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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%.

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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.

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

Image Source: Zacks Investment Research

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

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

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

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

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

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

Prior Guidance

(Honeywell International)

2026 Guidance

(Honeywell Technologies)

2H 2026 Guidance

(Honeywell Technologies)

Sales

$38.8B - $39.8B

$19.9B - $20.2B

$10.1B - $10.3B

Organic1 Growth

3% - 6%

2% - 3%

3% - 5%

Segment Margin

22.7% - 23.1%

19.8% - 20.3%

20.9% - 21.6%

Expansion

20 - 60 bps5

220 - 270 bps

310 - 380 bps

Adjusted Earnings Per Share3

$10.35 - $10.65

$3.95 - $4.15

$2.20 - $2.35

Adjusted Earnings Growth3

6% - 9%

22% - 28%

   22% - 31%

Operating Cash Flow

$4.7B - $5.0B

 ~$2.1B

 ~$2.3B

Free Cash Flow1,4

          $5.3B - $5.6B

~$2.0B

   ~$1.5B

1

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

2

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

3

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

4

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

5

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

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

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

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

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

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

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

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

Appendix

Non-GAAP Financial Measures

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

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

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

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

Honeywell International Inc.

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

(Unaudited)

(Dollars in millions)

Twelve Months Ended December 31, 2025

As Reported

Less: Spin-off and
Divestiture Impact(1)

Excluding Spin-off and
Divestiture Impact

Operating income

$                5,573

$                  4,268

$                1,305

Stock compensation expense(4)

196

43

153

Repositioning, Other(2),(3)

675

231

444

Amortization of acquisition-related intangibles(6)

570

62

508

Pension and other postretirement service costs(3)

73

16

57

Acquisition-related costs(5)

2

—

2

Indefinite-lived intangible asset impairment(6)

44

—

44

Impairment of goodwill

724

—

724

Impairment of assets held for sale

270

—

270

Segment profit

$                8,127

$                  4,620

$                3,507

Flexjet-related litigation matters

373

373

—

Adjusted segment profit

$                8,500

$                  4,993

$                3,507

Net sales

$              37,442

$                17,527

$              19,915

Flexjet-related litigation matters

312

312

—

Adjusted net sales

$              37,754

$                17,839

$              19,915

Adjusted segment profit

$                8,500

$                3,507

÷ Adjusted net sales

$              37,754

$              19,915

Adjusted segment profit margin

22.5 %

17.6 %

1

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

2

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

3

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

4

Included in Selling, general and administrative expenses

5

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

6

Included in Cost of products and services sold.

Six Months Ended December 31, 2025

As Reported

Less: Spin-off and
Divestiture Impact(1)

Excluding Spin-off
and Divestiture Impact

Operating income

$                2,009

$                  1,955

$                   54

Stock compensation expense(4)

82

21

61

Repositioning, Other(2),(3)

574

228

346

Amortization of acquisition-related intangibles(6)

303

23

280

Pension and other postretirement service costs(3)

46

8

38

Acquisition-related costs(5)

9

—

9

Indefinite-lived intangible asset impairment(6)

44

—

44

Impairment of goodwill

724

—

724

Impairment of assets held for sale

255

—

255

Segment profit

$                4,046

$                  2,235

$                1,811

Flexjet-related litigation matters

373

373

—

Adjusted segment profit

$                4,419

$                  2,608

$                1,811

Net sales

$              19,196

$                  9,034

$              10,162

Flexjet-related litigation matters

312

312

—

Adjusted net sales

$              19,508

$                  9,346

$              10,162

Adjusted segment profit

$                4,419

$                1,811

÷ Adjusted net sales

$               19,508

$               10,162

Adjusted segment profit margin

22.7 %

17.8 %

1

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

2

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

3

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

4

Included in Selling, general and administrative expenses

5

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

6

Included in Cost of products and services sold.

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

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

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

Honeywell International Inc.

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

(Unaudited)

Twelve Months Ended December 31, 2025

As Reported

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

Excluding
Spin-off and
Quantinuum
Divestiture
Impact

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

$         6.94

$         5.19

$         1.75

Pension income(3)

(0.46)

(0.39)

(0.07)

Amortization of acquisition-related intangibles(4)

0.67

0.08

0.59

Acquisition-related costs(5)

0.05

—

0.05

Divestiture-related costs(6)

0.72

0.31

0.41

Indefinite-lived intangible asset impairment(7)

0.07

—

0.07

Impairment of goodwill(8)

1.13

—

1.13

Impairment of assets held for sale(9)

0.32

—

0.32

Loss (gain) on sale of business(10)

0.04

—

0.04

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

(1.25)

—

(1.25)

Adjustment to estimated future environmental liabilities(12)

0.25

0.22

0.03

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

0.17

—

0.17

Flexjet-related litigation matters(14)

0.48

0.48

—

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

$         9.13

5.89

$         3.24

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

Six Months Ended December 31, 2025

As Reported

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

Excluding
Spin-off and
Quantinuum
Divestiture
Impact

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

$         2.80

$         2.11

$         0.69

Pension income(3)

(0.19)

(0.21)

0.02

Amortization of acquisition-related intangibles(4)

0.36

0.03

0.33

Acquisition-related costs(5)

0.05

—

0.05

Divestiture-related costs(6)

0.61

0.37

0.24

Indefinite-lived intangible asset impairment(7)

0.07

—

0.07

Impairment of goodwill(8)

1.13

—

1.13

Impairment of assets held for sale(9)

0.32

—

0.32

Loss (gain) on sale of business

—

—

—

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

(1.25)

—

(1.25)

Adjustment to estimated future environmental liabilities(11)

0.25

0.22

0.03

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

0.17

—

0.17

Flexjet-related litigation matters(13)

0.48

0.48

0.00

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

$         4.80

$         3.00

$         1.80

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

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

Honeywell International Inc.

