Financial Data and Key Metrics Changes - The company reported revenue of $1,877 million for Q1 FY 2026, representing growth of approximately 2% year-over-year due to the ramp-up of new and existing programs [11] - Adjusted EBITDA for the quarter was $157 million, resulting in an adjusted EBITDA margin of 8.4% [11] - Adjusted diluted earnings per share were flat year-over-year at $1.92, impacted by a higher tax rate and lower adjusted EBITDA [12] - Free cash flow was negative $44 million, affected by the timing of receivables on two programs [12] Business Line Data and Key Metrics Changes - The company secured net bookings of $2,400 million with a book-to-bill ratio of 1.3, including key recompete contracts [10] - The backlog of pending awards remained steady at approximately $20,000 million, providing visibility into future bookings [10] - The company expects to achieve a trailing twelve-month book-to-bill ratio of 1.2 in the coming quarters [11] Market Data and Key Metrics Changes - The Department of Defense (DoD) is expected to see stronger budget support, particularly for the Navy, Air Force, and Space Force, while the Army may face challenges [6] - The company noted over $1 billion in additional budget for the Department of Transportation and over $40 billion for the Department of Homeland Security [9] - The company’s revenue from its top five civilian agency customers represents over 70% of total revenue for the civilian segment [9] Company Strategy and Development Direction - The company is pivoting its portfolio towards mission and enterprise IT, aligning with the new administration's priorities [7] - The strategy includes leveraging proven expertise in mission integration and digital engineering to drive program success [8] - The company is focused on executing its growth strategy while navigating procurement delays and changes in the operating environment [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment stabilizing, despite ongoing procurement delays and turnover among customers [5] - The company anticipates continued growth driven by new business ramping up and modest headwinds from contract transitions [14] - Management reiterated guidance for revenue growth of approximately 2.5% at the midpoint for FY 2026 [14] Other Important Information - The company repurchased approximately $125 million of shares in Q1 and continues to target annual repurchases of $350 million to $400 million [17] - The company is also exploring additional capacity for mergers and acquisitions or incremental share repurchases [17] Q&A Session Summary Question: Update on operating environment and budget priorities - Management noted that the operating environment has stabilized, with significant turnover among acquisition personnel affecting procurement processes [20][22] Question: Competitiveness in procurement environment - Management acknowledged increased competitiveness but expressed confidence in their submission pipeline and win rates [24][25] Question: Known headwinds from recompetes - The only significant known recompete headwind is the NASA program loss, which will conclude in Q3 [28][31] Question: Nature of cost overruns in fixed-price programs - Management explained that cost overruns were due to challenges in the tech development phase, but they expect to recover as the program transitions to the sustainment phase [33][34] Question: Overview of end markets and opportunities - Management provided insights into the civilian and defense markets, highlighting growth opportunities in various sectors, including command and control capabilities [41][44] Question: Impact of continuing resolutions on awards - Management indicated that while there are delays in larger awards, the overall solicitation of proposals remains robust [49][50] Question: Margin trajectory and expectations - Management expects civil margins to improve and defense margins to stabilize, with a focus on executing transitions effectively [82][88]

Core Insights - Hewlett Packard Enterprise (HPE) is set to report its second-quarter fiscal 2025 results on June 3, with expected non-GAAP earnings per share between 28 cents and 34 cents, a decrease of 19.05% from the prior year [1][10] - HPE's revenue expectations for the same quarter are between $7.2 billion and $7.6 billion, with a consensus estimate of $7.47 billion, indicating a growth of approximately 3.66% year-over-year [2][10] Financial Performance - HPE has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average earnings surprise of 5.67% [2] - The Earnings ESP for HPE is +2.94%, suggesting a potential earnings beat this season [9] Growth Drivers - The demand for HPE's AI systems and sovereign AI cloud offerings is expected to have positively influenced revenue growth, particularly through HPE Private Cloud AI [4][10] - The adoption of the Aruba Edge Services Platform and HPE GreenLake is anticipated to have contributed to revenue growth, aided by a simplified cloud strategy [5][10] - Persistent growth in sales of HPE's accelerator processing units, driven by demand for AI-optimized servers, is also a contributing factor [6] Challenges - Softening IT spending due to higher interest rates and inflationary pressures may have negatively impacted overall financial performance [7][10] - Enterprises are delaying large IT spending plans amid a weakening global economy and ongoing macroeconomic and geopolitical issues [7]

