Core Viewpoint - The article discusses the recent volatility in the stock market and highlights four companies that have recently increased their dividends, providing potential investment opportunities for cautious investors seeking steady income amidst economic uncertainty [2][3]. Economic Context - Major stock indexes have reached all-time highs, but investor sentiment remains low due to a lack of economic data from the government shutdown, the impact of tariffs imposed by President Trump, and uncertainty regarding a potential interest rate cut by the Federal Reserve [2][4]. - The Federal Reserve recently cut interest rates by 0.25 percentage points, but this did not positively affect stock prices, as Chairman Jerome Powell expressed doubts about further cuts this year [4][5]. - The ongoing government shutdown has deprived investors of key economic data, contributing to fears of a recession as the labor market continues to shrink [6]. Company Highlights - **CDW Corporation**: Announced a dividend of $0.63 per share, with a dividend yield of 1.76%. Over the past five years, CDW has increased its dividend six times, with a payout ratio of 26% of earnings [9][8]. - **California Resources Corporation**: Declared a dividend of $0.41 per share, yielding 3.32%. The company has increased its dividend four times in the last five years, with a payout ratio of 34% of earnings [11][10]. - **Exxon Mobil Corporation**: Announced a dividend of $1.03 per share, yielding 3.47%. Exxon has increased its dividend five times over the past five years, with a payout ratio of 57% of earnings [13][12]. - **Entergy Corporation**: Declared a dividend of $0.64 per share, yielding 2.49%. Entergy has increased its dividend six times in the last five years, with a payout ratio of 59% of earnings [14][12].

Market Overview - Wall Street experienced significant volatility, with major indexes reaching all-time highs, yet investor sentiment remains low due to economic uncertainties [1][3] - The ongoing government shutdown has resulted in a lack of key economic data, complicating investors' ability to gauge the economy's future [5] Federal Reserve Actions - The Federal Reserve recently cut interest rates by 0.25 percentage points for the second time this year, but this did not boost stock performance [3] - Chairman Jerome Powell expressed uncertainty regarding further rate cuts, indicating differing views among Fed officials on future monetary policy [4] Economic Concerns - The labor market is showing signs of contraction, raising fears of a potential recession [5] - Tariffs imposed by President Trump, particularly in relation to China, have contributed to market volatility and increased concerns among investors [6] Dividend-Paying Stocks - In light of market uncertainties, investors may consider dividend-paying stocks for steady income and capital protection [2] - Four companies recently announced dividend increases: - **CDW Corporation**: Dividend of $0.63 per share with a yield of 1.76%, increased dividends six times in five years, payout ratio at 26% [8][7] - **California Resources Corporation**: Dividend of $0.41 per share with a yield of 3.32%, increased dividends four times in five years, payout ratio at 34% [10][9] - **Exxon Mobil Corporation**: Dividend of $1.03 per share with a yield of 3.47%, increased dividends five times in five years, payout ratio at 57% [12][11] - **Entergy Corporation**: Dividend of $0.64 per share with a yield of 2.49%, increased dividends six times in five years, payout ratio at 59% [13]

Financial Data and Key Metrics Changes - Third quarter revenue was $460 million, a decline of 7.4% year over year or 9% in constant currency [26] - Non-GAAP operating profit was $25 million, with a non-GAAP operating margin of 5.4% [32] - The company generated $20 million of free cash flow in the third quarter, an improvement from $14 million in the prior year period [34] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $125 million, down 5.8% year over year [27] - Cloud Applications and Infrastructure (CA&I) revenue was $180 million, a 6.8% decline compared to the prior year [28] - Enterprise Computing Solutions (ECS) revenue was $133 million, a 13.9% year-over-year decline [29] Market Data and Key Metrics Changes - The total contract value (TCV) for new business in the third quarter was $124 million, in line with solid levels from the second quarter [9] - The pricing environment remains competitive, with clients seeking to share in AI cost savings [10] Company Strategy and Development Direction - The company is focused on improving delivery and operational efficiency to navigate macroeconomic uncertainties [4] - There is a commitment to executing a pension strategy aimed at removing U.S. pension liabilities [5] - The company is investing in AI-driven productivity solutions and workforce optimization to enhance delivery efficiency [8][17] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue was impacted by timing issues, including a shift of a large license and support renewal to the fourth quarter [6] - Concerns about federal funding and the ongoing U.S. government shutdown have affected client project initiation [6][57] - The company expects to generate approximately $110 million of pre-pension free cash flow for the full year [39] Other Important Information - The company received recognition as a leader in cloud services for mid-market enterprises and was named to Time Magazine's 2025 list of the world's best companies [23][24] - The trailing 12-month signings amounted to approximately $2 billion, translating to a book-to-bill ratio of 1.1x [29] Q&A Session Summary Question: How is AI impacting overall P&L? - Management indicated that AI is helping reduce delivery costs, improving margin profiles, and increasing consumption rates in the L&S business [41][42] Question: What is enabling margin performance despite revenue shortfall? - The increase in L&S revenue and successful renewal activity with higher margin profiles are contributing to margin performance [44][45] Question: What is the demand for cloud spending, particularly on AI? - Demand for AI applications is strong, but the adoption is sensitive due to security and other factors [51][52] Question: Update on public sector demand amid government shutdown? - There has been a pause in project work in the U.S. public sector, with some areas showing constant demand [56][57] Question: Is pricing pressure a new development? - Pricing pressure has been ongoing, with competitors undercutting prices, but the company remains disciplined in contract negotiations [58][59]

