Core Insights - Kyndryl has announced a strategic collaboration with Nova Intelligence to enhance its SAP Services by integrating AI-driven solutions for faster customer migration to SAP Cloud ERP and achieving cost savings [1][2][4] Partnership Details - The partnership aims to combine Kyndryl's SAP modernization and data transformation services with Nova Intelligence's AI solutions to facilitate quicker and more cost-effective transformations for enterprise customers [2][4] - Kyndryl will utilize Nova Intelligence's AI capabilities to modernize legacy custom code into compliant applications, thereby supporting customers on their SAP Clean Core journey [3][4] Technology and Benefits - Nova Intelligence's AI agents will accelerate the documentation, simplification, generation, and unit testing of custom code, which, when combined with Kyndryl's services, will help customers achieve Clean Core compliance and reduce risks [4] - Kyndryl has already applied Nova Intelligence AI agents to modernize its own legacy SAP applications, resulting in significant reductions in manual development work and transformation costs [5] Company Background - Kyndryl is a leading provider of mission-critical enterprise technology services, offering advisory, implementation, and managed service capabilities globally [7] - Nova Intelligence is recognized as the first provider of a multi-agent platform for SAP transformations, led by a team with extensive experience in SAP projects [8]

Core Insights - Gartner, Inc. reported second-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, with adjusted earnings per share of $3.53, beating estimates by 4.4% and increasing 9.6% year-over-year. Revenues reached $1.7 billion, surpassing the consensus estimate and improving 5.7% year-over-year [1][9]. Revenue Performance - The Insights segment generated revenues of $1.3 billion, reflecting a 4.2% increase year-over-year on a reported basis and 4.1% on a foreign-currency-neutral basis, with a gross contribution margin of 74.5% [3]. - Consulting segment revenues were $135 million, growing 6% year-over-year on a reported basis and 6.9% on a foreign-currency-neutral basis, with a gross contribution margin of 40.3% [4]. - Conference revenues amounted to $70 million, an 8.4% year-over-year increase on a reported basis and 8.5% on a foreign-currency-neutral basis, with a gross contribution margin of 33.2% [4]. Operating Performance - Adjusted EBITDA for the quarter was $382 million, showing a slight increase from the previous year on a reported basis and a 5% increase on a foreign-currency-neutral basis [5]. Financial Position - At the end of the quarter, Gartner had $2.2 billion in cash and cash equivalents, up from $2 billion in the previous quarter. Long-term debt remained flat at $2.5 billion [6]. - Operating cash flow totaled $384 million, with free cash flow utilized at $347 million, and capital expenditure was $36 million [6]. 2025 Guidance - Gartner has lowered its total revenue guidance for 2025 to at least $6.46 billion, down from the previous estimate of $6.54 billion, which is also below the Zacks Consensus Estimate of $6.57 billion [7]. - The company raised its adjusted earnings per share guidance to at least $11.75, compared to the previous estimate of $11.70, but this is still below the Zacks Consensus Estimate of $12.65 [7]. - Adjusted EBITDA guidance has been lowered to at least $1.52 billion from $1.53 billion, while free cash flow guidance remains at least $1.15 billion [8].

Group 1 - Uniserve Communications Corporation has signed a 16-month contract with a data centre consultant to explore the feasibility of building a 2MW data facility in Vancouver [1] - This initiative aims to enhance Uniserve's ability to service its existing customer base and tap into the growing AI market [1] - The contract reflects the company's commitment to investing in its platform and delivering critical infrastructure solutions for Canadian businesses [2] Group 2 - Uniserve provides a full suite of IT solutions across three core verticals: Data Centre Solutions, Managed IT Services, and Business Internet [2] - The company emphasizes secure, reliable, and customized IT solutions that ensure maximum uptime, security, and scalability for its clients [2]

