Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $5.3 billion, representing a 3.8% year-over-year growth in constant currency, all organic [25][30] - Full-year revenue reached $21.1 billion, growing 6.4% in constant currency, surpassing the $20 billion mark [6][25] - Adjusted Operating Margin improved to 16%, up 30 basis points year-over-year, with a full-year adjusted operating margin of 15.8%, exceeding guidance by 50 basis points [6][30] - Adjusted diluted EPS for Q4 was $1.35, up 12% year-over-year, leading to a full-year EPS of $5.28, an 11% increase from the prior year [31][34] Business Line Data and Key Metrics Changes - Financial Services segment led growth with a 9% year-over-year increase in constant currency for Q4 and 7% for the full year, marking the highest annual level since 2016 [5][25] - Health Sciences segment grew at over 6%, significantly above the company average, driven by strong performance in administrative and clinical processes [78] - Digital Engineering practices saw an 8% year-over-year growth in Q4, supported by proprietary platforms [19] Market Data and Key Metrics Changes - North America was the standout region with over 4% year-over-year growth in constant currency, primarily driven by financial services and healthcare [28] - Europe experienced a 2% growth in constant currency, with healthy performance in financial services and life sciences [28] - The Rest of World segment grew in line with the total company, driven by the Middle East [28] Company Strategy and Development Direction - The company aims to bridge the AI velocity gap, focusing on transforming AI technology into measurable returns for clients [11][12] - Cognizant's strategy includes a three-vector approach to capture demand, emphasizing AI-led productivity and the development of new agentic software [12][13] - The company plans to maintain its position in the industry's winner's circle by 2027, having achieved this goal two years early [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in 2026, supported by a strong pipeline of large deals and a focus on AI integration [24][58] - The operating environment remains complex, but management views it as an opportunity to capture wallet share in large deals and help clients reinvest savings into innovation [25][26] - The company anticipates a modest increase in defined benefit costs due to recent labor law changes in India, but this is not expected to materially impact the P&L [30] Other Important Information - The company returned $2 billion to shareholders through dividends and share repurchases in 2025 [10][32] - Cognizant completed the acquisition of 3Cloud, adding over 1,200 Azure specialists to enhance its capabilities in AI and application innovation [10][32] - The company has a healthy M&A pipeline and intends to maintain an active acquisition strategy aligned with its AI builder strategy [32][34] Q&A Session Summary Question: Insights on AI's impact on revenue and package implementation - Management sees AI as a net positive, increasing total addressable spend and creating opportunities for innovation and productivity [40][41] Question: Gross margin dynamics for 2026 - The decline in Q4 gross margin was primarily due to higher variable compensation, but management remains confident in maintaining margins through productivity measures [47][50] Question: Confidence in large deal growth for 2026 - Management expressed strong confidence in the pipeline for larger deals, expecting timely ramps and acceleration in growth throughout the year [55][58] Question: Risks and opportunities of fixed-price contracts - Management indicated that while delivery risk resides with the service provider, they have a robust process to monitor performance and maintain margins [66][67] Question: Durability of BPO growth - Management believes the BPO segment will continue to grow due to the need for ongoing transformation and maintenance of processes enabled by AI [71][74] Question: Health Sciences segment growth amidst regulatory pressures - Management is confident in the Health Sciences segment's growth, leveraging their platform to transform administrative processes and improve patient care [78][80]

