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Operator

Hello, and welcome to Progress Software Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now like to hand the conference over to Michael Micciche.

Sir, you may begin.

Michael Micciche
Senior Vice President of Investor Relations

Thank you, Tawanda. Good afternoon, everybody. Thanks for joining us for Progress Software’s Second Fiscal Quarter 2026 Financial Results Conference Call. With me tonight are Yogesh Gupta, our president and CEO, and Anthony Folger, our Chief Financial Officer.

Before we get started, let’s go through the safe harbor statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, and other information that might be considered forward-looking.

Such forward-looking information represents Progress Software’s outlook and guidance only as of today and is subject to risks and uncertainties, and our actual results may differ materially. For a description of the factors that may affect our future results and operations, please refer to the risk factors in our SEC filings, particularly the risk factor section of our most recent Form 10-K and the latest 10-Q, which was filed in conjunction with this announcement this evening.

Progress assumes no obligation to update forward-looking statements included in this call. Additionally, please note that all the financial figures referenced in this call tonight are non-GAAP measures unless otherwise indicated.

You can find a reconciliation of these non-GAAP financial

Dell Technologies Inc. shares rose more than 2 percent Tuesday, trading around $425 as investors continued to reward the company’s strong positioning in artificial intelligence infrastructure amid robust demand for high-performance servers.

The Round Rock, Texas-based technology giant, known for its personal computers and enterprise solutions, has emerged as a key beneficiary of the global AI buildout. Its servers, optimized for graphics processing units and large-scale computing, have seen explosive growth as data centers expand to support training and inference workloads.

Tuesday’s modest gain added to substantial year-to-date advances, reflecting sustained enthusiasm for companies enabling AI adoption across industries. Dell’s infrastructure business has outpaced traditional PC sales, with AI-related revenue contributing significantly to overall results in recent quarters.

Analysts attribute the company’s momentum to its early and deep partnerships with leading chipmakers, particularly Nvidia. Dell’s PowerEdge servers integrated with advanced GPUs have secured major orders from hyperscalers and enterprise customers racing to deploy AI capabilities.

Recent financial performance underscored this shift. In the prior quarter, Dell reported record AI server revenue, with orders and backlog reaching unprecedented levels. The company has raised guidance multiple times, citing accelerating demand that has outstripped initial expectations.

The broader market context supported technology shares, as investors assessed Federal Reserve policy signals and corporate earnings trends. While some sectors faced headwinds, AI-exposed names like Dell continued to attract capital seeking growth opportunities.

Dell’s transformation from a PC-centric manufacturer to a diversified infrastructure provider has reshaped its financial profile. Infrastructure Solutions Group revenue has grown rapidly, surpassing traditional segments in contribution during peak AI demand periods.

Company executives have highlighted the scalability of their AI factory solutions, which offer turnkey deployments for enterprise customers. These systems combine computing, storage and networking optimized for AI workloads, reducing deployment complexity.

Partnerships with major cloud providers and technology firms have expanded Dell’s addressable market. Collaborations enable hybrid and on-premises AI solutions, appealing to organizations concerned about data sovereignty and latency.

Supply chain dynamics remain a focus. Strong demand has led to extended lead times for certain components, though Dell has worked to expand capacity and diversify suppliers. Pricing power in AI servers has also supported margins amid component costs.

Investors monitor Dell alongside peers in the data center ecosystem. The company’s performance serves as a barometer for enterprise AI spending trends, distinct from consumer-driven technology cycles.

Tuesday’s trading reflected broader participation in technology amid mixed economic signals. While inflation concerns persist, optimism around productivity gains from AI has underpinned valuations in select names.

Dell’s history includes a leveraged buyout and return to public markets, periods that tested management but ultimately positioned the company for its current growth phase. Strategic acquisitions and divestitures have streamlined operations toward higher-margin infrastructure.

The PC business, while mature, benefits from refresh cycles driven by AI-enabled devices and Windows updates. Hybrid work trends and enterprise security needs provide steady demand, complementing the high-growth AI segment.

Global expansion efforts target emerging markets and international data center projects. Government initiatives supporting domestic technology manufacturing could further benefit Dell’s U.S.-based operations.

Analysts have raised price targets and earnings estimates following recent results. Consensus forecasts project continued revenue expansion, though execution on margins and supply will influence outcomes.

Risks include potential slowdowns in AI capital expenditure if economic conditions tighten or if returns on massive investments disappoint. Competition in servers remains intense, with specialized players and cloud hyperscalers developing in-house solutions.

Despite these factors, Dell’s order backlog provides multi-quarter visibility uncommon in hardware. This visibility supports planning and has reassured investors regarding near-term growth.