Financial Data and Key Metrics Changes - In Q1 2026, revenue totaled $3.7 billion, reflecting a slight increase from the prior year quarter on a reported basis, but a 2.6% decline in constant currency due to focus accounts initiative [21][22] - Adjusted pre-tax income grew 39% to $128 million, with an adjusted pre-tax margin increasing by 100 basis points year over year [22][31] - Adjusted EBITDA was $647 million, with an adjusted EBITDA margin of 17.3%, up 240 basis points year over year [22][31] Business Line Data and Key Metrics Changes - Kindrel Consult revenues grew 30% year over year, indicating strong growth in higher-margin advisory services [21][22] - Hyperscaler-related revenue nearly doubled from a year ago to $400 million in Q1, progressing towards a fiscal 2026 target of $1.8 billion [8][23] - Aggregate signings increased by 2% year over year, totaling $18.3 billion, a 43% increase from the previous year [22][29] Market Data and Key Metrics Changes - The company reported a book-to-bill ratio above 1%, indicating strong demand for services and a healthy pipeline [8][22] - The focus accounts initiative has increased cumulative annualized profit from these accounts by $25 million to $925 million [24][46] Company Strategy and Development Direction - The company is focused on driving margin expansion and sustainable profitable growth through strategic initiatives, including partnerships and innovation in AI, cloud, and cybersecurity [5][8] - Investments in technology alliances and advanced delivery initiatives are central to the company's strategy, enhancing service delivery and operational efficiency [9][23] - The company aims to achieve over $1 billion in adjusted free cash flow and $1.2 billion in adjusted pre-tax income by fiscal 2028, requiring mid-single-digit revenue growth [19][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve financial and operational goals, citing strong customer demand and a solid pipeline [20][75] - The outlook for fiscal 2026 includes expectations for approximately $550 million in free cash flow and positive 1% constant currency revenue growth [19][32] - Management highlighted the importance of AI adoption and modernization initiatives as key drivers of future growth [16][68] Other Important Information - The company repurchased 1.8 million shares at a cost of $65 million during the quarter, with $141 million remaining under the share repurchase authorization [26][50] - The cash balance at June 30 was $1.5 billion, with a net leverage ratio of 0.6 times adjusted EBITDA, indicating a strong financial position [26][27] Q&A Session Summary Question: How did first quarter revenue come in versus planned? - Management indicated good momentum in growth vectors, with Kindrel Consult showing strong growth and a healthy pipeline supporting future revenue [35][37] Question: What trends have been noticed among focus accounts? - Management noted that while some deals were pushed out, they are confident in the ongoing progress and innovation being delivered to these accounts [43][46] Question: What catalysts could drive margin expansion beyond account renegotiation? - Management highlighted the increasing contribution of new contracts to the P&L, reduced software cost increases, and improved efficiency in SG&A as key factors for margin expansion [53][56] Question: What is the visibility on the triple, double, single strategy? - Management expressed strong visibility into achieving the triple, double, single goals, citing a solid cash flow forecast and a favorable margin outlook [64][72]

Financial Data and Key Metrics Changes - In Q1 2026, revenue totaled $3.7 billion, reflecting a slight increase from the prior year but a 2.6% decline in constant currency, primarily due to the focus accounts initiative [21][22] - Adjusted pre-tax income grew 39% to $128 million, with an adjusted pre-tax margin increasing by 100 basis points year over year [22][31] - Adjusted EBITDA was $647 million, with an adjusted EBITDA margin of 17.3%, up 240 basis points year over year [22][31] Business Line Data and Key Metrics Changes - Kindrel Consult revenues grew 30% year over year, indicating strong growth in higher-margin advisory services [21][31] - Hyperscaler-related revenue nearly doubled to $400 million in Q1, progressing towards a fiscal 2026 target of $1.8 billion [9][23] - Aggregate signings increased by 43% year over year to $18.3 billion, with a book-to-bill ratio above 1 [22][30] Market Data and Key Metrics Changes - The company reported a 44% increase in signings in constant currency over the last twelve months, with strong performance in the US market [9][22] - The focus accounts initiative has increased cumulative annualized profit from these accounts by $25 million to $925 million [24][46] Company Strategy and Development Direction - The company is focused on expanding its capabilities in AI, cloud migration, and cybersecurity, positioning itself as a key partner in IT modernization [10][12] - Strategic initiatives include leveraging technology alliances, advanced delivery, and enhancing the Kindrel Consult and Kindrel Bridge offerings [10][19] - The company aims to achieve over $1 billion in adjusted free cash flow and $1.2 billion in adjusted pre-tax income by fiscal 2028, requiring mid-single-digit revenue growth [19][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2026 targets, expecting revenue growth to accelerate from Q1 to Q2 and further in the second half of the year [20][32] - The company anticipates generating approximately $550 million in free cash flow for the fiscal year, with a strong conversion of earnings to cash flow [32][33] - Management highlighted the importance of innovation and customer relationships in driving future growth [10][80] Other Important Information - The company repurchased 1.8 million shares at a cost of $65 million during the quarter, with $141 million remaining under the share repurchase authorization [26][51] - The cash balance at June 30 was $1.5 billion, with a net leverage ratio of 0.6 times adjusted EBITDA [26][27] Q&A Session Summary Question: How did Q1 revenue come in versus planned, and what is the growth cadence for the rest of the year? - Management indicated good momentum in growth vectors, with Kindrel Consult showing strong growth and a solid pipeline for the year [35][39] Question: What trends have been noticed among focus accounts, and what is the confidence level for signings this quarter? - Management noted that while some deals were pushed out, progress continues, and they expect to close some transactions in Q2 [44][50] Question: What are the catalysts for margin expansion beyond account renegotiation? - Management highlighted the increasing contribution of their own margins to the P&L and improved efficiency in SG&A as key factors for margin expansion [55][59] Question: How does the company articulate the opportunity of AI-related technology transitions? - Management emphasized that AI presents both cost-saving and revenue opportunities, with Kindrel Bridge leveraging AI to enhance service delivery [66][70] Question: What is the visibility on the triple, double, single strategy? - Management expressed strong visibility on achieving the triple, double, single goals, supported by a solid cash flow forecast and growth in key business areas [72][76]

