Honeywell announced a partnership with Digimarc to embed the company’s on‑scanner fraud‑detection software into Honeywell’s handheld retail scanners. The integration will enable retailers to automatically detect tampered gift cards and block their activation at the point of sale, tightening security and speeding checkout for merchants.
The partnership targets the $1.24 trillion global gift‑card market, where fraud losses surged 364 % from 2018 to 2021. By adding Digimarc’s technology, Honeywell can offer a turnkey solution that protects retailers against a growing threat while leveraging its existing retail‑scanning footprint, including the Xenon XP series. The move positions Honeywell as a more comprehensive provider of end‑to‑end retail‑scanning solutions.
Honeywell’s Q3 2025 results underscored the company’s momentum. Revenue rose 7 % YoY to $10.4 billion, driven by strong demand in Aerospace Technologies and Building Automation, while adjusted EPS of $2.82 beat consensus of $2.56 by $0.26, a 10 % lift. The beat was largely due to disciplined cost management and a favorable mix shift toward higher‑margin aerospace aftermarket contracts, which offset modest margin compression in legacy segments. Segment margin held at 23.1 %, matching the high end of prior guidance.
Strategically, the partnership fits into Honeywell’s broader portfolio transformation. The company completed the spin‑off of Solstice Advanced Materials on October 30 and is planning to separate its Aerospace and Automation businesses into three independent entities by 2026. CEO Vimal Kapur said the partnership “strengthens our retail solutions portfolio and aligns with our focus on high‑growth, high‑margin businesses.” CFO Mike Stepniak noted the partnership “adds a new revenue stream that complements our existing scanner hardware and software offerings.”
Analysts reacted positively to the partnership and Honeywell’s Q3 performance. Following the earnings beat, several firms upgraded their outlooks, citing the strong order growth of 22 % and a record backlog of $39.1 billion. However, in November, some analysts lowered their price targets, citing concerns about the company’s growth trajectory amid the upcoming aerospace spin‑off and competitive pressure in the retail‑scanning market. The mixed sentiment reflects the balance between Honeywell’s robust execution and the uncertainty surrounding its future restructuring path.
The partnership and the Q3 results signal that Honeywell is successfully leveraging its hardware platform to capture new software‑based revenue streams while maintaining solid profitability. As the company completes its spin‑offs and refocuses on high‑margin segments, the Digimarc integration will help sustain growth in the retail sector and reinforce Honeywell’s position as a leading provider of integrated scanning solutions.
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