Honeywell's Quantum Unit Secures R&D Funding from U.S. Government
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: seekingalpha
- R&D Funding Support: Honeywell's quantum computing unit, Quantinuum, signed a letter of intent with the U.S. Department of Commerce to secure R&D funding aimed at addressing technology bottlenecks in fault-tolerant trapped-ion quantum computers, which is expected to enhance its technological advancements and market competitiveness.
- Supply Chain Collaboration: Quantinuum plans to partner with U.S.-based semiconductor manufacturing and photonics technology suppliers to strengthen the U.S. semiconductor supply chain and manufacturing capabilities, thereby enhancing national technological autonomy and innovation capacity.
- Commercial Roadmap Enhancement: Quantinuum has established partnerships with GlobalFoundries and Monarch Quantum to further advance its commercial development plans, which are anticipated to accelerate the commercialization of quantum computing technologies.
- IPO Preparation Progress: Earlier this month, Honeywell announced that Quantinuum submitted an S-1 registration statement to the SEC in preparation for a proposed initial public offering in the U.S., indicating its strategic positioning and market potential in the quantum computing sector.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to rise
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 233.000
Low
195.00
Averages
235.07
High
262.00
Current: 233.000
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Positive Market Reaction: Following Honeywell's disclosure of Quantinuum's financial details, its stock rose by 1.7%, outperforming the S&P 500's 0.6% increase on the same day, reflecting investor confidence in the company's future prospects.
- Strategic Ownership Advantage: Honeywell will retain over a 49% stake in Quantinuum, a strategy that not only ensures its ongoing influence in the quantum computing sector but also leverages market enthusiasm for quantum companies to enhance its own market position.
- Optimistic Industry Outlook: Quantum computing is viewed as a key to future powerful computing capabilities and has already received over $2 billion in federal funding, with Quantinuum's IPO providing new investment opportunities that could further drive Honeywell's business growth.
See More
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- Honeywell Share Trim: We sold 30 shares of Honeywell at approximately $231.78, reducing its portfolio weighting from 2.5% to 2.3%, aiming to lock in nearly 10% gains, reflecting a cautious approach to market volatility.
- Quantum Investment Dynamics: Honeywell's stake in Quantinuum is seeking to raise $1.05 billion through an upcoming IPO, with an expected valuation of around $12.7 billion, lower than the previous $15 to $20 billion estimates, which may impact Honeywell's future investment returns.
- Market Reaction and Rating Adjustment: Following the Trump administration's announcement of $2 billion in grants to quantum computing firms, Honeywell shares surged, prompting us to downgrade our rating to 2, with plans to reassess our position after the upcoming Honeywell Aerospace and investor days.
- Investment Returns Overview: This sale will realize an average gain of about 33% on stocks purchased in September 2022 and August 2023, indicating that our investment strategy in the quantum computing sector is gradually yielding returns.
See More
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- IPO Plans: Quantum computing firm Quantinuum has filed to offer 21.05 million shares of its Class A common stock in an initial public offering, with a projected price range of $45 to $50 per share, potentially raising $1.05 billion at the upper end, indicating strong market interest in quantum technology.
- Financial Performance: In 2025, Quantinuum reported bookings of $79.3 million, with revenue increasing from $23 million in 2024 to $30.9 million, although the net loss widened to $192.6 million, reflecting the company's ongoing heavy investment in growth and commercialization efforts.
- Government Collaboration: The firm has signed a deal with the U.S. federal government to receive R&D funding aimed at addressing specific technology bottlenecks in developing fault-tolerant trapped-ion quantum computers, further solidifying its leadership position in the quantum computing sector.
- Global Presence: With approximately 700 employees, Quantinuum operates facilities across the U.S., U.K., Germany, Japan, Qatar, and Singapore, showcasing its extensive influence and strategic positioning in the quantum computing market.
See More
