This report does not constitute a rating action. S&P Global Ratings expects continued strong revenue growth and profitability. Applied Systems Inc. increased its revenue about 15% in the first half of fiscal 2026 (ended June 30, 2026), primarily due to price increases, increased demand from its existing customers, and new logo wins. The company benefits from its mission-critical platform and resilient end-market base. Therefore, even in the event of a downturn, we expect Applied would remain largely insulated, as evidenced by its outperformance during the COVID-19 pandemic and annual revenue growth of more than 10% in each of the last seven years. We expect the company will expand its revenue 10%-13% in fiscal 2026 and fiscal 2027 on its ability
