Core Viewpoint - Rackspace Technology will release its fourth quarter 2025 financial results on February 26, 2026, at 8 am ET, followed by a conference call at 8:30 am ET to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of 2025 will be announced on February 26, 2026, at 8 am ET [1]. - The conference call to discuss the financial results will be hosted by CEO Gajen Kandiah and CFO Mark Marino at 8:30 am ET on the same day [1]. Group 2: Accessing the Conference Call - Interested parties can access the live webcast or replay through the company's Investor Relations website [2]. - Pre-registration is required to obtain a dial-in number for the conference call, and registrants will receive a PIN for access [2]. Group 3: Company Overview - Rackspace Technology is recognized as a leading provider of end-to-end hybrid cloud and AI solutions [3]. - The company specializes in designing, building, and operating cloud environments across various technology platforms, regardless of the technology stack or deployment model [3]. - Rackspace Technology partners with customers throughout their cloud journey, assisting in application modernization, product development, and technology adoption [3].

Core Viewpoint - IBM has shown strong performance in the past year, with its stock price increasing by 18%, outperforming the S&P 500 Index's 14% rise, although it has underperformed in 2026 with a marginal increase compared to the index's 1.3% rise [2]. Financial Performance - IBM's Q4 2025 earnings report revealed a revenue increase of 12.1% year-over-year, reaching $19.7 billion, which surpassed Wall Street estimates. The adjusted EPS was $4.52, exceeding estimates by 4.4% [6]. - For the current year ending December 2026, analysts project IBM's EPS to rise by 6.6% year-over-year to $12.35 on a diluted basis. The company has consistently surpassed consensus estimates in the last four quarters [7]. Analyst Ratings and Price Targets - Among 22 analysts covering IBM, the consensus rating is a "Moderate Buy," with 10 "Strong Buy" ratings, 2 "Moderate Buy," 8 "Holds," and 2 "Strong Sells" [7]. - The stock has recently gained more bullish ratings, increasing from 9 to 10 "Strong Buy" ratings. Jefferies analyst Brent Thill maintains a "Buy" rating with a price target of $370, while the mean price target of $319.67 suggests a potential upside of 6.9%, and the Street-high target of $380 indicates a possible rally of 27.1% [8].

Core Insights - IBM has launched a global request for proposals (RFP) for the next cohort of the IBM Impact Accelerator, focusing on AI for transformative education and workforce development [1][4] - The widening gap between education and employer needs is highlighted, with 67% of executives noting that job roles are becoming shorter-lived, and by 2030, 57% expect most current employee skills to be obsolete [2][3] - The initiative aims to support organizations that leverage AI to enhance learning, upskilling, and job placement in response to rapid economic changes driven by AI [3][4] Group 1: Program Details - The IBM Impact Accelerator invites nonprofits and government organizations to collaborate on solutions that improve learning effectiveness and career transitions [1][3] - Selected organizations will receive a two-year, pro bono technology and implementation grant, including access to IBM's AI technologies and support from its ecosystem [5] - The RFP is open for submissions until March 25, 2026, with eligibility criteria available on the IBM Impact Accelerator webpage [6] Group 2: Economic Context - The U.S. economy incurs an estimated cost of $1.1 trillion annually due to slow transitions between education and work [2] - Many education and workforce institutions lack the necessary data infrastructure and tools to adapt to the fast-paced changes in the labor market [3] - The program aims to address these systemic challenges by supporting innovative projects that apply AI to education and workforce preparation [4][5] Group 3: IBM's Commitment - Launched in 2022, the IBM Impact Accelerator is part of a broader commitment to invest up to $45 million over five years to support communities facing environmental and economic challenges [7] - The program has already supported 25 organizations, benefiting approximately 2.5 million people across various sectors [7]

Group 1 - International Business Machines Corporation (IBM) is recognized as a long-term low volatility stock, with Argus raising its price target to $360 from $340, citing strong Q4 performance driven by GenAI and hybrid cloud momentum [1] - RBC Capital also updated its rating, increasing the price target to $361 from $350 while maintaining an Outperform rating, highlighting solid free cash flow performance and revenue growth from the z17 refresh cycle and strong data segment [3] - IBM's operations are segmented into Software, Consulting, Infrastructure, Financing, and Other, providing integrated solutions that leverage information technology and business process knowledge [4]

