AGM Takeaways: AI Opportunity

Research evidence excerpt

AGM Takeaways: AI Opportunity

May 19, 2026 | 05:52 ET~

Constellation Software Technology

Thanos Moschopoulos, CFA Analyst

thanos.moschopoulos@bmo.com (416) 359-5428

CSU-TSX Rating Price: May-15 Target Total Rtn

Outperform $2,612.34 $3,500.00 34% Stephen Machielsen, CFA VP Associate

stephen.machielsen@bmo.com (416) 359-5513

Sagar Karri, CPA, CA, CFA Senior Associate

sagar.karri@bmo.com (416) 355-9083

Legal Entity: BMO Nesbitt Burns Inc.AGM Takeaways: AI Opportunity

Bottom Line:

We provide our takeaways from CSU's recent AGM, at which management responded 2YR Price Volume Chart

to shareholder Q&A and provided more color on a range of topics, particularly AI. 5,500

Notably, CSU highlighted the competitive moat afforded by its deep vertical expertise 5,000

4,500

and customer knowledge/relationships; its culture of collaborative knowledge-sharing, 4,000

which should help AI learnings proliferate across its 1,500+ business units; and the 3,500 0.3

3,000opportunity that AI should provide in allowing CSU to create more value for its clients. 0.2

2,500 0.1

Key Points 2,000 Nov May Nov May 0

LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

• Harris Healthcare, Lumine and Modaxo—three of CSU's largest vertically-focused

groups—highlighted the strong moat and industry credibility (among both

clients and M&A targets) provided by their long history and scale in their

respective verticals. Industry-specific considerations include healthcare client

sensitivity regarding patient data; the fine-nines of uptime required by Tier-1

telco clients; and the public sector procurement process in transit, which favors

well-established incumbents.

• CSU maintains a decentralized approach with AI. Its focus is on ensuring

that businesses have access to relevant knowledge (e.g. through internal