Core Insights - Nokia has launched its Autonomous Network Fabric, a suite of telco-trained AI models and integrated security aimed at accelerating network automation and enabling operators to roll out new services easily [1][3][9] - The collaboration with Google Cloud allows the Autonomous Network Fabric to be deployed as a SaaS application across various environments, including on-premises and hybrid cloud [2][6][9] Group 1: Product Features - The Autonomous Network Fabric integrates observability, analytics, security, and automation, allowing networks to function as a unified adaptive system [1][3] - Key features include unified data management, 360-degree observability, explainable AI, and a library of cross-domain correlated data products [9][10][11] - The platform leverages Google Cloud's generative AI tools to enhance network operations, including real-time monitoring, anomaly detection, and zero-touch remediation [5][8] Group 2: Market Context - Operators are transitioning towards fully autonomous networks but face challenges from legacy systems and fragmented data [3][4] - The demand for fully autonomous networks is increasing as customers seek improved reliability and operational cost savings [7][8] - Nokia's Autonomous Network Fabric aims to provide a comprehensive approach to accelerate network automation in a multi-vendor environment [9][10]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,130,000,000, an increase of 4% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][21] - Non-GAAP earnings per share (EPS) was $1.78, above the guidance range, primarily due to a lower than expected non-GAAP effective tax rate [6][24] - The twelve-month backlog increased by 3.5% year-over-year to $4,170,000,000, supported by a strong pipeline [6][29] Business Line Data and Key Metrics Changes - Revenue from managed services reached a record $747,000,000, up 3.7% from a year ago, accounting for 66% of total revenue [24] - The company reported a non-GAAP operating margin of 21.3%, improving by 10 basis points sequentially and by 290 basis points year-over-year [23] Market Data and Key Metrics Changes - North America saw a slight sequential increase and a 1.4% year-over-year increase in pro forma constant currency [22] - Europe rebounded from previous weaknesses, benefiting from new deal activities and contributions from acquisitions [22] Company Strategy and Development Direction - The company is focused on accelerating the telco industry's adoption of GenAI and enhancing cloud services, with expectations of double-digit growth in cloud-related revenue for fiscal 2025 [16][30] - Amdocs is collaborating with Microsoft for cloud migrations and has secured significant projects in various regions, including the Philippines and Japan [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted rising global macroeconomic uncertainty but believes the company is well-positioned due to its unique business model [18] - The company reiterated a revenue growth outlook of 2.7% for fiscal 2025, with a tightened range of 1.7% to 3.7% [19][30] Other Important Information - The company repurchased $135,000,000 of its own shares and authorized a new share repurchase plan of $1,000,000,000 [27][28] - Free cash flow before restructuring payments was $181,000,000, with a target of $710,000,000 to $730,000,000 for fiscal 2025 [28] Q&A Session Summary Question: Focus on AI contributions to revenue growth and collaboration with NVIDIA - Management indicated that GenAI activities are closely linked to data, with ongoing progress in AI-related projects contributing to revenue growth [34][35] Question: Customer spending behavior changes - Management reported no significant changes in customer spending behavior despite rising macroeconomic concerns [45][46] Question: Fluctuations in accounts receivable and unbilled balances - Management explained that fluctuations are normal due to the nature of various projects and milestones, and they do not guide for these balances due to their unpredictability [47][49] Question: Progress on AI offerings and contracting - Management noted good progress in data-related activities supporting GenAI, with several customers making significant strides, although specific names could not be disclosed [52][54]