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

(Unaudited)

Twelve Months Ended December 31, 2026(E)

Six Months
Ended
December 31,
2026(E)

Previous
Guidance

Less: Spin-off
and Divestiture
Impact(1)

Guidance
Excluding Spin-
off and
Divestiture
Impact

Guidance

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

$8.87 - $9.17

$5.98-$6.08

$2.89 - $3.09

$1.84 - $1.99

Pension income(3)

No Forecast

No Forecast

No Forecast

No Forecast

Amortization of acquisition-related intangibles(4)

0.75

0.11

0.64

0.32

Acquisition-related costs(5)

0.05

—

0.05

0.02

Divestiture-related costs

No Forecast

No Forecast

No Forecast

No Forecast

Debt restructuring costs(6)

0.36

—

0.36

—

ERP implementation costs(7)

0.02

—

0.02

0.02

Impairment of assets held for sale(8)

0.31

0.31

—

—

Loss (gain) on sale of business(9)

(0.01)

—

(0.01)

—

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

$10.35 - $10.65

$6.40 - $6.50

$3.95 - $4.15

$2.20 - $2.35

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

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

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

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

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

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

Honeywell International Inc.

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

(Unaudited)

(Dollars in millions)

Twelve Months Ended December 31, 2026 (E)

Six Months
Ended
December 31,
2026(E)

Previous
Guidance

Less: Spin-
off and
Divestiture
Impact(1)

Guidance
Excluding
Spin-off and
Divestiture
Impact

Guidance

Cash provided by operating activities from continuing operations

~$4.4 - $4.7

~(2.4)

~$2.0 - $2.3

$2.2 - $2.4

Capital expenditures

~(1.3)

~0.7

~(0.6)

~(1.0)

Spin-off and separation-related cost payments

~1.8

~(1.4)

~0.4

~0.2

Settlement of Flexjet-related litigation matters

~0.4

~(0.4)

—

—

Free cash flow

~$5.3 - $5.6

~$3.5

~$1.8 - $2.1

~$1.4 - $1.6

1

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

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

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

SOURCE Honeywell

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Union Pacific Corporation (UNP) Presents at RBC Capital Markets Canadian Industrials Conference Transcript

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.

Today's Change

(

0.43

%) $

0.20

Current Price

$

47.57

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.

Today's Change

(

1.65

%) $

4.42

Current Price

$

272.70

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.

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/

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.

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. 

Featured image via Shutterstock

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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 (HDB) Q4 2026 Earnings Call Transcript

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.

On May 11, 2026, HDFC Bank Ltd HDB shares fell by 3.3%, closing at $24.20. This decline is part of a larger downward trend, with the stock down 33.8% year-to-date and 30.5% over the past year. The shares have traded within a 52-week range of $23.91 to $39.81.

GF Value™ verdict: HDB is currently priced at $24.20, which is 23.3% below its GF Value™ of $31.56.GF Score™: HDB has a GF Score™ of 76/100, indicating it is above average compared to other stocks.Most notable signal: Insiders have sold $0.3 million worth of shares in the last three months, with no buying activity reported. Is HDB Overvalued or Undervalued? With HDFC Bank's current price of $24.20 significantly lower than the GF Value™ estimate of $31.56, the stock appears to be undervalued by 23.3%. This presents a potential opportunity for investors looking for stocks that may be trading below their intrinsic value. The GF Valuation label categorizes HDB as "Modestly Undervalued," suggesting that the stock has a margin of safety for those considering its current valuation.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current undervaluation, potential investors might find HDB appealing; however, caution is warranted due to the recent performance trends and the absence of insider buying, which could indicate a lack of confidence from those with inside knowledge of the company.

How Does HDB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.3x 20.4x Forward P/E 19.2x N/A HDB's current P/E (TTM) of 15.3x is 25% below its 5-year median P/E of 20.4x, indicating that the stock is trading below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, supporting the notion that HDB is undervalued at its current price.

What Does HDB's GF Score™ Tell Us? Metric Rating GF Score™ 76/100 Financial Strength 3/10 Profitability 6/10 Growth 9/10 Valuation 8/10 Momentum 2/10 The GF Score™ provides valuable insights into HDB's overall performance. With a score of 76/100, the bank exhibits strong growth potential (9/10), indicating promising future earnings and revenue increases. However, the financial strength score of 3/10 is a significant weakness, suggesting potential concerns regarding the bank's stability. The valuation score of 8/10 further supports the undervaluation perspective, while the momentum score of 2/10 highlights ongoing challenges in maintaining positive price movement.

What Are Insiders Doing with HDB Stock? In the past three months, insider activity for HDB has shown a net sale of $0.3 million, with no reported purchases. This trend could suggest a lack of confidence from insiders in the company's immediate future performance. Typically, insider buying is viewed as a positive signal, indicating that those with the most knowledge about the company believe in its potential. Conversely, the recent selling could raise concerns for potential investors.

What This Means for Investors Based on the current analysis, HDFC Bank Ltd HDB is considered undervalued at its current price of $24.20 compared to its GF Value™ of $31.56. While this presents an opportunity for value-seeking investors, the recent insider selling and low financial strength score suggest that potential risks should be carefully considered before making investment decisions.

For the complete analysis, visit the HDFC Bank Ltd HDB 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 HDB's GF Score™?

HDB has a GF Score™ of 76/100, indicating that it is above average compared to other stocks, suggesting a potential for higher long-term returns.

Is HDB overvalued or undervalued?

HDB is currently undervalued, with a GF Value™ estimate of $31.56 compared to its market price of $24.20, indicating a 23.3% upside.

What is HDB's P/E ratio?

HDB's P/E (TTM) is 15.3x, which is significantly lower than its 5-year median P/E of 20.4x, suggesting that the stock is trading below its historical valuation levels.

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].

