Summary of Endava's Conference Call Company Overview - **Company**: Endava - **Industry**: IT Services and Digital Transformation - **Key Personnel**: CEO John Cotterell, CFO Mark Thurston - **Company History**: Founded in February 2000, recently celebrated its 20th anniversary [3][4] Core Service Offerings - Endava specializes in digital transformation services, focusing on ideation to production with multidisciplinary teams [4][5] - The company has evolved through various technology waves, including mobile, cloud, and currently AI [5][6] Market Position and Growth - Historically, Endava has experienced organic growth rates of 20% to 30% annually [5] - The company is currently facing challenges due to the fundamental shift brought by AI, impacting discretionary spending [6][9] AI Implementation and Challenges - The implementation of AI in enterprise environments is a significant focus, with clients requiring robust engineering solutions to avoid issues like hallucinations in AI outputs [10][11] - Business cases for AI have improved as processing costs decrease, making them more viable for clients [12][13] - Legacy systems pose challenges for effective AI implementation, but AI can assist in modernizing these systems [14][15] Deal Dynamics - There is an increase in the number and size of large deals, driven by extended ideation phases with clients [18][19] - The ideation phase for AI projects has lengthened to over a year, compared to 3-6 months during previous digital transformation waves [21][22] - Clients are learning to navigate the complexities of AI integration, which is expected to lead to a more regular cadence of deal closures [19][27] Sector Performance - **Banking and Capital Markets (BCM)**: Strong growth driven by core modernization and payments capabilities [28][29] - **Insurance**: Steady growth in the low double digits, with a focus on data and AI-driven solutions [30][32] - **Payments**: Experienced a significant reduction in revenue due to client spend pullbacks, but is expected to stabilize [35][36] - **Healthcare**: Growth opportunities are emerging, particularly in core modernization and AI integration following the Galaxy acquisition [36][39] Galaxy Acquisition - The integration of Galaxy has progressed smoothly, enhancing Endava's capabilities in healthcare and expanding its market reach [42][43] - The acquisition has allowed Endava to leverage AI tools for better client service and operational efficiency [38][39] Internal AI Utilization - Endava aims to be "AI native," with all employees using AI tools like ChatGPT to enhance productivity [48][49] - The company anticipates significant productivity gains from AI, which may lead to increased demand for services rather than cannibalization of existing models [50][53] Conclusion - Endava is navigating a transformative period marked by AI integration and evolving client needs, with a focus on maintaining growth through modernization and innovative service offerings [54][55]

Summary of ASGN Conference Call Company Overview - ASGN operates in the IT services sector with approximately $4 billion in revenues, primarily in the US [3] - The company serves large enterprise accounts, with 70% of revenue from Fortune 500 clients across various industries, including financials, consumer, industrials, TMT, and business services [3] - About 30% of revenue comes from the federal government, mainly serving the Department of Defense, National Intelligence, and Department of Homeland Security [3] Core Business Insights - ASGN has a diverse account portfolio, which provides stability and resilience in varying economic conditions [4] - The company is transitioning from IT staffing to higher-value consulting services, which is expected to drive strategic growth [6] - ASGN's flexible cost structure and strong free cash flow allow for strategic acquisitions and investments [4][12] Financial Performance - The company has a gross margin structure influenced by business mix, with government segments typically having lower margins compared to commercial consulting [8] - ASGN achieved an EBITDA margin target of 12-12.5% within 18 months, driven by growth in commercial consulting [20] - Free cash flow conversion from EBITDA is between 60-65%, with a balanced capital allocation strategy focusing on organic growth, share repurchase, and M&A [11][12] Market Dynamics - Clients are cautious about discretionary spending due to macroeconomic uncertainties, impacting IT investment decisions [22][25] - There is a noted increase in business confidence post-election, leading to improved bookings in commercial consulting and federal spaces [24] - The demand for IT services is driven by the need for AI, data modernization, application development, and cybersecurity [36] Strategic Initiatives - ASGN's acquisition of TopLock enhances its capabilities within the Workday ecosystem, targeting medium enterprises [18][19] - The company is focusing on integrating AI and cloud services into its offerings while managing investments based on market conditions [30][31] - ASGN is positioned to leverage its technical expertise in AI and data to meet client needs, despite the current cautious environment [27][34] Government Segment Insights - The federal government accounts for about 30% of ASGN's revenue, with a significant portion from defense-related contracts [38] - Recent shifts in government spending focus on defense and technology, with ongoing discussions about improving efficiency and outcomes in federal contracts [39] - Strong bookings in the government sector indicate potential future revenue growth, despite slower conversion rates from bookings to revenue [43] Conclusion - ASGN is strategically positioned to capitalize on the evolving IT landscape, focusing on high-margin consulting services and leveraging its expertise in emerging technologies like AI and cloud computing [17][26] - The company remains vigilant in monitoring macroeconomic indicators that could influence client spending and investment in technology [44]

