Honeywell International Inc. (HON) announced Sunday it's bringing the convenience of online shopping to physical stores through a new AI-powered platform developed with Alphabet Inc.'s (GOOG) Google Cloud and 66degrees. The solution taps into Google Gemini and Vertex AI to transform how people navigate retail aisles.

How It Works

The Smart Shopping Platform is essentially a bridge between the digital world retailers already know and the physical spaces where customers actually shop. It's cloud-based and designed to create what Honeywell calls a "connected in-store experience."

Think about the frustration of wandering around a store looking for a specific product, or worse, finding out it's out of stock with no idea what to buy instead. The platform tackles exactly those pain points. It helps customers quickly locate products, compare alternatives side-by-side, and identify suitable substitutes when their first choice isn't available. The goal is making physical retail feel as efficient as scrolling through an online store.

Built on Honeywell's Mobility Edge platform and powered by Google Cloud AI, the system delivers personalized assistance, real-time product information, and dynamic recommendations tailored to each shopper.

What Executives Are Saying

David Barker, president of Honeywell Productivity Solutions and Services, emphasized the practical benefits: "The Smart Shopping Platform addresses these pain points, creating a better experience for shoppers. Retailers also benefit from an 'out of the box' AI solution they can implement without having to maintain a team of AI experts."

Jose Gomes, vice president of Retail and Consumer Packaged Goods at Google Cloud, framed it as a win for everyone involved. "This collaboration integrates AI with specialized hardware to streamline operations inside the retail store and guide consumers through an efficient and delightful shopping journey. It's a win-win that helps retailers increase basket size while building deeper customer loyalty."

Guidance Adjustment

In somewhat less cheerful news, Honeywell trimmed its financial outlook in December following segment restructuring and litigation expenses. For the fourth quarter, the company now expects adjusted EPS of $2.48-$2.58, down from its previous $2.52-$2.62 guidance and below the $2.57 analyst consensus. Revenue guidance dropped to $9.8-$10.0 billion from $10.1-$10.3 billion, also missing the $10.197 billion estimate.

The fiscal 2025 outlook took a bigger hit. Honeywell now projects adjusted EPS of $9.70-$9.80, down sharply from $10.60-$10.70, versus the $10.65 consensus. Revenue guidance fell to $37.5-$37.7 billion from $40.7-$40.9 billion, compared to analyst estimates of $40.804 billion.

The company plans to release fourth-quarter results and its 2026 outlook on January 29.

HON Price Action: Honeywell International shares traded up 0.01% at $207.41 during premarket trading on Monday.