Performance was driven by consistent execution of a pension removal strategy and streamlining corporate costs, reducing SG&A as a percent of revenue by nearly 300 basis points over three years.

The company achieved its third consecutive year of substantial upside in License and Support (L&S) revenue, exceeding original expectations by nearly $40,000,000 due to higher client consumption and longer contract terms.

Management attributes improved market perception to elevated industry analyst recognition, including a first-time 'Leader' ranking in Gartner's Magic Quadrant for Outsourced Digital Workplace Services.

Strategic renewals totaled $1,700,000,000 in Total Contract Value (TCV), with many including new scope expansion as clients prioritize delivery quality over aggressive competitor pricing.

Operational focus has shifted toward high-value infrastructure field services, such as liquid cooling for AI builds and enterprise storage, which offer higher margins than traditional PC maintenance.

The company successfully reduced its global pension deficit by $300,000,000 to $450,000,000 through discretionary contributions and annuity purchases, aiming for full U.S. plan removal by 2029.

2026 guidance assumes a mid-single-digit decline in Ex-L&S revenue, reflecting a conservative approach to lingering macro headwinds and elongated sales cycles observed in 2025.

Management expects AI to be a multi-year demand driver, acting as an orchestrator for complex IT ecosystems regardless of whether clients use private, public, or hybrid cloud environments.

The company plans to roll out its 'Service Experience Accelerator' agentic AI framework to approximately one-third of its existing client base in 2026 to optimize delivery and enhance quality.

Guidance for 2026 non-GAAP operating margin of 9%โ€“11% is supported by identified efficiency gains and a projected $10,000,000 to $20,000,000 absolute reduction in SG&A costs.

Management anticipates returning to positive Ex-L&S revenue growth in 2027 as new logo wins and scope expansions offset current industry-wide discretionary spending pauses.

A $200,000,000 adjustment was made to new business TCV to reflect a mutually agreed termination of a 2025 new logo signing where contractual terms were not aligned.

Microsoft's extension of Windows 10 support and higher PC prices due to memory chip shortages have caused clients to delay hardware refresh cycles, impacting DWS volumes.

U.S. public sector revenue faced headwinds from federal funding disruptions and budget uncertainty, leading to a lower volume of short-term project work.

Aggressive pricing by competitors resulted in a few significant renewal losses, creating a several hundred basis point growth headwind for the upcoming year.

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Management dismissed the threat of AI code refactoring, stating that while tools can modernize code, they cannot replicate the complex architecture, security, and performance tuning of the core platform.

AI is viewed as a net positive that enables better data extraction and movement above the enterprise platform layer, driving increased consumption of the ecosystem.

The company maintains pricing discipline by focusing on value and delivery quality rather than participating in a 'race to the bottom' on commodity pricing.

Management noted that sales cycles are beginning to ease in early 2026 as macro uncertainties regarding technology adoption and geopolitics stabilize.

New business conversion rates and the deployment of embedded technology into the existing client base are the primary indicators of future growth.

While pushing AI agents into the installed base may create initial pricing pressure, management expects this to be offset by expanded scope and new logo acquisitions.

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