Honeywell vs Microsoft: Revenue, Profit and Business Model
Honeywell reported $37.4B of revenue in FY2025 and $4.7B of net income. Microsoft reported $331.8B of revenue in FY2026 and $133.7B of net income.
Latest financial snapshot
Financial summary
Honeywell
Legacy Honeywell reported $37.4 billion of FY2025 sales from continuing operations (after the Solstice spin) and $4.7 billion of net income. Recast for the Aerospace spin-off, the continuing automation business had a $19.9 billion FY2025 sales base. In Q2 2026, Honeywell Technologies alone posted $5.19 billion of sales (up 3% reported, 4% organic), orders up 16%, a 19.0% segment margin (up 100 basis points), and adjusted EPS of $1.95. Reported EPS of $16.65 was inflated by a one-time gain on deconsolidating Quantinuum. After the quarter, management guided 2026 sales to $19.8-20.0 billion and adjusted EPS to $8.05-8.35, reflecting a 1-for-2 reverse stock split that cut the share count to about 317 million.
Microsoft
Microsoft's FY2026 revenue rose 17.8% to $331.8 billion, operating income rose 21% to $155.2 billion, and GAAP net income rose 31% to $133.7 billion. Fourth-quarter revenue was $90.0 billion (up 18%) with net income of $35.8 billion, helped by a $3.2 billion gain on its Anthropic investment. Microsoft Cloud revenue reached $59.3 billion in Q4, up 27%. The main pressure point is capital intensity: AI data center spending has pushed free cash flow growth well below earnings growth.
Revenue and profit by year
Honeywell
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $37.4B | $4.7B | 12.6% | +7.8% | Source |
| FY2024 | $34.7B | $5.7B | 16.4% | +5.2% | Source |
| FY2023 | $33B | $5.7B | 17.1% | -6.9% | Source |
| FY2022 | $35.5B | $5B | 14.0% | +3.1% | Source |
| FY2021 | $34.4B | $5.5B | 16.1% | +5.4% | Source |
| FY2020 | $32.6B | $4.8B | 14.6% | -11.1% | Source |
| FY2019 | $36.7B | $6.1B | 16.7% | -12.2% | Source |
| FY2018 | $41.8B | $6.8B | 16.2% | +3.1% | Source |
| FY2017 | $40.5B | $1.5B | 3.8% | +3.1% | Source |
| FY2016 | $39.3B | $4.8B | 12.2% | — | Source |
Microsoft
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $331.8B | $133.7B | 40.3% | +17.8% | Source |
| FY2025 | $281.7B | $101.8B | 36.1% | +14.9% | Source |
| FY2024 | $245.1B | $88.1B | 36.0% | +15.7% | Source |
| FY2023 | $211.9B | $72.4B | 34.1% | +6.9% | Source |
| FY2022 | $198.3B | $72.7B | 36.7% | +18.0% | Source |
| FY2021 | $168.1B | $61.3B | 36.5% | +17.5% | Source |
| FY2020 | $143B | $44.3B | 31.0% | +13.6% | Source |
| FY2019 | $125.8B | $39.2B | 31.2% | +14.0% | Source |
| FY2018 | $110.4B | $16.6B | 15.0% | +14.3% | Source |
| FY2017 | $96.6B | $25.5B | 26.4% | — | Source |
Where the revenue comes from
Honeywell
- Building Automation~38%
Building controls, fire, security, energy management, software, services, and connected facility systems.
- Industrial and Process Automation~46%
Process controls, warehouse automation, sensors, safety products, productivity systems, and industrial software.
- Software, Services, and Aftermarket~16%
Recurring software, upgrades, service contracts, connected worker products, and installed-base support.
Microsoft
- Productivity And Business ProcessesMajor
Office, Microsoft 365, LinkedIn, Dynamics, and related cloud services.
- Intelligent CloudMajor
Azure, server products, enterprise services, and cloud infrastructure.
- More Personal ComputingMajor
Windows, devices, gaming, search, and advertising.
- AI Services And CopilotsGrowth
AI features and model-powered services embedded across Azure, Microsoft 365, GitHub, security, and developer tools.
Business model and strategy
Honeywell
How it makes money
Honeywell Technologies makes money by selling and servicing automation systems for three end markets. Building Automation sells fire, security, access-control, and building-management systems plus installation and service. Industrial Automation sells sensors, gas detection, and control products.
Growth strategy
Honeywell's growth plan is to concentrate capital on automation. Since 2023 it has spent about $11.5 billion on acquisitions such as Carrier's Access Solutions business, Air Products' LNG process business, Sundyne, Compressor Controls, SCADAfence, Li-ion Tamer, and Johnson Matthey's Catalyst Technologies, while selling lower-fit units (PPE in 2025, WWS and PSS in 2026).
Competitive advantage
Honeywell's edge is its installed base. Decades of control systems in refineries, LNG plants, and commercial buildings create switching costs, because replacing a distributed control system or a fire and life-safety network is risky and expensive.
Microsoft
How it makes money
Microsoft reports three segments. Intelligent Cloud covers Azure, SQL Server, Windows Server, GitHub, Nuance, and enterprise services; server products and cloud services alone brought in $129.4 billion in FY2026, and Azure passed $100 billion in annual revenue for the first time.
Growth strategy
Microsoft's growth plan centers on AI capacity and AI subscriptions. It is spending heavily on data centers and chips to meet Azure demand that management says remains capacity constrained, and it is selling Microsoft 365 Copilot as a paid add-on, which passed 30 million paid seats by the end of FY2026.
Competitive advantage
Microsoft's main advantage is distribution inside enterprises. Identity (Entra), email and documents (Microsoft 365), collaboration (Teams), developer tools (GitHub, Visual Studio), and cloud infrastructure (Azure) are often bought together, which raises switching costs and lets Microsoft attach new products such as Copilot to existing contracts.
Questions about Honeywell vs Microsoft
Which company has higher revenue — Honeywell Technologies or Microsoft Corporation?
Honeywell Technologies reported $37.4B (FY2025), while Microsoft Corporation reported $331.8B (FY2026). By last reported revenue, Microsoft Corporation is the larger business, with Honeywell Technologies reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Honeywell Technologies vs Microsoft Corporation?
Honeywell Technologies's market capitalisation stands at $67.4B, while Microsoft Corporation's is $3.83T. Microsoft Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Honeywell Technologies.
Which is more financially efficient — Honeywell Technologies or Microsoft Corporation?
Honeywell Technologies generates $749k / employee in revenue per employee, while Microsoft Corporation generates $1.49M / employee. Microsoft Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Honeywell Technologies and Microsoft Corporation make money?
Honeywell Technologies and Microsoft Corporation generate revenue in fundamentally different ways. Honeywell Technologies: Honeywell Technologies makes money by selling and servicing automation systems for three end markets. Microsoft Corporation: Microsoft reports three segments.
Which company is valued higher relative to revenue — Honeywell Technologies or Microsoft Corporation?
On a price-to-sales (P/S) basis, Honeywell Technologies trades at 1.8x P/S and Microsoft Corporation at 11.5x P/S. Microsoft Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Honeywell Technologies. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Honeywell Technologies bigger than Microsoft Corporation?
By last reported revenue, Microsoft Corporation ($331.8B (FY2026)) is the larger company compared to Honeywell Technologies ($37.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Honeywell vs Microsoft overview