Amadeus IT Group, S.A.

1) Strategic Overview and Leadership Insights - Amadeus reported solid growth and profitability in H1 2026, with a 5% revenue increase at constant currency. - The company is focused on becoming a neutral orchestrator in an AI-enabled travel ecosystem, advancing its AI roadmap and enhancing solutions across its portfolio. - Commercial momentum remains strong, with new customer acquisitions and expanded solution adoption across segments. - The company is strategically investing in AI and next-generation solutions to support customer retailing transformations.

2) Financial and Segment Performance - Total revenue reached EUR 3,335 million, reflecting a 5% growth at constant currency; adjusted EBIT grew to EUR 1,012 million, also up 5%. - Segment performance: - Air IT Solutions: Revenue increased by 8.7%, driven by higher revenue per passenger booking (PB) and increased transactions. - Hospitality & Other Solutions: Grew by 9.2%, supported by new customer implementations and increased transaction volumes. - Air Distribution: Revenue growth was modest at 1.1%, impacted by geopolitical events leading to reduced bookings. - Adjusted diluted EPS rose by 7% to EUR 1.64, while free cash flow was EUR 472 million, a 1% increase.

3) Challenges and Headwinds - The geopolitical situation in the Middle East has negatively impacted global traffic, leading to a revision of growth outlook, particularly for the Air Distribution segment. - IATA's global air traffic growth forecast for 2026 was reduced from 4.4% to 1.9%, reflecting ongoing uncertainties. - The company is closely monitoring these developments and has adjusted its outlook to account for potential impacts on revenue and bookings.

4) Operational and Product Developments - Amadeus continues to execute its AI strategy, partnering with major tech firms and expanding AI capabilities across its offerings. - New customer implementations in hospitality and air IT are progressing well, with significant contracts signed, including with major airlines and airports. - The company is also enhancing its advertising platform and payment solutions, demonstrating strong commercial traction across its segments.

5) Guidance and Outlook - Amadeus has revised its FY 2026 outlook, expecting group revenue growth in the mid- to high single-digit range and adjusted diluted EPS growth in the high single to low double-digit range. - The company anticipates continued solid unitary revenue evolution, partly offsetting the expected moderation in bookings. - Despite the challenging environment, Amadeus remains focused on long-term growth and maintaining financial discipline.

Bottom line: Amadeus is navigating a complex geopolitical landscape while maintaining solid growth and profitability. The company's strategic investments in AI and diversified solutions position it well for long-term value creation, despite short-term headwinds impacting its growth outlook.