Core Insights - The 2025 AI Partner Conference, co-hosted by 36Kr and CEIBS, focuses on "Chinese Solutions" and explores the latest breakthroughs and ecosystem in China's AI sector [1] - The conference features discussions on topics such as the golden moment for Chinese innovation, the potential of superintelligent agents, and the integration of AI across various industries [1] Company Developments - WPS has been exploring AI in office scenarios for two years, launching WPS AI 1.0 with features like AI writing assistance and document analysis [3] - The company introduced WPS AI 2.0 in 2024, focusing on enterprise scenarios and private knowledge, defining it as an "enterprise-level brain" [3] - WPS AI 3.0 aims to create a deep integration of AI with software, introducing the "WPS Lingxi" assistant to enhance user interaction and productivity [6] Product Features - WPS AI 3.0 emphasizes a new interaction model where users can communicate with an AI assistant to complete complex tasks efficiently [6] - The assistant can generate initial drafts, make real-time adjustments based on user feedback, and facilitate structured editing of presentations [6][7] - The "Agentic Software" concept is introduced, which allows AI to understand user needs and perform real-time operations within the software [7] Market Trends - The conference highlights the rapid development of conversational AI and its impact on user expectations and interaction paradigms [5] - WPS aims to redefine the user-AI relationship by providing a personalized assistant that enhances human creativity and productivity rather than replacing it [7]

Core Insights - The next generation of AI software is referred to as Agentic Software, which emphasizes the integration of AI capabilities with user software to better meet user needs [2][4] - The focus has shifted from flashy AI products to practical solutions that address real user demands, as seen in the recent WAIC 2025 event [1][5] - Kingsoft Office has introduced WPS Lingxi, a product that allows for interactive, multi-turn dialogue with AI, enhancing user collaboration and document editing [5][6] Group 1 - The current state of AI software is characterized by two scenarios: one where AI capabilities are hidden within software, and another where users struggle to articulate their needs when interacting with AI [2] - WPS Lingxi represents a breakthrough in user interaction, allowing for real-time modifications and collaborative editing, which contrasts with traditional AI's one-way generation model [5][7] - The product's memory function enables personalized interactions, reducing the learning curve for users and allowing for more natural communication with AI [6][11] Group 2 - Kingsoft Office's approach focuses on "process reconstruction" rather than merely accelerating functions, aiming to address the most time-consuming aspects of user workflows [7][10] - The company leverages its 37 years of experience in office software to create products that are deeply rooted in actual user scenarios, rather than competing solely on technology [8][9] - The success of AI applications hinges on a deep understanding of user scenarios and strong engineering capabilities, which Kingsoft Office has demonstrated [10][11] Group 3 - The concept of Agentic Software is positioned as a service to employees rather than a replacement, emphasizing collaboration between AI and users [12] - Kingsoft Office's product development is seen as a culmination of decades of experience, resulting in practical solutions that effectively address user problems [12] - The evolution of AI products is viewed as a continuous process, with future iterations expected to enhance functionalities such as template and cover modifications in presentations [12]

Core Viewpoint - The article emphasizes the evolution of AI software towards "Agentic Software," which integrates AI capabilities more closely with user needs, moving from flashy features to practical solutions that enhance workflow efficiency [4][12]. Group 1: AI Software Evolution - The current trend in AI software is shifting from attention-grabbing features to practical applications that address real user needs, as seen at WAIC 2025 [2][12]. - Companies like Kingsoft Office are focusing on creating products that facilitate user interaction with AI, rather than just providing AI capabilities hidden behind software [3][4]. Group 2: WPS Lingxi Features - WPS Lingxi allows for interactive, multi-turn conversations with AI, enabling users to modify documents in real-time while maintaining document formatting [9][10]. - The AI's ability to remember user preferences and context enhances the personalization of interactions, making it easier for users to communicate their needs [10][19]. Group 3: Process Reconstruction - The approach of WPS Lingxi represents a shift from merely accelerating functions to reconstructing workflows, addressing the most time-consuming aspects of document creation and modification [12][11]. - The article highlights that many existing AI tools fail to meet users' true needs, as they do not integrate deeply into the workflow processes [11][12]. Group 4: Competitive Landscape - Kingsoft Office's long history and deep understanding of user scenarios position it well in the competitive landscape of office software, allowing it to create products that are more aligned with user requirements [14][15]. - The article suggests that the success of AI applications will depend on a company's ability to understand specific user scenarios and enhance engineering capabilities [16][17]. Group 5: Future Directions - The development of WPS Lingxi is seen as a starting point for a broader transformation in office automation, with future iterations expected to further enhance user interaction and document management [22][21]. - The article concludes that the journey of AI product development is ongoing, with continuous improvement and adaptation being key to success in the industry [20][22].

