Core Insights - Kyndryl has launched the Agentic AI Framework, which utilizes intelligent AI agents to enhance human teams and improve enterprise operations [1][4][5] - The framework is designed to self-organize, scale, and execute tasks securely across various IT environments, aiming to increase efficiency and innovation [1][4][7] Company Overview - Kyndryl is a leading provider of mission-critical enterprise technology services, operating in over 60 countries and managing complex information systems [9] - The company leverages its extensive experience from thousands of infrastructure deployments and generates over 12 million AI-driven insights monthly through Kyndryl Bridge [4][9] Framework Features - The Agentic AI Framework allows enterprises to adopt and scale AI solutions in on-premises, cloud, or hybrid IT settings, transforming business operations [4][5] - It incorporates advanced algorithms, self-learning capabilities, and secure AI agents that convert complex data into actionable insights [4][7] Market Positioning - Kyndryl is positioned to help organizations deploy AI confidently, with a focus on security and trust, utilizing industry-standard encryption and privacy principles [7] - The company aims to address the challenges faced by enterprise leaders in realizing the benefits of AI, as highlighted in its 2025 People Readiness Report [6] Customer Engagement - Various industries are exploring the Agentic AI Framework, including a national government aiming to enhance public services and a financial institution focusing on compliance and operational efficiency [5][6] - Kyndryl Consult experts will collaborate with customers to tailor the framework to their specific business needs [8]

Financial Data and Key Metrics Changes - The IT services revenue for Q1 was $2,590 million, reflecting a 2% decline in constant currency terms, which is within the guidance range [7][20] - Operating margin for Q1 was 17.3%, an expansion of 80 basis points year on year [21] - Net income grew by 10.9% year on year, with earnings per share (EPS) at INR 3.2, a growth of 10.8% year on year [24][25] - Free cash flow as a percentage of net income was robust at 115% for the quarter [25] - The effective tax rate was 21.6% for Q1, down from 24.5% in Q1 2024 [26] Business Line Data and Key Metrics Changes - BFSI sector saw a decline of 3.8% sequentially and 3.5% year on year [23] - Healthcare grew by 0.5% sequentially and 3.5% year on year [23] - Consumer sector declined by 4% sequentially and 5% year on year [23] - Technology and communications grew by 0.4% sequentially but declined by 3% year on year [23] - Capco continued to perform well, growing by 6.1% year on year [24] Market Data and Key Metrics Changes - Americas market grew by 1.5% year on year in constant terms, with strong deal momentum [7] - Europe faced a decline of 6.4% sequentially and 11.6% year on year [22] - Digital spending in India, the Middle East, and Southeast Asia remained resilient [8] Company Strategy and Development Direction - The company is focusing on AI, data, and modernization programs, aligning with client priorities [5][6] - Emphasis on vendor consolidation and cost optimization as key drivers for deal wins [12][45] - The company aims to build an AI-first enterprise, integrating AI capabilities into industry solutions [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macro environment, citing ongoing geopolitical uncertainties and tariff impacts [36][100] - Despite uncertainties, there is strong deal momentum in BFSI and technology sectors, with clients focusing on cost optimization and AI investments [37][102] - The outlook for the second half of the year appears positive due to a strong order book and healthy pipeline [18][71] Other Important Information - The board declared an interim dividend of INR 5 per share, distributing over $1,300 million in the last six months [26] - The company revised its capital allocation policy to pay out a minimum of 70% of net income over three years [27] Q&A Session Summary Question: What is the macro outlook right now? - Management acknowledged ongoing uncertainty in the macro environment, with geopolitical issues and tariffs affecting various industries [36] Question: What powered the Americas One performance despite sector declines? - Strong performance in health and communications sectors contributed to the growth in the Americas market unit [39] Question: Is discretionary demand returning? - Discretionary spending is returning in certain areas, particularly around AI and modernization projects [45] Question: How are large deal wins impacting financials? - Large deal wins will take time to ramp up, typically around six to eight quarters, but are expected to positively impact revenues [70] Question: What is the outlook for margins going forward? - Margins may face pressure due to upfront investments required for large deals, but management remains optimistic about maintaining profitability through operational excellence [98]

