Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $1.15 billion, up 2.8% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [6][24] - Non-GAAP diluted earnings per share (EPS) was $1.83, slightly above guidance midpoint, with a 12-month backlog of $4.19 billion, up 3.2% from a year ago [7][32] - Profitability improved by 300 basis points year-over-year, with a non-GAAP operating margin of 21.6%, up 290 basis points from the previous year [25][26] Business Line Data and Key Metrics Changes - Cloud revenue grew by double digits, contributing over 30% of total revenue, compared to roughly 25% in the prior year [26] - Managed services revenue reached a record $3 billion in fiscal 2025, up 3.1% from a year ago, with managed services accounting for 66% of overall revenue [27][28] Market Data and Key Metrics Changes - North America saw over 2% sequential improvement, marking its strongest quarter of the fiscal year, while Europe experienced a decline following a record quarter [24] - The rest of the world showed mixed trends, with expectations for continued growth despite fluctuations due to project orientation [24] Company Strategy and Development Direction - The company is focusing on cloud, digital, and generative AI solutions to support telco customers, with a strategy to enhance customer experiences and operational efficiencies [9][10] - A significant investment in generative AI is planned, with the development of a next-generation platform called Cognitive Core, aimed at transforming telecom operations [19][20] Management's Comments on Operating Environment and Future Outlook - The company is entering fiscal 2026 with a healthy backlog and strong visibility, expecting revenue growth between 1.7%-5.7% as reported [21][22] - Management acknowledged potential impacts from the uncertain global macroeconomic environment on customer demand and spending behavior [22] Other Important Information - Free cash flow for fiscal 2025 was $645 million, with a healthy cash balance of approximately $325 million and a $500 million revolving credit facility [30][31] - The company plans to return the majority of free cash flow to shareholders, including an 8% increase in quarterly cash dividends [31] Q&A Session Summary Question: Impact of AI on the telecom industry - Management discussed the gradual improvement in productivity through generative AI, emphasizing its potential to enhance operations and customer offerings [37][38] Question: R&D capital allocation - The decision to reallocate capital into R&D was driven by the need to capture growth opportunities, with ongoing productivity gains expected to support this investment [40][41] Question: Customer pricing expectations - There is ongoing dialogue with customers regarding pricing, with efforts to expand the scope of agreements to include new technologies and services [44][46] Question: Cash flow and growth expectations - Management clarified that cash flow levels are consistent, with expectations for stronger growth in the second half of fiscal 2026, despite some pressures from major customers like T-Mobile [48][49] Question: Long-term growth positioning - The company aims to establish multiple growth engines, including cloud and generative AI, to drive sustainable growth beyond current levels [56][57]