HDFC Bank shares declined on Wednesday after a newspaper report alleged that India’s biggest private lender made payments to a Maharashtra state department to secure large deposits, raising fresh questions over governance at the bank.

The stock fell as much as 2% and was trading 1.9% lower at 764.20 rupees as of 10:40am in Mumbai.

The benchmark BSE Sensex was little changed.

The Indian Express reported that HDFC Bank paid 450 million rupees to Maharashtra State Road Development Corporation and booked the transfers as marketing expenses.

HDFC Bank did not immediately respond to an emailed request for comment.

The allegations have put renewed attention on the bank’s internal controls, legal review and leadership transition process.

According to the Indian Express report, the alleged payments were made to attract large deposits from the state-run entity.

The report also alleged that Chief Executive Officer Sashidhar Jagdishan was aware of the dealings.

If confirmed, such payments could raise questions over whether a bank effectively offered additional benefits to secure deposits outside normal interest-rate terms.

Banks are expected to treat depositors consistently within the framework of applicable rules. Any suggestion that payments were routed through marketing expenses to win deposits could attract closer scrutiny from regulators and investors.

Legal review remains under wayThe latest report comes against an already sensitive governance backdrop for HDFC Bank.

Earlier media reports about alleged lapses had prompted the lender to engage legal firms to review certain practices.

Those firms had not found any material deviation from the bank’s practices so far, according to the supplied details, though the review remains ongoing and no final conclusion has been reached.

That leaves investors waiting for clarity on whether the review identifies any governance concerns, and whether the bank issues a detailed response to the latest allegations.

The stock has fallen 9.5% since the chairman’s resignation on March 19, adding to market sensitivity around governance and leadership issues.

The allegations also come as investors watch the next steps in Jagdishan’s reappointment process.

His three-year term is due to end in October, and the reappointment application has not yet been filed with the Reserve Bank of India.

Any regulatory concern arising from the media report or the legal review could become important for shareholders assessing the timing and outcome of that process.

For now, the key questions are whether HDFC Bank provides a detailed rebuttal or clarification, whether the legal review reaches a firm conclusion, and whether the RBI seeks additional information.

The near-term focus is likely to remain on the bank’s response, the outcome of the governance review and any regulatory reaction to the reported payments.

Until then, the shares may remain vulnerable to further headlines around governance and management continuity.

Shares of Indian banks rose more than 1% on Tuesday, making them the top-performing sectoral gainers after the Reserve Bank of India issued detailed guidelines for a concessional foreign exchange swap facility that lenders can use for overseas borrowings.

The move forms part of a broader package of measures announced by the central bank to attract foreign capital into the country at a time when India's economy is facing growth and inflation challenges.

The measures also come as the rupee remains under pressure from rising crude oil prices and sustained outflows from domestic equity markets.

The Nifty Bank index advanced 1.2% at 10:18 am IST in Mumbai, outperforming the broader market.

The benchmark Nifty 50 index was up 0.2% during the same period.

Among major lenders, State Bank of India and HDFC Bank gained 0.7% and 0.1%, respectively.

ICICI Bank rose 1.4%, emerging as the top performer among private sector lenders and helping the private banks index gain 1.1%.

The rally followed a mixed performance for banking stocks in recent sessions.

The banking index had risen 0.4% on Friday before declining 0.8% on Monday.

Under the RBI's framework, the concessional swap facility will remain available through September 30.

The facility is intended to compensate banks for hedging costs associated with three- to five-year foreign currency non-resident deposits.

Market participants appeared to welcome the additional clarity provided by the central bank.

Citi Research said, "This is likely to be treated as an additional announcement by the markets as there was no full clarity on this last Friday."

The brokerage added that the measure could generate overseas borrowings worth between $25 billion and $30 billion.

Jefferies projected even larger capital inflows.

According to the brokerage, overall inflows could reach $50 billion to $70 billion following the RBI's decision to allow banks to offer leverage on deposits made by non-residents.

According to ICICI Securities, the latest measures could strengthen banks' liability profiles by increasing the share of stable medium-term foreign currency deposits while reducing dependence on domestic deposit mobilisation.

The move comes at a time when lenders have been facing intense competition for deposits.

Households have increasingly been directing savings toward equities and other asset classes, creating challenges for banks seeking to raise funds through traditional deposits.

Despite Tuesday's gains, banking stocks have faced pressure this year.

The bank index has declined 8.2% so far, while the benchmark Nifty has fallen 11.4%.

Alongside the forex swap facility, the RBI announced several measures aimed at encouraging foreign investment and improving access to overseas capital.

Among the key initiatives, all new issuances of 15-year, 30-year, and 40-year government bonds will be included under the Fully Accessible Route.

According to the RBI, bonds in this category are already part of three global bond indexes.

The central bank said the move is expected to improve accessibility for foreign investors and could increase participation in India's government debt market.

In another significant policy change, limits relating to short-term investments, concentration norms, and individual securities applicable to foreign investment under the general route will be removed.

RBI Governor Sanjay Malhotra said the latest measures, along with tax benefits announced by the government earlier in the day, are expected to support greater foreign participation in government borrowing programmes.

The combined measures underscore the central bank's efforts to attract higher dollar inflows, support financial markets, and strengthen funding avenues for both the government and the banking sector.

Posted by Defense World Staff on Apr 27th, 2026

Royal Bank of Canada (TSE:RY – Get Free Report) (NYSE:RY) insider Katherine Gibson sold 462 shares of the business’s stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of C$242.82, for a total value of C$112,182.84. Following the completion of the sale, the insider directly owned 290 shares in the company, valued at C$70,417.80. This represents a 61.44% decrease in their position.

Royal Bank of Canada Stock Performance RY opened at C$239.83 on Monday. Royal Bank of Canada has a one year low of C$161.82 and a one year high of C$246.72. The stock’s fifty day moving average is C$230.17 and its 200-day moving average is C$224.54. The company has a market capitalization of C$333.49 billion, a PE ratio of 16.47, a P/E/G ratio of 3.42 and a beta of 1.07.

