Honeywell Rated Buy on Strong Order Growth, Margin Expansion

Honeywell Technologies has been given a 'Buy' rating due to its impressive order growth in Q2 2026. The company's orders increased by 16% year-over-year, outpacing its sales growth of 4%. This suggests that Honeywell is on track for future revenue acceleration as its backlog converts into sales.

The firm is also successfully implementing cost reductions and portfolio simplifications, aiming to reach segment margins above 22% by the end of FY26. Further improvements are expected in 2027. Honeywell Forge, the company's software platform, is driving recurring software revenue growth, with a target to make up over 45% of sales.

This combination of factors positions Honeywell as an attractive investment opportunity with potential for sustained growth and margin expansion.