Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew by 3% year-on-year, consistent with guidance of low single-digit growth [22] - Full year 2025 revenue reached $2.8 billion, up 1% year-on-year, driven primarily by growth in distribution revenue [25] - Normalized adjusted EBITDA for Q4 2025 was $119 million, a 10% increase year-on-year, with the margin expanding by 107 basis points to 18% [24] - Full year normalized adjusted EBITDA was $536 million, also a 10% increase year-on-year, with the margin improving by 166 basis points to 19% [25] - Pro forma free cash flow for Q4 2025 was $116 million, a year-on-year increase of $45 million [24] Business Line Data and Key Metrics Changes - Air distribution bookings grew 4% year-on-year in Q4 2025, with a 7% growth in December [11][22] - Hotel distribution bookings increased 5% year-on-year to 42 million, with gross hotel booking value exceeding $20 billion annually [12] - Sabre Payments was one of the fastest-growing businesses, with gross spend increasing over 35% year-on-year [10] Market Data and Key Metrics Changes - NDC (New Distribution Capability) represented approximately 4% of total air distribution bookings by the end of 2025, with expectations for acceleration in 2026 [11] - The company noted broad-based growth in air distribution bookings across all regions, including corporate travel, which had previously been negative [70] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in travel [5][6] - Recent executive leadership changes were announced to align with the new AI strategy, including the promotion of Garry Wiseman to President of Product and Engineering [7] - The company aims to leverage its extensive travel data and technology to become essential in the evolving AI ecosystem [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance, driven by distribution share gains and growth in hotel distribution and payments [5] - The company anticipates mid-single-digit volume growth for both 2026 and 2027, with a focus on continued share gains and growth in NDC bookings [28][33] - Management acknowledged challenges from external factors but noted positive momentum exiting 2025 [5][22] Other Important Information - The company paid off over $1 billion in debt in 2025, reducing pro forma net leverage by approximately 25% compared to year-end 2024 [8][26] - A restructuring charge of $51 million was recorded in Q4 2025 as part of an inflation offset program, with expected cash outflows of around $60 million in 2026 [32][73] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities might evolve from AI? - Management highlighted the importance of demonstrating an end-to-end experience in conversational commerce for travel, with partnerships aimed at enhancing itinerary planning and payment options [38][42] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace and ability to aggregate and normalize travel content provide a competitive advantage in managing direct connects [50][52] Question: Can you elaborate on the inflation offset program? - Management indicated that the program aims to keep technology and SG&A costs flat while leveraging geographical advantages and embedding AI for productivity [55][59] Question: How is corporate travel performing, and where is the strength coming from? - Management noted positive signs in corporate travel, with strength coming from both traditional players and new entrants [80] Question: Can you provide an update on capital allocation for 2026 and beyond? - Management stated that while debt paydown remains a priority, there is also a focus on investing in growth initiatives, particularly in agentic AI [62][66]

Performance was driven by a '3-layer cake' framework where accelerated compute forms the base, simulation the middle, and AI the top layer for intelligent design exploration. The launch of ChipStack AI Super Agent marks a pivot toward Agentic AI, which management describes as a force multiplier that automates previously manual tasks like RTL coding and verification. Revenue growth of 14% in 2025 was underpinned by a record $7.8 billion backlog, reflecting broad-based portfolio strength and increasing ...

Hexaware Technologies has announced a strategic partnership to integrate Replit, an AI-powered software creation platform, with its agentic AI platform RapidX. According to Hexaware, this integration is designed to help enterprise teams move more quickly and efficiently from initial prototyping stages to full-scale deployment of production-grade applications. By combining Hexaware’s AI-guided software engineering tools with Replit’s natural-language-based development capabilities in a single interface, ...

