Financial Data and Key Metrics Changes - Revenue for the full year 2025 was $30.9 billion, up 10% year-over-year, with a 9% increase on a constant currency basis [17] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [17] - Fourth quarter revenue increased 20% year-over-year to $8.7 billion, exceeding guidance [18] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, above guidance [20] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% [17] - Global Components sales in the fourth quarter were $5.9 billion, up 6% sequentially [21] - ECS sales in the fourth quarter increased to $2.9 billion, up 16% year-over-year [25] Market Data and Key Metrics Changes - Demand trends improved across core markets such as transportation, industrial, and aerospace and defense [21] - Backlog in ECS grew by over 75% year-over-year, reaching an all-time high [25] - Inventory management improved, with inventory turns reflecting disciplined working capital management [27] Company Strategy and Development Direction - The company focuses on expanding higher-margin value-added services, which now account for roughly 30% of total operating income [9] - Arrow aims to deepen customer engagement and improve returns through strategic outsourcing and recurring revenue models [12] - The company is committed to a disciplined capital allocation strategy, including share repurchases and investments in organic growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about gradual recovery in 2026, with demand levels improving in many markets [30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [76] - The company is focused on executing with discipline while managing costs and working capital carefully [32] Other Important Information - The company repurchased $50 million in stock during the fourth quarter and has returned approximately $3.6 billion to shareholders since 2020 [14] - The search for a permanent CEO is ongoing, with the board evaluating candidates [34] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [41][42] Question: What drove strong sales in the Americas and ECS segment revenue growth in EMEA? - Management noted healthy demand in key verticals such as transportation and aerospace, with gradual improvements in the Western regions [54][56] Question: Can you discuss the strength in hardware categories and value-added services? - Hardware comprises 25% of ECS revenue, with growth driven by networking and security segments, while value-added services are being extended across multiple vertical markets [59][60] Question: How should working capital investment be viewed in relation to interest expense? - Management acknowledged that interest expense was lower than expected due to timing of cash flows and a favorable debt position, with expectations of increased working capital usage in the first quarter [71][72] Question: Will Western markets see above seasonal results in the recovery cycle? - Management confirmed that they expect above seasonal performance in Q1 across all regions, although visibility remains limited [78]

Financial Data and Key Metrics Changes - Revenue for the full year 2025 was $30.9 billion, up 10% year-over-year, or 9% on a constant currency basis [17] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [17] - Fourth quarter revenue increased 20% year-over-year to $8.7 billion, exceeding guidance [18] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, above guidance [20] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% [17] - Global Components sales in the fourth quarter were $5.9 billion, up 6% sequentially [21] - ECS sales increased 16% year-over-year to $2.9 billion, with total ECS billings at $7.1 billion, also up 16% [25] Market Data and Key Metrics Changes - Demand trends improved across core markets such as transportation, industrial, and aerospace and defense [22] - Book-to-bill ratios improved across all regions, indicating a healthy backlog growth [22] - Inventory at the end of the fourth quarter was $5.1 billion, with improved inventory turns reflecting disciplined working capital management [28] Company Strategy and Development Direction - The company focuses on growing higher-margin value-added services, which now account for roughly 30% of total operating income, up from less than 20% historically [9] - The strategic priority includes shifting towards higher quality results and profitable growth as the market gradually recovers [7] - The company aims to expand its role from traditional distribution to strategic partnerships, particularly in the ECS segment [11] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about gradual recovery in 2026, with expectations of profitable growth [15][30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [77] - The company is focused on managing costs and working capital carefully while aligning investments with demand [32] Other Important Information - The company repurchased $50 million in stock in Q4 and $150 million in 2025, reflecting confidence in its business model [14] - The search for a permanent CEO is ongoing, with updates to be provided when the process is complete [34] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [41][42] Question: What drove strong sales in the Americas and ECS segment in EMEA? - Demand trends in key verticals such as transportation and aerospace are healthy, with gradual improvements noted in Western regions [55][58] Question: Can you elaborate on the strength in ECS hardware and value-added services? - ECS hardware comprises 25% of revenue, primarily from storage, compute, and networking, with growth driven by security and networking segments [60] - Value-added services are an extension of existing offerings across multiple verticals, contributing significantly to operating income [61][62]