Tuesday’s price action around $425 marked another session of positive momentum. Volume was healthy as traders responded to sector rotation and individual company developments.

Longer-term, Dell aims to capture share in the expanding AI infrastructure market projected to reach hundreds of billions annually. Success depends on innovation speed and customer relationships built over decades in enterprise computing.

The company’s direct sales model and supply chain expertise provide competitive advantages in fulfilling large, customized orders. Enterprise customers value Dell’s ability to integrate complex systems at scale.

As AI moves from experimentation to production deployments, demand for supporting infrastructure is expected to broaden beyond initial hyperscaler leaders. Dell’s portfolio spans edge, core data center and hybrid environments.

Management has emphasized sustainable growth alongside shareholder returns through dividends and buybacks. Capital allocation decisions will balance investment in growth with returning cash to owners.

Sector peers have shown varied performance, but Dell stands out for its AI server specificity. This focus has differentiated it from more diversified technology conglomerates.

Market watchers will track upcoming earnings for updates on backlog conversion and new order trends. Guidance parameters often move markets significantly in this space.

Tuesday’s advance contributed to Dell’s strong performance trajectory in 2026. The stock’s sensitivity to AI narratives has amplified moves on positive developments.

Broader technology sentiment remains constructive, supported by innovation cycles and corporate adoption. However, valuation multiples have expanded, prompting caution among some fundamental investors.

Dell’s story illustrates the intersection of legacy computing strength with emerging AI opportunities. Its ability to bridge these worlds has driven recent outperformance.

As the session progressed, Dell shares maintained gains, reflecting confidence in the company’s strategic direction. Continued execution will determine whether momentum sustains through the remainder of the year.

The technology sector’s role in economic growth keeps it central to market narratives. Dell’s contributions through infrastructure underline hardware’s enduring importance even as software garners attention.

Investors balancing portfolios continue allocating to AI enablers while monitoring macroeconomic indicators. Dell exemplifies a company translating secular trends into financial results.

Bill payers are being urged to submit a meter reading as household energy prices rise by 13% for millions of people in England, Scotland and Wales on Wednesday.

Anyone whose tariff is affected by regulator Ofgem’s price cap and does not have a smart meter should take a reading to avoid previous usage being charged at the new, higher rate.

Price rises, driven by the higher cost of gas, may have a relatively limited impact owing to warm weather and lower energy use during the summer months.

But higher energy prices caused by the fall-out of the US-Israeli war with Iran are likely to persist into the winter, according to analysts at the consultancy Cornwall Insight.

It has predicted a very slight 0.5% dip in Ofgem’s price cap in October, adding renewed pressure on the government to step in to help those in need.

Ministers point to reforms to cut bills earlier this year. Chancellor Rachel Reeves had also indicated some targeted support could be provided in the autumn, although she may be replaced in the job under new Labour leadership, and prices have not risen as high as feared before the US-Iran truce.

“The Iran ceasefire gave the markets some breathing room, but this is a pause, not a resolution to the conflict. What comes out of the final agreement, if there is one, will matter enormously for energy prices,” said Craig Lowrey, principal consultant at Cornwall Insight.

“Even in the best-case scenario, the enduring effects from the conflict will be with us for a while.”

In central Manchester, 23‑year‑old Ashleigh agrees with Joel that the state pension is unlikely to be coming her way: “At this rate I don’t think anyone’s ever going to retire, I think everyone will just have to fend for themselves in the end.”

But as someone on a lower income, her pension choices are less squirrel‑like. When working for a big retailer, she says that she chose to stop contributing to her employer’s auto-enrolment pension.

“I opted out of it. I need the money now.” She explains: “I’d rather save for a house and then at least I have something to show for it”.

Some experts warn that the gap between rich and poor in retirement could widen significantly for this generation.

Dr Suzy Morrissey, deputy director at the Pensions Policy Institute (PPI), believes that alongside how much Gen Z save privately, another factor will widen the divide: far more of them will be renting.

“Renting in retirement increases your chances of pensioner poverty, and they do face challenges to save, as younger people, that previous generations didn’t face when they were at the same age,” she says. “If we have people paying rent in retirement who don’t have large pension pots to cover those expenses, then that equals higher risk of pensioner poverty.”

But Morrissey sees a silver lining: pensions auto-enrollment, the system that automatically puts most employees into a workplace pension unless they opt out. If they’ve been employees, “they will have spent their working life contributing into a pension pot, and they will be the first generation that will have spent their whole life doing that.”

It’ll be a backstop for many, but the minimum contribution rate is unlikely to be enough for a comfortable retirement. It’s not automatic for the self-employed and people like Ashleigh have opted out because of immediate financial pressures, so it looks like plenty won’t see the benefit of that silver lining.

