Presight AI 1Q26 conf call takeaways - A reassuring message on margins and cash flow, with additional color on the defense exposure

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Presight AI 1Q26 conf call takeaways - A reassuring message on margins and cash flow, with additional color on the defense exposure

J P M O R G A N CEEMEA Equity Research

14 May 2026

Correction (first published 13 May 2026) (See disclosures for details)

Presight AI

1Q26 conf call takeaways - A reassuring message on Overweight

margins and cash flow, with additional color on the PRESIGHT.AD, PRESIGHT UH

defense exposure Price (12 May 26):Dh3.38

Price Target (Dec-27):Dh4.32

Presight hosted its 1Q26 earnings call after announcing results (First Take here). MENA TMT

ACOverall, we found the call positive – management provided a reassuring note on Karin So

both margins and cash flow, framing the 1Q26 weakness as timing and revenue mix (971) 4561-2090

related rather than structural, with clear expectations for both to ramp back up over karin.so@jpmorgan.com

the course of the year (AED ~150m cash collected post quarter-end). That said, the J.P. Morgan Securities plc

disclosure that the step-up towards the AED 4.9 billion pro-forma backlog is

almost entirely underpinned by a single large domestic renewal, while helpful in Style Exposure

demonstrating client stickiness and platform criticality, does highlight a degree of

concentration that will remain under focus with the market likely preferring to see

more diversified renewals and additional new contract wins. Nevertheless, we

argue that early signs from the 1Q26 results suggest the worst is now likely behind

us, with the underlying performance of the business remaining solid. Arguably, we

see Presight as more resilient to geopolitics - especially as it is infrastructure and

model-agnostic - and is uniquely placed to benefit from accelerating AI

deployment in the public sector (link/link). We remain OW with a Dec-27 price