Financial Data and Key Metrics Changes - IT services revenue for Q1 was $2.59 billion, reflecting a 2% decline in constant currency terms, within guidance range [6][21] - IT services margin was 17.3%, an expansion of 80 basis points year on year [6][22] - Net income grew 10.9% year on year in Q1, with EPS at INR 3.2, a growth of 10.8% year on year [25][26] - Free cash flow as a percentage of net income was robust at 115% for the quarter [26][119] Business Line Data and Key Metrics Changes - BFSI sector saw a decline of 3.8% sequentially and 3.5% year on year, while healthcare grew 0.5% sequentially and 3.5% year on year [24] - Consumer sector declined 4% sequentially and 5% year on year, with technology and communications growing 0.4% sequentially but declining 3% year on year [24] - Capco continued to perform well, growing 6.1% year on year [25] Market Data and Key Metrics Changes - Americas market grew 1.5% year on year in constant terms, with strong deal momentum [6][23] - Europe faced a decline of 6.4% sequentially and 11.6% year on year [23] - Digital spending in India, Middle East, and Southeast Asia remained resilient [6] Company Strategy and Development Direction - Company is focusing on AI, data, and modernization programs, aligning with client priorities [4][5] - Emphasis on vendor consolidation and cost optimization as key drivers for deal wins [11][12] - Company aims to build an AI-first enterprise, integrating AI capabilities into industry solutions [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macro environment, highlighting ongoing geopolitical uncertainties and tariff impacts [37][39] - Strong order book and healthy pipeline provide confidence for long-term value delivery [18] - Guidance for Q2 indicates a sequential growth range of -1% to +1% in constant currency terms [28] Other Important Information - The board declared an interim dividend of INR 5 per share, distributing over $1.3 billion in cash in the last six months [27][120] - The company revised its capital allocation policy to pay out a minimum of 70% of net income over three years [27] Q&A Session Summary Question: What is the macro outlook right now? - Management acknowledged ongoing uncertainty due to geopolitical factors and tariffs, but noted strong deal momentum in BFSI and technology sectors [37][39] Question: What powered the Americas One performance despite sector declines? - Strong performance in health and communications sectors contributed to the growth in Americas One [40] Question: Is discretionary demand returning? - Discretionary spending is returning in certain pockets, particularly in AI and modernization projects [45] Question: How is AI impacting hiring and headcount changes? - AI efficiency is evolving, and while there is a need for AI-trained talent, the correlation between AI and hiring is not yet strong [48] Question: How are acquired companies contributing to growth? - Capco has performed well, growing 6% year on year, with robust bookings expected to continue [79]

Financial Performance - IT Services revenue reached $2,587.4 million in Q1'26 [26] - IT Services revenue decreased by 0.3% QoQ and 1.5% YoY in reported terms [26] - Non-GAAP IT Services revenue declined by 2.0% QoQ and 2.3% YoY in constant currency [26] - Net income for the quarter was ₹33.3 billion, a decrease of 6.7% QoQ but an increase of 10.9% YoY [26] - EPS was ₹3.2 ($0.041), down 6.7% QoQ but up 10.8% YoY [26] - IT Services Operating Margins stood at 17.3%, down by 0.2% QoQ but up 0.8% YoY [26] - Total bookings were $4,971 million, up 24.1% QoQ and 50.7% YoY in constant currency [28] - Large deal bookings reached $2,666 million, an increase of 49.7% QoQ and 130.8% YoY in constant currency [28] Other Key Metrics - The company has 1,282 active global clients [10] - The top customer concentration is at 4.7% of revenue [12] - The company has 16 customers with > $100M revenue [12]

Core Points - Columbus A/S has adjusted its full-year financial guidance for 2025 due to a challenging macro-economic environment impacting customer decision-making on major IT projects, leading to project postponements and extended sales processes [1][2] - The revenue guidance has been revised from an expected organic growth of 7-9% to approximately the same level as 2024, which is DKK 1.7 billion [4] - The EBITDA margin guidance has been adjusted from an expected range of 10-12% to a new expected range of 7-9% [4] Upcoming Events - Columbus will release its Interim Report for Q2 2025 on August 21, 2025, providing further details on performance, and will host a teleconference for investors and analysts on the same day at 13:00 pm CET [3]

Infosys Limited (NYSE: INFY ) is about to report its FY 2026's Q1 earnings on Wednesday, July 23rd. Analysts expect the company to report an EPS of 19 cents on $4.85 billion in revenue. Should Infosys meet the expectations, it'd represent a 5% YoYAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving ...