Royal Bank of Canada (TSE:RY – Get Free Report) (NYSE:RY) last posted its quarterly earnings data on Thursday, February 26th. The financial services provider reported C$4.08 EPS for the quarter. Royal Bank of Canada had a return on equity of 15.37% and a net margin of 20.88%.The company had revenue of C$17.96 billion for the quarter. On average, equities research analysts forecast that Royal Bank of Canada will post 12.3454675 EPS for the current fiscal year.

Royal Bank of Canada Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Friday, May 22nd will be paid a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Thursday, April 23rd. Royal Bank of Canada’s payout ratio is currently 42.58%.

Royal Bank of Canada News Summary Here are the key news stories impacting Royal Bank of Canada this week:

Positive Sentiment: Recent fundamentals remain supportive: RBC reported strong Q4 results (C$4.08 EPS, C$17.96B revenue) and retains solid profitability metrics, which underpins longer‑term investor confidence. MarketBeat – Royal Bank of Canada profile Neutral Sentiment: Technicals/flow: the share price is near its 1‑year high and trading above both the 50‑ and 200‑day moving averages with volume above average — this can amplify moves but does not on its own change fundamentals. MarketBeat – Royal Bank of Canada profile Negative Sentiment: Director David Ian Mckay sold 23,089 shares at C$242.82 (~C$5.61M), reducing his holding by ~79.7% — a large director sale that may be viewed negatively by the market. Insider sale report Negative Sentiment: Insider Bruce Washington Ross sold 3,657 shares at C$242.82 (~C$888k), cutting his stake by ~93.96% — another sizable reduction. Insider sale report Negative Sentiment: Insiders Graeme Ashley Hepworth, Katherine Gibson and Jennifer Publicover also sold shares on April 22 (totaling ~1,463; 462; and 439 shares respectively), adding to the pattern of insider selling. Insider sale report Analyst Ratings Changes A number of analysts have recently commented on RY shares. Scotiabank boosted their price objective on Royal Bank of Canada from C$242.00 to C$247.00 and gave the stock an “outperform” rating in a research note on Friday, February 27th. Canadian Imperial Bank of Commerce boosted their price objective on Royal Bank of Canada from C$229.00 to C$242.00 and gave the stock a “neutral” rating in a research note on Friday, February 13th. Jefferies Financial Group boosted their price objective on Royal Bank of Canada from C$217.00 to C$220.00 in a research note on Wednesday, February 11th. National Bank Financial lifted their target price on Royal Bank of Canada from C$241.00 to C$247.00 and gave the stock an “outperform” rating in a report on Friday, February 27th. Finally, Raymond James Financial lifted their target price on Royal Bank of Canada from C$255.00 to C$260.00 and gave the stock a “buy” rating in a report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, Royal Bank of Canada has an average rating of “Moderate Buy” and a consensus price target of C$244.58.

Check Out Our Latest Stock Analysis on RY

Royal Bank of Canada Company Profile (Get Free Report)

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 101,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S.

Further Reading Five stocks we like better than Royal Bank of Canada

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NEW YORK, NY / ACCESS Newswire / May 8, 2026 / Aegis Capital Corp. - Aegis Capital Corp. (www.aegiscapcorp.com) a full-service wealth management, financial services and investment banking firm is pleased to announce the addition of the Atlanta, Georgia Location led by Leslie Netter.

Leslie is an experienced wealth management adviser with over 28 years of experience as a financial professional. Prior to becoming a financial adviser, Les was employed as a Certified Public Accountant for over 23 years with various Fortune 500 companies and a ‘Big 8' CPA firm. In 1998 he started in the financial sector with Citigroup until 2006 when he moved on to Morgan Stanley as Vice President and Financial Advisor. In 2015 Les then became a First Vice President--Wealth Management at UBS Financial for the next 10 years. Prior to joining Aegis Les had returned to Morgan Stanley.

Robert Eide Aegis' CEO commented: "Les' unwavering commitment to his clients is impressive and we are confident he will continue to grow and thrive with the support of Aegis' advanced capabilities, stability and cutting-edge technology. Aegis continues to offer a compelling alternative for wirehouse advisers."

Michael Pata Aegis' Head of Business Development commented: "Les is a well-respected adviser who goes above and beyond to meet the personalized financial goals of his clients. In addition to his arrival, we are also excited to expand our presence with the opening of the Atlanta office. The Atlanta metropolitan area's economy is the tenth largest in the country."

About Aegis Capital Corporation

Aegis Capital Corporation "Aegis" has been in business for over 40 years catering to the needs of private clients, institutions and corporations. Aegis was founded in 1984 and offers its investment representatives a conflict free service platform and is able to provide a full range of products and services including investment banking, wealth management, insurance, retirement planning, structured products, private equity, alternatives, equity research, fixed income and special purpose vehicles. Aegis is able to provide quality service through its primary clearing relationship with RBC Clearing & Custody whose parent company, Royal Bank of Canada (NYSE:RY), is one of the world's leading diversified financial services companies. Member: FINRA/SIPC.

Any questions contact:

Michael Pata, Head of Business Development
Telephone: 1-212-813-1010
[email protected]
www.aegiscapcorp.com

SOURCE: Aegis Capital Corp.

Royal Bank (RY - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on May 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis bank is expected to post quarterly earnings of $2.81 per share in its upcoming report, which represents a year-over-year change of +27.7%.

Revenues are expected to be $12.5 billion, up 13.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.23% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Royal Bank?For Royal Bank, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.07%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Royal Bank will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Royal Bank would post earnings of $2.81 per share when it actually produced earnings of $2.94, delivering a surprise of +4.63%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Royal Bank doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

All amounts are in Canadian dollars and are based on financial statements presented in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Our Q2 2026 Report to Shareholders is available at rbc.com/investorrelations, sedarplus.com and sec.gov and our Q2 2026 Supplementary Financial Information is available at rbc.com/investorrelations.

