Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article suggests that users may face access issues if they have an ad-blocker enabled [1] - It advises users to disable their ad-blocker and refresh the page to proceed [1]

Core Insights - Unisys Corporation has secured a significant cybersecurity contract with the European Commission, enhancing its position in the European public sector market [1][2] - The contract is part of the FREIA framework agreement, where Unisys will lead the EUCybersafe Consortium to provide cybersecurity services across 71 EU institutions [1][2] - This win is crucial as it aligns with the increasing focus on digital defense in Europe amid rising cyber threats, positioning Unisys as a key player in the region's cybersecurity strategy [2] Company Overview - Unisys Corporation is a global IT services and solutions provider, specializing in digital workplace services, cloud infrastructure, enterprise computing, and cybersecurity [3] - The company serves both government and commercial clients on a worldwide scale [3]

Core Insights - DXC Technology reported revenue of $3.16 billion for the quarter ended September 2025, reflecting a year-over-year decline of 2.5% [1] - The earnings per share (EPS) for the quarter was $0.84, down from $0.93 in the same quarter last year, but exceeded the consensus estimate of $0.71 by 18.31% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.18 billion, resulting in a surprise of -0.58% [1] Revenue Performance - Total revenues decreased by 2.5% year-over-year, compared to an average estimate of -1.9% from three analysts [4] - Global Infrastructure Services (GIS) revenue also declined by 4.2% year-over-year, against an estimated decline of 1% [4] - GIS revenues were reported at $1.59 billion, slightly above the three-analyst average estimate of $1.58 billion, showing a year-over-year increase of 1.7% [4] Stock Performance - Over the past month, DXC Technology's shares have returned -4.6%, contrasting with a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Overview - Nutanix (NTNX) is a networking IT services company with a market cap of $18 billion [2] - GitLab (GTLB) is another tech name with a market cap of $8 billion [11] Financial Performance - Nutanix - Nutanix has a strong buy rating with growth divergence [1] - The company has beaten earnings estimates for the last four quarters, averaging 20% over the past year [4] - Topline growth is expected to be 15% this fiscal year and 14% next fiscal year, reaching $3 billion in sales [5][6] - Operating margins have increased from 4.4% to 6.4% to 8% over the last three quarters [7] Financial Performance - GitLab - GitLab also has a strong buy rating with growth divergence [11] - The company is beating earnings estimates handily, with some seasonality [12][13] - Revenue is expected to grow 23-24% next year, reaching $1.13 billion, with 20% topline growth [14] - Operating margins are moving from negative to positive [15] Valuation - Nutanix has a forward earnings multiple of 36 times [2][6] - GitLab has a high forward earnings multiple of 58 times, but is growing at about 30% [14][15] - GitLab's price to sales is 930% [15] Market Dynamics and Strategy - There is speculative M&A interest around Nutanix [3][11] - GitLab's earnings estimates are moving higher, indicating good margin expansion [18]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $3.2 billion, a decline of 4.2% year-over-year on an organic basis, consistent with previous quarters [14] - Adjusted EBIT margin was 8%, above the high end of guidance, but down 60 basis points year-over-year due to productivity savings and higher investment levels [15] - Non-GAAP EPS was $0.84, down from $0.93 in the same quarter last year, primarily due to lower adjusted EBIT and higher taxes [16] - Free cash flow generated was $240 million, significantly up from $48 million last year, bringing first-half free cash flow to $337 million, an increase of $244 million year-over-year [18][20] Business Line Data and Key Metrics Changes - Consulting and Engineering Services (CES) revenue declined 3.4% year-over-year, with a book-to-bill ratio of 0.92 [16] - Global Infrastructure Services (GIS) revenue declined 6.3% year-over-year, with a book-to-bill ratio of 0.82 [17] - Insurance Services revenue grew 3.6% year-over-year, driven by software growth and volume increases in existing accounts [18] Market Data and Key Metrics Changes - The trailing 12-month book-to-bill ratio for CES improved to 1.15, indicating potential revenue growth in the latter part of the year [16] - The trailing 12-month book-to-bill ratio for GIS remained at approximately 1.1, reflecting a strong pipeline despite longer closing cycles [17] Company Strategy and Development Direction - The company is focusing on a two-track approach: Core Track for existing business and Fast Track for new AI-native solutions [4][5] - Fast Track solutions aim to become 10% of the business within 36 months, targeting large and growing markets with measurable results [6] - The company is enhancing its offerings with AI-enabled solutions and has plans to pilot new products like Oasis in the coming months [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in revenue and bookings but remains focused on building a predictable and growing company [4] - The company anticipates a book-to-bill ratio greater than one in the third quarter, supported by a robust pipeline of new large opportunities [14] - Management is confident in the ability to close large deals based on strong customer interest and the deployment of new tools [43] Other Important Information - The company has reduced total debt by approximately $107 million, bringing it to around $4 billion, while increasing cash balance to $1.9 billion [20][21] - The full-year revenue guidance has been narrowed to a decline of 3.5% to 4.5%, with expectations for adjusted EBIT margin between 7% and 8% [22][23] Q&A Session Summary Question: Update on CES performance under new leadership - Management highlighted targeted goals and go-to-market plans to improve CES performance, leveraging strong SAP capabilities [26][27] Question: Trends in GIS business and Hogan - Management noted improved customer-related metrics in GIS and emphasized the importance of new product development for revenue generation [36][38] Question: Free cash flow sustainability - Management indicated that the improved free cash flow performance is expected to be sustainable moving forward [33][70] Question: Headcount strategy in light of AI integration - Management discussed the evolving labor model, emphasizing the need for workforce skills to adapt to AI deployment [62][63] Question: Fast Track solution plans and milestones - Management attributed the pivot to new talent acquisition and the development of a product framework for Fast Track opportunities [68]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of $104.2 million, marking a 19.1% year-over-year growth and slightly exceeding the guidance range of $103 million to $105 million [30] - Non-GAAP EBITDA for the quarter was $12.7 million, within the higher end of the guidance range [30] - GAAP net income was $1.2 million, or $0.01 per share, down from $5.3 million in the previous quarter [38] Business Line Data and Key Metrics Changes - The retail vertical contributed $27.8 million, experiencing a sequential decline of 2.1% and a year-over-year decrease of 2.9% [31] - The technology, media, and telecommunications (TMT) vertical accounted for 27.4% of total revenues, growing 13.5% quarter-over-quarter and 18.2% year-over-year [32] - The finance vertical represented 24.6% of total revenues, with slight sequential growth and an 81% year-over-year increase [32] Market Data and Key Metrics Changes - The company added five times more billable engineers in Q3 compared to Q2, indicating strong demand for AI-driven solutions [7] - Partnership influence revenue exceeded 18% of total revenue, reflecting the growing importance of partnerships in driving growth [26] Company Strategy and Development Direction - The company is focused on becoming an AI-first organization, with initiatives aimed at enhancing profitability and margins by at least 300 basis points over the next twelve months [9] - The strategic framework includes three horizons: Efforts Delivery, Agenda Guide at Scale, and Physical AI, aimed at embedding AI into operations and service delivery [11] - The company is committed to disciplined capital allocation, including a $50 million share repurchase program, reflecting confidence in long-term business prospects [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand recovery being structural rather than temporary, with clients shifting from risk management to growth strategies [20] - The company anticipates a materially higher billable run rate by the end of the year, positioning itself well for growth in 2026 [8] - Management noted that AI initiatives are expected to yield quicker ROI compared to traditional digital transformation programs, driving demand [22] Other Important Information - The company ended Q3 with a total headcount of 4,971, down from 5,013 in the previous quarter, while increasing billable headcount [35] - The company is rationalizing its overall headcount to align skill sets and geographies, aiming for greater efficiencies [8] Q&A Session Summary Question: Trends for 2026 growth rates - Management noted that the highest billable headcount in the company's history and longer-duration programs related to AI initiatives provide confidence for growth in 2026 [44] Question: Constraints limiting adoption of AgenTeq AI - Management highlighted that the technology continues to evolve, and they are expanding capabilities to solve a broader spectrum of business problems [48] Question: Contribution of managed services versus custom build activity - The majority of revenue is currently related to solving business cases, fueling overall growth [55] Question: Share repurchase program rationale - The program signals confidence in the company's growth trajectory and is seen as a good return on investment [74] Question: Margin expansion context - Management indicated that the 300 basis points expansion target includes both gross and EBITDA margins, driven by pricing increases and cost optimization [95][100]

