Honeywell International Inc. (Honeywell (HON)) shares edged higher in Thursday's premarket session after the company updated its financial guidance to reflect the impact of its recent reverse stock split. It's one of those corporate actions that can confuse investors at first glance, but the math is pretty straightforward once you break it down.

Honeywell Updates Guidance

On Wednesday, Honeywell updated its fiscal 2026 guidance following its 1-for-2 reverse stock split, which became effective on June 29. The company now expects adjusted EPS of $7.90 to $8.30 for fiscal 2026, compared with its previous guidance of $3.95 to $4.15 before the split adjustment. Honeywell reaffirmed its sales outlook of $19.9 billion to $20.2 billion.

For the second half of fiscal 2026, Honeywell continues to expect sales of $10.1 billion to $10.3 billion. Adjusted EPS is now projected at $4.40 to $4.70, compared with the previously stated range of $2.20 to $2.35.

The reverse stock split reduced the company's outstanding common shares from about 634 million to 317 million. So if you owned 100 shares before the split, you now own 50 shares — but each share is worth roughly twice as much. The EPS numbers double for the same reason: earnings are now divided by half as many shares. Honeywell said it will provide additional details on its second-quarter results during its earnings conference call on July 23.

Analysts Remain Bullish

Honeywell carries a consensus Buy rating with an average analyst price forecast of $436.86. That's a pretty optimistic target given the stock currently trades around $221, but it reflects the long-term view. Recent analyst actions include:

• JPMorgan maintained an Overweight rating and lowered its price forecast to $250 on July 7.
• Citigroup maintained a Buy rating and lowered its price forecast to $260 on July 1.
• Deutsche Bank maintained a Buy rating and raised its price forecast to $263 on June 30.

Notice that JPMorgan and Citigroup lowered their targets, while Deutsche Bank raised its. That's not necessarily a contradiction — analysts adjust for the split too, and the numbers need to be read in context of the new share count.

HON Technical Outlook

Honeywell traded at $221.25 in premarket trading, about 1.2% below its 50-day simple moving average of $221.72. The stock has declined about 2.1% over the past 12 months. Not a huge drop, but not exactly a barnburner either.

The 20-day simple moving average of $224.84 remains the first key resistance level. On the downside, the 52-week low of $218.70 serves as an important support area. If the stock breaks below that, it could get interesting — and not in a good way.

The relative strength index stood at 45.82, indicating neutral momentum and suggesting the stock is neither overbought nor oversold. So technically, it's in no-man's land.

Honeywell ETF Exposure

HON is a meaningful holding in several exchange-traded funds, including the Invesco Aerospace & Defense ETF (PPA), the Dynamic US Large Cap Value ETF (DVAL) and the Themes Transatlantic Defense ETF (NATO). Large fund flows into or out of these ETFs could influence demand for Honeywell shares. So if you see PPA or NATO moving, it might ripple into HON.

Price Action: Honeywell shares were up 0.4% at $221.25 during Thursday's premarket session.