Net income

 $5.5 billion

Up 25% YoY

Down 5% QoQ

Diluted EPS1

 $3.85

Up 27% YoY

Down 4% QoQ

ROE1

 17.2%

Up 300 bps1 YoY
Down 40 bps QoQ

Total PCL1

 $0.9 billion

PCL on loans ratio1
down 6 bps QoQ

CET1 ratio1

 13.5%

Above regulatory
requirements and
down 20 bps QoQ

Adjusted net
income2

 $5.6 billion

Up 23% YoY

Down 5% QoQ

Adjusted diluted
EPS2
$3.90

Up 25% YoY

Down 4% QoQ

Adjusted ROE2

 17.4%

Up 270 bps YoY

Down 40 bps QoQ

Total ACL1

 $7.8 billion

ACL on loans ratio1

down 1 bp QoQ

LCR1

 126%

Up from
124% last quarter

, /CNW/ - Royal Bank of Canada3 (TSX: RY) (NYSE: RY) today reported net income of $5.5 billion for the quarter ended April 30, 2026, up $1,119 million or 25% from the prior year. Diluted EPS was $3.85, up 27% over the same period, reflecting growth across each of our business segments. Adjusted net income2 and adjusted diluted EPS2 of $5.6 billion and $3.90 were up 23% and 25%, respectively, from the prior year.

"In a world that's constantly changing and becoming more complex, our commitment to delivering trusted advice and helping clients navigate risk continues to produce exceptional outcomes. Our second quarter earnings showcase our consistency in delivering premium profitability and long-term shareholder value, underpinned by solid growth across our diversified businesses and balance sheet strength. Looking ahead, we remain focused on building the bank of the future and evolving with the needs of those we serve."

                                              – Dave McKay, President and Chief Executive Officer of Royal Bank of Canada

Pre-provision, pre-tax earnings2 of $8.0 billion were up $1.1 billion or 15% from last year, mainly due to higher revenue in Capital Markets, driven by strength across Global Markets and Corporate & Investment Banking, and higher fee-based revenue in Wealth Management, reflecting market appreciation and net sales. Higher net interest income in Personal Banking and Commercial Banking, reflecting average volume growth and higher spreads, also contributed to the increase. These factors were partially offset by higher compensation commensurate with increased results.

Our consolidated results reflect a decrease in total PCL of $512 million from a year ago, primarily due to lower provisions in Commercial Banking and Personal Banking. The PCL on loans ratio of 35 bps decreased 23 bps from the prior year. The PCL on impaired loans ratio1 of 34 bps decreased 1 bp, while the PCL on performing loans ratio1 of 1 bp decreased 22 bps, as the same quarter last year reflected higher provisions primarily due to the impacts of trade disruptions (including tariffs). Income before income taxes of $7.1 billion was up $1.6 billion or 29% from last year.

Compared to last quarter, net income was down 5% reflecting lower results in Wealth Management, Personal Banking and Commercial Banking, which includes the impact of three fewer days in the current quarter, and in Corporate Support, partly offset by higher results in Capital Markets and Insurance. Adjusted net income2 was down 5% over the same period. Pre-provision, pre-tax earnings2 were down $0.5 billion or 6% on lower revenues and flat expenses. The PCL on loans ratio of 35 bps decreased 6 bps from the prior quarter. The PCL on impaired loans ratio was 34 bps, down 6 bps from the prior quarter, primarily due to lower provisions in Capital Markets, and in Personal Banking and Commercial Banking to a lesser extent, while the PCL on performing loans ratio was 1 bp, remaining flat from the prior quarter.

Our capital position remains robust, with a CET1 ratio1 of 13.5%, supporting solid volume growth and $4.0 billion of capital returned to our shareholders, including $1.7 billion of share buybacks and $2.3 billion of common share dividends.

Today, we declared a quarterly dividend of $1.76 per share reflecting an increase of $0.12 or 7%. We also announced our intention, subject to the approval of the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions, to commence a normal course issuer bid and to repurchase for cancellation up to 45 million of our common shares, representing approximately 3% of the bank's outstanding common shares as at May 15, 2026.

____________________________________________

1 See the Glossary section of our interim Management's Discussion and Analysis dated May 27, 2026, available at sedarplus.com and sec.gov, for an explanation of the composition of these measures. Such explanation is incorporated by reference hereto.

2 These are non-GAAP measures or ratios. For further information, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 4 to 5 of this Earnings Release.

3 When we say "we", "us", "our", "the bank" or "RBC", we mean Royal Bank of Canada and its subsidiaries, as applicable.

Personal Banking

Net income of $1,870 million increased $268 million or 17% from a year ago, primarily driven by higher net interest income reflecting average volume growth of 2% and higher spreads, which included an unfavourable impact from lower accretion of fair value adjustments related to the acquisition of HSBC Bank Canada (HSBC Canada). Lower PCL, as the same quarter last year reflected higher provisions on performing loans primarily due to the impacts of trade disruptions (including tariffs), as well as higher fee-based client assets reflecting market appreciation and net sales also contributed to the increase.

Compared to last quarter, net income decreased $92 million or 5%, mainly driven by lower net interest income reflecting three fewer days in the current quarter.

Commercial Banking

Net income of $854 million increased $257 million or 43% from a year ago, primarily driven by lower PCL, as the same quarter last year reflected higher provisions on performing loans primarily due to the impacts of trade disruptions (including tariffs) and the current quarter reflected lower provisions on impaired loans. Higher net interest income reflecting average volume growth of 3% in both loans and deposits, and higher spreads also contributed to the increase.