Financial Data and Key Metrics Changes - Cadence reported a 14% revenue growth for the fourth quarter and a 45% operating margin for the year, finishing 2025 with a record backlog of $7.8 billion [5][16] - Total revenue for Q4 was $1.44 billion and $5.297 billion for the year, with GAAP operating margin at 32.2% for the quarter and 28.2% for the year [16][17] - Non-GAAP operating margin was 45.8% for the quarter and 44.6% for the year, with GAAP EPS at $1.42 for the quarter and $4.06 for the year [17] Business Line Data and Key Metrics Changes - The core EDA business grew by 13% in 2025, with the recurring software business re-accelerating to double-digit growth in Q4 [10] - The IP business saw nearly 25% revenue growth in 2025, reflecting strong demand in AI, HPC, and automotive verticals [12][13] - The System Design and Analysis (SDA) business delivered 13% revenue growth in 2025, with a strategic shift towards annual subscription arrangements impacting year-over-year comparisons [51] Market Data and Key Metrics Changes - The semiconductor industry is projected to reach $1 trillion this year, indicating a healthier environment for Cadence's solutions [61] - China accounted for 12%-13% of revenue in 2024 and 2025, with expectations to maintain this range in 2026 [31] Company Strategy and Development Direction - Cadence is focusing on AI-driven solutions, with the launch of ChipStack AI Super Agent aimed at automating chip design and verification, providing up to 10x productivity improvements [7][8] - The company is expanding partnerships with leading foundries, including TSMC and Intel, to enhance AI flows and support next-generation designs [9] - The strategy includes a strong emphasis on agentic AI workflows, which are expected to increase the usage of Cadence's tools rather than displace them [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Cadence's engineering software, emphasizing that AI tools are increasing the usage of their products [27] - The outlook for 2026 includes expected revenue in the range of $5.9 billion to $6 billion, with a GAAP operating margin of 31.75%-32.75% and non-GAAP EPS in the range of $8.05-$8.15 [19][20] Other Important Information - The company plans to use approximately 50% of its free cash flow for share repurchases in 2026 [19] - Cadence's AI-driven EDA, SDA, and IP portfolio positions the company well to capture significant opportunities in the evolving market landscape [15] Q&A Session Summary Question: Disruption in AI affecting demand for EDA or IP tools - Management clarified that there has been no discussion from customers about reducing the usage of Cadence's tools; instead, AI tools are increasing the usage of their software [24][27] Question: Key contributors to recurring revenue improvements - Management noted that strong backlog and broad portfolio proliferation across EDA, IP, hardware, and SDA are driving recurring revenue growth [30][32] Question: Verification and emulation hardware cycle - Management indicated that demand for hardware systems remains strong, with expectations for continued growth in this segment [34][36] Question: Benefits from AI workflows - Management highlighted significant productivity improvements from AI, with customers reporting up to 10x productivity gains in certain areas [43][44] Question: Transition to one-year license terms for SDA - Management acknowledged that the shift to annual subscriptions impacted SDA revenue growth but remains optimistic about its strategic trajectory [51] Question: COT chip proliferation among hyperscalers - Management confirmed that the trend of hyperscalers designing their own chips is accelerating, with expectations for increased EDA consumption [56][59]