Core Viewpoint - Celestica Inc. has announced its Annual Meeting of Shareholders will take place on May 19, 2026, in a hybrid format, with further details to be provided in the definitive proxy statement [1] Group 1: Meeting Details - The Annual Meeting of Shareholders is scheduled for May 19, 2026, at 9:30 a.m. EDT [1] - The record date for determining eligible shareholders is set for March 27, 2026 [2] - Celestica will utilize the notice-and-access method for delivering proxy materials to shareholders, which will be available on its website and other platforms [3] Group 2: Company Overview - Celestica is a technology leader focused on customer success and market advancements, specializing in data center infrastructure for AI, cloud, and hybrid cloud solutions [4] - The company leverages its expertise in design, engineering, manufacturing, and supply chain to provide competitive advantages to its customers [4]

Financial Performance - IBM reported a net income of $5.6 billion for Q4 2025, a 93.1% increase from $2.9 billion in Q4 2024 [1] - The company's revenue for Q4 2025 was $19.7 billion, marking a 12% increase compared to $17.6 billion in Q4 2024 [1] - For the full year 2025, IBM's net income reached $10.6 billion, a 76.7% increase from $6 billion in 2024 [1] - IBM's total revenue for 2025 was $67.5 billion, an 8% rise from $62.7 billion in 2024 [1] Cash Flow and Projections - IBM's net cash from operating activities in 2025 was $13.2 billion, with free cash flow of $14.7 billion [2] - The company anticipates more than 5% revenue growth at constant currency for 2026, with free cash flow projected to rise by approximately $1 billion year-over-year [2] Segment Performance - The Software segment reported revenues of $9 billion in Q4 2025, a 14% increase, driven by Hybrid Cloud (10% growth), Automation (18% increase), Data (22% surge), and Transaction Processing (8% rise) [3] - The Consulting segment achieved revenues of $5.3 billion, reflecting a 3% growth, with Strategy & Technology increasing by 2% and Intelligent Operations growing by 5% [4] - IBM's Infrastructure segment reported revenues of $5.1 billion, a 21% increase, largely fueled by a 29% rise in Hybrid Infrastructure and a 67% growth in IBM Z [4] Cash Position - IBM generated $4 billion in net cash from operating activities during Q4 2025, with free cash flow at $7.6 billion [5] - At the end of Q4 2025, IBM held $14.5 billion in cash and marketable securities, with total debt at $61.3 billion [5] Strategic Focus - IBM's CEO highlighted the company's robust performance in 2025, emphasizing a 6% revenue growth and significant achievements in free cash flow [6] - The company is strategically advancing as a software-led hybrid cloud and AI platform, with software now constituting 45% of its business, up from 25% in 2018 [7] - IBM's strategy aligns with structural trends in technology investments, focusing on hybrid cloud, AI, and mission-critical infrastructure as essential platforms for business operations [8]