Core Insights - Science Applications International Corporation (SAIC) reported a revenue increase of 2% in the first quarter of fiscal year 2026, totaling $1.877 billion compared to $1.847 billion in the same period last year [3][4][7] - The company experienced a decline in operating income, net income, and EBITDA, attributed to contract completions and timing and volume mix in its contract portfolio [4][5][34] - SAIC's backlog at the end of the quarter was approximately $22.3 billion, with net bookings of $2.4 billion, reflecting a book-to-bill ratio of 1.3 [10][11] Financial Performance - Revenues for the quarter increased by $30 million or 2% year-over-year, primarily due to ramp-up in volume in existing and new contracts [4] - Operating income decreased by 8% to $121 million, with an operating margin of 6.4%, down from 7.1% in the prior year [3][4][33] - Net income was $68 million, a decrease of 12% from $77 million in the previous year [3][6] - Adjusted EBITDA was $157 million, representing 8.4% of revenues, down from 9.0% in the prior year [3][5] Cash Flow and Capital Deployment - Cash flows from operating activities increased to $100 million, up from $98 million in the prior year [7][52] - Free cash flow was negative at $(44) million, a significant decline from $13 million in the same quarter last year [3][52] - The company deployed $152 million in capital, including $125 million for share repurchases and $19 million in cash dividends [8] Contract Awards and Backlog - SAIC secured notable contracts, including a $1.8 billion contract with the U.S. Army and a $327 million contract with the Pension Benefit Guaranty Corporation [11][12] - The estimated backlog included approximately $3.3 billion in funded contracts, with a total backlog of $22.3 billion [10][38] Fiscal Year 2026 Guidance - Management reaffirmed fiscal year 2026 guidance, projecting revenues between $7.60 billion and $7.75 billion, with adjusted EBITDA between $715 million and $735 million [14][15]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Company Summaries - **PVH (PVH)**: Specializes in designing and marketing branded apparel, with a Zacks Consensus Estimate for current year earnings increasing by 8.3% over the last 60 days [1] - **Maximus (MMS)**: Operates global government health and human services programs, with a Zacks Consensus Estimate for current year earnings increasing by 6.7% over the last 60 days [2] - **Allianz (ALIZY)**: Provides property-casualty insurance, life/health insurance, and asset management services, with a Zacks Consensus Estimate for current year earnings increasing by 6.3% over the last 60 days [2] - **Popular (BPOP)**: Offers a comprehensive suite of banking and financial services, with a Zacks Consensus Estimate for current year earnings increasing by 4.8% over the last 60 days [3] - **Agilysys (AGYS)**: A leading provider of IT solutions for corporate and public-sector customers, with a Zacks Consensus Estimate for current year earnings increasing by 4.4% over the last 60 days [4]

Core Viewpoint - Atos Group has received a confirmatory offer from the French State to acquire its Advanced Computing business, excluding Vision AI activities, for an enterprise value of €410 million, which includes €110 million in earn-outs based on profitability indicators for fiscal years 2025 and 2026 [2][8]. Group 1: Transaction Details - The enterprise value of €410 million reflects a revised valuation due to the exclusion of Vision AI activities, which were previously part of the transaction scope [3][8]. - The Advanced Computing business includes High-Performance Computing (HPC), Quantum, Business Computing, and Artificial Intelligence divisions, expected to generate approximately €0.8 billion in revenue in 2025 [3][8]. - The transaction is anticipated to close in 2026, pending regulatory approvals and completion of employee consultations [9]. Group 2: Vision AI Reorganization - Vision AI activities, which contributed to over one-third of the operating margin of the previously considered perimeter, will be repositioned within Eviden to form a new business unit focused on AI, Data, and Security [4][8]. - This new structure aims to enhance Atos Group's offerings in AI-powered video analytics for various applications, including safety and security [4]. Group 3: Board and Financial Outlook - The Board of Directors has welcomed the offer, confirming that the transaction terms are at fair market value based on an independent expert's report [5]. - The financial trajectory for Atos Group through 2028 remains unchanged despite the disposal of the Advanced Computing business, as presented during the Capital Markets Day [5]. Group 4: Company Overview - Atos Group is a global leader in digital transformation with approximately 72,000 employees and annual revenue of around €10 billion, operating in 68 countries [6]. - The company is recognized as the European leader in cybersecurity, cloud, and high-performance computing, committed to providing tailored AI-powered solutions across various industries [6].

ASHBURN, Va., May 30, 2025 /PRNewswire/ - DXC Technology, a leading Fortune 500 global technology services provider, today announced it has been named Global Partner of the Year at the Dynatrace Amplify Partner Sales Kickoff. The award recognizes DXC's 15-year strategic collaboration with Dynatrace—marked by deep technical expertise, strategic investment, and transformative results for enterprise customers worldwide.  Dynatrace Names DXC Global Partner of the Year (CNW Group/DXC Technology Company) The ...

