HON · Earnings call · 2026Q3T · Full report

Forge Software and Services

HONEYWELL INTERNATIONAL INC · 2026-10-22 · Importance 26 · Surprise 24 · In source text

Honeywell described three Forge sales motions: software attached to service contracts, applications that enhance core products, and standalone software-as-a-service. The connected fire-panel application illustrates how Forge can complement core products and provide customer and channel-partner value. The standalone Buildings offering can connect Honeywell and competitor buildings to provide insight into energy consumption and predictive maintenance, while a similar Process offering launched earlier in 2026. Management said recurring revenue was approaching $1 billion in 2026 and forecast annual recurring revenue growth of 12% to 13% for the year, below its 15% aspiration.

Key facts

• Honeywell's Forge recurring revenue was approaching $1 billion in 2026.
• Honeywell's ARR growth aspiration is 15%; it expects 12%-13% growth in 2026 and intends to work toward 15% annually.
• Honeywell launched new Forge offerings in Building Automation and Process Automation and Technology.
• Honeywell launched a standalone Forge offering for Process earlier in 2026, sold as SaaS software.
• Honeywell's Plant Cognition offering was receiving strong customer reception.
• Honeywell introduced remote configuration for fire panels through Forge nearly three years before the call.
• Honeywell sells Forge with service contracts, as applications integrated with existing offerings, and as standalone software.
• Honeywell launched standalone Forge for buildings 18-24 months before the call, including connection of non-Honeywell buildings for energy, maintenance, and emissions insights.

Impact estimates