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 6% in 2025, the highest level in many years, and generated $14.7 billion in free cash flow, the highest cash generation in over a decade [4][16] - Operating pre-tax margin expanded by 100 basis points, and adjusted EBITDA grew by 17%, reflecting strong execution and operational leverage [16][24] - Free cash flow margin reached the highest level in reported history, with a 16% year-over-year increase [16][25] Business Line Data and Key Metrics Changes - Software revenue grew by 9% in 2025, with three of four software sub-segments delivering double-digit growth rates [5][17] - Infrastructure revenue increased by 10%, driven by the record launch of z17, achieving the highest annual revenue for IBM Z in about 20 years [17] - Consulting revenue grew by 1%, reflecting increased demand for AI services [8][21] Market Data and Key Metrics Changes - Data solutions grew by 19%, driven by demand for GenAI products [19] - Automation revenue increased by 14%, with strong performance from HashiCorp [20] - Hybrid infrastructure revenue grew by 24%, while infrastructure support declined by 2% [22] Company Strategy and Development Direction - The company is focused on becoming a software-led hybrid cloud and AI platform company, investing in innovation and productivity initiatives [4][10] - Strategic acquisitions, such as Confluent, are aimed at unifying hybrid cloud and automation solutions [10][11] - The company aims to sustain revenue growth of 5%+ and increase free cash flow by about $1 billion in 2026 [15][29] Management's Comments on Operating Environment and Future Outlook - Management noted that client demand remains resilient, particularly in hybrid cloud, AI, and mission-critical infrastructure [6][7] - The company expects to achieve $2 billion in productivity savings by the end of 2024, exceeding initial targets [11] - Management expressed confidence in sustaining growth momentum and profitability, with expectations for continued strong performance in 2026 [15][29] Other Important Information - The cumulative GenAI book of business reached over $12.5 billion, with software contributing more than $2 billion [9][31] - The company is advancing its quantum computing initiatives, with plans to deliver a large-scale, fault-tolerant quantum computer by 2029 [14] Q&A Session Summary Question: Insights on software growth acceleration - Management highlighted strong organic growth in software, driven by increased demand for automation and data solutions, and expressed confidence in achieving double-digit growth [40][46] Question: Free cash flow performance and guidance - Management explained that the strong free cash flow performance in 2025 was driven by revenue growth and operational leverage, and expressed confidence in achieving $15.7 billion in free cash flow for 2026 [50][54] Question: Red Hat growth expectations - Management acknowledged the challenges in Red Hat's growth but emphasized the strategic value and ongoing demand for its products, particularly OpenShift [58][62]

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 6% in 2025, the highest level in many years, and generated $14.7 billion in free cash flow, the highest cash generation in over a decade [4][16] - Operating pre-tax margin expanded by 100 basis points, and adjusted EBITDA grew by 17%, reflecting strong execution and operational leverage [16][24] - The company reported a 12% growth in operating diluted earnings per share, marking a significant improvement in profitability [16] Business Line Data and Key Metrics Changes - Software revenue grew by 9% in 2025, with three out of four software sub-segments delivering double-digit growth rates [5][17] - Infrastructure revenue increased by 10%, driven by the successful launch of the z17 mainframe, achieving the highest annual revenue for IBM Z in about 20 years [17] - Consulting revenue grew by 1%, with a notable increase in demand for AI services [21] Market Data and Key Metrics Changes - The data segment grew by 19%, fueled by demand for GenAI products and strong performance with strategic partners [19] - Automation revenue increased by 14%, reflecting strong momentum in the market [20] - Hybrid infrastructure revenue grew by 24%, while infrastructure support revenue decreased by 2% [22] Company Strategy and Development Direction - The company is focused on advancing as a software-led hybrid cloud and AI platform company, investing in innovation and productivity initiatives [4][10] - Strategic acquisitions, such as Confluent and HashiCorp, are aimed at enhancing the company's capabilities in hybrid cloud and automation solutions [10][11] - The company aims to sustain revenue growth of 5%+ in 2026, with a focus on organic growth and leveraging its strong software portfolio [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that client demand remains resilient, particularly in hybrid cloud, AI, and mission-critical infrastructure [6][7] - The company expects to achieve $2 billion in productivity savings by the end of 2024, exceeding initial targets [11] - Management expressed confidence in sustaining revenue growth and free cash flow, driven by a diversified portfolio and disciplined execution [15][29] Other Important Information - The cumulative GenAI book of business reached over $12.5 billion, with significant contributions from both software and consulting segments [9][31] - The company is advancing its quantum computing initiatives, with plans to deliver a large-scale, fault-tolerant quantum computer by 2029 [14] Q&A Session Summary Question: Insights on software growth acceleration - Management highlighted strong organic growth in software, driven by increased demand for automation and data management solutions [40][41] Question: Factors driving free cash flow performance - Management attributed the strong free cash flow performance to revenue growth acceleration and operational leverage, with a focus on disciplined capital allocation [50][54] Question: Clarification on Red Hat's growth trajectory - Management acknowledged the challenges in Red Hat's growth but emphasized the overall positive trajectory of the software portfolio and the strategic importance of Red Hat [58][59]

