Zurn Elkay Water Solutions (NYSE:ZWS) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsDavid Pauli - CFOJames Coe - Equity Research AssociateTodd Adams - Chairman and CEOConference Call ParticipantsAdam Farley - Associate AnalystBen Pezan - Research AnalystBrett Linzey - Equity Research AnalystBryan Blair - Managing Director and Senior AnalystJeff Hammond - Managing Director and Equity Research AnalystOperatorGood morning and welcome to the Zurn Elkay Water Solutions Corporation fourt ...

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with digital revenue growth of 14%, driven by strong execution across advertising, performance marketing, and licensing [5][14] - Adjusted EBITDA for the quarter grew 9% in digital, with digital margins at 26% [16] - For the full year, total revenue reached $1.8 billion, with digital revenue accounting for $1.1 billion and growing 10% year-over-year [17] Business Line Data and Key Metrics Changes - Advertising revenue grew by 9% despite a 13% decline in core sessions, indicating success in the off-platform strategy [14] - Performance marketing saw a 17% increase during the holiday period, reflecting strong consumer engagement [14] - Licensing revenue surged by 36%, aided by partnerships with Apple News and Meta [15] Market Data and Key Metrics Changes - The print segment experienced a decline of 23%, attributed to a prior period's political advertising revenue and ongoing sectoral declines [16] - Core web sessions fell by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [20] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and revenue streams that are less susceptible to disintermediation [6][12] - New product initiatives include Southern Living and Food & Wine, aimed at creating unique consumer experiences and leveraging existing brand strengths [6][8] - The strategy emphasizes off-platform audience engagement, with non-session-based revenue now comprising about 38% of total digital revenue and growing 37% year-over-year [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly in the face of AI disruption, and highlighted the strength of their brands [5][12] - The outlook for 2026 is optimistic, with expectations for People Inc to exceed conservative guidance due to strong momentum [34] - The company plans to continue evaluating buybacks and is mindful of the current undervaluation of IAC [13] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [27] - The expected litigation expenses related to Google AdTech litigation are projected at approximately $15 million for the year [28] Q&A Session Summary Question: Can you elaborate on the key drivers of non-session-based revenue growth? - Management indicated that the growth is driven by diversifying traffic sources and developing new distribution channels, moving away from reliance on Google [36][38] Question: What are IAC's M&A aspirations? - Management expressed interest in finding unique opportunities but noted that currently, there are no exciting prospects on the horizon [51][53] Question: How scalable are the new curated experiences? - Management emphasized the importance of direct relationships with audiences and advertisers, highlighting successful new initiatives like MyRecipes and the People app [64][66] Question: What is the outlook for the Care segment? - The Care segment is expected to return to growth by midyear, with ongoing improvements in product offerings and marketing investments [25] Question: Can you provide insights on the ad market? - Management rated the current ad market as a six out of ten, noting solid performance in health, pharma, and travel sectors, while some macro-exposed sectors are facing challenges [95]