Compared to last quarter, net income decreased $9 million or 1%, primarily driven by lower net interest income reflecting three fewer days in the current quarter. This was partially offset by lower PCL, largely due to lower provisions on impaired loans.

Wealth Management

Net income of $1,185 million increased $256 million or 28% from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. Higher net interest income reflecting average volume growth in loans and deposits and higher spreads also contributed to the increase.

Compared to last quarter, net income decreased $110 million or 8%, mainly due to changes in the fair value of seed capital investments, seasonally lower performance fees, and higher PCL mainly reflecting provisions taken on performing loans as compared to releases of provisions last quarter, and higher provisions on impaired loans. These factors were partially offset by lower staff costs.

Insurance

Net income of $218 million increased $7 million or 3% from a year ago, primarily due to higher insurance investment result reflecting lower capital funding costs. This was partially offset by lower insurance service result, as the favourable impact of reinsurance contract recaptures was more than offset by the impact of claims experience.

Compared to last quarter, net income increased $5 million or 2%, primarily due to higher insurance investment result driven by favourable investment-related experience. This was partially offset by lower insurance service result, as the favourable impact of reinsurance contract recaptures was more than offset by the impact of claims experience.

Capital Markets

Net income of $1,484 million increased $282 million or 23% from a year ago, primarily driven by higher revenue in Global Markets and Corporate & Investment Banking. These factors were partially offset by higher taxes reflecting changes in earnings mix and higher compensation on increased results.

Compared to last quarter, net income remained relatively flat. Lower PCL, primarily reflecting lower provisions on impaired loans in a few sectors, including the consumer discretionary and financial services sectors, and higher equity and debt origination across all regions were offset by lower fixed income trading revenue across all regions.

Corporate Support

Net loss was $102 million for the current quarter, primarily due to legal provisions and residual unallocated costs.

Net loss was $26 million in the prior quarter, primarily due to residual unallocated costs, partially offset by asset/liability management activities.

Net loss was $151 million in the same quarter last year, primarily due to residual unallocated items, including severance.

Capital, Liquidity and Credit Quality

Capital
As at April 30, 2026, our CET1 ratio4 of 13.5% was down 20 bps from last quarter, as net internal capital generation was more than offset by share repurchases, business-driven RWA growth, the net impact of model updates and other items.

Liquidity
For the quarter ended April 30, 2026, the average LCR4 was 126%, which translates into a surplus of approximately $96 billion, compared to 124% and a surplus of approximately $91 billion in the prior quarter. Average LCR4 increased from the prior quarter, primarily due to changes in securities mix, partially offset by loan growth.

NSFR4 as at April 30, 2026 was 111%, which translates into a surplus of approximately $115 billion, compared to 111% and a surplus of approximately $113 billion in the prior quarter. NSFR4 remained flat compared to last quarter as growth in deposits and funding was offset by loan growth.

_________________________________________

4 See the Glossary section of our interim Management's Discussion and Analysis dated May 27, 2026, available at sedarplus.com and sec.gov, for an explanation of the composition of these measures. Such explanation is incorporated by reference hereto.

Credit Quality
Q2 2026 vs. Q2 2025
Total PCL of $912 million decreased $512 million or 36% from a year ago, primarily due to lower provisions in Commercial Banking and Personal Banking. The PCL on loans ratio of 35 bps decreased 23 bps. The PCL on impaired loans ratio of 34 bps decreased 1 bp.

PCL on performing loans of $18 million decreased $550 million, as the same quarter last year reflected higher provisions primarily due to the impacts of trade disruptions (including tariffs).

PCL on impaired loans of $899 million increased $47 million or 6%, primarily due to higher provisions in Personal Banking, partially offset by lower provisions in Commercial Banking.

Q2 2026 vs. Q1 2026
Total PCL decreased $178 million or 16% from last quarter, primarily due to lower provisions in Capital Markets, Personal Banking and Commercial Banking, partially offset by higher provisions in Wealth Management. The PCL on loans ratio decreased 6 bps. The PCL on impaired loans ratio decreased 6 bps.

PCL on performing loans decreased $10 million or 36%, primarily due to changes in credit quality, partially offset by unfavourable changes to our macroeconomic forecast.

PCL on impaired loans decreased $169 million or 16%, primarily due to lower provisions in Capital Markets, Personal Banking and Commercial Banking.

Key performance and non-GAAP measures

Performance measures
We measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics, such as net income and ROE. Certain financial metrics, including ROE, do not have a standardized meaning under generally accepted accounting principles (GAAP) and may not be comparable to similar measures disclosed by other financial institutions.

Non-GAAP measures
Non-GAAP measures and ratios do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions.

The following discussion describes the non-GAAP measures and ratios we use in evaluating our operating results.

Pre-provision, pre-tax earnings
We use pre-provision, pre-tax earnings (PPPT) to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of the credit cycle. PPPT may enhance comparability of our financial performance and enable readers to better assess trends in the underlying businesses. The following table provides a reconciliation of our reported results to PPPT and illustrates the calculation of PPPT presented:

For the three months ended

For the six months ended

April 30 

January 31 

April 30 

April 30 

April 30 

(Millions of Canadian dollars)

2026

2026

2025

2026

2025

Net income

$

5,509

$

5,785

$

4,390

$

11,294

$

9,521

Add: Income taxes

1,595

1,622

1,128

3,217

2,430

Add: PCL

912

1,090

1,424

2,002

2,474

Pre-provision, pre-tax earnings

$

8,016

$

8,497

$

6,942

$

16,513

$

14,425

Adjusted results and ratios
We believe that adjusted results are more reflective of our ongoing operating results and provide readers with a better understanding of management's perspective on performance. Specified items discussed below can lead to variability that could obscure trends in underlying business performance and the amortization of acquisition-related intangibles can differ widely between organizations. Excluding the impact of specified items and amortization of acquisition-related intangibles may enhance comparability of our financial performance and enable readers to better assess trends in the underlying businesses.