Financial Data and Key Metrics Changes - Revenue for full year 2025 was $30.9 billion, up 10% year-over-year, or up 9% on a constant currency basis [15] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [15] - Fourth quarter sales increased $1.5 billion year-over-year to $8.7 billion, up 20% versus the prior year, or up 16% on a constant currency basis [16] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, driven by favorable sales results and a higher mix of value-added services [18] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% year-over-year [15] - Global Components sales in the fourth quarter were $5.9 billion, up 6% versus the prior quarter [18] - Global ECS sales increased approximately $400 million year-over-year to $2.9 billion, up 16% versus the prior year [23] Market Data and Key Metrics Changes - Demand trends improved sequentially across regions, with healthy activity levels in transportation, industrial, and aerospace and defense markets [19] - Book-to-bill ratios improved in all three regions and are above parity, indicating a strengthening market environment [19] - Backlog growth was strong, finishing 2025 at an all-time high with over 75% year-over-year growth in ECS [23] Company Strategy and Development Direction - The company is focused on executing a strategy that emphasizes higher-margin value-added services, which now account for roughly 30% of total operating income [8][12] - The investment thesis includes a diversified business model that provides financial flexibility and resilience through cycles [9][10] - The company aims to expand its addressable market by moving beyond traditional distribution to become a go-to-market partner for suppliers [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a gradual recovery in 2026, with demand levels improving in many markets [28] - The company is focused on managing costs and working capital carefully while aligning investment levels with demand [30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [72] Other Important Information - The company repurchased $50 million in stock during the fourth quarter and has returned approximately $3.6 billion to shareholders since 2020 [12] - The board is actively searching for a permanent CEO, with updates to be provided once the process is complete [31] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [39][40] Question: What drove strong sales in the Americas and EMEA regions? - Management noted healthy demand in key vertical segments such as transportation and aerospace, with gradual improvements in the Western regions [51][52] Question: Can you elaborate on the strength in ECS hardware and value-added services? - ECS hardware primarily includes storage, compute, and networking, with the highest growth in networking and security [56] - Value-added services are being extended across multiple vertical markets, contributing significantly to operating income [58][60] Question: How should we think about working capital investment and interest expense? - Management acknowledged that working capital investment typically increases during growth periods, impacting interest expense forecasts [66][68] Question: Will Western markets see above seasonal results in the recovery cycle? - Management stated that visibility is improving, and they expect above seasonal performance in Q1 across all regions [72][74]

Core Insights - Cognizant Technology Solutions (CTSH) reported non-GAAP earnings of $1.35 per share for Q4 2025, exceeding the Zacks Consensus Estimate by 1.96% and reflecting an 11.6% year-over-year increase [2][10] - Revenues reached $5.33 billion, surpassing consensus by 0.50%, with a year-over-year growth of 4.9% and 3.8% at constant currency [3][10] - The company raised its guidance for Q1 2026 and full-year 2026 revenues, indicating positive growth expectations [14][15] Financial Performance - Bookings increased by 5% year-over-year to $28.4 billion, with a book-to-bill ratio of approximately 1.3 times; Q4 bookings rose 9% year-over-year, including 12 large deals valued over $100 million [4][10] - Financial services revenues, accounting for 29.7% of total revenues, grew 10.5% year-over-year to $1.586 billion, driven by investments in cloud and AI [6] - Health Sciences revenues, making up 30.4% of total revenues, increased 5.2% year-over-year to $1.621 billion, supported by strong demand across various sectors [6] Regional Performance - North America contributed 74.7% of total revenues, with a year-over-year increase of 4.3% [7] - Revenues from Europe rose 8.4% year-over-year, contributing 19.1% to total revenues, while the Rest of the World saw a 2.5% increase [8] Operational Metrics - Selling, general & administrative expenses as a percentage of revenues decreased by 150 basis points year-over-year to 15.1% [11] - The company reported a GAAP operating margin of 16%, expanding 120 basis points year-over-year [12] Balance Sheet - As of December 31, 2025, cash and short-term investments totaled $1.91 billion, down from $2.35 billion at the end of the previous quarter [13] - Total debt decreased to $576 million from $584 million in the prior quarter [13] Future Guidance - For Q1 2026, revenues are expected to be between $5.36 billion and $5.44 billion, indicating growth of 4.8%-6.3% [14] - For the full year 2026, revenues are projected to be in the range of $22.14 billion to $22.66 billion, reflecting a growth of 4.9%-7.4% [14]

