Carrier and Google Cloud partner on AI-driven energy system

PALM BEACH GARDENS, Fla. – Carrier Global Corporation (NYSE: CARR), a prominent player in the Building Products industry with a market capitalization of $53.6 billion, and Google Cloud have announced a collaboration aimed at enhancing energy grid flexibility and providing smarter energy management solutions. According to InvestingPro analysis, Carrier currently appears fairly valued based on its comprehensive Fair Value assessment. This partnership leverages Carrier’s Home Energy Management System (HEMS) with Google Cloud’s artificial intelligence (AI) analytics and WeatherNext AI models to create an intelligent, connected energy ecosystem for residential HVAC customers.

The initiative, led by Carrier Energy, Carrier’s new energy solutions business, will integrate Carrier’s battery-enabled HVAC technology with Google Cloud’s AI-powered analytics. This integration is expected to allow homeowners to store energy in batteries and utilize it during peak demand periods, potentially leading to increased efficiency and cost savings. Google’s AI-powered WeatherNext models will further optimize HVAC operation. With a solid current ratio of 1.25 and operating with moderate debt levels, Carrier demonstrates the financial stability to support this strategic initiative.

The collaboration addresses the rising electricity demand in the U.S. and is designed to help balance supply and demand across the energy grid. Carrier and Google Cloud’s joint efforts aim to unlock capacity and grid expansion in U.S. markets and contribute to creating scalable benefits for the local grids where Carrier customers reside.

Caroline Golin, global head of Energy Market Development and Innovation at Google, highlighted the opportunity to build resilience in communities and scale clean energy solutions that foster economic growth. Hakan Yilmaz, chief technology and sustainability officer at Carrier, emphasized the need for energy systems to evolve into more intelligent, flexible, and economically efficient solutions.

The combined solution will manage energy flows in real time—charging, discharging, and redirecting energy based on grid conditions, energy demands, and weather forecasts. Carrier’s next-generation heat pump, which was first announced at Climate Week NYC, will feature battery storage, intelligent energy forecasting, and grid-interactive capabilities.

The project is set to roll out in phases through 2027, with a focus on scaling nationwide adoption thereafter. This collaboration represents a step towards a smarter, more efficient, and AI-powered energy ecosystem that benefits homeowners and supports the next generation of technology infrastructure. With revenue growth of 18.7% in the last twelve months and analysts expecting continued net income growth, Carrier appears well-positioned for this expansion. For deeper insights into Carrier’s financial health and growth prospects, including 12 additional exclusive ProTips, visit InvestingPro to access the comprehensive Pro Research Report, part of our coverage of 1,400+ top US stocks.

The partnership aligns with Carrier’s goal to help customers avoid more than one gigaton of greenhouse gas emissions by 2030 and Google’s ambition to create new carbon-free energy solutions that support reliable and resilient grid operations. This information is based on a press release statement from Carrier Global Corporation.

In other recent news, Carrier Global Corporation reported strong fourth-quarter earnings, with adjusted earnings per share of $0.54, surpassing analyst estimates of $0.49. The company’s revenue for the quarter was $5.15 billion, slightly below the consensus of $5.27 billion, yet it marked a 19% year-over-year increase, including 6% organic growth. Carrier’s HVAC segment saw an 11% organic growth, though its Refrigeration segment experienced a 6% decline due to weakness in North American truck and trailer sales. For 2025, Carrier projects adjusted earnings per share between $2.95 and $3.05, aligning closely with analyst expectations.

In a strategic move, Carrier announced a significant investment in ZutaCore, a company specializing in advanced liquid cooling technology for data centers, reflecting its commitment to addressing high-density computing demands. Additionally, several analysts have adjusted their ratings on Carrier Global. JPMorgan upgraded the stock to Overweight, citing undervaluation compared to peers and a strategic price increase to offset tariff impacts. Wolfe Research also lifted its rating to Outperform, setting a new price target of $80, indicating renewed confidence in Carrier’s prospects.

Mizuho Securities echoed this sentiment, upgrading Carrier to Outperform, noting the stock’s trading discount despite strong financials. These developments highlight a period of transformation and strategic recalibration for Carrier Global, with analysts expressing optimism about the company’s future growth and market position.

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