Flex (NasdaqGS:FLEX) Q3 2026 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsJacob Moore - Equity Research AssociateKevin Krumm - CFOMichelle Simmons - SVP of Investor and Public RelationsRevathi Advaithi - CEORuplu Bhattacharya - DirectorSteven Fox - Founder and CEOConference Call ParticipantsMark Delaney - AnalystSamik Chatterjee - Managing Director and Equity Research AnalystOperatorAs a reminder, this call is being recorded. I will now turn the call over to Mrs. Michelle Simmons. You may ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $5.3 billion, representing a 3.8% year-over-year growth in constant currency, all organic [30][41] - Full-year revenue reached $21.1 billion, growing 6.4% in constant currency, surpassing the $20 billion mark [6][30] - Adjusted Operating Margin improved to 16%, up 30 basis points year-over-year, with a full-year adjusted operating margin of 15.8%, exceeding guidance [6][39] - Adjusted diluted EPS for Q4 was $1.35, up 12% year-over-year, leading to a full-year EPS of $5.28, an 11% increase from the prior year [41][45] Business Line Data and Key Metrics Changes - Financial Services segment led growth with a 9% year-over-year increase in constant currency for Q4 and 7% for the full year, marking the highest annual level since 2016 [5][32] - Health Sciences segment grew at 6%, outperforming the company average, driven by strong demand for administrative and patient care solutions [86] - BPO business experienced a 9% year-over-year growth, indicating strong demand for AI-enabled operations [80][82] Market Data and Key Metrics Changes - North America was the standout region with over 4% year-over-year growth in constant currency, primarily driven by Financial Services and healthcare [37] - Europe grew 2% in constant currency, with healthy growth in Financial Services and Life Sciences [38] - The Rest of World segment grew in line with the total company, driven by the Middle East [38] Company Strategy and Development Direction - The company aims to bridge the AI velocity gap, focusing on transforming AI technology into measurable returns for clients [11] - Cognizant's strategy includes a three-vector approach to capture demand, emphasizing AI-led productivity and the development of new agentic software [12][13] - The company plans to maintain its position in the industry's winner's circle by continuing to innovate and expand its AI capabilities [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in 2026, supported by a strong pipeline of large deals and a focus on AI integration [31][67] - The operating environment remains complex, but the company views it as an opportunity to capture wallet share in large deals and help clients reinvest savings into innovation [32] - Management highlighted the importance of maintaining productivity and cost discipline to navigate market challenges [59] Other Important Information - The company returned $2 billion to shareholders through dividends and share repurchases in 2025 [10][41] - The acquisition of 3Cloud was completed, adding over 1,200 Azure specialists to enhance capabilities in AI and cloud services [10] - The company is actively evaluating potential strategic acquisitions and a possible secondary listing in India [46] Q&A Session Summary Question: Insights on AI's impact on revenue and package implementation - Management noted that AI provides opportunities for increased total addressable spend and emphasized the need for reimagining processes to integrate new technologies effectively [50][54] Question: Gross margin dynamics for 2026 - Management indicated that Q4's gross margin decline was primarily due to higher variable compensation, but they expect to maintain productivity and manage costs effectively in 2026 [56][59] Question: Confidence in large deal growth for 2026 - Management expressed optimism about the strong pipeline of large deals and the potential for timely deal ramps, expecting acceleration in growth during the year [68][69] Question: Risks and opportunities of fixed-price contracts - Management explained that fixed-price contracts place delivery risk on the service provider, but they have a robust process to monitor performance and ensure delivery aligns with expectations [75][76] Question: Durability of BPO growth - Management highlighted that the BPO business has shown consistent growth and sees a long-term tailwind due to the need for ongoing transformation and maintenance of AI-enabled processes [82][80]

Cencora (NYSE:COR) Q1 2026 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBennett Murphy - SVP, Investor Relations and Enterprise ProductivityBob Mauch - President and CEOElizabeth Anderson - Senior Managing DirectorGeorge Hill - Managing DirectorGlen Santangelo - Managing DirectorJim Cleary - Executive VP and CFOLisa Gill - Managing DirectorMichael Cherny - Senior Managing DirectorSteven Collis - CEOConference Call ParticipantsAllen Lutz - Equity Research AnalystCharles Rhee - Managing Dir ...

Chubb (NYSE:CB) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBrian Meredith - Managing DirectorEvan Greenberg - Chairman and CEOJohn Keogh - President and COOMatthew Heimermann - Managing DirectorPeter Enns - CFOSusan Spivak - SVP of Investor RelationsConference Call ParticipantsAndrew Kligerman - AnalystBob Huang - Equity Research AnalystDavid Motemaden - Senior Equity Research AnalystGreg Peters - AnalystRyan Tunis - Equity Research AnalystTracy Benguigui - Director and Senior R ...

GE HealthCare Technologies (NasdaqGS:GEHC) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsCarolynne Borders - Chief Investor Relations OfficerDavid Roman - Managing DirectorJay Saccaro - VP and CFOJoanne Wuensch - Managing DirectorMatthew Taylor - Managing DirectorPeter Arduini - President and CEOVijay Kumar - Senior Managing Director and Head of the Medical Supplies & Devices and Life Science Tools & Diagnostics TeamConference Call ParticipantsAnthony Petrone - Managing Director an ...

Cencora (NYSE:COR) Q1 2026 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBennett Murphy - SVP, Investor Relations and Enterprise ProductivityBob Motsch - President and CEOElizabeth Anderson - Senior Managing DirectorGeorge Hill - Managing DirectorGlen Santangelo - Managing DirectorJim Cleary - Executive VP and CFOLisa Gill - Managing DirectorMichael Cherny - Senior Managing DirectorSteven Collis - CEOConference Call ParticipantsAllen Lutz - Equity Research AnalystCharles Rhee - Managing Di ...