Core Insights - Kyndryl has announced a global strategic partnership with Databricks to enhance customer digital transformation by delivering AI at scale and enabling data-driven organizations [1][2][3] Partnership Overview - The partnership aims to combine Kyndryl's data and AI services with the Databricks Data Intelligence Platform, facilitating IT modernization and achieving business goals cost-effectively [2][3] - Kyndryl's Global Strategic Alliances Leader emphasized that this collaboration will expand the reach of Kyndryl's services through integrated solutions necessary for enterprises to enable AI at scale [3] Service Offerings - Kyndryl will provide end-to-end data services to help customers adopt Databricks and modernize their data architectures, ensuring data quality, security, and scalability [7] - The company will guide customers in utilizing the Databricks platform for advanced capabilities like machine learning and natural language processing to unlock data potential [7] - Kyndryl will assist in integrating SAP and enterprise data through the SAP Business Data Cloud and SAP Databricks, aiming to unlock insights and enhance productivity [7] - The partnership will leverage Kyndryl's mainframe expertise to bridge legacy systems with modern analytics, delivering increased business insights [7] Company Background - Kyndryl is a leading provider of mission-critical enterprise technology services, operating in over 60 countries and offering advisory, implementation, and managed services [5]

Group 1 - Cognizant will present at the Nasdaq Investor Conference in partnership with Jefferies on June 11, 2025 [1] - The presentation will be led by Jatin Dalal, the Chief Financial Officer of Cognizant [1] - A live audio webcast of the presentation will be available on Cognizant's website, with a replay accessible for 90 days [1] Group 2 - Cognizant is a leading provider of information technology, consulting, and business process services [2] - The company focuses on helping clients modernize technology, reimagine processes, and transform experiences [2] - Cognizant aims to improve everyday life through its services [2]

Group 1 - Cognizant has been recognized as the Global Data Cloud Services Implementation Partner of the Year by Snowflake, highlighting its excellence in delivering large-scale implementations on the Snowflake AI Data Cloud [1] - The award signifies a milestone in the over five-year strategic partnership between Cognizant and Snowflake, focusing on joint innovations and platform co-development [2] - The partnership's success is driven by the Data Estate Migration to Snowflake offering, which aims to reduce complexity and accelerate business value [3] Group 2 - Cognizant Ignition platform, combined with Agentic AI technology, has enabled significant automation efficiencies for clients, achieving 80% migration process automation and 50% cost savings [4] - The collaboration between Cognizant and Snowflake has been praised by Xerox, emphasizing the tangible business value and the effective transformation model in the industry [5][6] - Xerox's Chief Digital Officer noted the importance of building an agile and secure foundation, facilitated by the expertise and tools provided by Cognizant and Snowflake [6]

Press contact:Fahd PashaTel.: +1 647 860 3777E-mail: Fahd.Pasha@capgemini.com North America high-net-worth individual population surges, while Europe and Middle East shrink U.S. led the world in growth in its millionaire population, adding 562,000 to reach 7.9 millionUltra-high net worth individual population rises by 6.2% worldwide High-net-worth individuals now allocate 15% of their portfolios to alternative investments, including cryptocurrencies Paris, June 4, 2025 – The Capgemini Research Institute’s W ...

