Core Insights - Sands Capital's "Sands Capital Select Growth Strategy" Q3 2025 investor letter indicates a recovery in U.S. large-cap growth equities driven by strong corporate earnings, AI enthusiasm, and expectations for Federal Reserve policy easing [1] - The portfolio achieved a return of 6.3% (net) in the quarter, underperforming the benchmark's 10.5% gain [1] Company Overview - Intercontinental Exchange, Inc. (NYSE:ICE) is highlighted as a significant stock in the Sands Capital Select Growth Strategy, recognized for its market infrastructure, data services, and technology solutions for various entities [2] - As of November 26, 2025, Intercontinental Exchange's stock closed at $156.29 per share, with a market capitalization of $89.464 billion [2] Financial Performance - Intercontinental Exchange reported a 10% increase in sales and a 19% rise in adjusted earnings per share year over year, both exceeding consensus expectations [3] - The company is experiencing strong performance in its Mortgage Technology division, with accelerating refinancing activity contributing to improved profitability [3] Market Position - Intercontinental Exchange is not among the 30 Most Popular Stocks Among Hedge Funds, with 84 hedge fund portfolios holding its stock at the end of Q2 2025, down from 94 in the previous quarter [4] - While the potential of Intercontinental Exchange as an investment is acknowledged, the company is viewed as having less upside compared to certain AI stocks [4]

Industry Overview - Companies in the drug development inputs and services sector are essential to the pharmaceutical and biotechnology value chain, providing support for drug discovery, preclinical testing, and manufacturing [2] - The industry benefits from stable demand as pharmaceutical companies often outsource non-core functions with medium to long-term contracts [2] - Future growth is expected due to increasing investments in biologics, cell and gene therapies, and advancements in precision medicine, which will drive demand for sophisticated tools and services [2] - There is a trend towards outsourcing in drug development for increased nimbleness and cost efficiency [2] - Potential challenges include pricing pressures from healthcare cost containment efforts and an evolving regulatory environment that could slow innovation or client activity [2] Q3 Earnings Performance - The seven tracked drug development inputs and services stocks reported strong Q3 results, with revenues exceeding analysts' consensus estimates by 3.1% [3] - On average, share prices of these companies have increased by 2% since the latest earnings results [3] Company-Specific Highlights - IQVIA (NYSE:IQV) reported revenues of $4.1 billion, reflecting a year-on-year increase of 5.2%, which surpassed analysts' expectations by 0.5% [5] - Despite the revenue growth, IQVIA's performance was mixed, with constant currency revenue aligning with analysts' estimates [5] - IQVIA delivered the weakest performance against analyst estimates within the group, resulting in a 3% decline in stock price since reporting, currently trading at $211 [6] - Medpace (NASDAQ:MEDP) was highlighted as the best performer in Q3, providing outsourced clinical trial management and research services [7]

Core Insights - Globus Medical has demonstrated strong revenue growth, with a constant currency sales growth averaging 58.8% year-on-year over the last two years, indicating that foreign exchange rates have negatively impacted reported revenue [1] - The company reported an annualized revenue growth of 50.3% over the last two years, surpassing its five-year trend, suggesting a recent acceleration in demand [2] - Globus Medical's sales have grown at a compounded annual growth rate of 29.3% over the last five years, outperforming the average healthcare company [3] Revenue Performance - In Q3 CY2025, Globus Medical achieved a revenue of $769 million, reflecting a year-on-year increase of 22.9%, which exceeded Wall Street estimates by 4.7% [6][7] - The company raised its full-year revenue guidance to $2.88 billion, a 1.1% increase from the previous guidance of $2.85 billion [5] Profitability Metrics - Globus Medical's operating margin for the latest quarter was reported at 17.9%, an increase of 10.2 percentage points year-on-year, indicating improved efficiency [11] - However, the company's operating margin has decreased by 9.2 percentage points over the last five years, suggesting rising expenses that could not be passed onto customers [10] - The EPS grew at a compounded annual growth rate of 21.6% over the last five years, which is lower than the revenue growth rate, indicating reduced profitability on a per-share basis [13] Market Outlook - Analysts project a revenue growth of 9.7% over the next 12 months, which represents a deceleration compared to the previous two years but still indicates confidence in the company's product success [7] - Following the strong Q3 results, the stock price increased by 19.2% to $73.55, reflecting positive market sentiment [16]

Core Insights - Jack Henry & Associates, Inc. (JKHY) is a fintech company based in Monett, Missouri, with a market cap of $11.1 billion, providing technology solutions and payment processing services to enhance financial health [1] - The company is set to announce its first-quarter results on November 4, with analysts expecting a non-GAAP profit of $1.64 per share, a slight increase from $1.63 per share in the same quarter last year [2] - For the full fiscal year 2026, JKHY is projected to deliver an adjusted EPS of $6.14, a decrease of 1.6% from $6.24 in fiscal 2025, but is expected to rebound with an 8.6% increase to $6.67 in fiscal 2027 [3] Stock Performance - JKHY's stock has declined by 16.7% over the past 52 weeks, underperforming the S&P 500 Index's gain of 14.8% and the Technology Select Sector SPDR Fund's increase of 24.8% during the same period [4] - Following the release of better-than-expected Q4 results on August 19, JKHY's stock prices saw a slight increase, ending the fiscal year 2025 with record revenues and operating income [5] Financial Results - JKHY reported a 9.9% increase in overall revenues to $615.4 million, exceeding market expectations by 1.5%, and its adjusted EPS for the quarter rose by 26.4% year-over-year to $1.75, surpassing consensus estimates by 19.9% [6] Analyst Sentiment - Analysts maintain a cautious outlook on JKHY, with a consensus "Hold" rating. Among 17 analysts, there are three "Strong Buys," 12 "Holds," and two "Strong Sells," with a mean price target of $175.33 indicating a potential upside of 13.1% from current levels [7]

Group 1 - Sands Capital Global Growth Strategy reported a portfolio return of 21.7% in Q2 2025, outperforming the MSCI ACWI index which returned 11.5% [1] - The second quarter results marked the fourth best performance in both absolute and relative terms since the fund's inception in 2008 [1] Group 2 - Intercontinental Exchange, Inc. (NYSE:ICE) is highlighted as a key stock, with a one-month return of -5.46% and a 52-week gain of 6.31% [2] - As of September 16, 2025, Intercontinental Exchange, Inc. had a stock price of $171.40 and a market capitalization of $98.113 billion [2] - The company operates as one of the largest financial exchanges and clearinghouses, focusing on a diverse range of contracts including crude oil, gas, and agricultural commodities [3] - ICE has developed an integrated platform for mortgage origination, closing, and servicing, which includes datasets for cross-selling to financial service companies [3] - The company is expected to sustain above-average earnings growth through organic growth, margin expansion, capital returns, and strategic mergers and acquisitions [3]