banks - Foreign sector might want to consider either HSBC (HSBC - Free Report) or HDFC Bank (HDB - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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.
HSBC and HDFC Bank are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that HSBC'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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HSBC currently has a forward P/E ratio of 10.63, while HDB has a forward P/E of 15.59. We also note that HSBC has a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HDB currently has a PEG ratio of 1.23.
Another notable valuation metric for HSBC 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, HDB has a P/B of 1.96.
Based on these metrics and many more, HSBC holds a Value grade of B, while HDB has a Value grade of F.
HSBC sticks out from HDB in both our Zacks Rank and Style Scores models, so value investors will likely feel that HSBC is the better option right now.
Invesco EQV International Equity Fund trailed the index primarily due to stock selection in financials and industrials. Stock selection in financials and industrials, along with an underweight and stock selection in energy, detracted the most from relative return. Conversely, an underweight allocation in communication services and stock selection in consumer staples added to relative performance.
A man looks out of a window next to the signboard of HDFC Bank's automated teller machine (ATM) in New Delhi, India, May 5, 2023. REUTERS/Anushree Fadnavis/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesChairman resigned in March citing mismatch in values, practicesExit prompted stock rout, RBI statement seeking calmBank likely to seek CEO reappointment after review, source saysSystemically important bank is majority foreign-ownedMUMBAI, May 6 (Reuters) - Law firms reviewing governance at HDFC Bank (HDBK.NS), opens new tab are set to report this month that they have not found any major lapses, two people with direct knowledge of the findings said, clearing the way for the reappointment of its CEO.
India's largest private lender by assets called in Mumbai-based Trilegal and Wadia Ghandy & Co after Atanu Chakraborty resigned as chairman in March citing "incongruence" between his personal values and bank practices. He did not elaborate.
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HDFC Bank shares extended gains on the day to as much as 3.1% at 796.95 rupees after the Reuters report, before easing a little to trade 2.9% higher at 0930 GMT. Shares were trading about 1.8% higher ahead of the Reuters report.
The resignation was followed by a 13.81% drop in the bank's share price, or $16 billion in the stock's value, and prompted a rare statement from the central bank seeking to allay investor and depositor concern about a lender deemed too big to fail.
It also threw into doubt the lender's application at the central bank due May-end to reappoint CEO Sashidhar Jagdishan.
The affair exposed leadership strain at HDFC, a bank majority-owned by foreign institutional investors and which has faced ire over stock that is down 5% since a $40 billion merger with parent HDFC Ltd in 2023. Closest rival ICICI Bank (ICBK.NS), opens new tab has risen 33% in that time and the benchmark Nifty 50 is up 24%.
With 120 million customers and just over a tenth of banking deposits, a clean bill of health from the law firms would bring certainty to a bank whose stability is critical to the economy.
The law firms examined minutes and video recordings of board and extraordinary general meetings over the last three years to ascertain whether Chakraborty had raised governance issues and, if so, how those issues were addressed, the people said, declining to be identified as the findings are not public.
All issues raised at board level were handled as per prescribed processes, one of the people said, without elaborating on those issues.
The law firms are likely to hand their report this month to the board, which will then submit it to the central bank, the person said.
The review findings have not been previously reported.
Chakraborty declined to comment on Reuters' texted queries. HDFC Bank, the Reserve Bank of India, Trilegal and Wadia Ghandy & Co did not respond to emailed requests for comment.
BANK SET TO PROPOSE CEO REAPPOINTMENTThe resignation and review had delayed a board decision on whether to recommend Jagdishan for reappointment as CEO after his three-year term ends in October. The central bank approves lenders' CEO appointments.
HDFC Bank will propose Jagdishan for reappointment after the law firms submit their report, the second person said.
The central bank is of the view that there are no issues that could preclude reappointment, said a third person, who is familiar with RBI thinking. If the review tallies, the RBI would have no problem supporting reappointment, the person said.
After Chakraborty resigned, the central bank said that, on the basis of its periodical assessment, "there are no material concerns on record as regards its conduct or governance".
Proxy advisor InGovern Research Advisory Services last month said the resignation was likely driven by individual personality rather than any threat to shareholder value.
Reporting by Gopika Gopakumar and Jayshree P Upadhyay in Mumbai; Editing by Ira Dugal and Christopher Cushing
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