Q: The market has responded favourably to yesterday's earnings. Is there much to like here? Can you comment on the prospects of this stock?
5i Research Answer:
Fourth quarter results looked fine with revenues at $1.31 bln vs 1.29 expected. EPS of $0.97 was ahead of expectations of $0.82. Results showed improvements in the cloud business with cloud bookings up 32%. While the rsults looked solid, overall growth remains muted with the company expcting top-line growth in the 1% to 2% range for 2026. This is still better than growth for 2025 which was down 10.4%. Overall, things look to be improving here but growth does remain a bit on the slower side. At 7X forward earnings, we think it looks fine and brings some stability to a portfolio but we also might not expect a whole lot of excitement from the name either.