Core Insights - Atos has been awarded a contract by the Madrid City Council for the evolution and maintenance of its Artificial Intelligence platform, aimed at enhancing municipal processes and services [1][2][9] Group 1: Project Goals and Implementation - The project aims to optimize administrative processes, improve municipal services, and provide citizens with more efficient and personalized services through generative AI [2] - The contract spans three years with an option for a one-year extension, covering corrective, adaptive, and evolutionary maintenance of the AI platform [3] - Atos will collaborate closely with the Madrid City Council to promote excellence in AI usage through various initiatives, including technological surveillance and specialized training [4] Group 2: New Use Cases and Applications - Atos is developing new use cases such as Clear Communication, which focuses on improving the clarity and accessibility of administrative texts for citizens [6][7] - Another application, Pipeline of Documentary Objects, automates the processing of audio, video, and text files, transforming them into structured information for easier access and contextual queries [8] Group 3: Company Overview - Atos Group is a global leader in digital transformation with approximately 67,000 employees and annual revenue of around €10 billion, operating in 61 countries [10] - The company is recognized as the European leader in cybersecurity, cloud, and high-performance computing, committed to providing AI-powered solutions across various industries [10][11]

Third Quarter Financial Results NOVEMBER 5, 2025 Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking state ...

Core Insights - The article discusses the importance of Enterprise Application Integration (EAI) in connecting various software systems within companies to enhance data flow and operational efficiency [3][28] - It highlights the top EAI service providers in India, emphasizing their strengths and suitability for different business needs [7][8][9][10][17][18] EAI Overview - EAI is defined as the process of connecting different software systems used by a company, facilitating automatic information sharing between systems like CRM and ERP [3] - The benefits of EAI include faster work processes, reduced errors, and improved data control [3][28] Types of EAI - Common types of EAI include: - Point-to-point: Direct connection between two systems - Enterprise Service Bus (ESB): Central system connecting multiple applications - iPaaS (Integration Platform as a Service): Cloud-based integration - API-led integration: Utilizes APIs for easy app connections [6] Reasons for India's EAI Success - Indian companies excel in EAI due to lower service costs, skilled engineers, strong cloud and API experience, and 24/7 support [5][6] Top EAI Service Providers in India 1. **Tata Consultancy Services (TCS)** - Best for large companies with multiple systems or global branches; known for reliability and experience [7] 2. **Wipro Limited** - Ideal for businesses transitioning to cloud systems; offers quick and modern solutions [8] 3. **Infosys Limited** - Suitable for companies needing advisory and implementation support; recognized for technical skills and reliable support [9] 4. **HCLTech** - Focuses on businesses undergoing digital transformation; strong in automation and hybrid setups [10] 5. **Sify Technologies** - Best for public and private enterprises in India; known for affordability and flexibility [17] 6. **Flexsin Technologies** - Targets small to mid-size businesses; offers quick delivery and cost-effective solutions [18] Selection Criteria for EAI Providers - Companies should consider: - Listing systems to connect - Choosing the right integration type (ESB, iPaaS, API-led) - Provider's experience with specific software - Security and compliance measures - Requesting demos or proof of concept - Comparing total costs and support options [21] Real-World Examples - Wipro helped a utility company reduce costs by 30% through cloud integration [22] - Sify connected over 600 bank branches across India using cloud tools for improved service [23] Conclusion - EAI is crucial for enhancing operational efficiency and decision-making in companies; selecting the right provider is essential for successful integration [28]