Core Insights - Telecom and media firms in EMEA are experiencing increasingly interconnected digital environments due to the influence of AI, cloud, and 5G technologies [1] Group 1 - The operating models of telecom and media companies are being reshaped by advancements in AI, cloud computing, and 5G [1]

Core Insights - The company reported mixed fourth-quarter 2025 results, with record gross profit in Business Solutions and Enterprise Solutions segments, but a significant decline in Public Sector Solutions due to project timing and the absence of a prior-year contract [4][6][10] Financial Performance - Operating income increased 4.2% to $23.6 million, and excluding severance expenses, it rose 17.8% to $26.7 million [1] - Diluted earnings per share were $0.82, up 5.1%, while adjusted diluted EPS was $0.91, up 16.7% year over year [1] - Consolidated gross profit rose 4.5% year over year to $135.6 million, with gross margin expanding 100 basis points to 19.3% [2] - Total net sales were $702.9 million, down 0.8% from the prior-year quarter, attributed to public sector headwinds [2] Segment Performance - Business Solutions net sales rose 4.2% to $273.5 million, with gross profit increasing 11.4% to $69.8 million [9] - Enterprise Solutions delivered net sales growth of 11.9% to $338.7 million, driven by demand for advanced technologies [11] - Public Sector Solutions net sales fell 36.8% to $90.8 million, with gross billings declining 23.7% to $170.7 million [10] Cost Management and Capital Returns - The company executed severance actions totaling $5.9–6.2 million across Q4 and Q1, targeting annual savings of approximately $7–8 million [5][13] - Returned $91.4 million to shareholders in 2025, including a 33% increase in the dividend to $0.20 per share [5][16] Outlook and Market Conditions - The company expects a nearly $40 million public sector headwind in the next quarter but anticipates improvement later in 2026 [5][21] - Management projects a blended estimate of about 4% U.S. IT market growth for 2026, expecting to outperform the market by 200 basis points [19] - Strong performance noted in vertical markets, with net sales growth of 22% in retail, 28% in financial services, and 19% in healthcare [18]