Ford Motor Co. is recalling more than 741,000 vehicles in the United States after discovering a transmission defect that could damage the vehicles’ park system, potentially allowing them to move unexpectedly even when drivers believe they are safely parked.

According to a report filed with the National Highway Traffic Safety Administration, the recall covers certain Ford F-150 pickup trucks, Ford Explorer and Ford Expedition SUVs, along with Lincoln Aviator and Lincoln Navigator models from the 2018 through 2021 model years. The affected vehicles span some of Ford’s most popular and high-volume nameplates, meaning the recall touches a substantial cross-section of the automaker’s recent lineup.

The underlying problem stems from a transmission issue that can cause temporary engagement of the vehicle’s parking pawl, a mechanical component responsible for locking the transmission and preventing the vehicle from rolling once it has been shifted into park, while the vehicle is still in motion. According to the NHTSA report, this can occur when certain gear shifts are commanded by the transmission while the vehicle continues moving, potentially damaging components within the park system itself.

If that damage occurs, the consequences can extend well beyond a simple mechanical malfunction. Once the park system has been compromised, the transmission’s ability to hold the vehicle stationary in park may be affected, particularly in situations where the driver has not also engaged the parking brake. The NHTSA report warns that this creates the risk of unintended vehicle movement even after a driver has shifted into park and exited the vehicle, a scenario the agency said increases the risk of a crash or injury.

The scope of real-world consequences tied to the defect is already documented in regulatory filings. According to the NHTSA, Ford has acknowledged 24 allegations of property damage connected to the issue, along with nine alleged injuries. Of those nine injury allegations, two specifically involve claims of emotional injury, suggesting that beyond physical harm, some affected owners have reported psychological distress tied to experiencing unexpected vehicle movement.

Ford’s remedy for the defect centers on a software update rather than a full mechanical overhaul for most affected vehicles. Owners whose vehicles are included in the recall will receive notification by mail directing them to bring their vehicle to a Ford or Lincoln dealership, where technicians will update the vehicle’s Powertrain Control Module to the latest available software version. As part of that same dealership visit, technicians will also inspect the transmission for any existing park system damage and replace damaged components as necessary. Ford has confirmed that both the software update and any required component replacement will be performed at no cost to vehicle owners.

The recall adds to what has been a recurring pattern of safety actions affecting Ford’s full-size truck and SUV lineup in recent years, as the automaker continues working through various mechanical and software-related issues identified across its most popular vehicle platforms. The F-150, in particular, has remained one of the best-selling vehicles in the United States for decades, meaning recalls affecting that model tend to carry an outsized impact simply due to the sheer number of vehicles on American roads.

For owners uncertain about whether their specific vehicle is included in the recall, Ford has set up a dedicated customer service line at 1-866-436-7332 to field questions and provide guidance on next steps. Owners can also contact the National Highway Traffic Safety Administration directly through its Vehicle Safety Hotline at 1-888-327-4236, a federal resource that fields inquiries related to vehicle recalls, safety defects and broader automotive safety concerns across all manufacturers, not just Ford.

Federal regulators have continued to emphasize that consumers should not wait for any visible symptoms before addressing an active recall, given that defects like this one can remain undetected during normal driving conditions until the specific circumstances that trigger the malfunction actually occur. Because the issue specifically involves the parking pawl engaging unexpectedly while the vehicle is still moving, drivers may have limited warning before a malfunction affects their ability to safely park the vehicle using the transmission alone.

This recall underscores the continued importance of using a vehicle’s parking brake in conjunction with the transmission’s park setting, a practice that safety officials have long recommended as a general precaution regardless of any specific known defect, since it provides a secondary mechanism for keeping a vehicle stationary even if the primary transmission-based park function were to fail for any reason. In this particular case, NHTSA’s report specifically noted that the risk of unintended movement is heightened in situations where the parking brake has not also been applied, reinforcing that general safety guidance as a meaningful interim precaution for owners awaiting their dealership appointment.

Vehicle recalls of this scale are not uncommon across the broader auto industry, where manufacturers routinely identify and address defects affecting hundreds of thousands or even millions of vehicles as part of ongoing safety monitoring required under federal law. Automakers are generally required to notify NHTSA and initiate a recall once a safety-related defect has been identified, regardless of how many real-world incidents have actually been documented, since the regulatory threshold for action is based on the existence and nature of the defect rather than solely on the volume of confirmed incidents.

Owners of affected Ford F-150, Explorer, Expedition, Lincoln Aviator and Lincoln Navigator vehicles from the 2018 through 2021 model years are encouraged to watch for official recall notification by mail and to schedule a service appointment with their local Ford or Lincoln dealer as soon as that notice arrives, given the safety risks associated with potential unintended vehicle movement while parked.