Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $2.06 billion, up 10% year-over-year, with acquisitions contributing 5% and organic growth of 4% [9] - EBITDA reached $818 million, also up 10% over the prior year, with a core EBITDA margin expansion of 60 basis points [9][14] - For the full year 2025, total revenue was $7.9 billion, reflecting a 12% increase, with acquisitions contributing nearly 7% growth [13] - Free cash flow for 2025 was nearly $2.5 billion, up 8%, representing 31% of revenue [15] Business Line Data and Key Metrics Changes - Application software revenue grew 10% in Q4, with organic growth of 4% and EBITDA margins expanding to 42.2% [10] - Network software revenue increased by 14% in Q4, with organic growth of 5%, although margins decreased to 52.8% due to recent acquisitions [11] - Tech segment revenue grew 6% in Q4, with organic growth of 5% and margins holding flat at 34.8% [12] - For the full year, application software revenue grew by 16% in total, with organic revenue growth of 5% [18] Market Data and Key Metrics Changes - The government contracting market remains challenging, impacting Deltek's performance, particularly in perpetual license revenue [11][19] - The freight market experienced a recession throughout 2025, affecting DAT's performance, although the company is evolving into a more automated marketplace [23] Company Strategy and Development Direction - The company is focused on long-term sustainable growth, with a commitment to investing in AI product development and enhancing operational execution [5][6] - Capital allocation strategy includes deploying $3.3 billion towards high-quality vertical software acquisitions and opportunistic share repurchases [8][30] - The company anticipates remaining active in M&A while maintaining discipline on pricing and business quality [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in the Deltek segment, contingent on government appropriations and market conditions [11][19] - The outlook for 2026 includes expectations for organic growth in the higher end of the mid-singles range, with a conservative approach to guidance [22][28] - AI is viewed as a significant growth driver, with plans to commercialize AI-related products across various business segments [54] Other Important Information - The company has a robust M&A pipeline and substantial financial flexibility, with over $6 billion in capacity for capital deployment in 2026 [16][30] - The company is not assuming a meaningful revenue uplift from AI development in its guidance but views it as an incremental upside [28] Q&A Session Summary Question: What is included in the 2026 guidance for Deltek and how is the company protecting against potential government shutdowns? - Management is not assuming improvement in the Deltek segment for 2026, citing lower organic growth due to perpetual license revenue issues [36] Question: What needs to happen for ProCare to meet expectations? - Management indicated that the primary issue is the slow implementation of software and payments, which is being addressed [38] Question: What segments of government appropriations would significantly impact Deltek? - Management highlighted that appropriations heavy on Defense and DHS funding would positively impact Deltek's customers [43] Question: What is the expected capital deployment for 2026? - Management stated that while there is a $6 billion capacity for capital deployment, the focus will be on high-quality acquisitions rather than a set budget [46] Question: When will the company quantify AI's impact on revenue? - Management expressed that while they aim to report AI-related revenue, they will not "AI wash" their revenue streams and expect AI to be a meaningful growth driver [54]

Core Insights - Loomis Sayles Global Growth Fund achieved a return of 7.59% in Q3 2025, slightly below the MSCI ACWI Index Net return of 7.62% [1] - The fund focuses on investing in high-quality businesses with sustainable competitive advantages, particularly those trading at significant discounts to their intrinsic value [1] Company Analysis: Oracle Corporation - Oracle Corporation is highlighted as a key investment, being a leader in the enterprise software market with strong positions in database, infrastructure, application software, and cloud services [3] - The stock of Oracle experienced a one-month return of -29.37% but gained 5.73% over the last 52 weeks, closing at $198.76 per share with a market capitalization of $566.624 billion on November 21, 2025 [2] - Competitive advantages for Oracle include a large and experienced sales force, a founder-driven management team focused on maintaining a strong intellectual property portfolio, and a large client base with high switching costs, achieving renewal and retention rates in the mid-90% range [3] - The company is well-positioned to benefit from ongoing growth in data storage and enterprise application software, as well as the transition to cloud-based solutions [3]

Summary of Oracle Corporation (ORCL.K) Financial Analyst Day Industry and Company Overview - **Company**: Oracle Corporation - **Industry**: Cloud Computing and AI Infrastructure Key Points and Arguments Financial Performance and Projections - Oracle's management announced strong new bookings and raised long-term revenue targets, indicating positive top-line revisions [1][2] - The company reported over 700 AI infrastructure customers, showcasing broad-based demand across segments [1] - Oracle's AI business is expected to achieve gross margins of 30-40%, exceeding previous expectations [1] - FY30 EPS guidance was raised to $21, surpassing both Citi's estimate of $19.39 and the street estimate of approximately $18.35 [1] - Total revenue target set at $225 billion by FY30, representing a CAGR of approximately 30%, more than double the FY29 target from the previous year [5] Cloud Infrastructure and AI Growth - Co-CEO Clay Magouyrk highlighted a significant uptick in demand for Oracle Cloud Infrastructure (OCI), with an impressive $65 billion in Remaining Performance Obligations (RPO) added since September 1, tracking to over $2 billion per day [2] - The AI database segment is projected to grow significantly to over $20 billion by FY30, driven by database migration trends [2] - The OCI trajectory was updated to a CAGR of approximately 75% by FY30, an increase of about 5 percentage points from the previous earnings call [3] Application Software and AI Integration - Co-CEO Mike Sicilia emphasized the expanding breadth of Oracle's application software portfolio, particularly in financial services and healthcare, aided by AI [2] - Usage statistics revealed that 2,400 customers are currently leveraging AI in industry applications, with 600 AI agents deployed [2] Market Position and Valuation - Oracle is viewed as a differentiated player in the software and AI infrastructure market, with one of the strongest projected revenue and EPS CAGRs (~30%) among large-cap software companies and the broader S&P 500 [1] - The 1-year target price for Oracle is set at $415, based on a ~37x PE multiple to FY28 Non-GAAP EPS of $11.51 [10] Risks and Considerations - Key downside risks include higher-than-expected capital expenditures, which could impact margins [11] - A potential weakening in AI infrastructure demand or increased competition from other cloud providers could adversely affect Oracle's revenue and earnings [12] Additional Insights - The presentation highlighted Oracle's strategic vision for AI across its entire product portfolio, indicating a strong commitment to integrating AI solutions [1] - Despite a pullback in shares after-hours, the overall sentiment remains bullish on Oracle's growth trajectory and market positioning [1]