Group 1 - U.S. stock futures are higher, with Dow futures gaining around 0.1% [1] - Inspire Medical Systems, Inc. shares fell 25% to $98.00 in pre-market trading after reporting second-quarter results and cutting FY25 guidance below estimates [1] - Ichor Holdings, Ltd. declined 24.3% to $15.24 in pre-market trading due to worse-than-expected second-quarter adjusted EPS results and below-estimate third-quarter adjusted EPS guidance [3] Group 2 - Gartner, Inc. shares fell 15% to $287.20 after issuing soft FY25 guidance [3] - Vertex Pharmaceuticals Incorporated declined 14.5% to $403.85 following second-quarter financial results and Vx-993 Phase 2 trial results [3] - Semrush Holdings, Inc. fell 14.1% to $7.91 after reporting a second-quarter EPS miss [3] - Navitas Semiconductor Corporation shares dropped 14.1% to $6.92 after issuing third-quarter sales guidance below estimates [3] - Kyndryl Holdings, Inc. fell 12.2% to $32.21 after reporting a first-quarter revenue miss [3]

Core Insights - Kyndryl reported steady progress in key growth areas, including Kyndryl Consult and hyperscaler-related activities, contributing to innovation and growth opportunities [2][3] - The company reaffirmed its fiscal 2026 outlook, targeting adjusted pretax income of at least $725 million, a year-over-year increase of at least $243 million [8] Financial Performance - For the first quarter ended June 30, 2025, Kyndryl reported revenues of $3.74 billion, a slight increase year-over-year, but down 2.6% in constant currency [3][9] - Pretax income was $92 million, a 44% increase from $64 million in the prior-year period, while net income rose to $56 million, or $0.23 per diluted share, compared to $11 million, or $0.05 per diluted share, in the prior-year period [3][9] - Adjusted pretax income was $128 million, a 39% increase from $92 million in the prior-year period, and adjusted net income was $90 million, or $0.37 per diluted share, compared to $31 million, or $0.13 per diluted share, in the prior-year period [4][9] Operational Highlights - Kyndryl's signings for the trailing twelve months reached $18.3 billion, representing a year-over-year increase of 43% [5][9] - Hyperscaler-related revenue generated $400 million in the first quarter, an 86% year-over-year increase, with a target of $1.8 billion in fiscal 2026 [10] - Kyndryl Consult experienced a 30% year-over-year revenue growth in the first quarter, with signings growing 36% over the last twelve months [10] Strategic Initiatives - The company is focused on its three-A initiatives: Alliances, Advanced Delivery, and Accounts, which are driving earnings growth and margin expansion [4][10] - Kyndryl launched the Agentic AI Framework in July, enabling customers to adopt and scale AI solutions across various IT settings [10] Shareholder Returns - Kyndryl repurchased 1.8 million shares at a cost of $65 million in the first quarter, as part of a $300 million share repurchase program authorized in November 2024 [10]