Financial Performance - Q2 FY26 organic revenue growth was (4.2%) [21], exceeding guidance of (3.5%) – (4.5%) [21] - Adjusted EBIT margin for Q2 FY26 was 8.0% [21], also exceeding guidance of 6.5% – 7.5% [21] - Non-GAAP diluted EPS for Q2 FY26 reached $0.84 [22], surpassing guidance of $0.65 – $0.75 [22] - The company reported strong free cash flow of $240 million in Q2 FY26 [25], compared to $48 million in Q2 FY25 [25] Segment Results - CES (Consulting and Enterprise Solutions) revenue was $1,255 million with YoY organic revenue growth of (3.4%) [23] - GIS (Global Infrastructure Services) revenue amounted to $1,586 million with YoY organic revenue growth of (6.3%) [23] - Insurance segment revenue was $320 million, demonstrating YoY organic revenue growth of 3.6% [23] Balance Sheet and Guidance - Net debt decreased, with gross debt reduction from capital leases [28] - Full Fiscal Year 2026 guidance includes YoY organic revenue growth of (3.5%) – (4.5%) [33], adjusted EBIT margin of 7.0% – 8.0% [33], and Non-GAAP diluted EPS of $2.85 – $3.35 [33] - The company anticipates approximately $650 million in free cash flow for the full fiscal year 2026 [33]

