Summary of the Conference Call on India IT Services Industry Overview - The conference call focused on the **India IT Services** industry, discussing its evolution over the last two decades and analyzing key drivers of stock performance [1][3]. Core Insights - **Current Economic Cycle**: The US nominal GDP growth is expected to slow, with a weak multiplier effect due to volatile macroeconomic conditions and a technology transition cycle [6][9]. - **India IT Exports**: There is a prolonged slowdown in India IT exports, with a notable impact from the digital and cloud cycle, which experienced a temporary break due to COVID-19 [7][12]. - **Revenue Growth Trends**: Revenue growth recovery for India IT services is anticipated to be gradual, contrasting with previous cycles such as post-GFC and post-COVID-19 [12][70]. - **Market Fragmentation**: The global IT services market remains fragmented, with the top 20 vendors accounting for only about 28% of total spending [18][19]. Key Data Points - **Growth Rates**: The year-over-year growth rate for India IT/ITES exports has shown fluctuations, with a significant decline noted during macroeconomic slowdowns [7][82]. - **CIO Expectations**: According to the MS AlphaWise CIO Survey, 90% of CIOs expect stable to increased levels of IT spending over the next three years, although near-term growth expectations are lower than historical averages [84][87]. - **Revenue Composition**: The revenue mix for major players like Infosys, TCS, and Wipro shows a significant share in application implementation and managed services, indicating a shift in service offerings [96]. Additional Insights - **Global Capability Centers (GCCs)**: There has been an accelerated pace of GCC additions in India, with 120 GCCs expected to be added per year over FY24-25, reflecting the demand for low-cost tech talent [81][82]. - **Valuation Trends**: The two-year forward P/E ratios for major IT companies are currently lower than their five-year averages, indicating a cautious market outlook [97][100]. - **AI Adoption**: The adoption of AI is seen as a potential growth driver for India IT services, with expectations that it will not dilute margins but could enhance profitability depending on investment strategies [93][94]. Conclusion - The India IT Services industry is navigating a complex landscape characterized by macroeconomic challenges, evolving technology cycles, and shifting client expectations. The gradual recovery in revenue growth, coupled with the strategic adaptation of business models, positions the industry for potential long-term growth despite current headwinds [79][80].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $1,250 million, up 7% year over year, with adjusted EPS growing 11% year over year to $0.88, exceeding guidance [7][23] - Gross and adjusted operating income margins improved by 50 and 40 basis points year over year, respectively [7][22] - Operating cash flow was $177 million, down from $209 million in the prior year [23] Business Line Data and Key Metrics Changes - Advanced technology solutions revenue was $293 million, up 17% year over year, representing 23% of total revenue [20] - Core business services revenue was approximately $962 million, up 4%, primarily driven by digital operations [20] - Data, Tech, and AI accounted for 48% of total revenue, growing 10% year over year [19] Market Data and Key Metrics Changes - Revenue growth was led by High-tech and Manufacturing at 13%, followed by Financial Services at 6%, and Consumer and Healthcare at 1% [22] - Non-FTE revenue accounted for 46% of Q2 revenue, consistent with the previous year [22] Company Strategy and Development Direction - The company introduced "Genpact Next," a strategy aimed at establishing itself as a leader in advanced technology solutions, focusing on capabilities, clients, and catalysts for growth [8] - Partnerships contributed significantly to growth, with partner-related revenues growing over 70% year over year, representing 10% of total revenue [15] Management's Comments on Operating Environment and Future Outlook - Management raised full-year revenue guidance to 4% to 6% growth, up from 2% to 5%, and adjusted operating income margin expectations to 17.4% [17][24] - The company is excited about its future as it transitions to an AI-first model, leveraging advanced technology solutions to enhance its competitive position [18][92] Other Important Information - The company closed four large deals in Q2, with a strong pipeline for future growth [21] - The AI Gigafactory is operational across all verticals, with over 45 clients onboarded and more than 270 GenAI solutions in production [11] Q&A Session Summary Question: Insights on pipeline conversion and new bookings - Management noted that inflow and conversion remain healthy, with several large deals closed in Q2 and ongoing discussions for others [32][33] Question: Impact of Gen AI on traditional contracting - Management indicated that Gen AI is a tailwind for the business, with incremental revenue from expanded scope and new clients [34][36] Question: Advanced technology solutions pipeline and project length - The pipeline for advanced technology solutions is growing rapidly, with faster conversion rates and a significant portion being amortized and non-FTE [42][43] Question: Growth rates across segments - Management reported strong growth across all segments, with high-tech and manufacturing leading at 13% [45] Question: Sequential trends and guidance implications - Management expressed confidence in achieving the full-year guidance, emphasizing a strong pipeline and execution [51][52] Question: AI adoption across processes and verticals - AI adoption is broad-based across sectors, with strong demand from both existing and new clients [69] Question: Pricing environment and irrational pricing behavior - Management did not observe any irrational pricing behavior, noting a shift towards value-focused pricing models [70][71] Question: Midterm growth targets and pipeline confidence - Management remains confident in achieving midterm growth targets, citing a healthy pipeline and strong execution [78][79] Question: Convergence of IT services and BPO due to AI - Management acknowledged a convergence in client needs, focusing on value delivery rather than traditional service categories [81][82]