Financial Data and Key Metrics Changes - Cadence reported a 14% revenue growth for the fourth quarter and a 45% operating margin for the year 2025, with total revenue reaching $1.44 billion for the quarter and $5.297 billion for the year [5][16] - The company achieved a GAAP operating margin of 32.2% for the quarter and 28.2% for the year, while the non-GAAP operating margin was 45.8% for the quarter and 44.6% for the year [17] - GAAP EPS was $1.42 for the quarter and $4.06 for the year, with non-GAAP EPS at $1.99 for the quarter and $7.14 for the year [17] Business Line Data and Key Metrics Changes - The core EDA business grew by 13% in 2025, with the recurring software business re-accelerating to double-digit growth in Q4 [10] - The IP business saw nearly 25% revenue growth in 2025, reflecting the strength of the expanding IP portfolio [12] - The hardware business had over 30 new customers and significantly higher repeat demand from AI and hyperscalers, with expectations for another record year in 2026 [10] Market Data and Key Metrics Changes - The company finished 2025 with a record backlog of $7.8 billion, indicating strong demand across all business lines [5][16] - China accounted for 12%-13% of revenue in 2025, with expectations to maintain this range in 2026 [31] - The semiconductor industry is projected to reach $1 trillion in revenue, indicating a robust market environment for Cadence [62] Company Strategy and Development Direction - Cadence is focusing on AI-driven solutions, with the launch of ChipStack AI Super Agent, which automates chip design and verification, providing up to 10x productivity improvement [7] - The company is expanding its partnerships with leading foundries, including TSMC and Intel, to enhance its AI capabilities [9] - Cadence aims to capture opportunities in the emerging physical AI market, particularly in autonomous driving and robotics [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Cadence's engineering software, emphasizing that AI tools are increasing the usage of their software rather than displacing it [27] - The outlook for 2026 includes expected revenue in the range of $5.9 billion to $6 billion, with GAAP EPS projected between $4.95 and $5.05 [19] - Management noted that the design activity is accelerating across both semiconductor and system companies, indicating a healthier environment for 2026 compared to the previous year [62] Other Important Information - The company plans to use approximately 50% of its free cash flow for share repurchases in 2026 [19] - Cadence's AI workflows are expected to enhance productivity significantly, with customers reporting improvements of up to 10x in certain areas [43] Q&A Session Summary Question: Disruption in AI affecting EDA demand - Management indicated that there has been no discussion among customers about reducing the usage of EDA tools due to AI; instead, AI is increasing the usage of Cadence's tools [27] Question: Recurring revenue outlook for 2026 - Management highlighted that 67% of 2026 revenue is expected to come from beginning backlog, providing strong visibility into recurring revenue growth [32] Question: Verification and emulation hardware cycle - Management expects continued strong demand for hardware systems, which are essential for designing complex chips, and anticipates that this trend will continue [35] Question: Benefits of AI workflows - Management reported significant productivity improvements from AI workflows, with customers achieving up to 4x productivity gains in certain tasks [43] Question: Transition to one-year license terms for SDA - Management acknowledged that the transition to annual subscription arrangements has impacted SDA revenue growth but remains optimistic about its strategic trajectory [51]

Core Viewpoint - Analysts expect Palo Alto Networks to report Q2 revenue of $2.58 billion, an increase from $2.26 billion, and earnings per share of 76 cents, down from 81 cents in the same quarter last year [1][2] Financial Performance - The company has beaten analyst estimates for revenue for nine consecutive quarters [1] - Analysts anticipate earnings per share to decline, marking a potential shift in performance metrics [1] - Company guidance indicates expected revenue between $2.57 billion and $2.59 billion and earnings per share between 93 to 95 cents [2] Analyst Ratings - Analysts have been lowering their price targets ahead of the quarterly results, with several firms maintaining their ratings but adjusting targets downward [3][8] - Mizuho lowered its price target from $220 to $205 while maintaining an Outperform rating [8] - Other firms like BTIG, DA Davidson, JPMorgan, and Barclays also adjusted their price targets downward while maintaining their ratings [8] Strategic Moves - Palo Alto Networks announced plans to acquire Koi, an agentic endpoint security company, to address new challenges in cybersecurity [4][5] - The acquisition is part of a broader strategy to enhance the company's offerings in the AI era, as traditional security measures may not suffice against modern threats [4][7] - The company has recently completed other acquisitions, including Chronosphere and CyberArk, which may not fully impact the upcoming quarterly results [5][6] Market Sentiment - Shares of Palo Alto Networks have decreased by 22.6% over the last year, with current stock price at $161.24, down 3.4% on the day [10] - Investors are looking for strong guidance and performance in the upcoming earnings report to restore optimism [9]

This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief:  Unilever plans to migrate its data and cloud platform to Google Cloud as part of a five-year partnership that will allow the company to use tools such as Vertex AI — Google Cloud’s enterprise AI platform — to build an AI-first technology foundation, the two companies announced Tuesday.  The consumer goods provider will integrate its enterprise apps and data pl ...

Group 1 - Financial institutions are rapidly transitioning AI agents from experimentation to production for various applications such as onboarding, fraud triage, transaction monitoring, and customer communication [1] - Model risk teams are facing increased pressure to validate more models frequently, necessitating built-in governance and evaluation for safe scaling of agentic AI [1][2] - The real concern in regulated financial environments is the potential for AI agents to "hallucinate," leading to unpredictable outcomes that differ from traditional deterministic systems [2][3] Group 2 - Core banking systems and compliance workflows rely on predictable logic, while agentic systems produce variable results, complicating testing and certification processes [3] - In financial compliance, inaccuracies in AI-generated reports can lead to significant control failures, which must be defensible under model risk management expectations [4] - There exists an "autonomy accountability gap," where the adoption of autonomous systems outpaces the development of accountability frameworks [5] Group 3 - Governance in organizations is often treated as an afterthought, with a focus on performance before addressing monitoring and oversight [6]

