Fourth Quarter & Full-Year 2025 Financial Results Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer FEBRUARY 24, 2026 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 fo ...

Core Viewpoint - The Nifty IT Index is experiencing structural weakness rather than cyclical downturn, with significant concerns regarding its future performance [1][15]. IT Sector Analysis - The market reacts quickly to structural disruptions, similar to the Covid crash, leading to fear-driven repricing of IT stocks [2][15]. - Key concerns include elevated valuations based on long-term growth assumptions, structural AI disruption to traditional IT services, and technical breakdowns in large and midcap IT stocks [5][15]. - The Nifty IT Index has broken crucial support at 31,000, with potential downside targets of 28,400 and 26,000 over the next 12-18 months [6][15]. - Short-term rallies in IT stocks are expected to be sold into, indicating a lack of sustained recovery [7][15]. Market Overview - The Nifty may remain range-bound due to the heavy weight of IT stocks, despite strong domestic liquidity, including ₹30,000 crore monthly SIP inflows [8][15]. - Capital is rotating towards value themes, with a preference for sectors like PSU banks, PSU energy, and metals [9][15]. Sector Preferences - Preferred sectors include PSU banks, which are seen as proxies for the India value story, and energy-linked PSUs that could benefit from rising crude oil prices [10][12][15]. - Metal stocks are projected to have a 15-20% upside, while the broader PSU basket could deliver 25-30% gains [11][15]. - Stocks with PE multiples between 8 and 20 are attracting investment flows, indicating a shift towards value investing [11][15]. Investment Strategy - The current market environment is described as "bipolar," with IT and select heavyweights underperforming while value sectors are at or near lifetime highs [14][15]. - Investors are advised to avoid bottom-fishing in structurally weak sectors and focus on areas with positive momentum, favorable valuations, and strong liquidity [14][15].

Market Overview - Equity benchmarks experienced a pullback, with the Sensex slipping into marginal negative territory while the Nifty maintained a slight advance, indicating sectoral divergence and pressure from banking stocks [1][2]. Index Performance - As of 1 pm, the Sensex was at 82,208.90, down 17.02 points or 0.02% from the previous close of 82,225.92, after opening at 82,530.12. The Nifty 50 stood at 25,471.65, up 47 points or 0.18% from its previous close of 25,424.65 [2]. - The Nifty Next 50 gained 377.05 points or 0.54% to 70,155.50, while the Nifty Midcap 100 added 129.75 points or 0.22% to 59,184.05, and the Nifty Smallcap 100 rose 93.85 points or 0.55% to 17,046.75 [3]. Sector Performance - The Nifty Financial Services index edged lower by 13.80 points or 0.05% to 28,277.90, and the Nifty Bank fell 115.75 points or 0.19% to 60,926.55, reflecting ongoing pressure in financial stocks [3]. Stock Highlights - On the Nifty 50, Tata Steel led gainers with a rise of 2.49% to ₹214.34, followed by Bajaj Auto at 2.41% to ₹10,065.50, and HCL Technologies at 2.17% to ₹1,368.30 [4]. - On the losing side, Kotak Mahindra Bank fell 1.44% to ₹421.55, and ITC declined 1.38% to ₹319.05, with Tata Consumer Products slipping 1.29% to ₹1,162.80 [5]. Market Activity - By midday, 4,184 stocks were traded on the BSE, with advances at 2,022 against declines of 1,964, and 198 stocks unchanged. A total of 104 stocks hit 52-week highs while 240 touched 52-week lows [6]. - The midday pullback occurred despite a constructive morning where technology stocks initially led the rebound, with Infosys, TCS, and Tech Mahindra posting gains of over 2% [7]. Foreign and Domestic Investment - Foreign Institutional Investors (FIIs) were net sellers at ₹102.5 crore, while Domestic Institutional Investors (DIIs) provided support with net buying of ₹3,161.2 crore [8].

