Systems bets big on AI, global expansion

August 27, 2026 (MLN): Systems Limited (PSX: SYS) expects to sustain its growth momentum through a healthy backlog, targeted acquisitions, expansion into new service lines and rising enterprise demand for artificial intelligence (AI), according to the company’s latest financial review.

The company said both its recent acquisitions, Confiz and BAT Shared Services Center, performed well from a revenue-growth perspective during the second quarter, while management sees further potential through cross-selling and upselling opportunities across the acquired customer bases.

The acquisition of Confiz has provided Systems Limited with direct access to North American enterprise clients, creating opportunities to leverage the group’s scale, delivery capabilities and domain expertise.

Management expects the integration of Confiz to generate synergies during the second half of the year and help diversify the company’s revenue profile geographically.

Systems Limited also plans to strengthen its presence across key international markets.

In North America, the company intends to scale its recently acquired platforms and deepen enterprise relationships through Confiz’s partnerships, with synergies expected to begin materializing in the second half of 2026.

In UK and Europe, the company has established a UK entity and is building a full-fledged regional operation. Leadership has been onboarded, with the UK expected to become a hub for further expansion into continental Europe.

The Asia Pacific (APAC) region is also gaining momentum, with investments made during the previous year yielding results in Vietnam, Malaysia and Indonesia.

The company said a growing backlog and stronger channel partnerships are supporting the region’s expansion, while it is evaluating the establishment of a delivery center in Malaysia.

Meanwhile, Systems Limited said its Middle East business has remained resilient despite regional geopolitical developments, with its existing customer base intact and no signs of negative growth so far.

The company noted that spending by banking, telecommunications and public-sector customers remains aligned with the region’s growing focus on agentic AI and autonomous systems, creating significant demand among its public-sector clients.

On the domestic front, the company said its Pakistan business has undergone a notable turnaround, with profitability improving from negative to positive levels.

Management expects continued improvement, supported by a healthy backlog and pipeline, while focusing on bringing domestic margins closer to those achieved in international markets.

AI Emerging as Key Growth Driver

Systems Limited said AI is increasingly amplifying demand for technology services, with productivity gains translating into larger deal sizes.

The company has also made significant progress in embedding AI across its internal processes and client-facing solutions, while expanding the use of AI tools across its workforce to improve productivity and service delivery.

With a global customer base of more than 300 clients, management sees substantial opportunities as enterprises increasingly seek to make AI an engine of growth.

“Every customer is trying to be agentic and aspires to make AI its growth engine,” the company said, adding that it is already working with existing and new customers to create higher-impact opportunities.

Further M&A, Delivery Capacity Expansion Planned

Systems Limited said it continues to explore merger and acquisition opportunities, particularly in Western markets, as part of its strategy to expand its presence in the US and Europe, build a more balanced and diversified portfolio, and reduce geographical concentration risks.

On the supply side, the company said its Egypt center is now operational with additional capacity, providing greater operational resilience and a strategic advantage for regional and international customers.

The company has also started a development center in Malaysia and is planning another center in Jordan to broaden its access to talent and support global customers.

The outlook comes as Systems Limited reported 35.3% year-on-year growth in consolidated revenue to Rs49.72 billion during the six months ended June 30, 2026, while consolidated profit after tax rose 17.4% to Rs6.05 billion.

The company attributed its performance to strong organic and inorganic growth, improved efficiency and overall optimization despite wage and fuel-cost inflation and the impact of rupee appreciation on its predominantly foreign-currency revenue base.

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Systems Limited’s management said the company remains well positioned to capitalize on AI-led enterprise demand, international expansion and its growing global delivery capabilities in the coming periods.