Summary of Infosys Investor AI Day - February 17, 2026 Company Overview - **Company**: Infosys (NYSE: INFY) - **Event**: 2026 Investor AI Day - **Location**: Bengaluru campus Key Industry Insights AI Transition - The current AI transition is fundamentally different from previous technology shifts due to its speed and impact on business operations [4][6][7] - Historical context shows that previous transitions (e.g., PCs, cloud) took longer to reach mass adoption compared to AI, which is rapidly gaining users due to existing infrastructure [5][6] - The AI transition requires a complete overhaul of business operations, moving beyond mere technological upgrades to a fundamental change in how businesses operate [7][8] Legacy System Modernization - Companies can no longer defer the modernization of legacy systems; many are spending 60%-80% of their IT budgets on maintaining outdated systems [9][10] - The need for modernization is driven by financial inefficiencies and increasing security threats [10][11] - AI provides tools for rapid and cost-effective modernization, presenting a significant opportunity for firms like Infosys [11] Deployment Gap - There exists a "deployment gap" where the rapid advancement of AI technology outpaces the ability of enterprises to implement it effectively [17][18] - This gap highlights the need for organizational change, retraining, and a shift in data management practices [17][19] Core Business Strategies AI Services Opportunity - Infosys is actively engaged in AI projects with 90% of its large clients, indicating a robust demand for AI services [32][33] - The company has identified six key areas for growth in AI services: AI strategy and engineering, data for AI, process transformation, legacy modernization, physical AI, and AI trust [36][37] AI-First Value Framework - Infosys has developed an AI-first value framework to guide its service offerings, which includes a detailed breakdown of 30 offerings and 100 sub-offerings [37][38] - The framework emphasizes the integration of AI into existing business processes to drive efficiency and innovation [39] Talent Transformation - Infosys is focusing on reskilling its workforce to meet the demands of AI integration, having recruited 20,000 college graduates in the current year [44][45] - The company aims to build a workforce that is both technically skilled and capable of reimagining workflows [54] Financial Performance - AI services currently represent 5.5% of Infosys's revenue in Q3, with expectations for robust growth in this segment [37] Challenges and Considerations Complexity of AI Integration - Integrating AI into enterprises is complex and requires a deep understanding of existing systems and processes [48][49] - Successful AI implementation involves not just technology but also a cultural shift within organizations [50][51] Unique Client Context - Each enterprise has unique data, processes, and risks, which means AI solutions must be tailored to individual client contexts [52] - Infosys's approach focuses on leveraging its deep client relationships and industry knowledge to unlock value [52] Conclusion - The AI transition presents both challenges and significant opportunities for Infosys and its clients, necessitating a strategic approach to modernization, talent transformation, and AI integration [27][28]

Core Insights - Infosys and Anthropic have announced a strategic collaboration aimed at developing advanced enterprise AI solutions for various industries, starting with telecommunications and expanding to financial services, manufacturing, and software development [1] Group 1: Collaboration Details - The collaboration will utilize Anthropic's Claude models, including Claude Code, integrated with Infosys Topaz AI offerings to automate complex workflows and accelerate software delivery [1] - A dedicated Anthropic Center of Excellence will be established to focus on building AI agents tailored to industry-specific operations, beginning with telecommunications [1] Group 2: Industry Applications - In software development, Claude Code will assist teams in writing, testing, and debugging code, enhancing the speed from design to production [1] - In manufacturing, Claude will facilitate faster product design and simulation, reducing R&D timelines and allowing for more iterations before production [1] - In financial services, AI agents will enhance risk detection, automate compliance reporting, and personalize customer interactions based on comprehensive account histories [1] - In telecommunications, AI agents will modernize network operations and improve service delivery, addressing the complexities of a heavily regulated industry [1] Group 3: Leadership Perspectives - Dario Amodei, CEO of Anthropic, emphasized the importance of domain expertise in bridging the gap between AI models and their application in regulated industries [1] - Salil Parekh, CEO of Infosys, highlighted that the collaboration represents a strategic leap in advancing enterprise AI, aiming to unlock value and enhance organizational intelligence and resilience [1]