Core Viewpoint - Indian shares have underperformed compared to Asian and emerging market peers due to a significant decline in IT stocks, which have lost $68.6 billion in market value amid concerns over artificial intelligence disruptions [1][2]. Group 1: Market Performance - The Nifty 50 index has increased by 0.4% in February, while the Sensex has decreased by 0.1%, underperforming the MSCI Asia ex-Japan and MSCI Emerging Markets indexes [2]. - The IT sector, which constitutes approximately 11% of the Nifty index, has been the primary driver of pressure on benchmark indexes, with the Nifty IT index down 21% and on track for its worst monthly performance in nearly 23 years [2][3]. Group 2: IT Sector Decline - All ten constituents of the Nifty IT index have experienced declines ranging from 16.8% to 27% in February, with Coforge being the largest percentage loser at 26.8% [3]. - Tata Consultancy Services (TCS) and Infosys have led the market value erosion, losing approximately $21.9 billion and $16.3 billion, respectively [3]. Group 3: Investor Concerns - The selloff reflects rising fears that advancements in automation could disrupt the labor-intensive delivery model of India's $300 billion IT services industry, potentially compressing project timelines and reducing billable hours [3][4]. - Analysts have indicated that the narrative surrounding AI's impact on the IT sector may be too strong to dismiss in the short term, raising concerns about the long-term viability of IT services [4]. Group 4: Foreign Investment Trends - Foreign portfolio investors (FPIs) have withdrawn about 110 billion rupees ($1.21 billion) from Indian IT stocks in the first half of February, following a record net selling of 750 billion rupees in 2025 [6]. - Despite overall inflows of 196.75 billion rupees into Indian stocks in February, the IT sector has seen intensified foreign selling, indicating a lack of confidence among investors [6].

Core Insights - Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is recognized as one of the cheap NASDAQ stocks to buy in 2026, following the announcement of an expanded partnership with Wallenius Wilhelmsen, a leading international logistics company [1] Group 1: Partnership Expansion - The expanded partnership will allow Cognizant to provide broader technology services to Wallenius, including support for core business applications and IT infrastructure, facilitating Wallenius's evolution into an integrated supply chain provider [2] - This strategic partnership marks a shift for Wallenius from outsourcing to a more integrated collaboration with Cognizant, which will also involve modernizing outdated systems and introducing AI tools for enhanced efficiency [2] Group 2: Financial Performance - Cognizant reported fiscal Q4 2025 earnings on February 4, with a quarterly revenue increase of 4.94% year-over-year to $5.33 billion, surpassing estimates by $22.01 million [3] - The company's EPS for the quarter was $1.35, exceeding estimates by $0.03, with growth primarily driven by the North American market, particularly the financial services segment, which grew by 9% year-over-year [3] - Q4 bookings also increased by 9% year-over-year, contributing to a record quarterly total contract value [3] Group 3: AI Strategy - Cognizant employs AI to assist clients in modernizing their businesses by integrating AI into technology, processes, and experiences, aimed at driving efficiency, growth, and innovation [4] - The company's AI strategy is centered around a platform called Cognizant Neuro AI, which provides a comprehensive range of tools and services for responsible enterprise-wide AI adoption [4]

Core Viewpoint - CSP Inc. is navigating a competitive tech landscape with opportunities and risks, particularly in its IT integration and cybersecurity segments, while macroeconomic uncertainties add complexity [1][2]. Industry Overview - The technology services sector is experiencing improved sentiment around digital transformation and cybersecurity spending, benefiting companies like CSP [3]. - CSP's stock has declined 29.3% over the past six months, outperforming Agilysys, Inc.'s 33.8% fall but trailing IBM's 6.7% decline [3]. Company Performance - Despite the stock decline, CSP is in a transitional phase as investors reassess its business mix and long-term growth potential in cybersecurity [4]. - The AZT PROTECT cybersecurity solution is a key growth driver, with 46 unique customers and a strategy focused on expanding deployments [5][7]. - Integration with Acronis' platform could broaden distribution and enhance recurring, higher-margin cybersecurity revenues [8]. Financial Position - CSP has $24.9 million in cash, providing liquidity for product development and strategic growth investments [9]. - The High-Performance Products (HPP) segment saw a 98% year-over-year sales increase, with gross margins rising to 73% from 50% [10]. - Strong margins in the HPP segment support overall profitability and offset investments in scaling AZT PROTECT [11]. Valuation and Growth Potential - CSP trades at 1.96X on a forward price-to-book basis, significantly below the industry average of 5.43X, indicating a margin of safety [12]. - The current discounted valuation suggests the market has not fully recognized CSP's improving fundamentals and recurring revenue potential [15]. Conclusion - CSP is at an inflection point, demonstrating progress in scaling its cybersecurity platform while enhancing profitability in its HPP segment [14]. - The company is well-positioned for sustainable long-term growth, making it an attractive opportunity for investors willing to look beyond short-term volatility [15].