Core Viewpoint - Kingsoft Office is leveraging AI technology to enhance its WPS Office suite, introducing WPS AI 3.0, which aims to redefine the interaction between users, AI, and software, moving towards a more integrated and efficient office experience [2][3][7] Product Development - WPS AI 3.0 features an AI assistant capable of document creation, presentation generation, and voice assistance through natural language and multi-turn dialogue, enhancing office efficiency [2][3] - The development of WPS AI 3.0 marks a shift from merely replicating Microsoft Office formats to innovating based on user needs, indicating a significant evolution in Kingsoft's product strategy [3][4] Market Position and Strategy - Kingsoft Office has been focusing on AI product development for the past three years, launching WPS AI in 2023 and planning to introduce WPS AI 2.0 in 2024, which will target specific enterprise scenarios [3][4] - The company reported a revenue of 1.301 billion yuan in Q1, a year-on-year increase of 6.22%, with personal business revenue contributing significantly to overall earnings [6] User Engagement and Features - WPS AI 3.0 allows users to interact with AI in a conversational manner, enabling real-time modifications to documents without switching applications, thus improving user experience [4][6] - The introduction of a knowledge base with WPS AI 3.0 allows users to upgrade their cloud documents into a searchable knowledge repository, addressing issues of knowledge fragmentation and enhancing productivity [6] Competitive Landscape - The integration of AI into WPS Office is expected to lower the barriers to intelligent office solutions and redefine human-computer collaboration, potentially altering the competitive dynamics in the office software market [7]

Core Insights - The launch of WPS AI 3.0 by Kingsoft Office aims to redefine the interaction between users, AI, and software, addressing current limitations in AI capabilities and usability [3][5] - The AI PPT feature allows for real-time editing and generation of presentations, showcasing advanced capabilities such as content modification and template selection [2][5] - WPS AI 3.0 integrates deeply with WPS Office, enabling collaborative document creation and modification through multi-turn dialogues, enhancing user experience and productivity [5][6] Company Developments - Kingsoft Office demonstrated its AI PPT functionality at the World Artificial Intelligence Conference, highlighting its unique ability to generate and modify presentations interactively [2][4] - The WPS AI 3.0 version is designed to facilitate a more intuitive user experience, allowing users to create documents without needing extensive software skills [6] - The WPS Knowledge Base was introduced alongside WPS AI 3.0, enabling users to convert cloud documents into a searchable knowledge repository, thus improving efficiency in information retrieval and application [5][6] Industry Trends - The AI industry is currently facing challenges in fully utilizing AI capabilities within software, with a need for more practical and user-friendly applications [3] - The concept of Agentic Software is being explored, which refers to more intelligent and capable software that can better serve user needs [3][5] - The global monthly active device count for WPS Office reached 647 million by March 2025, indicating significant market penetration and potential for widespread adoption of AI-driven office solutions [6]

Core Insights - Kingsoft Office released WPS AI 3.0, aiming to redefine the interaction between users, AI, and software, moving towards an era where everyone has an AI assistant [1][2] - The global monthly active devices for WPS Office reached 647 million as of March 2025, indicating significant user engagement [1] Group 1: Product Development - WPS AI 3.0 introduces a new PPT creation mode and aims for deep integration with WPS Office [1] - The previous versions, WPS AI and WPS AI 2.0, focused on content creation, smart assistance, and knowledge insights, with the latter targeting enterprise-specific scenarios [1] Group 2: Industry Challenges - The AI industry has faced two main issues: AI capabilities being hidden behind software and the impracticality of content generated by chatbots [2] - WPS AI 3.0 seeks to address these challenges by promoting a deep integration of AI and office software, enabling a two-way transformation tailored to specific scenarios [2]