Honeywell International is advancing a significant corporate transformation, with its long-term growth strategy coming into sharper focus. Central to this strategy are ambitious objectives for its quantum computing division and the planned public listing of its subsidiary, Quantinuum. Chief Executive Vimal Kapur has indicated that the underlying technology may achieve commercial viability faster than previously anticipated.
Financial Backing and Market Outlook
The company’s strategic direction is receiving positive feedback from market analysts. Argus Research recently increased its price target for Honeywell shares from $250 to $290, reaffirming its “Buy” recommendation. A broader consensus among covering analysts also views the stock favorably, with a moderate buy rating prevailing across the board.
Financially, the outlook remains stable. While the latest annual report included non-cash impairment charges totaling $471 million, these accounting adjustments do not impact core operational performance. Management has reaffirmed its 2026 guidance, projecting revenue growth of 3% to 6% and adjusted earnings per share of up to $10.65.
Quantum Division Nears IPO Milestone
A key driver of future growth is Quantinuum, in which Honeywell maintains a 52% majority stake. Speaking at an investor conference, CEO Vimal Kapur noted substantial interest in the new “Helios” quantum system, particularly from the banking and pharmaceutical sectors. The company aims to have a system with 100 logical qubits operational within a year.
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Kapur believes quantum computing could begin delivering commercial value in approximately three years. To capitalize on this progress, Honeywell has confirmed its intention to take Quantinuum public through an initial public offering (IPO) in 2026.
Corporate Split and Market Performance
Beyond quantum technology, Honeywell is proceeding with a major corporate separation. The spin-off of its Aerospace business into an independent, publicly traded company is scheduled for the third quarter of 2026. The new entity is expected to list on the Nasdaq exchange under the ticker symbol “HONA,” and a leadership team has already been appointed.
This strategic optimism is reflected in the stock’s performance. Despite a slight pullback to €202.75 on Thursday, the shares have posted a strong year-to-date gain of over 22%. It is worth noting, however, that with a Relative Strength Index (RSI) reading of 81.6, the stock is currently trading in a technically overbought condition, sitting about 2.2% below its 52-week high.
CEO Vimal Kapur is set to continue discussions with investors at the Barclays Industrial Select Conference in Miami, where further details on the Aerospace separation and the 2026 strategic roadmap are likely to be addressed.
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