Core Insights - Morrisons has entered a five-year agreement with Tata Consultancy Services (TCS) to enhance digital transformation efforts [1] - The partnership aims to improve operational efficiency and customer experience across Morrisons' core business areas [4] Group 1: Digital Transformation Initiatives - TCS will assist Morrisons in aligning retail, e-commerce, and marketing operations, expediting the delivery of digital products [1] - The collaboration includes supply chain transformation projects that have improved stock availability, reduced waste, and shortened lead times [2] - TCS will establish an automation factory and a Business Intelligent Command Centre (BICC) to enable proactive problem-solving and data-driven decision-making [2] Group 2: Technological Enhancements - The agreement encompasses modernization of legacy systems and integration of AI-powered tools to enhance service outcomes [4] - TCS will provide end-to-end engineering services, including application design, development, testing, and maintenance [3] - The partnership will also revamp Morrisons' digital platforms for loyalty, marketing, e-commerce, and retail to consolidate vendors and improve operational synergy [4] Group 3: Company Performance and Market Position - TCS reported a 10% growth and a 7.6% market share in the UK, with revenues of $4.58 billion (£3.51 billion) in fiscal year 2024 [5] - Morrisons is the fifth-largest supermarket chain in the UK, serving customers through physical stores and online channels [5] - TCS has been active in the UK for over five decades, collaborating with more than 200 major British brands [5]

Core Insights - Kyndryl Holdings, Inc. reported revenue of $3.72 billion for the quarter ended September 2025, a decrease of 1.4% year-over-year, and an EPS of $0.38, up from $0.01 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.82 billion, resulting in a surprise of -2.49%, while the EPS exceeded the consensus estimate of $0.35 by 8.57% [1] Financial Performance - Kyndryl's stock has returned -6.1% over the past month, underperforming the Zacks S&P 500 composite, which increased by 2.1% [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Geographic Revenue Breakdown - Revenue from Japan was reported at $581 million, slightly below the average estimate of $588.81 million from three analysts [4] - Revenue from the United States was $899 million, also below the average estimate of $964.38 million [4] - Strategic Markets generated $906 million, exceeding the average estimate of $894.6 million [4] - Principal Markets revenue was $1.33 billion, slightly below the average estimate of $1.37 billion [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Principal Markets was $210 million, surpassing the average estimate of $199.05 million from two analysts [4] - Adjusted EBITDA for Corporate and other segments was reported at -$28 million, worse than the average estimate of -$24 million [4] - Adjusted EBITDA for Strategic Markets was $142 million, below the average estimate of $157.43 million [4]

Kyndryl Holdings reported a slight drop in second-quarter revenue on Tuesday, as the former IBM unit works to reduce and renegotiate inherited contracts that have hampered margins. ...

Core Insights - Kyndryl Holdings, Inc. reported a second-quarter earnings beat with adjusted earnings per share of 38 cents, surpassing the analyst consensus estimate of 36 cents [1] - The company is expanding its AI services in multiple countries and has increased share buybacks [1] Financial Performance - Quarterly revenues were $3.721 billion, a 1% decline year over year, which slightly missed the expected $3.840 billion [2] - Sales fell 3.7% in constant currency, reflecting efforts to exit low-margin third-party content and longer sales cycles [3] - Adjusted EBITDA was $641 million, marking a 15% year-over-year increase [5] Segment Performance - Hyperscaler cloud revenue surged 65% to $440 million, positioning the company to meet its $1.8 billion target for 2026 [4] - Kyndryl Consult revenues grew 28% year-over-year, with signings increasing by 11% over the past twelve months [4] - The book-to-bill ratio remained above 1 for the fifth consecutive quarter, with AI-related signings accounting for about 25% of last quarter's total [4] AI Expansion - Kyndryl is enhancing its AI capabilities by establishing technology hubs in England, France, and Singapore, and launching an AI Innovation Lab in India [5] Share Buyback and Cash Position - The company repurchased 2.9 million shares for $89 million in the second quarter and has approved an additional $400 million for share buybacks [6] - Kyndryl ended the quarter with cash and equivalents of $1.33 billion, down from $1.786 billion as of March 31, 2025 [6] Future Outlook - For fiscal year 2026, Kyndryl anticipates constant-currency revenue growth of 1%, equating to approximately $15.20 billion, below the analyst consensus of $15.60 billion [8] - The company projects an adjusted EBITDA margin of around 18%, reflecting a year-over-year increase of approximately 130 basis points [8] - Kyndryl expects activity to strengthen in the second half of fiscal 2026, supported by a robust pipeline and positive discussions with customers [9] Long-term Goals - The company aims to more than double adjusted pretax income by fiscal year 2028, contingent on achieving sustainable mid-single-digit revenue growth [10]