Summary of Endava's Conference Call Company Overview - **Company**: Endava - **Industry**: IT Services, specifically focusing on digital transformation and AI integration Key Points and Arguments 1. **Market Shift**: Endava has been a leader in digital transformation for the past 20 years, but the advent of AI, particularly with ChatGPT, has initiated a new phase termed the "digital shift" [5][4][3] 2. **AI Integration**: The company emphasizes the importance of integrating AI into both customer-facing solutions and internal processes, which requires addressing legacy systems [7][8][6] 3. **Complexity of AI**: The engineering challenges associated with AI, such as hallucinations and regulatory compliance, have made implementation more complex than anticipated [9][8] 4. **Core Modernization**: Endava has acquired Galaxy, which provides tools for understanding and modernizing legacy code, crucial for successful AI integration [12][13] 5. **Diversification**: Since its IPO in 2018, Endava has diversified its client base across various industries and geographies, moving beyond its initial concentration in payments and financial services [14][15][16] 6. **Revenue Trends**: The company is experiencing a transition in revenue generation from traditional digital transformation projects to larger AI-enabled deals, which has caused a temporary flattening in business growth [17][18] 7. **Pipeline Development**: Endava is focused on closing larger deals, which are expected to drive future growth, despite current macroeconomic challenges [18][17] 8. **AI Skills Development**: The company has established centers of excellence to enhance AI skills among its workforce, which is essential for adapting to the new market demands [22][23] 9. **Client Engagement**: While many clients are still hesitant to adopt AI solutions, Endava is working to integrate AI into its daily operations to improve productivity [26][27] 10. **Market Opportunities**: Significant growth is anticipated in the banking and capital markets sector, which has already seen a 40% increase in activity over the past year [38][39] 11. **Automotive Sector Challenges**: The automotive industry is currently facing tariff challenges, which have slowed down technology investments, but recovery is expected within three to six months [41][42] 12. **Margin Goals**: Endava aims to improve its gross margins by shifting towards outcome-based contracts, which will allow for better margin capture compared to traditional time and materials contracts [45][46] 13. **Payments Industry**: The company continues to see growth opportunities in the payments sector, particularly as investments shift from payment processors to large banks [48][49] Additional Important Content - **AI's Role in Agile Delivery**: The integration of AI is expected to significantly enhance agile delivery processes, allowing for faster iterations and improved project outcomes [28][29] - **Revenue Composition Changes**: The structure of large deals is evolving, with a focus on immediate revenue generation rather than gradual scaling [32][33] - **Predictability of Large Deals**: There is increased uncertainty in predicting the timing of large deals due to macroeconomic factors and technological complexities [34][36] This summary encapsulates the key insights from Endava's conference call, highlighting the company's strategic focus on AI integration, market diversification, and the evolving landscape of client engagement and revenue generation.

Summary of Kindrel's Conference Call Company Overview - **Company**: Kindrel - **Industry**: Technology Services, specifically focused on mission-critical infrastructure services - **Key Services**: Designing, modernizing, and managing complex IT environments [3][4] Core Strategies and Changes - **Three A's Strategy**: - **Alliances**: Strengthening partnerships with major tech providers like Microsoft, Google, AWS, Dell, SAP, and Cisco to broaden service offerings [3][4] - **Advanced Delivery**: Enhancing service efficiency and quality while achieving cost savings [4] - **Accounts Initiative**: Improving profitability from previously unprofitable revenue streams [4] - **Cultural Transformation**: Emphasizing a flat and fast organizational structure to drive progress [4] - **Return to Growth**: Achieved positive constant currency revenue growth in the most recent quarter [4][5] Financial Performance and Outlook - **Revenue Growth**: - Achieved 26% revenue growth and 46-47% growth in signings for consulting services [8][8] - Positive revenue growth outlook for fiscal year 2026, with 75-80% of revenue coming from existing contracts [16][17] - **Fiscal Year 2026 Guidance**: - Projected adjusted pretax income of $725 million, an increase of $240 million from the previous year [17] - Expected adjusted free cash flow of approximately $550 million [17] - **Medium-Term Targets**: - Aiming for over $1 billion in annual cash flow and adjusted pretax income exceeding $1.2 billion by fiscal year 2028 [18][19] Market Position and Competitive Advantage - **Insulation from Macro Environment**: Kindrel's services are mission-critical and non-discretionary, providing significant insulation from macroeconomic volatility [6][11] - **Growth Drivers**: - Key themes include cloud migration, modernization, cybersecurity, AI-related services, and ERP work, particularly with SAP [9][10] - Strong demand for end-to-end solutions, enhancing customer relationships [10] Client Engagement and Market Trends - **Diverse Client Base**: Engagements vary by end market, with consistent demand for technology to drive business outcomes [12][13] - **Regulatory Impact**: Financial services are particularly affected by regulatory changes, increasing demand for security and resiliency [14][15] Consulting Services Growth - **Consulting Contribution**: - Consulting has grown from 10% to 20% of total revenue, with expectations to exceed 25% [29][34] - Projected to continue double-digit growth, contributing significantly to overall revenue growth [35] - **Tech Debt Management**: Kindrel's ability to identify and address tech debt presents ongoing opportunities for consulting services [31][32] IBM Relationship - **Vendor Relationship**: Kindrel procures approximately $2 billion in software from IBM annually, with costs previously increasing by $200 million per year [44][45] - **Cost Management**: Anticipated end of significant cost increases related to IBM, with future price increases being more manageable [45][46] Conclusion - Kindrel is positioned for sustained growth through strategic partnerships, a focus on mission-critical services, and a robust consulting practice, while effectively managing costs and navigating macroeconomic challenges.

