Honeywell disappoints on quarterly results — but delivers on its breakup plan

honeywell shares dropped 3% in midday trading after first-quarter numbers missed on revenue — $9.1 billion against the $9.3 billion estimate. adjusted eps of $2.45 beat expectations by $0.13, but the war in iran and a supply disruption in aerospace weighed on the quarter. the bigger news was the breakup plan. honeywell is selling its workflow solutions business to american industrial partners for cash, expected to close in the second half of 2026 alongside the previously announced sale of productivity solutions and services. the aerospace spin-off is set for june 29, pending board approval. jim cramer argued the remaining automation company will be worth more than the current stock price once the pieces separate. management kept its full-year 2026 outlook mostly unchanged. building and industrial automation strength is offsetting weakness in process automation and technology. higher pricing and productivity gains are helping offset a roughly $200 million inflation headwind from metals, electronics, and freight costs.