Investment Rating - The investment rating for OBIC is Neutral, maintained due to a lack of valuation appeal despite stable growth prospects in ERP demand [1][9][30]. Core Insights - OBIC's operating profit estimates for FY3/26 have been raised to ¥87.0 billion, reflecting an 11% year-over-year increase, driven by strong demand for cloud services and large ERP projects [1][2][19]. - The company is expected to achieve double-digit profit growth, with the system support (SS) business projected to grow by 14% year-over-year in FY3/26 [1][23]. - The target price has been increased to ¥5,230 from ¥4,770, based on a DCF model that reflects the company's high earnings stability [1][32]. Financial Estimates - Revenue forecasts for FY3/26 are set at ¥132.5 billion, with operating profits expected to reach ¥87.0 billion, slightly above the company's guidance of ¥86.2 billion [2][4]. - The operating margin is anticipated to improve, driven by growth in the high-margin SS business and greater efficiency in SG&A expenses [13][31]. - The company has a market capitalization of ¥2.3 trillion and an enterprise value of ¥2.1 trillion [4]. Business Segments - The system integration (SI) business is expected to see stable growth, with sales and operating profits rising by 6% and 7% year-over-year, respectively [19][22]. - The SS business, which includes ERP maintenance, is projected to drive overall earnings, with sales and operating profits increasing by 13% and 14% year-over-year in FY3/26 [23][24]. - The shift to cloud services is significant, with the proportion of customers using cloud services expected to rise to 91% by the end of FY3/26 [23][25]. Market Position - OBIC is focusing on large corporate clients, competing with major players like Oracle and SAP, and is gradually increasing its market share [22][31]. - The company has nearly 10 large projects underway, each with development costs exceeding ¥500 million, indicating high utilization rates [22][31]. - The manufacturing sector accounts for approximately 30% of OBIC's sales, with strong demand for ERP upgrades due to a high proportion of legacy systems [19][22].

Financial Data and Key Metrics Changes - The company reported a book-to-bill ratio of over 1.0, indicating a positive revenue trajectory is being established [11] - The guidance for free cash flow is set at $600 million, reflecting a reduction from the previous year's range of $680 million to $690 million due to a decrease in after-tax EBIT and an increase in restructuring costs [54][58] Business Line Data and Key Metrics Changes - The company is focusing on strategic projects, which have shown strength in the pipeline, while shorter-term project-based services have seen a slowdown [31][32] - The average contract value (ACV) for bookings has increased, with longer-term durations compared to the previous year, indicating a shift in the mix of work won [37] Market Data and Key Metrics Changes - The company has observed varying impacts across different industries due to macroeconomic factors, with some industries experiencing more turbulence than others [27][28] - There is a noted increase in customer engagement, with clients expressing a desire to expand their use of the company's services [22][25] Company Strategy and Development Direction - The company is undergoing a turnaround focused on four pillars: people, process, culture, and scale, aiming to unify operations and improve efficiency [5][10] - The management is prioritizing AI-centric work and modernization in financial services as key growth areas [11][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the execution risk associated with changes but believes the risk of not making changes is greater, especially given the history of revenue decline [19][20] - The outlook remains cautious due to economic uncertainties, but there is confidence in the company's ability to execute on its pipeline and achieve positive revenue growth [61] Other Important Information - The company has initiated a $150 million share repurchase program for 2026, with plans to deploy it opportunistically throughout the year [62] - There is an emphasis on maintaining a solid foundation before considering mergers and acquisitions, ensuring any future deals are beneficial for both parties involved [65][68] Q&A Session Summary Question: What is the company's outlook on client demand? - The company has seen strong engagement from clients, with many expressing a desire to utilize more of its services, indicating a positive demand environment [22][25] Question: How does the company plan to sustain its book-to-bill ratio above 1? - The company is focusing on improving its go-to-market strategy and ensuring a robust pipeline of strategic projects, which are expected to drive sustained growth [31][33] Question: What are the expectations for revenue guidance in fiscal 2026? - The company has guided for a revenue decline of 3% to 5%, accounting for economic uncertainties and the impact of project-based services [40][41]

Exlservice (EXLS) FY 2025 Conference May 29, 2025 10:50 AM ET Speaker0 We're gonna get started here. I'm Brian Bergen, IT Services and Payments account. Thanks all for joining us. Very pleased for our next fireside with EXLS. EXLS is a global data analytics and digital operations service provider with over 60,000 employees. It's in professional span, India, The Philippines, South Africa and The US and more, where it provides a range of enterprise transformation, operations, data analytics and AI services wi ...

Core Insights - A global study by Kyndryl reveals a significant gap between AI investment and workforce preparedness, with only a small number of organizations aligning their workforce strategies with AI growth [1][2] - Organizations that prioritize workforce readiness are positioned to achieve better returns on AI investments [1][4] Workforce Readiness - The survey included over 1,000 senior executives across 25 industries and eight geographies, highlighting that workforce readiness varies significantly by industry, with Banking, Financial Services, and Insurance showing the highest levels of preparedness, while Healthcare lags behind [2] - 71% of business leaders believe their workforces are not ready to leverage AI effectively, and 51% feel their organizations lack the skilled talent necessary for AI management [6][5] AI Adoption and Use Cases - Only 14% of companies are deploying AI for commercial use while simultaneously future-proofing their workforces [5] - Generative AI tools are the most popular use case, yet only 40% of leaders utilize AI-powered insights for decision-making or growth [3] Barriers to AI Adoption - AI Pacesetters, a small subset of organizations, are addressing key barriers to AI adoption and are three times more likely to have a fully implemented change management strategy [7] - These Pacesetters are 29% less likely to report employee trust issues regarding AI and are 67% more likely to have tools for accurately assessing employee skills [7] Leadership Perspectives - CEOs are more likely than CIOs and CTOs to view their organizations as being in the early stages of AI adoption and are more inclined to seek outside talent rather than upskill existing employees [4] - Aligning technology strategies with broader business goals is crucial for maximizing the benefits of AI, as noted by Kyndryl's leadership [8]