Our results for the three and six months ended April 30, 2025 were adjusted for the following specified item:

HSBC Canada transaction and integration costs. Adjusted ratios, including adjusted EPS (basic and diluted), adjusted ROE and adjusted efficiency ratio, which are derived from adjusted results, are useful to readers because they may enhance comparability in assessing profitability on a per-share basis, how efficiently profits are generated from average common equity and how efficiently costs are managed relative to revenues. Adjusted results and ratios can also help inform and support strategic choices and capital allocation decisions.

Consolidated results, reported and adjusted
The following table provides a reconciliation of our reported results to our adjusted results and illustrates the calculation of adjusted measures presented. The adjusted results and ratios presented below are non-GAAP measures or ratios.

As at or for the three months ended

As at or for the six months ended

(Millions of Canadian dollars, except per share, number of and percentage amounts)

April 30
    2026

January 31
      2026

April 30
    2025

April 30
     2026

April 30
   2025

Total revenue

$

17,453

$

17,960

$

15,672

$

35,413

$

32,411

PCL

912

1,090

1,424

2,002

2,474

Non-interest expense

9,437

9,463

8,730

18,900

17,986

Income before income taxes

7,104

7,407

5,518

14,511

11,951

Income taxes

1,595

1,622

1,128

3,217

2,430

Net income

$

5,509

$

5,785

$

4,390

$

11,294

$

9,521

Net income available to common shareholders

$

5,372

$

5,643

$

4,274

$

11,015

$

9,285

Average number of common shares (thousands)

1,393,332

1,398,580

1,411,362

1,396,000

1,412,671

Basic earnings per share (in dollars)

$

3.86

$

4.03

$

3.03

$

7.89

$

6.57

Average number of diluted common shares (thousands)

1,396,548

1,401,884

1,413,517

1,399,262

1,415,037

Diluted earnings per share (in dollars)

$

3.85

$

4.03

$

3.02

$

7.87

$

6.56

ROE

17.2 %

17.6 %

14.2 %

17.4 %

15.5 %

Effective income tax rate

22.5 %

21.9 %

20.4 %

22.2 %

20.3 %

Total adjusting items impacting net income (before-tax)

$

101

$

102

$

184

$

203

$

349

Specified item: HSBC Canada transaction and integration costs (1)

-

-

31

-

43

Amortization of acquisition-related intangibles (2)

101

102

153

203

306

Total income taxes for adjusting items impacting net income

$

27

$

26

$

46

$

53

$

88

Specified item: HSBC Canada transaction and integration costs (1)

-

-

7

-

13

Amortization of acquisition-related intangibles (2)

27

26

39

53

75

Adjusted results (3)

Income before income taxes - adjusted

$

7,205

$

7,509

$

5,702

$

14,714

$

12,300

Income taxes - adjusted

1,622

1,648

1,174

3,270

2,518

Net income - adjusted

5,583

5,861

4,528

11,444

9,782

Net income available to common shareholders - adjusted

5,446

5,719

4,412

11,165

9,546

Average number of common shares (thousands)

1,393,332

1,398,580

1,411,362

1,396,000

1,412,671

Basic earnings per share (in dollars) - adjusted (3)

$

3.91

$

4.09

$

3.13

$

8.00

$

6.76

Average number of diluted common shares (thousands)

1,396,548

1,401,884

1,413,517

1,399,262

1,415,037

Diluted earnings per share (in dollars) - adjusted (3)

$

3.90

$

4.08

$

3.12

$

7.98

$

6.75

ROE - adjusted (3)

17.4 %

17.8 %

14.7 %

17.6 %

15.9 %

Effective income tax rate - adjusted (3)

22.5 %

21.9 %

20.6 %

22.2 %

20.5 %

(1)

These amounts have been recognized in Corporate Support.

(2)

Represents the impact of amortization of acquisition-related intangibles (excluding amortization of software), and any goodwill impairment.

(3)

See the Glossary section of our interim Management's Discussion and Analysis dated May 27, 2026, available at sedarplus.com and sec.gov, for an explanation of the composition of these measures. Such explanation is incorporated by reference hereto.

Additional information about ROE and other key performance and non-GAAP measures and ratios can be found under the Key performance and non-GAAP measures section of our Q2 2026 Report to Shareholders.

Caution regarding forward-looking statements
From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. We may make forward-looking statements in this document, in other filings with Canadian regulators or the United States Securities and Exchange Commission, in reports to shareholders and in other communications. In addition, our representatives may communicate forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements in this document include, but are not limited to, statements by our President and Chief Executive Officer. The forward-looking statements contained in this document represent the views of management and are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision, strategic goals and priorities and anticipated financial performance, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "suggest", "seek", "foresee", "forecast", "schedule", "anticipate", "intend", "estimate", "goal", "commit", "target", "objective", "plan", "outlook", "timeline" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could", "can", "would" or negative or grammatical variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, that our financial performance, environmental & social or other objectives, vision and strategic goals will not be achieved, and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions.

