Financial Data and Key Metrics Changes - Total revenue grew by 14% year-over-year, surpassing $2 billion, with acquisitions contributing 8% and organic growth at 6% [9][30] - EBITDA increased by 13% to $810 million, with an EBITDA margin of 40.2% [10][30] - Free cash flow rose by 17% to $842 million, representing 32% of revenue on a trailing twelve-month basis [10][30] - Adjusted diluted earnings per share (DEPS) was $5.14, an 11% increase year-over-year, exceeding guidance by $0.02 [10][30] Business Line Data and Key Metrics Changes - Application software segment revenue grew by 18% in total and 6% organically, with EBITDA margins at 43.4% [16][30] - Network segment revenue increased by 13% with organic growth of 6%, maintaining strong EBITDA margins at 53.7% [21][30] - TEP segment revenue grew by 7% with organic growth of 6%, and EBITDA margins were at 35.2% [26][30] Market Data and Key Metrics Changes - Deltek experienced softness in government contracting due to a government shutdown, impacting commercial activity [17][30] - The freight market showed headwinds, but DAT continued to execute well on its core strategy [21][30] - The overall market environment remains uncertain, particularly in government contracting and trade markets [7][30] Company Strategy and Development Direction - The company is focused on AI as a significant growth driver, expanding its total addressable market (TAM) by automating labor-intensive tasks [14][30] - A $3 billion share repurchase program was announced, reflecting confidence in the company's strategy and commitment to shareholder value [6][12] - The M&A strategy continues to be a priority, with over $5 billion in capital deployment capacity available over the next 12 months [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential driven by AI and the execution of M&A strategies [7][30] - There are expectations for improvement in government contracting markets in 2026, particularly following the passage of the One Big Beautiful Bill [37][30] - The company anticipates organic revenue growth in the mid-single digits for the upcoming quarter, with potential variability due to market conditions [20][30] Other Important Information - The company completed several tuck-in acquisitions, including Orchard, enhancing its clinical laboratory capabilities [18][30] - AI initiatives are being integrated across various business units, with significant progress reported in product development and market traction [15][30] Q&A Session Summary Question: Organic growth outlook and re-acceleration confidence - Management acknowledged short-term dynamics affecting organic growth but expressed confidence in a re-acceleration in 2026, particularly in application software and government contracting [36][37] Question: AI strategy and product innovation pace - Management reported strong progress in AI initiatives, with 40 new AI features released, and emphasized the importance of commercialization in 2026 and beyond [40][41] Question: Buyback strategy versus M&A focus - The $3 billion buyback is seen as a complement to the ongoing M&A strategy, reflecting confidence in the company's execution and market position [46][47] Question: Addressing setbacks in guidance - Management noted that bespoke situations have caused recent setbacks, but the diversified portfolio is designed to mitigate cyclicality [48][49] Question: Software bookings and Deltek's performance - The decline in software bookings was primarily attributed to Deltek, with expectations for improvement as government activities normalize [55][56] Question: Organic growth contributions from acquisitions - Management indicated that ProCare's contribution to organic growth was less than initially expected but still positive [64][65] Question: DAT's pricing and packaging strategy - The strategy at DAT focuses on enhancing value for both brokers and carriers, with significant potential for automation and cost savings [88][90]