Core Insights - DXC Technology reported strong financial performance for the second quarter of fiscal 2026, exceeding guidance in adjusted EBIT margin and non-GAAP diluted EPS, while generating robust free cash flow [2][8] - The company is implementing a strategic plan to adapt to the evolving AI global economy, which includes a two-track business approach and the launch of the Xponential AI framework [2] Financial Highlights - Total revenue for the quarter was $3.16 billion, a decrease of 2.5% year-over-year, and down 4.2% on an organic basis [8] - Adjusted EBIT was $254 million, down 9.0% year-over-year, with an adjusted EBIT margin of 8.0% [8] - Non-GAAP diluted earnings per share was $0.84, down 9.7% year-over-year, while diluted earnings per share was $0.20, down 13.0% year-over-year [8] - Free cash flow increased to $240 million, up $192 million year-over-year [8] Segment Performance - Consulting and Engineering Services (CES) revenue was $1,255 million, down 1.9% year-over-year, with a segment profit of $145 million [8] - Global Infrastructure Services (GIS) revenue was $1,586 million, down 4.2% year-over-year, but segment profit increased by 1.7% to $122 million [8] - Insurance Services revenue was $320 million, up 4.6% year-over-year, with bookings increasing by 24.9% [8] Guidance - Full year fiscal 2026 revenue guidance is projected between $12.67 billion and $12.81 billion, reflecting a decline of 4.5% to 3.5% year-over-year on an organic basis [8] - Third quarter fiscal 2026 revenue guidance is expected to be between $3.18 billion and $3.22 billion, with an organic decline of 5.0% to 4.0% year-over-year [8]

Core Insights - The iShares Russell 2000 ETF's top holdings have experienced significant gains, with all top 10 holdings posting triple-digit increases, attracting retail investors' attention [1][5]. Group 1: Top Holdings Performance - Bloom Energy Corp. has seen its stock price increase by over 615% since April, driven by commercial successes and record quarterly revenues [2]. - Credo Technology Group's share price surged nearly 300%, fueled by high demand from hyperscalers investing in AI infrastructure [3]. - IonQ, a leader in quantum computing, experienced a stock price increase of more than 120% due to growing commercialization and enthusiasm for quantum technology [4]. - Oklo Inc. has developed advanced nuclear power plants for AI data centers, with its stock rising nearly 500% in the past six months [4]. - Other notable performers include Kratos Defense & Security Solutions (up 164%), Nextracker Inc. (up more than 140%), Rigetti Computing (up 367%), AeroVironment (up more than 140%), and Sterling Infrastructure (up more than 150%) [7]. Group 2: Market Trends - The performance of the top 10 holdings indicates that small-cap disruptors are transitioning from speculative investments to becoming favorites among retail investors and essential growth engines for investment portfolios [6].

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net revenue of $2 billion, a decrease of 4% compared to the previous year, primarily driven by a 6% decline in product revenue, particularly a 19% drop in on-premises software [17][18] - Adjusted earnings from operations increased by 5%, and adjusted earnings per share grew by 11% to $2.43 [17][18] - Gross margin expanded to a record 21.7%, an increase of 100 basis points year-over-year [6][18] Business Line Data and Key Metrics Changes - Cloud gross profit increased by 7% to $130 million, driven by double-digit growth in SaaS and IaaS, despite challenges from partner program changes [6][18] - Hardware revenue grew by 1%, marking the third consecutive quarter of growth, although it was below expectations [6][17] - Insight Core Services revenue decreased by 3%, primarily due to reduced spending from large enterprise clients [6][18] Market Data and Key Metrics Changes - Revenue from commercial clients grew by 5%, while corporate and large enterprise clients experienced a decline [5][6] - The company noted subdued demand from large clients, impacting overall performance in core services [6][14] Company Strategy and Development Direction - The company is focusing on structural improvements in its services business and expanding its capabilities in AI, cybersecurity, and data services [9][10][13] - Recent acquisitions, including Inspire11 and Securo, are aimed at enhancing the company's service offerings and positioning it as a leading AI-first solutions integrator [10][12][20] - The company is transitioning to an outcomes-based pricing model, moving away from traditional time and materials approaches [46][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite macroeconomic challenges, anticipating improvements in demand from large clients and a continuation of the PC refresh cycle into 2026 [14][15][24] - The company expects cloud performance to grow and core services to return to growth in Q4 2025 [24][25] - Management emphasized the importance of AI in driving future growth and the need for a disciplined approach to service delivery [9][10][27] Other Important Information - The company repurchased approximately $75 million of shares during the quarter and has $149 million remaining on its share repurchase program [19] - Total debt increased to approximately $1.4 billion, primarily due to the acquisition of Inspire11 [21] - The company plans to update its KPIs and hold an investor day in the upcoming year [69] Q&A Session Summary Question: Update on large project headwinds to core services - Management noted that large enterprises are grappling with IT budget allocations and macro uncertainty, leading to delays in engaging in big services projects [33][34] Question: Cloud gross profit growth and underlying growth rates - Management indicated that underlying growth in cloud remains strong, with expectations of returning to historical growth rates as they exit Q4 [39] Question: Strategic rationale behind recent acquisitions - The company believes that AI is a critical growth area and that the acquisitions will enhance their capabilities in delivering outcomes-based services [46][49] Question: Scaling the services business - Management discussed the importance of adopting a disciplined methodology to improve scalability and profitability in the services sector [63][68]