Financial Data and Key Metrics Changes - IBM achieved a revenue growth of 6% in 2025, the highest level in many years, and generated $14.7 billion in free cash flow, the highest in over a decade [4][17] - The company reported a 12% growth in operating diluted earnings per share and a 17% growth in Adjusted EBITDA [17][24] - Operating pre-tax margin expanded by 100 basis points, reflecting strong execution and a favorable portfolio mix [17][24] Business Line Data and Key Metrics Changes - Software revenue grew 9% in 2025, with three of four sub-segments delivering double-digit growth rates [5][18] - Infrastructure revenue increased by 10%, driven by the successful launch of the z17 mainframe [18] - Consulting revenue grew 1%, reflecting increased demand for AI services [8][21] Market Data and Key Metrics Changes - Data solutions grew by 19%, driven by demand for GenAI products [20] - Automation solutions saw a growth of 14%, with record bookings for HashiCorp [20] - Red Hat's revenue growth decelerated to 8%, impacted by delays in U.S. federal business deal activity [20] Company Strategy and Development Direction - IBM is focused on becoming a software-led hybrid cloud and AI platform company, with significant investments in innovation and productivity initiatives [4][10] - The company aims to sustain revenue growth of 5%+ in 2026, with a strong emphasis on its software business, expected to grow by 10% [28][34] - Strategic acquisitions, such as Confluent, are seen as key to enhancing IBM's hybrid cloud and automation solutions [10][32] Management's Comments on Operating Environment and Future Outlook - Management noted that client demand remains resilient, particularly in hybrid cloud, AI, and mission-critical infrastructure [6][16] - The company expressed confidence in sustaining growth momentum, with expectations for free cash flow to increase by about $1 billion in 2026 [28][34] - Management highlighted the importance of productivity initiatives, which have already exceeded initial targets [11][33] Other Important Information - IBM's cumulative GenAI book of business reached over $12.5 billion, with significant contributions from both software and consulting [9][31] - The company is advancing its quantum computing initiatives, with plans to deliver a large-scale, fault-tolerant quantum computer by 2029 [15][16] Q&A Session Summary Question: Insights on software growth acceleration - Management expressed confidence in organic growth within the software segment, driven by increased demand for automation and data solutions [40][46] Question: Free cash flow performance and guidance - Management attributed the strong free cash flow performance in 2025 to revenue growth and operating leverage, with a guidance of $15.7 billion for 2026 [49][52] Question: Red Hat's growth trajectory - Management acknowledged the challenges in Red Hat's growth but emphasized the strategic value and ongoing demand for its offerings [57][60]

Core Insights - IBM is expected to report higher revenues in the Software segment for Q4 2025, driven by product innovation and the increasing influence of watsonx.ai across various sectors [1] Group 1: Software Segment Performance - The Software segment encompasses Hybrid Cloud (previously Red Hat), Automation, and Data and Transaction Processing [2] - The Zacks Consensus Estimate for Software revenues is projected at $8.9 billion, up from $7.9 billion in the same quarter last year [6] - New AI partnerships with S&P Global and Groq are anticipated to enhance the utility of watsonx.ai in major industries, contributing to revenue growth [8] Group 2: Strategic Partnerships and Acquisitions - IBM partnered with S&P Global to integrate AI-powered tools for supply chain management, aiming to improve decision-making processes [3] - Collaboration with Groq focuses on accelerating AI deployment by integrating Groq's inference technology into IBM's offerings, addressing challenges in speed, cost, and reliability [4] - The acquisition of Confluent, Inc. is expected to modernize IBM's streaming data capabilities and expand its client base, further boosting Software segment revenues [5] Group 3: Overall Financial Expectations - Total revenue for IBM is estimated at $19.22 billion, an increase from $17.55 billion in the prior-year quarter [6] - The consensus estimate for earnings per share is $4.33, reflecting growth from $3.92 in the same quarter last year [6]