We caution readers not to place undue reliance on our forward-looking statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors – many of which are beyond our control and the effects of which can be difficult to predict – include, but are not limited to: business and economic conditions in the geographic regions in which we operate, Canadian housing and household indebtedness, information technology, cyber and third-party risks, geopolitical uncertainty (including risks associated with the conflict in the Middle East), environmental and social risk, digital disruption and innovation, privacy and data related risks, regulatory changes, culture and conduct risks, credit, market, liquidity and funding, insurance, operational, compliance, reputation and strategic risks, other risks discussed in the risk sections of our 2025 Annual Report and the Risk management section of our Q2 2026 Report to Shareholders, including legal and regulatory environment risk, the effects of changes in government fiscal, monetary and other policies and tax risk and transparency, risks associated with escalating trade tensions, including protectionist trade policies such as the imposition of tariffs, risks associated with the adoption of emerging technologies, such as cloud computing, artificial intelligence (AI), including generative AI, and robotics, fraud risk and our ability to anticipate and successfully manage risks arising from all of the foregoing factors. Additional factors that could cause actual results to differ materially from the expectations in such forward-looking statements can be found in the risk sections of our 2025 Annual Report and the Risk management section of our Q2 2026 Report to Shareholders, as may be updated by subsequent quarterly reports.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2025 Annual Report, as updated by the Economic, market and regulatory review and outlook section of our Q2 2026 Report to Shareholders. Such sections may be updated by subsequent quarterly reports. Any forward-looking statements contained in this document represent the views of management only as of the date hereof, and except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.

Access to Quarterly Results Materials
Interested investors, the media and others may review this quarterly Earnings Release, quarterly results slides, supplementary financial information and our Q2 2026 Report to Shareholders at rbc.com/investorrelations.

Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for May 28, 2026 at 8:30 a.m. (EST) and will feature a presentation about our second quarter results by RBC® executives. It will be followed by a question and answer period with analysts. Interested parties can access the call live on a listen-only basis at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (647-557-5257 or 888-440-2170, passcode 5994534#). Please call between 8:20 a.m. and 8:25 a.m. (EST).

Management's comments on results will be posted on our website shortly following the call. A recording will be available by 5:00 p.m. (EST) from May 28, 2026 until August 26, 2026 at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (647-362-9199 or 800-770-2030, passcode 5994534#).

Media Relations Contact
Gillian McArdle, Vice President, Corporate Communications, [email protected], 416-842-4231

Investor Relations Contact
Asim Imran, Senior Vice President, Head of Investor Relations, [email protected], 416-955-7804

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 101,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

Information contained in or otherwise accessible through the websites mentioned herein does not form part of this document. All references in this document to websites are inactive textual references and are for your information only.

® Registered Trademarks of Royal Bank of Canada.

SOURCE Royal Bank of Canada

, /CNW/ - Royal Bank of Canada (the Bank) (TSX: RY) (NYSE: RY) today announced its intention, subject to the approval of the Toronto Stock Exchange (TSX) and the Office of the Superintendent of Financial Institutions (OSFI), to commence a normal course issuer bid and to repurchase for cancellation up to 45 million of its common shares. The Bank intends to file a notice of intention with the TSX in this regard.

Purchases may commence on June 12, 2026, provided the TSX has accepted the notice of intention, and may continue until June 11, 2027, when the bid expires or such earlier date as the Bank may complete its purchases pursuant to the notice of intention. Purchases may be made through the TSX, the New York Stock Exchange and other designated exchanges and alternative Canadian trading systems. The price paid for any repurchased shares will be the prevailing market price at the time of acquisition. The timing and amount of any purchases under the program are subject to regulatory approvals and to management discretion based on factors such as market conditions and capital adequacy.

The shares that may be repurchased represent approximately 3.24 per cent of the Bank's outstanding common shares as at May 15, 2026. On May 15, 2026, there were 1,389,691,690 common shares outstanding.

The proposed normal course issuer bid will give the Bank flexibility to manage its capital position while generating shareholder value. On April 30, 2026, the Bank's Common Equity Tier 1, Tier 1 and Total capital ratios were 13.5 per cent, 15.0 per cent and 16.9 per cent, respectively.

Caution regarding forward-looking statements
This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation, with respect to the Bank's beliefs, plans, expectations and estimates. Forward-looking statements in this press release may include, but are not limited to, statements with respect to the Bank's normal course issuer bid. Forward-looking statements are typically identified by words such as "believe", "expect", "suggest", "seek", "foresee", "forecast", "schedule", "anticipate", "intend", "estimate", "goal", "commit", "target", "objective", "plan", "outlook", "timeline" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could", "can", "would" or negative or grammatical variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, that the strategic goals and financial performance and other objectives outlined in our forward-looking statements, including statements about the Bank's proposed normal course issuer bid, will not be achieved and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions.

We caution readers not to place undue reliance on our forward-looking statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors – many of which are beyond our control and the effects of which can be difficult to predict – include, but are not limited to: business and economic conditions in the geographic regions in which we

operate, Canadian housing and household indebtedness, information technology, cyber and third-party risks, geopolitical uncertainty (including risks associated with the conflict in the Middle East), environmental and social risk, digital disruption and innovation, privacy and data related risks, regulatory changes, culture and conduct risks, credit, market, liquidity and funding, insurance, operational, compliance, reputation and strategic risks, other risks discussed in the risk sections of our 2025 Annual Report and the Risk management section of our Q2 2026 Report to Shareholders, including legal and regulatory environment risk, the effects of changes in government fiscal, monetary and other policies and tax risk and transparency, risks associated with escalating trade tensions, including protectionist trade policies such as the imposition of tariffs, risks associated with the adoption of emerging technologies, such as cloud computing, artificial intelligence (AI), including generative AI, and robotics, fraud risk and our ability to anticipate and successfully manage risks arising from all of the foregoing factors. Additional factors that could cause actual results to differ materially from the expectations in such forward-looking statements can be found in the risk sections of our 2025 Annual Report and the Risk management section of our Q2 2026 Report to Shareholders, as may be updated by subsequent quarterly reports.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this press release are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our

2025 Annual Report, as updated by the Economic, market and regulatory review and outlook section of our Q2 2026 Report to Shareholders. Such sections may be updated by subsequent quarterly reports.

Any forward-looking statements contained in this press release represent the views of the Bank only as of the date hereof, and except as required by law, the Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.

Investor Contacts:
Asim Imran, Investor Relations, 416-955-7804

Media Contact:
Gillian McArdle, Financial Communications, 416-842-4231

SOURCE Royal Bank of Canada