In a significant development within the retail technology sector, Honeywell International Inc. has introduced a new AI-powered retail solution aimed at revolutionizing the in-store shopping experience. This initiative is a collaborative effort with Alphabet Inc.'s Google Cloud and technology firm 66degrees, harnessing cutting-edge artificial intelligence systems such as Google Gemini and Vertex AI to enhance how consumers interact inside physical retail locations.
The introduced Smart Shopping Platform operates as a cloud-based system that connects a retailer's existing digital data infrastructure with their physical storefronts. This integration fosters a seamless in-store environment where shoppers are empowered with tools that expedite product discovery and comparison. Specifically, the platform assists customers in quickly locating items, evaluating alternative products, and identifying suitable substitutes when specific merchandise is unavailable, thereby streamlining the shopping process and improving overall consumer satisfaction.
Constructed upon Honeywell's proprietary Mobility Edge platform, the Smart Shopping Platform utilizes the robust capabilities of Google Cloud's AI services to deliver a personalized shopping experience. It supplies real-time product details and contextual recommendations, effectively emulating the convenience commonly associated with online retail platforms. This fusion of sophisticated hardware and AI software is intended to replicate the ease and efficiency of e-commerce shopping within a physical store setting.
David Barker, the president of Honeywell Productivity Solutions and Services, emphasized the platform’s ability to alleviate common consumer frustrations in retail environments. He highlighted that the Smart Shopping Platform presents retailers with an 'out of the box' AI solution, eliminating the necessity for them to maintain specialized AI development teams internally. This approach can significantly reduce barriers for retailers aiming to modernize their in-store operations.
Jose Gomes, vice president of Retail and Consumer Packaged Goods at Google Cloud, commented on the collaboration, noting that the convergence of AI technology with specialized retail hardware streamlines store operations while guiding consumers through an engaging and efficient shopping experience. He described the partnership as mutually beneficial, with the potential to increase average basket sizes for retailers and simultaneously deepen customer loyalty through enhanced service.
In tandem with this product announcement, Honeywell also updated its financial forecasts. The company revealed that it is undergoing segment restructuring along with addressing litigation-related expenses, which influenced its outlook.
For the fiscal fourth quarter, Honeywell now anticipates adjusted earnings per share (EPS) to range between $2.48 and $2.58, marking a downward adjustment from the prior guidance of $2.52 to $2.62, as well as falling slightly below the consensus estimate of $2.57. Revenue forecasts for the quarter have also been revised downward to a range of $9.8 billion to $10.0 billion, compared with earlier expectations between $10.1 billion and $10.3 billion and the market consensus of $10.197 billion.
Looking ahead to fiscal year 2025, the company has lowered its guidance for adjusted EPS to a range of $9.70 to $9.80, down from the prior estimate of $10.60 to $10.70, which also falls short of the analyst consensus predicted at $10.65. Revenue projections have been similarly trimmed to $37.5 billion to $37.7 billion, decreased from the previous guidance of $40.7 billion to $40.9 billion and below the $40.804 billion consensus.
Honeywell is scheduled to release its detailed fourth-quarter financial results along with the outlook for fiscal year 2026 on January 29. On the stock market, shares of Honeywell International had a negligible increase of 0.01% in premarket trading, priced at $207.41.
This AI-driven retail platform initiative demonstrates a strategic pivot to enhance user engagement and operational efficiency within physical retail by utilizing AI. Concurrently, Honeywell’s financial revisions underscore some near-term challenges amidst restructuring efforts and legal considerations.
The introduced Smart Shopping Platform operates as a cloud-based system that connects a retailer's existing digital data infrastructure with their physical storefronts. This integration fosters a seamless in-store environment where shoppers are empowered with tools that expedite product discovery and comparison. Specifically, the platform assists customers in quickly locating items, evaluating alternative products, and identifying suitable substitutes when specific merchandise is unavailable, thereby streamlining the shopping process and improving overall consumer satisfaction.
Constructed upon Honeywell's proprietary Mobility Edge platform, the Smart Shopping Platform utilizes the robust capabilities of Google Cloud's AI services to deliver a personalized shopping experience. It supplies real-time product details and contextual recommendations, effectively emulating the convenience commonly associated with online retail platforms. This fusion of sophisticated hardware and AI software is intended to replicate the ease and efficiency of e-commerce shopping within a physical store setting.
David Barker, the president of Honeywell Productivity Solutions and Services, emphasized the platform’s ability to alleviate common consumer frustrations in retail environments. He highlighted that the Smart Shopping Platform presents retailers with an 'out of the box' AI solution, eliminating the necessity for them to maintain specialized AI development teams internally. This approach can significantly reduce barriers for retailers aiming to modernize their in-store operations.
Jose Gomes, vice president of Retail and Consumer Packaged Goods at Google Cloud, commented on the collaboration, noting that the convergence of AI technology with specialized retail hardware streamlines store operations while guiding consumers through an engaging and efficient shopping experience. He described the partnership as mutually beneficial, with the potential to increase average basket sizes for retailers and simultaneously deepen customer loyalty through enhanced service.
In tandem with this product announcement, Honeywell also updated its financial forecasts. The company revealed that it is undergoing segment restructuring along with addressing litigation-related expenses, which influenced its outlook.
For the fiscal fourth quarter, Honeywell now anticipates adjusted earnings per share (EPS) to range between $2.48 and $2.58, marking a downward adjustment from the prior guidance of $2.52 to $2.62, as well as falling slightly below the consensus estimate of $2.57. Revenue forecasts for the quarter have also been revised downward to a range of $9.8 billion to $10.0 billion, compared with earlier expectations between $10.1 billion and $10.3 billion and the market consensus of $10.197 billion.
Looking ahead to fiscal year 2025, the company has lowered its guidance for adjusted EPS to a range of $9.70 to $9.80, down from the prior estimate of $10.60 to $10.70, which also falls short of the analyst consensus predicted at $10.65. Revenue projections have been similarly trimmed to $37.5 billion to $37.7 billion, decreased from the previous guidance of $40.7 billion to $40.9 billion and below the $40.804 billion consensus.
Honeywell is scheduled to release its detailed fourth-quarter financial results along with the outlook for fiscal year 2026 on January 29. On the stock market, shares of Honeywell International had a negligible increase of 0.01% in premarket trading, priced at $207.41.
This AI-driven retail platform initiative demonstrates a strategic pivot to enhance user engagement and operational efficiency within physical retail by utilizing AI. Concurrently, Honeywell’s financial revisions underscore some near-term challenges amidst restructuring efforts and legal considerations.