Core Insights - Kyndryl's second quarter performance indicates momentum in key growth areas such as Kyndryl Consult, partnerships with hyperscalers, and innovative services in AI, cloud, and security [1][2] Financial Performance - Kyndryl reported revenues of $3.7 billion for the second quarter, a decrease of 1% year-over-year and 3.7% in constant currency [2][6] - The company achieved pretax income of $98 million, a significant increase from a pretax loss of $5 million in the prior-year period [2][6] - Net income was $68 million, or $0.29 per diluted share, compared to a net loss of $43 million, or ($0.19) per diluted share, in the same quarter last year [2][6] - Adjusted pretax income rose to $123 million, up from $45 million year-over-year, reflecting contributions from Kyndryl's three-A initiatives [3][6] - Adjusted EBITDA increased by 15% year-over-year to $641 million [3][6] Strategic Initiatives - Kyndryl's signings for the trailing twelve months reached $15.6 billion, surpassing the previous twelve months' revenue of $15.0 billion [4][6] - The company is focused on expanding customer relationships and maintaining attractive margins, with a goal of generating over $1 billion in free cash flow by fiscal 2028 [4][6] - Kyndryl announced a $400 million increase in its share repurchase program, in addition to the previously authorized $300 million buyback [5][6] Market Outlook - Kyndryl reaffirms its fiscal 2026 outlook, expecting stronger second-half revenue driven by backlog contributions and growth in Kyndryl Consult and hyperscaler-related revenue [8][6] - The company generated $440 million in revenue from cloud hyperscaler alliances, marking a 65% year-over-year increase, and is on track to exceed its initial hyperscaler revenue target of $1.8 billion for fiscal 2026 [11][6] - Kyndryl Consult revenues grew by 28% year-over-year, with signings increasing by 11% over the last twelve months [11][6]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales were $5.7 billion, up 4% year-over-year [6] - Gross profit was $1.3 billion, up 5% [6] - Non-GAAP operating income was $531 million, down 1% [6] - Non-GAAP net income per share was $2.71, up 3% [23] - Adjusted free cash flow was $209 million [25] Business Line Data and Key Metrics Changes - Small Business delivered double-digit growth in top line and gross profit, driven by cloud and client device solutions [9] - Corporate delivered mid-single-digit top line growth with low single-digit gross profit [9] - Government net sales increased 8%, with state and local showing double-digit growth [10] - Healthcare gross profit grew faster than its 7% top line growth, driven by cloud solutions [11] - Services grew 9% top line, with managed and professional services up 14% [60] Market Data and Key Metrics Changes - U.K. and Canadian operations reported a 9% increase in net sales [11] - Demand for client devices remained strong, driven by Windows 10 end-of-life transitions [20] - Netted down revenues represented 36% of gross profit, up from 35.7% in Q3 2024 [20] Company Strategy and Development Direction - The company is embedding AI into its operations to enhance productivity and efficiency [15] - Focus on delivering enterprise-grade AI solutions that are practical and scalable [16] - Maintaining a prudent full-year outlook with expectations for low single-digit growth in the U.S. IT market [17] Management's Comments on Operating Environment and Future Outlook - The current environment is characterized by volatility and uncertainty, impacting investment decisions [50] - The company is navigating a complex environment with a focus on execution and customer value [28] - Expectation for continued frictional impacts in government education segments and potential funding shortfalls in healthcare [28] Other Important Information - Non-GAAP SG&A totaled $725 million, up 8.7% year-over-year [21] - The company returned approximately $150 million in share repurchases and $82 million in dividends [25] - The dividend was increased by approximately 1% to $2.52 annually [26] Q&A Session Summary Question: Impact of government shutdown on federal contribution - Management has taken a conservative view of Q4, expecting some pipeline and backlog but acknowledging constraints due to the shutdown [34][35] Question: Drivers of small business growth - Small businesses are leaning more into technology for competitive advantage, showing resilience [37][39] Question: Outlook for PC and endpoint market - Solid demand is expected to continue in the near term, driven by Windows 10 end-of-life and AI productivity initiatives [42][43] Question: Complexity of current spending environment - The primary issue is volatility and uncertainty affecting investment commitments [50][52] Question: Healthcare market dynamics - Healthcare has been strong, but funding shifts may create some lumpiness in growth [78] Question: Profitability and margin outlook - Non-netted down margins have held up, with expectations for stability in Q4 [81]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales were $5.7 billion, up 4% year-over-year [6] - Gross profit was $1.3 billion, up 5% [6] - Non-GAAP operating income was $531 million, down 1% [6] - Non-GAAP net income per share was $2.71, up 3% [23] - Adjusted free cash flow was $209 million [25] Business Line Data and Key Metrics Changes - Small Business delivered double-digit growth in top line and gross profit, driven by cloud and client device solutions [9] - Corporate delivered mid-single-digit top line growth with low single-digit gross profit [9] - Government net sales increased 8%, with state and local showing double-digit growth [10] - Healthcare gross profit grew faster than its 7% top line growth, driven by cloud solutions [11] - Services segment grew 9% top line, with managed and professional services up 14% [14][60] Market Data and Key Metrics Changes - U.K. and Canadian operations reported a 9% increase in net sales [11] - Demand for client devices remained strong, with a 7% growth rate [13] - Software sales increased by 4%, driven by cloud and security offerings [13] Company Strategy and Development Direction - The company is focused on embedding AI into operations to enhance productivity and efficiency [15] - Strategic investments are aimed at improving customer-facing capabilities and internal operations [14] - The company maintains a prudent full-year outlook, expecting low single-digit growth in the U.S. IT market [17][29] Management's Comments on Operating Environment and Future Outlook - Management highlighted the complexity and volatility of the current operating environment, impacting customer investment decisions [51] - The company is cautious about the potential impacts of the government shutdown on federal results and other markets [17] - Despite uncertainties, management remains confident in the company's strategy and ability to deliver customer value [18] Other Important Information - The company returned approximately $150 million in share repurchases and $82 million in dividends [25] - The dividend was increased by approximately 1% to $2.52 annually, marking the 12th consecutive year of increases [26] Q&A Session Summary Question: Impact of the government shutdown on guidance - Management has taken a conservative view of Q4, anticipating some pipeline and backlog but acknowledging constraints due to the shutdown [34][35] Question: Drivers of small business growth - Small businesses are leaning more into technology for competitive advantage, showing resilience and strong execution [37] Question: Outlook for the PC and endpoint market - Demand for PCs is expected to remain solid in the near term, driven by Windows 10 end-of-life transitions and AI productivity initiatives [42][43] Question: Complexity of the current spending environment - The primary challenge is volatility and uncertainty, affecting investment commitments from customers [51] Question: Healthcare market dynamics - Management is monitoring funding shifts and their potential impact on healthcare, but remains confident in long-term relationships and technology investments [78]

Financial Data and Key Metrics Changes - Consolidated net sales for the third quarter were $5.7 billion, up 4% year-over-year [7] - Gross profit increased to $1.3 billion, reflecting a 5% growth [7] - Non-GAAP operating income was approximately $531 million, down 1% [7] - Non-GAAP net income per share was $2.71, up 3% [7] - Adjusted free cash flow for the quarter was $209 million, totaling $668 million year-to-date [33] Business Line Data and Key Metrics Changes - Small business segment delivered double-digit growth in both top line and gross profit, driven by cloud and client device solutions [12] - Corporate segment achieved mid-single-digit top line growth, with low single-digit gross profit growth [12] - Government net sales increased by 8%, with state and local delivering double-digit growth [13] - Healthcare gross profit grew faster than its 7% top line growth, driven by cloud solutions [15] - Services segment saw a 9% increase in top line, with managed and professional services growing 14% [18][75] Market Data and Key Metrics Changes - U.S. IT market growth is expected to be in the low single digits, with CDW targeting a growth premium of 200 to 300 basis points [24] - U.K. and Canadian operations reported a 9% increase in net sales [16] - Demand for client devices remained strong, driven by the end of Windows 10 support [28] Company Strategy and Development Direction - The company is embedding AI into its operations to enhance productivity and efficiency [20] - Focus on delivering enterprise-grade AI solutions to help customers unlock value [21] - The strategy emphasizes a full stack, full lifecycle approach to meet customer needs [106] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of the government shutdown on federal results and other end markets [24][46] - The current environment is characterized by volatility and uncertainty, affecting investment decisions [62][66] - The company maintains a prudent outlook for the remainder of the year, expecting low single-digit growth in the IT market [38] Other Important Information - Non-GAAP SG&A expenses totaled $725 million, up 8.7% year-over-year [30] - The company returned approximately $150 million in share repurchases and $82 million in dividends [34] - A 1% increase in the annual dividend was announced, marking the twelfth consecutive year of increases [35] Q&A Session Summary Question: Impact of the government shutdown on federal contributions - Management indicated a conservative view for Q4, acknowledging that the shutdown could impact pipeline and backlog but historically, lost sales are often just a timing issue [44][46] Question: Drivers of small business growth - Small businesses are increasingly leaning into technology for competitive advantage, showing resilience and strong execution from the team [49][50] Question: Outlook for the PC and endpoint market - Demand for PCs is expected to remain solid in the near term, driven by Windows 10 end-of-life transitions and AI productivity initiatives [54][55] Question: Complexity of the current spending environment - The primary challenge is volatility and uncertainty, which has led to hesitancy in making larger technology investments [62][66] Question: Healthcare market dynamics - Management noted that healthcare has been strong but is monitoring potential funding shifts that could impact growth [94][96]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales were $5.7 billion, up 4% year-over-year [5][19] - Gross profit was $1.3 billion, up 5% [5][19] - Non-GAAP operating income was $531 million, down 1% [5][24] - Non-GAAP net income per share was $2.71, up 3% [5][25] - Adjusted free cash flow was $209 million [5][26] - Gross margin was 21.9%, up 10 basis points year-over-year [20][24] Business Line Data and Key Metrics Changes - Small business delivered double-digit growth in top line and gross profit, driven by cloud and client device solutions [8][9] - Corporate delivered mid-single-digit top line growth with low single-digit gross profit [9] - Government net sales increased 8%, with state and local showing double-digit growth [9][10] - Education net sales declined 9%, with higher education growth offset by K-12 decline [10] - Services grew 9% in top line, contributing 9% of total CDW top line [12][19] Market Data and Key Metrics Changes - U.K. and Canadian operations reported a 9% increase in net sales [10][11] - Healthcare gross profit grew faster than its 7% top line growth, driven by cloud solutions [10] - Demand for client devices increased mid-single digits in top line and double digits in gross profit [9][11] Company Strategy and Development Direction - The company is embedding AI into operations to drive productivity and efficiency [14][15] - Focus on delivering enterprise-grade AI solutions to help customers unlock value [15][17] - Maintaining a prudent full-year outlook with expectations of low single-digit growth in the U.S. IT market [17][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the complexity and volatility of the current operating environment, impacting customer investment decisions [44] - The company is navigating uncertainties such as government shutdowns and economic conditions while focusing on execution [18][30] - Expectations for 2026 are still being planned, with a focus on maintaining competitive strength [18][31] Other Important Information - Non-GAAP SG&A totaled $725 million, up 8.7% year-over-year [23][24] - The company returned approximately $150 million in share repurchases and $82 million in dividends [26][28] - The dividend was increased by approximately 1% to $2.52 annually [28] Q&A Session Summary Question: Impact of government shutdown on federal contributions - Management acknowledged a conservative view for Q4, anticipating some pipeline and backlog but recognizing constraints from agencies not open [35][36] Question: Drivers of small business growth - Small businesses are leaning more into technology for competitive advantage, showing resilience and strong execution [37][38] Question: Outlook for PC and endpoint market - Demand remains solid, driven by Windows 10 end-of-life transitions and AI productivity initiatives [39][40] Question: Federal funding for education and healthcare - Federal funding for K-12 is primarily state-funded, while higher education is focused on technology to attract students [41][42] Question: Complexity of the current spending environment - The primary issue is volatility and uncertainty, affecting investment commitments [44] Question: Gross profit dollar growth needed for EPS growth - Sustaining gross profit growth and focusing on operating leverage are essential for returning to high single-digit EPS growth [46][47] Question: Opportunities in services and M&A - Strong growth in services is expected, with a focus on data, AI, and cloud [49][50]

On the 30-stock Sensex, shares of Eternal, Tata Motors Passenger Vehicles, Among sectoral indices, IT was one of the top drags on the Nifty, shedding 1.1% as mixed remarks from U.S. Federal Reserve officials clouded prospects of a rate cut in December.The broader markets also weakened, with the small-cap index down 0.8% and the mid-cap gauge losing 0.4%. rose 1.9% to a record high after the country’s second-largest telecom operator reported a sharp rise in quarterly profit. Live EventsMahindra & Mahindra g ...