Financial Data and Key Metrics Changes - Orders increased nearly 40%, building on a strong 16% growth from the previous year [6][23] - Revenue grew 6%, with adjusted EBIT margins expanding 190 basis points to 12.4% [6][22] - Adjusted EPS rose nearly 40%, exceeding guidance [6][23] - Record backlog increased by 20% to $18 billion, indicating strong demand visibility [25] Business Line Data and Key Metrics Changes - Organic revenue growth was 6%, with service growth at 9% year-over-year [22][24] - Segment margins increased, with Americas at 16.4%, EMEA at 13%, and APAC at 16.9% [25] - Demand was led by data center projects, with significant contributions from life sciences [23][31] Market Data and Key Metrics Changes - The Americas saw a 56% growth in orders, driven by large-scale data center projects [23] - EMEA grew 8%, with balanced growth in service and systems [24] - APAC orders increased 10%, with double-digit growth in systems [24] Company Strategy and Development Direction - The company is focusing on energy efficiency and decarbonization, particularly in data centers and advanced manufacturing [9][12] - A proprietary business system is being deployed to enhance operational efficiency and alignment across teams [15][16] - The strategy includes investing in technology and service-based solutions to meet customer needs in mission-critical environments [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to support customers and capitalize on market opportunities, particularly in data centers and life sciences [31][40] - The company anticipates continued organic growth and is raising full-year EPS guidance to approximately $4.70 per share, reflecting a 25% increase [27] Other Important Information - The company is actively working on portfolio optimization and has closed the disposition of a residential monitoring security system [90] - There is a focus on improving gross margins and reducing SG&A costs through operational efficiencies [96][97] Q&A Session Summary Question: Order strength and duration - Management confirmed record orders, with significant contributions from life sciences and data centers, indicating a healthy pipeline [31][32] Question: Backlog and organic growth - Management noted that while backlog is strong, not all larger orders are shippable within the next nine months, but organic growth is expected to strengthen over time [34] Question: Market evolution and order growth - Management highlighted broad-based growth in data centers and life sciences, with significant investments in new manufacturing environments [39][40] Question: North America margin trends - Management acknowledged a slight headwind in North America margins but expects improvement in the coming quarters [52][53] Question: Data center lead times - Management reported good progress in reducing lead times and emphasized the importance of predictable delivery in maintaining competitive advantage [76] Question: BMS growth and opportunities - Management characterized BMS growth as solid, with a strong backlog and pipeline of opportunities aligning with mission-critical strategies [80] Question: New product development and market sensitivity - Management discussed ongoing collaboration with major customers to innovate and prepare for future market demands [84][86] Question: Portfolio review and retail business - Management confirmed ongoing strategic review of the portfolio, focusing on creating shareholder value [88][90] Question: Long-term margin opportunities - Management sees potential for gross margin improvement through operational efficiencies and cost reductions [96][97] Question: Labor availability and service business - Management acknowledged tight labor markets but emphasized efforts to enhance productivity and leverage a larger technician base [99][100]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose 13% year-over-year to $0.87, reflecting strong execution [4][10] - Adjusted gross profit was $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating margin at 7.2%, up 50 basis points [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating margin remaining at 6.3% [11][12] - Strong growth in data center-related markets was noted, while consumer-related markets showed softness [11][36] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and core industrial markets are also seeing robust demand, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for brands, helping them navigate complexities and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance [20][21] - The company anticipates further investments in compute capacity due to upcoming AI programs, while maintaining a balanced approach to power and compute investments [20][21] - Management highlighted the importance of speed, flexibility, and resilience in adapting to market changes [8] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance of $3.21 to $3.27 per share [15] - Cash flow for the quarter was $275 million, with a commitment to maintaining an investment-grade balance sheet [13][14] Q&A Session Summary Question: Opportunities in Data Center Growth - Management noted strong growth in both power and compute segments, with a focus on investments in both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with embedded power benefiting from technology shifts [32][33] Question: Agility Solutions Revenue Guidance - Management clarified that growth in agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026 results [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in power and core industrial businesses [42][43] Question: U.S. Manufacturing Trends - Management refuted claims of U.S. manufacturing retreat, citing ongoing investments and customer demand [55][56] Question: Automotive Market Trends - Stabilization in the automotive sector is noted, with growth driven by investments in compute platforms rather than unit volume [60][61] Question: Effects of Rising Memory Prices - Management indicated that memory price increases are not significantly affecting demand in consumer markets, as procurement is handled by customers [63][64]