Financial Data and Key Metrics Changes - In 2024, the company returned $1.2 billion to shareholders and achieved revenue growth of 7.5% year over year in Q1 2025, or 8.2% in constant currency [7][8] - Adjusted earnings per share increased year over year for the sixth consecutive quarter in Q1 2025 [8] - The company expects to increase shareholder returns to $1.7 billion in 2025 [21] Business Line Data and Key Metrics Changes - The company signed 29 large deals in 2024, up from 17 the previous year, indicating a strong demand for its services [7] - Client Net Promoter scores are near all-time highs, and employee engagement scores are well above global and IT industry benchmarks [10] Market Data and Key Metrics Changes - The company reported that over 72% of its global employees are based in India, which may influence operational strategies [46] Company Strategy and Development Direction - The company is focusing on AI-powered software-led engineering and has invested in platforms like NeuroSuite and FlowSource [12] - A dual transformation strategy is being pursued, emphasizing hyper productivity from AI and innovation from intelligent systems [12] - The company aims to broaden its portfolio and deepen its industry focus while fostering a culture that attracts and develops talent [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the near-term macro environment is uncertain but remains focused on building a long-term advantage [22] - The company is committed to investing in each geography based on growth needs and market conditions [48] Other Important Information - The company has launched a company-wide cost discipline initiative and modernized operations to better serve clients globally [9] - The Synapse program has trained over 400,000 individuals, with a goal of reaching 1 million [16] Q&A Session Summary Question: Will tariffs have any impact on CTSH? What percent of CTSH employees are in India? - The CFO stated that tariffs do not directly impact the services business, but there may be secondary effects on certain industries [45] - Over 72% of the company's employees are based in India [46] Question: Why did Zane Abdallah and Leo McKay receive more than 50 million against votes each in 2024? - The company does not have visibility into why shareholders vote against certain directors but noted that all directors received over 85% support [47] Question: How much investment will be in the US, and will the employee raise be better than the 1% policy from last year? - The CFO mentioned that investment decisions will be based on growth needs and market conditions, and the 2025 compensation raise approach has not yet been finalized [48][49]

Financial Data and Key Metrics Changes - The company reported revenue of $1,877 million for Q1 FY 2026, representing growth of approximately 2% year-over-year due to the ramp-up of new and existing programs [11] - Adjusted EBITDA for the quarter was $157 million, resulting in an adjusted EBITDA margin of 8.4% [11] - Adjusted diluted earnings per share were flat year-over-year at $1.92, impacted by a higher tax rate and lower adjusted EBITDA [12] - Free cash flow was negative $44 million, affected by the timing of receivables on two programs [12] Business Line Data and Key Metrics Changes - The company secured net bookings of $2,400 million for a book-to-bill ratio of 1.3, including key recompete contracts [10] - The backlog of pending awards remained steady at approximately $20,000 million, providing visibility into future bookings [10] - The company expects to achieve a trailing twelve-month book-to-bill ratio of 1.2 in the coming quarters [11] Market Data and Key Metrics Changes - The Department of Defense (DoD) is expected to see stronger budget support, particularly for the Navy, Air Force, and Space Force, while the Army may face challenges [6][7] - The company noted over $1 billion in additional budget for the Department of Transportation and over $40 billion for the Department of Homeland Security [9] Company Strategy and Development Direction - The company is pivoting its portfolio towards mission and enterprise IT, aligning with the new administration's strategic priorities [8] - The strategy includes leveraging proven expertise in mission integration and digital engineering to drive program success [8] - The company aims for sustained profitable growth and is focused on executing its strategy in the coming quarters [13] Management's Comments on Operating Environment and Future Outlook - The operating environment has stabilized, but there are still procurement delays and higher turnover rates among customers [5] - The company is cautiously optimistic about future growth, expecting to achieve revenue guidance of $7.6 billion to $7.75 billion for FY 2026 [15] - Management highlighted the importance of adapting to the evolving budget environment and maintaining a focus on contract growth [55][56] Other Important Information - The company repurchased approximately $125 million of shares in Q1 and targets annual repurchases of $350 million to $400 million [17][18] - The company is not seeing significant risks from recent DoD communications regarding contracting practices [75] Q&A Session Summary Question: Update on operating environment and budget priorities - Management noted that the operating environment has stabilized, with significant turnover in acquisition personnel affecting procurement processes [22] Question: Competitiveness in procurement environment - Management acknowledged increased competitiveness but expressed confidence in their submission pipeline and win rates [25][26] Question: Known headwinds from recompetes - The only significant known recompete headwind is the NASA program loss, which will conclude in Q3 [30][32] Question: Nature of cost overruns in space program - Management explained that cost overruns were due to challenges in the tech development phase, but they expect to recover as the program transitions to the sustainment phase [34][35] Question: Overview of end markets and opportunities - Management provided insights into the civilian and defense sectors, highlighting growth opportunities in various agencies and programs [44][46] Question: Impact of continuing resolutions on awards - Management indicated that while there are some delays, the solicitation of proposals remains robust, and they are optimistic about future awards [53][54] Question: Margin trajectory and expectations - Management expects civil margins to improve and defense margins to remain stable, with a focus on executing at higher bid thresholds [86]