Core Insights - NetClass Technology Inc has successfully secured a contract for the "Smart Digital Campus Construction" project at Shanghai East China Model High School, valued at approximately CNY 3.38 million (US$0.47 million) [1][2][3] - This project highlights the recognition of NetClass's capabilities in educational informatization and its commitment to enhancing learning environments through technology [2][3] - The contract signifies a strategic expansion for NetClass into the digital-intelligent campus solutions market, showcasing its innovative approach and technological expertise [3] Company Overview - NetClass Technology Inc is a leading B2B smart education IT solutions provider with offices in Shanghai, Hong Kong, Singapore, and Tokyo, offering services such as SaaS subscription services and application software development [4] - The company's solutions cover various aspects of educational management, including teaching, online education, examinations, data storage, and blockchain systems for education credits [4]

Core Insights - Atos has been awarded the Golden Certificate by SAP, marking the 10th consecutive certification as a Global Operations Partner, highlighting a strong and enduring partnership [1][4] - Atos is recognized as a SAP Platinum Partner with over 10,000 SAP experts globally, showcasing its extensive expertise and flexible delivery capabilities [2] - The certification reflects Atos's commitment to exceeding customer expectations and strengthening its partnership with SAP [4][5] Company Overview - Atos Group operates with approximately 72,000 employees and generates annual revenue of around €10 billion, functioning in 68 countries under the Atos and Eviden brands [6] - The company is a leader in cybersecurity, cloud services, and high-performance computing, focusing on secure and decarbonized solutions [6][8] Service Areas - Atos has renewed its certification in five core business areas, including Global SAP S/4HANA solutions operations and Global SAP SuccessFactors solutions operations [2][7] - The company supports customers through end-to-end services, from strategy and implementation to ongoing service innovation and management [5]

Core Insights - Agentic AI is projected to generate up to $450 billion in economic value by 2028, but only 2% of organizations have fully scaled deployment, with trust in AI agents declining [2][8][10] - Human oversight is deemed essential, with nearly 75% of executives believing its benefits outweigh costs, and 90% viewing human involvement in AI workflows positively [2][3][9] - Trust in fully autonomous AI agents has significantly decreased from 43% to 27% in the past year, with many executives concerned about the risks [5][8] Adoption and Implementation - Organizations are in early stages of agentic AI application, with 14% having begun implementation and nearly a quarter launching pilots [3][11] - 93% of business leaders believe scaling AI agents will provide a competitive edge, yet nearly half lack a strategy for implementation [3][10] - The report indicates that organizations with scaled implementation could generate approximately $382 million on average over the next three years, compared to around $76 million for others [10] Trust and Transparency - Trust in AI agents increases as organizations move from exploration to implementation, with 47% of those in the implementation phase reporting above-average trust [6][12] - Organizations are prioritizing transparency and ethical safeguards to enhance trust and drive adoption [6][9] Human-AI Collaboration - Over 60% of organizations expect to form human-agent teams within the next year, indicating a shift in perception of AI agents from tools to active team participants [7][9] - Effective human-AI collaboration is projected to increase human engagement in high-value tasks by 65%, creativity by 53%, and employee satisfaction by 49% [9][10] Challenges and Readiness - 80% of organizations lack mature AI infrastructure, and fewer than 20% report high levels of data readiness, indicating significant challenges in scaling agentic AI [12] - Ethical concerns, particularly around data privacy and algorithmic bias, remain prevalent, with only 34% of organizations actively addressing privacy issues [12]

Investment Rating - The report indicates a positive sentiment towards the Asia Pacific ex-Japan equities, with no participants expecting a lower level for these equities a year out [3][20]. Core Insights - Investor concerns regarding trade tensions, particularly related to President Trump's policies, are diminishing, with 70% of participants viewing the potential impact on Asian economies as only slightly negative, marking the highest optimism since December [1]. - There is a notable recovery in growth outlook, with a net 31% of participants anticipating a weaker global economy, a significant improvement from 82% in April, and a net 26% expecting a weaker Asian economy, up from 89% [2]. - Earnings expectations have shifted positively, with a net 13% of participants expecting an earnings pick-up, a complete turnaround from the 78% who anticipated a slowdown in April [3][23]. Country Allocation - Japan is the most favored market, followed by Taiwan and Korea, while India has slipped to fourth place. Taiwan and Korea are benefiting from a resurgence in the semiconductor cycle, while China’s allocation has decreased [5][53]. Sector Preferences - In the Asia ex-Japan portfolio, there is a growth bias with overweight positions in semiconductors, software, tech hardware, and banks, while sectors such as materials, energy, industrials, and real estate are being avoided [6][56]. - In Japan, banks are the most preferred sector due to higher interest rates, followed by semiconductors, with a preference for value over growth [6][51]. Investment Themes - In China, AI and semiconductors are the most favored themes, while in India, consumption and infrastructure are of high interest. IT services are currently out of favor [7][62]. - The semiconductor cycle sentiment has improved significantly, with 45% of participants expecting stronger growth in this sector over the next 12 months [66].