Technology Software Industry: ACN is the preferred choice in the fields of AI, blockchain, and cloud computing.

Technology Software Equities ACN is Top Pick amid AI, Blockchain, Cloud Americas Kevin McVeighAnalystkevin.mcveigh@ubs.com 2026 begins with IT spending stabilizing and generative AI continuing toreshape infrastructure, cloud migration, and application software investment.While employment and rapid transformation remain key challenges, we seespecialized players leveraging vertical data and domain-specific models to buildmoated solutions. M&A is expected to be active with transactions underscoring Bruna WerneckAssociate Analystbruna.werneck@ubs.com Olivia BradleeAssociate Analystolivia.bradlee@ubs.com Key themes to watch as we focus on ABCs [Ai, Blockchain, Cloud] in 2026 ˜AI adoption—companies are moving to multiyear implementation projects frompilot programs focused on revenue and margin expansion. Gen AI is now a coredriver of cloud revenue and operational efficiency. We see continued bifurcation as Olivia LinAssociate Analystolivia.lin@ubs.com ˜Blockchain—we are monitoring threats + opportunities in financial services asmore efficient approaches to record-keeping, payments processing, and tradesettlement could reshape revenue pools across the industry. While widespread ˜Cloud migration + verticals—organizations continue shifting workloads to thecloud from on-premise environments drawn by scalability, reliability, and advancedAIcapabilities.Vertical solutions leveraging domain-specific data enabling ˜IT budgets—our recent call with IT Services expert Cerwin Ma suggested thatclients expect vendor efficiencies as AI transformations surface. This coincides withsome clients capturing some of these benefits on contract renewals. Mr. Ma alsoexpects overall IT budgets to be flat or slightly up for the year amid ongoinguncertainty and expectations of efficiency crystalizing. In addition, budgets for AI ACN, SSNC, TRI [listed Alphabetically] are our Top 2026 Picks ˜Accenture (Buy, $320 PT, ~21% upside)—bullish as Gen AI optionality, strengthin alliances [~60% revenue] drives revenue + margins. Cloud [50%+revenue]stands to continue benefiting from AI innovation, as legacy systems are revampedto leverage AI capabilities. We expect Gen AI [~10%revenue] momentum to ˜SSNC (Buy, $112 PT, ~37% upside)—bullish thesis tethered to our Street high$112 PT sustained by higher organic revenue growth amid crystallizing capitalreturnas SS&C successfully deploys emerging technology across recurring ˜TRI (Buy, $215 PT, ~95% upside)—poised for accelerating organic growth andAI-driven leverage in 2026. With ~9% YoY growth in its Big 3 segments andGenAI-enabled products now at ~24% ACV, Thomson increased its 2026 EBITDAmargin and FCF guidance. That coupled with low leverage and ~$9B capital KEY THEMES to watch in 2026 AI Adoption The October 2025UBS US AI Business Survey—~130 enterprise IT execs—supportsour view that Gen AI should be a key catalyst in 2026. Over time, the share ofrespondents with live use cases has increased and the number of respondents expecting productionat scale was the highest since survey inception.Furthermore,infrastructure has seen share shifts as well—likely foreshadowing increases incloud These AI investments are stillearlywithample runwayas there is limited full scaleadoption. Only 17% of respondents reported that current AI usage is at scale. However,the adoption efforts might beH226/H127weighted as ~47% of respondents expectproduction to be as scale beyond 9 months but within next 12 months and 18% expectto be at scale later than 12 months. With only ~8% of respondents expecting to be at Source: UBS Evidence Lab Source: UBS Evidence Lab Accenture is no longer reporting Gen AI revenue, but prior reporting shows stronggrowth from Gen AI segment. If we assume that(1)Accenture achieves~2.3%Gen AITAM—roughly half its cloud share at similar point in adoption—due to difference inmarket size and serviceability and(2)TAM grows at ~50% CAGR—faster adoption ratethan early days of cloud on larger base—Accenture Gen AI associated revenue could Gen AI bookings continue to represent a larger share of total bookings each quarter. In2025 Gen AI bookings were$5.9b—7.3% of total bookings—up from $300m—0.4%—in 2023. That said, we anticipate anaccelerating rampfor AI bookings and revenue Source: Company data, UBS estimates Blockchain Technology Blockchain can disrupt solutions but can also create opportunities for first movers likeACN+SSNCamid increasing interest in potentialadoptionof blockchain for payment processing, record-keeping, and auditing. Blockchain offers a new approach todatamanagementand sharing potentially changing the way markets function making themcheaper and more resilient.Distributed ledger technologylikely leads to reductionsin total cost of equity markets [i.e., revenue] while simultaneously shifting revenue todifferent operators by reducing servicesredundancyand creating cost savings—whichmay be competed away or reallocated to new services. Over time, distributed ledger Whi