Group 1 - Science Applications International Corporation (SAIC) is recognized as an inexpensive stock with potential for investment, as noted by Jim Cramer [1] - SAIC provides a range of services including technical, engineering, IT services, AI solutions, digital engineering, and defense support [2] - The company announced the acquisition of SilverEdge Government Solutions for $205 million, which will enhance its cybersecurity and intelligence capabilities [2][3] Group 2 - The acquisition aims to integrate SilverEdge's technology to improve SAIC's delivery of national security solutions, with a closing expected in the third quarter of fiscal 2026 [3] - SilverEdge's CEO emphasized the alignment of their mission with SAIC's focus on innovation and national security, indicating a strong future collaboration [3] - While SAIC shows potential, there are other AI stocks that may offer greater upside and less downside risk, suggesting a competitive landscape in the AI sector [3]

Financial Data and Key Metrics Changes - In Q4, the company reported revenue of CAD 4 billion, representing a year-over-year increase of 9.7%, or 5.5% when excluding foreign exchange impacts [6][10] - Adjusted EBIT for the quarter was CAD 667 million, up 11.2% year-over-year, with an industry-leading margin of 16.6% [10] - Adjusted net earnings were CAD 472 million, reflecting an increase of CAD 33 million year-over-year, with a margin of 11.8% [11] - The company generated CAD 663 million in cash from operations, accounting for 16.5% of total revenue [12] Business Line Data and Key Metrics Changes - Managed services revenue grew by 6% in constant currency, aligning with client demand amid challenging macroeconomic conditions [14] - The UK and Australia segment saw growth of 28% due to the acquisition of BJSS [6] - The U.S. segments combined growth was 5.7%, driven by mergers and acquisitions [7] Market Data and Key Metrics Changes - Bookings for the quarter were CAD 4.8 billion, resulting in a book-to-bill ratio of 119%, with U.S. Federal bookings at 185% [8] - The contracted backlog reached CAD 31.5 billion, equivalent to two times revenue [10] Company Strategy and Development Direction - The company focuses on investing in CGI through a share buyback program to enhance EPS while returning cash to shareholders [6] - The strategy includes expanding managed services and IP offerings to improve client efficiency, particularly during economic challenges [5] - The company aims to lead in digital transformation, emphasizing AI-driven business transformation as a core strategy [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the federal business post-shutdown, citing strong bookings prior to the shutdown [41] - The company anticipates continued demand for managed services as clients seek to reduce operational costs and reinvest savings into technology initiatives [34] - Despite market uncertainties, management does not foresee a long-term decline in IT budgets, expecting clients to rebalance spending towards managed services and AI [33][58] Other Important Information - The Board of Directors approved a quarterly cash dividend of CAD 0.17 per share, marking a 13% increase [12] - The company closed five acquisitions in fiscal 2025, all expected to be accretive within the first year [16] Q&A Session Summary Question: Impact of federal shutdown on bookings and optimism for federal business - Management noted strong bookings at 185% prior to the shutdown and expects growth to resume once the government reopens [41] Question: Potential margin uplift from AI adoption - Management indicated that AI is enhancing margins through improved managed services and internal process optimizations [42][43] Question: Outcome-based pricing strategy and its protection against pricing pressure - Management clarified that while pricing pressure exists, their outcome-based pricing model allows for better value delivery and profitability [45][48] Question: Revenue per employee growth and its drivers - Management attributed the 5% increase in revenue per employee to AI utilization and geographic expansion, particularly in APAC and Poland [49][50] Question: Book-to-bill ratio and M&A impact - Management explained that M&A does not directly affect the book-to-bill ratio, as backlog from acquisitions is included post-closing [52] Question: AI's impact on implementation processes - Management acknowledged that while AI brings savings, complex client environments still require human oversight [56] Question: Partnership strategy and growth - Management emphasized a broad partnership strategy with various technology firms, adapting to client needs based on region and industry [62] Question: Planned runoff of lower-margin work from acquisitions - Management indicated that while some lower-margin projects may be phased out, the impact will not be material [64] Question: Demand trends in financial services and consulting - Management noted strong demand for AI-related consulting, while traditional business consulting remains flat [71] Question: M&A pipeline and future opportunities - Management expressed optimism about the M&A environment, noting lower valuations and a strong pipeline of potential acquisitions [75][76] Question: AI readiness in M&A targets - Management confirmed that AI expertise is a key consideration in evaluating potential M&A targets [81] Question: Opportunities with the Canadian federal government - Management highlighted potential growth areas in sovereign cloud initiatives and defense-related IT projects [83][85]

