Carrier (US:CARR)2025-09-10 21:47Summary of Carrier Global Corporation Conference Call Company Overview - Company: Carrier Global Corporation (NYSE:CARR) - Event: Goldman Sachs Kinetopian Technology Conference - Date: September 10, 2025 Key Industry Insights - Macro Environment: Current period characterized by macro volatility, with rapid policy shifts and fluctuating economic indicators [3][4] - IT Services Spending: Clients are transitioning from cost-cutting to innovation, particularly in banking and financial services, with a year-on-year growth of 6% to 7% [3][4] - Software Development: Significant productivity improvements in software development cycles, with 30% of code now written by machines, up from 18% [4][5] Core Company Strategies - Agentic Development Cycles: Emphasis on agentic development as a major growth opportunity, projected to be 10x the current software development cycle opportunities [17][18] - Cost Savings and Innovation: Companies are using savings from productivity improvements to fund AI and innovation initiatives, rather than reducing budgets [4][17] - BPO Services Growth: Business Process Outsourcing (BPO) services are experiencing the highest growth, contrary to previous expectations [19] Financial Performance - Large Deals: Carrier Global has secured multiple large deals, including two billion-dollar contracts last quarter, and consistently tracks 55 to 60 significant deals [5][19] - Revenue Growth: Projected EPS growth of 7% to 10% for the year, with a focus on maintaining margin expansion [30] Market Opportunities - Healthcare Sector: Unique opportunities in healthcare due to increased administrative loads, with a 400% rise in administrative tasks over the last 20 years [23] - Manufacturing Sector: Potential for growth in manufacturing, although it requires external catalysts for innovation [24] - New Labor Pools: The integration of agentic capital and human capital is expected to unlock new labor pools and outsourcing opportunities [14][15] Competitive Positioning - Strategic Patience: Emphasis on long-term investments in AI and productivity tools, which are expected to yield significant results over time [27][28] - M&A Strategy: Focus on expanding geographic reach and diversifying industry exposure through acquisitions, particularly in engineering services and AI-led assets [31][36] Challenges and Considerations - Macro Economic Factors: The overall IT services spend is dependent on macroeconomic conditions, which could impact future growth cycles [21][40] - Vendor Consolidation: Carrier Global is displacing vendors that lack effective AI capabilities, focusing on integrating human and machine efforts [46][47] Conclusion Carrier Global Corporation is positioned for significant growth through innovative strategies in agentic development, a strong focus on healthcare and BPO services, and a commitment to leveraging AI for productivity. The company is optimistic about its future prospects, contingent on favorable macroeconomic conditions and continued investment in technology and talent.