Core Insights - Unisys has been recognized as an Innovator in the 2025 Application Management Services RadarView™ by Avasant for the third consecutive year, highlighting its leadership in AI-augmented application services [1][2] - The report evaluates 34 firms and emphasizes Unisys's advanced application life cycle services, DevSecOps capabilities, and AI-powered modernization frameworks [2] - Unisys's strategic direction focuses on empowering clients with modern, scalable, and secure application ecosystems, leveraging generative AI and proprietary Large Language Models [3] Company Performance - Unisys received a five-star rating in practice maturity, indicating its growing strength in delivering advanced application services [1] - The company has developed a comprehensive portfolio of proprietary solutions and strategic partner initiatives to address market dynamics in application management services [3] Industry Trends - Organizations are increasingly adopting application management services to modernize legacy systems and integrate disparate platforms, driven by the need to manage complex application landscapes [3] - The report showcases Unisys's ability to drive measurable business outcomes in highly regulated sectors such as financial services, government, telecommunications, and media [3] Strategic Initiatives - Unisys continues to invest in AI-augmented services, agile delivery models, and strategic partnerships, including collaborations with Thought Machine [3] - The company has successfully delivered an enterprise SaaS solution for a government agency, supporting 13,000 users and over two million monthly queries [6] - Unisys transformed a legacy financial platform into a micro-front-end architecture, enabling ten times faster feature rollouts and over 500 deployments per quarter [6]

Core Insights - DXC Technology reported Q1 FY2026 GAAP revenue of $3.16 billion and non-GAAP EPS of $0.68, both exceeding analyst expectations [1][5] - Year-over-year, GAAP revenue declined by 2.4%, and non-GAAP EPS fell by 9.3% [5][10] - The company experienced strong bookings growth, reaching $2.8 billion, up 14% year-over-year, marking the third consecutive quarter of double-digit growth [6][10] Financial Performance - GAAP revenue for Q1 FY2026 was $3.16 billion, surpassing estimates by $80.9 million, while non-GAAP EPS was $0.68, exceeding estimates by $0.01 [1][5] - Free cash flow (non-GAAP) increased significantly to $97 million, up from $45 million in Q1 FY2025, reflecting a 115.6% increase [2][7] - Net income on a GAAP basis was $16 million, down from $26 million in Q1 FY2025, with GAAP diluted EPS decreasing from $0.14 to $0.09 [5][9] Business Segments - Consulting and Engineering Services saw a 32% increase in bookings but a 2.7% decline in revenue, with profit margin dropping from 9.6% to 8.4% [6][9] - Global Infrastructure Services bookings grew by 4%, while revenue fell by 3.5% year-over-year [6] - Insurance Services revenue increased by 5.4% year-over-year, but segment profit fell by 25%, reducing the margin to 10.5% [6][9] Strategic Focus - The company is focusing on integrating AI and advanced data analytics into its services, enhancing cybersecurity capabilities, and expanding its talent pool [4][8] - Management emphasized the importance of building a stronger client pipeline and streamlining sales processes [4][10] - A major contract was secured with Carnival Cruise Line for technology management across its fleet, showcasing the company's capabilities in infrastructure [8] Future Outlook - Management raised full-year guidance for non-GAAP diluted EPS to a range of $2.85–$3.35 for FY2026, while expecting organic revenue to decline by 3.0% to 5.0% [10][11] - For Q2 FY2026, non-GAAP EPS is projected between $0.65 and $0.75, with revenue expected to be approximately $3.15–$3.18 billion [10] - The company aims for approximately $600 million in free cash flow (non-GAAP) for FY2026 and plans to continue share repurchases [11]

Core Insights - Atos Group has published its 2025 half-year financial report, which includes the activity report, financial statements, auditor's review, and responsible person's statement [2][4]. Company Overview - Atos Group is a global leader in digital transformation with approximately 70,000 employees and annual revenue of around €10 billion, operating in 67 countries under two brands: Atos for services and Eviden for products [4]. - The company is recognized as the European leader in cybersecurity, cloud, and high-performance computing, and is committed to a secure and decarbonized future [4]. - Atos Group provides tailored AI-powered, end-to-end solutions across various industries [4]. Purpose and Commitment - The purpose of Atos is to design the future of the information space, supporting knowledge, education, and research in a multicultural approach [5]. - The company aims to contribute to scientific and technological excellence while enabling customers, employees, and society to live and work sustainably in a secure information environment [5].