Financial Performance - Q4 F2025 - Revenue reached $4.01 billion, a 9.7% increase compared to Q4 F2024[13] - Constant currency revenue growth was 5.5%[13,36] - Adjusted EBIT increased by 11.2% to $667 million, with a margin of 16.6%, up 20 bps from Q4 F2024[13,41] - Adjusted net earnings increased by 7.4% to $472 million[13] - Adjusted diluted EPS increased by 10.9% to $2.13[13,46] Financial Performance - Fiscal Year 2025 - Revenue reached $15.9 billion, an 8.4% increase compared to F2024[32,56] - Constant currency revenue growth was 4.6%[32,56] - Adjusted EBIT increased by 8.1% to $2.61 billion, with a margin of 16.4%[32,64] - Adjusted net earnings increased by 6.0% to $1.87 billion[32] - Adjusted diluted EPS increased by 8.9% to $8.30[32,68] Other Key Metrics - Book-to-bill ratio for Q4 F2025 was 119.2%, and 110.4% for the last twelve months[15,30] - Cash provided by operating activities for Q4 F2025 was $663 million, representing 16.5% of revenue[28] - Long-term debt and lease liabilities reached $4.33 billion, up $1.02 billion from Q4 F2024[49]

Financial Data and Key Metrics Changes - Revenue for the second quarter totaled $3.7 billion, down 1% from the prior year quarter on a reported basis and 3.7% in constant currency [22] - Adjusted EBITDA increased 15% year over year to $641 million, with an Adjusted EBITDA margin of 17.2%, up 250 basis points year over year [23] - Adjusted Pre-Tax Income grew 171% to $123 million, with an Adjusted Pre-Tax margin increasing by 210 basis points year over year [23] - Free cash flow generated in the second quarter was $22 million, with a cash balance of $1.3 billion at the end of the quarter [26][31] Business Line Data and Key Metrics Changes - Kyndryl Consult revenues grew 32% in constant currency over the last 12 months, now running at an annual pace of $3.4 billion [10] - Hyperscaler-related revenues doubled since last year, tracking above the initial $1.8 billion fiscal 2026 target [10] - The last 12 months signings total was $15.6 billion, giving a book to bill ratio above 1 [22] Market Data and Key Metrics Changes - Strongest geographies for growth included Canada, Spain, India, and Latin America [10] - Fastest growing practices were in applications, data and AI, and digital workplace [22] Company Strategy and Development Direction - The company is focused on margin expansion and has removed low-margin hardware and software content from customer relationships, which is expected to lead to positive constant currency revenue growth [5][9] - The strategy includes expanding Kyndryl Consult capabilities and alliances, driving scope expansion with existing customers, and adding new logos [8][13] - The company aims to achieve fiscal year 2028 objectives, including over $1 billion in adjusted free cash flow and more than $1.2 billion in adjusted pre-tax income [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth in the second half of the year, supported by a record pipeline and committed backlog [6][34] - The demand for IT modernization, AI, and cybersecurity is driving customer demand for Kyndryl's services [13][33] - Management noted that customer decision cycles remain normal, with a cautious approach due to the mission-critical nature of services [58] Other Important Information - The company announced a $400 million increase in its share repurchase program, reflecting confidence in its earnings trajectory and cash flow growth [26] - The company is pursuing tuck-in acquisitions, with a recent agreement to acquire a midsize cloud services provider in Europe [20][54] Q&A Session Summary Question: Capital allocation opportunities for the company - Management highlighted the balance between investing in the business, accelerating capabilities, and returning capital to shareholders through share repurchases [40][41] Question: AI's impact on competitive position - About 25% of signings have AI-related content, with a focus on data architecture and migration services to support customer AI models [42][46] Question: Insights on customer decision cycles - Management noted that decision-making remains cautious but normal, especially when adding new scope or customers [58] Question: Revenue expectations and risks - Management indicated that the second half has a stronger contracted backlog and investments in consult resources will drive acceleration [66] Question: Strong verticals and examples of expanded scope - Strongest verticals include retail, travel, and technology, with examples of expanding services into new geographies and additional cybersecurity content [70][72]