Honeywell International Inc. stock research
FY2026 Q1
Honeywell International (HON) Gross Margin — Quarter Ended Mar 31, 2026
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable across both comparisons, while cost of revenue decreased from the prior quarter and increased from the year-ago period, resulting in a gross margin that improved sequentially but weakened slightly year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable across both comparisons, while cost of revenue decreased from the prior quarter and increased from the year-ago period, resulting in a gross margin that improved sequentially but weakened slightly year-over-year.
- Gross profit was unchanged from the prior quarter despite lower revenue, indicating that cost of revenue declined proportionally more than revenue. This relative cost control supported the sequential gross margin improvement.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased while gross profit held steady. Compared to the same quarter last year, gross margin weakened slightly as cost of revenue rose and gross profit was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.7%
Gross profit
$3.5B
Revenue
$9.1B
Cost of revenue
$5.6B
Quarter-over-quarter change
+7.6 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $8.9B | $3.5B | $5.5B | 38.8% |
| Jun 30, 2025 | $11.2B | $3.7B | $6.3B | 32.6% |
| Sep 30, 2025 | $10.4B | $3.2B | $6.9B | 31.1% |
| Mar 31, 2026 | $9.1B | $3.5B | $5.6B | 38.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+7.6 pts
Year-over-year change
Mar 31, 2025
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit was unchanged from the prior quarter despite lower revenue, indicating that cost of revenue declined proportionally more than revenue. This relative cost control supported the sequential gross margin improvement.
Compared to the prior quarter, gross margin improved as cost of revenue decreased while gross profit held steady. Compared to the same quarter last year, gross margin weakened slightly as cost of revenue rose and gross profit was unchanged.
Monitor whether the stable gross profit trajectory can be sustained relative to changes in revenue and cost of revenue.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Honeywell International Inc. (HON) | 38.7% |