Core Insights - Rick Jordan, CEO of Frequency Holdings, Inc. (OTC: FRQN), will appear on Tim Pool's Timcast IRL to discuss government overreach, the DHS shutdown, and the intersection of politics with AI and cybersecurity [1][4][5] Company Overview - Frequency Holdings, Inc. is a U.S.-based technology holding company focused on cybersecurity-first IT services, artificial intelligence, digital identity, and critical infrastructure [10] - The company operates and acquires independent brands with a long-term, operator-led philosophy aimed at building meaningful businesses and creating durable shareholder value [10] Industry Context - The Department of Homeland Security is currently experiencing a partial shutdown due to Senate Democrats blocking a funding bill, which has led to employees working without pay [4] - The TSA PreCheck program was briefly suspended during the shutdown but was reinstated after public backlash highlighted the impact on air travelers [4]

Core Thesis - Booz Allen Hamilton Holding Corporation (BAH) is currently experiencing a significant drawdown in its stock price, trading at $89.01, despite a long history of growth and a strong position in the government IT contracting space [1][2]. Financial Performance - BAH's trailing and forward P/E ratios are 13.21 and 14.84 respectively, indicating potential undervaluation [1]. - The company has seen an 8% year-over-year revenue decline and a 29% drop in free cash flow, primarily due to pressures from the Department of Government Efficiency (DOGE) [3]. - Approximately 98% of BAH's revenue is derived from U.S. government contracts, which have historically provided stable growth, averaging 5% annual revenue growth and nearly 25% EPS growth over the past 15 years [2]. Market Position and Competitive Advantage - BAH is the second-largest U.S. government IT contractor, with a significant portion of its business (65%) focused on national security and defense, which is expected to benefit from rising defense budgets, including an additional $150 billion in military spending [2][5]. - The company has a competitive edge due to its cleared workforce, with 72% of employees holding security clearances and 29% having military backgrounds, allowing it to win 56% of new bids and 92% of recompetes [4]. Future Outlook - Management anticipates a decline in civil revenue in the low-20% range for the current year, but recent stabilization trends and the disbandment of DOGE suggest potential recovery [3]. - BAH's current trading at 11x EV/EBITDA is 30% below its historical average, indicating a potential inflection point if growth resumes [5]. - The company is well-positioned for a rerating following its recent drawdown, especially as civil trends stabilize [6].

Core Insights - Agora and FPT have formed a strategic partnership to enhance AI adoption in Southeast Asia's banking and financial services sector [1][2] - The collaboration aims to improve customer engagement, streamline digital services, and boost operational efficiency for financial institutions [2][3] Industry Context - Southeast Asia's banking and financial services are undergoing significant transformation due to increased digital adoption and evolving customer expectations [4] - Financial institutions are pressured to modernize legacy systems and provide fast, reliable, and personalized customer interactions while ensuring data protection and regulatory compliance [5] Technological Integration - The partnership integrates Agora's Conversational AI and real-time communications with FPT's enterprise AI ecosystem, enabling secure and intelligent interactions across various channels [3][8] - The solution supports high interaction volumes while ensuring service consistency and operational stability [9] Proven Impact - FPT's AI solutions are already in use by over 40 banks and financial institutions globally, demonstrating significant improvements in customer engagement and operational efficiency [10][13] - For instance, Sacombank's deployment of AI Voice Agents has increased call handling capacity by over 58%, managing up to 41,000 calls per day [10][12] Compliance and Security - The joint solution is designed to meet rigorous regulatory frameworks in Southeast Asia, ensuring data protection and operational resilience [14][15] - The partnership emphasizes the importance of trust, security, and compliance in the ongoing digital transformation of banking and financial services [16] Future Collaboration - Both companies plan to work closely with regional banks, insurance providers, and system integrators to accelerate the adoption of AI and real-time engagement technologies [17]

Group 1 - The essay "The 2028 Global Intelligence Crisis" explores a future where AI boosts profits but leads to job losses and stagnant wages, creating a "Ghost GDP" phenomenon [1] - There is a significant gap between corporate profits and worker pay, with predictions of job losses across various sectors, including tech and office work [1] - CEOs are increasingly focused on using AI to redesign work processes rather than merely reducing headcount, with companies like Cognizant and IBM planning to hire more junior workers [2] Group 2 - The economy is undergoing shifts that necessitate changes in business models, with AI optimizing costs and eliminating inefficiencies [3] - The concept of "Agentic commerce" suggests that traditional business models relying on human friction will be undermined by AI's capabilities [3] - Current market reactions include a drop in European markets due to the implementation of tariffs, indicating broader economic concerns [4]