Financial Data and Key Metrics Changes - Gross billings increased by 2.9% to $1.06 billion compared to $1.03 billion from the prior year [6] - Gross profit rose 4.5% year-over-year to $135.6 million, with gross margin expanding 100 basis points to 19.3% [8] - Total net sales were $702.9 million, down 0.8% from last year due to challenges in the public sector [8][9] - Diluted earnings per share were $0.82, an increase of 5.1%, while adjusted diluted earnings per share was $0.91, an increase of 16.7% compared to the prior year [11][16] Business Line Data and Key Metrics Changes - Business Solutions segment net sales increased 4.2% to $273.5 million, with gross profit rising 11.4% to $69.8 million [8][9] - Public Sector Solutions net sales were $90.8 million, down 36.8% from a year ago, with gross billings declining 23.7% to $170.7 million [9] - Enterprise Solutions net sales increased 11.9% to $338.7 million, with gross profit growing 7.1% to $48.2 million [10] Market Data and Key Metrics Changes - Retail net sales grew 22%, driven by large deployments as retailers invest in technology [21] - Financial services net sales were up 28%, with gross profit increasing 13% year-over-year [21] - Healthcare net sales grew 19%, with gross profit improving 18% year-over-year [21] Company Strategy and Development Direction - The company aims to expand its solutions-led business, deepen customer relationships, and drive profitable growth in cloud, cybersecurity, AI, and services [11][12] - The strategy includes advancing data center modernization, digital workplace transformation, and supply chain solutions [24][26] - The company expects to outperform the U.S. IT market by 200 basis points in 2026 [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term trends supporting the business, despite near-term headwinds like memory supply constraints and inflation [12][30] - The company is focused on operational efficiencies and expense management, with a disciplined approach to capital allocation [20][24] - Management noted that the backlog ended Q4 at its highest level since 2022, indicating strong future demand [26] Other Important Information - The company executed a voluntary retirement offering, resulting in a severance charge of $3.1 million, with expected ongoing annual cost savings of approximately $7 million to $8 million [17][20] - A quarterly dividend of $0.15 per share was paid, and an additional $50 million was authorized for the share repurchase program [18] Q&A Session Summary Question: What is the expected IT market growth for 2026? - Management indicated a blended growth number of around 4% for the U.S. IT market, with internal growth expectations slightly higher [29][30] Question: Why is the company reducing headcount despite a healthy IT market? - The headcount reduction is driven by system improvements and productivity gains from AI, with no additional reductions anticipated [31][32] Question: What was the sales cadence during Q4? - A marked increase in December revenue was noted, with over 38% of the quarter's revenue occurring in that month due to budget consumption and preemptive ordering [40] Question: Were memory supply constraints an issue in Q4? - Management stated that while some price increases were observed, they did not significantly affect Q4 results, and customers were advised to order early due to anticipated constraints [41][42]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net sales of $5.5 billion, an increase of 5% year-over-year, and gross profit of $1.25 billion, up 9% [5][6] - Full-year 2025 results showed net sales of over $22 billion, up 7%, with gross profit nearly $5 billion, up 6% [8][9] - Non-GAAP operating income for Q4 was $503 million, up 1%, and non-GAAP net income per share was $2.57, up 4% [6][21] - Full-year non-GAAP net income per diluted share reached $10.02, up 5% [8][27] Business Line Data and Key Metrics Changes - Strong double-digit growth was observed in software, cloud, and professional managed services, contributing to the highest gross margin of the year [6][12] - Corporate sales were relatively flat, down 1%, while small business sales grew by 18% [10][11] - The healthcare segment increased by 5%, and education saw a 13% increase in top line [11][12] Market Data and Key Metrics Changes - U.K. and Canadian operations delivered sales of $2.7 billion in 2025, with strong performance in small business and state and local markets [10] - The public sector showed growth in healthcare and government, with state and local growth offsetting declines in federal due to the government shutdown [11][12] Company Strategy and Development Direction - The company aims to deliver sustainable, profitable growth by deepening customer value and deploying capital with discipline [19][32] - A focus on AI solutions is evident, with the company positioning itself to lead in the AI era through its full stack, full lifecycle offerings [15][16] - The company plans to maintain a target of returning 50%-75% of adjusted free cash flow to shareholders through dividends and share repurchases [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted that the IT addressable market is expected to grow in the low single digits in 2026, with CDW targeting 200-300 basis points of outperformance [18][35] - The company anticipates gross profit growth in the low single digits for 2026, with a slight increase in gross margin compared to 2025 [36][37] - Management expressed optimism about AI adoption among customers and its potential to drive growth [56][57] Other Important Information - The company reported adjusted free cash flow of $1.09 billion for the full year, representing 82% of non-GAAP net income [30] - The company has made a tuck-in acquisition to enhance capabilities in the education sector [31][32] Q&A Session Summary Question: Impact of memory price changes on demand - Management indicated that there is uncertainty regarding the impact of memory prices on demand, but they expect a similar pull forward in Q1 as seen in Q4 [40][41] Question: SG&A expenses and operating leverage - Management acknowledged that SG&A expenses are expected to show operating leverage in 2026, with a focus on optimizing costs [43][45] Question: IT budget allocation for 2026 - Management expects client device growth to remain strong, with cloud, SaaS, and security categories continuing to be important [59][60] Question: Corporate versus small business performance - Management noted differences in spending cycles, with small businesses being more agile in adopting AI compared to larger corporations [70][72]

UBS analysts have increased their price target for Amazon.com Inc (NASDAQ:AMZN) shares from $310 to $311, maintaining a 'Buy' rating ahead of the Q4 2025 earnings report.Amazon's AWS revenue is expected to double by 2028, with plans to double its capacity by 2027 to meet the rising demand for cloud and AI services.The Q4 2025 earnings release is anticipated to show net sales between $206 billion and $213 billion, reflecting a growth of 10% to 13% year-over-year.On January 29, 2026, David Taylor made a purch ...

Prosus reached a multi-year cloud and artificial-intelligence deal with an Amazon unit that will consolidate contracts in these spheres, resulting in double-digit cost savings https://t.co/0hKOFZBIHz ...