Core Insights - Atos has been recognized as a Leader in ISG's Provider Lens™ Mainframes – Services and Solutions for the fourth consecutive year, highlighting its expertise and operational excellence in the market [1][2] Group 1: Market Position and Recognition - Atos has been named a Leader in four quadrants: Mainframe Optimization Services, Application Modernization Services, Mainframe as a Service (MFaaS), and Mainframe Operations, reinforcing its strong market presence [1][2] - ISG elevated Atos from a Product Challenger to a Leader in the Mainframe Optimization Services quadrant, emphasizing its decades of mainframe experience and innovative AI modernization capabilities [3] Group 2: Service Offerings - In the Application Modernization Services quadrant, Atos is recognized for its risk-averse modernization approach and secure migration framework, integrating GenAI into its modernization efforts [4] - Atos stands out in the MFaaS quadrant for its tailored migration strategies and hybrid environment support, leveraging decades of IBM expertise [5] - In the Mainframe Operations quadrant, Atos is noted for its comprehensive operations services, focusing on automation and cost efficiency [6] Group 3: Company Overview - Atos Group operates globally with approximately 70,000 employees and annual revenue of around €10 billion, positioning itself as a leader in digital transformation [8] - The company is committed to a secure and decarbonized future, providing AI-powered, end-to-end solutions across various industries [9]

Core Insights - Atos has been recognized as a Leader in ISG's Provider Lens™ Mainframes – Services and Solutions in Europe for the fourth consecutive year, reinforcing its strong market position and expertise in mainframe services [1][2] Group 1: Market Position and Recognition - Atos has been named a Leader in four quadrants: Mainframe Optimization Services, Application Modernization Services, Mainframe as a Service (MFaaS), and Mainframe Operations, showcasing its comprehensive service offerings [1][2] - ISG has elevated Atos from a Product Challenger to a Leader in the Mainframe Optimization Services quadrant, highlighting its decades of mainframe experience and innovative AI modernization capabilities [3] Group 2: Service Offerings - In the Application Modernization Services quadrant, Atos is recognized for its risk-averse modernization approach and secure migration framework, integrating GenAI into its modernization efforts [4] - Atos stands out in the MFaaS quadrant for its tailored migration strategies and hybrid environment support, combining IBM expertise with cloud-aligned scalability [5] - The Mainframe Operations quadrant assessment emphasizes Atos' focus on automation, cost efficiency, and hybrid IT integration in its operations services [6] Group 3: Company Background - Atos Group operates globally with approximately 70,000 employees and annual revenue of around €10 billion, positioning itself as a leader in digital transformation and cybersecurity [8][9] - The company is committed to a secure and decarbonized future, providing AI-powered, end-to-end solutions across various industries [9][10]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenue of $1.353 billion, representing an 18% year-over-year increase on a reported basis, surpassing the upper end of the revenue outlook [32] - Organic constant currency revenue growth was 5.3%, marking the third consecutive quarter of positive organic growth [32][34] - GAAP gross margin for the quarter was 28.8%, down from 29.3% in Q2 of the previous year, while non-GAAP gross margin was 30.1%, compared to 30.8% [37] - GAAP income from operations was $126 million, or 9.3% of revenue, compared to $121 million, or 10.5% of revenue in Q2 of the previous year [38] - Non-GAAP diluted EPS was $2.77, reflecting a $0.32 increase year-over-year [38] Business Line Data and Key Metrics Changes - Financial Services vertical grew 34.4% year-over-year, with 6.5% organic growth in constant currency, driven by strength in banking and insurance [34] - Software and high-tech vertical increased by 21.2% year-over-year, supported by strong execution and improvements across existing clients [34] - Life Sciences and Healthcare vertical saw an 11.7% year-over-year increase, primarily driven by clients in life sciences and med tech [34] - Emerging verticals delivered strong growth of 28.7%, positively impacted by recent acquisitions [35] Market Data and Key Metrics Changes - The Americas, representing 59% of Q2 revenues, grew 15.9% year-over-year, with 3.8% organic growth in constant currency [36] - EMEA, comprising 39% of Q2 revenues, increased 21.7% year-over-year, reflecting 7.6% organic growth [36] - APAC, making up 2% of revenues, grew 13% year-over-year, with 8.3% organic growth [36] Company Strategy and Development Direction - The company is focused on AI-native services, combining engineering and consulting strengths to drive sustainable growth [5][11] - Investments in domain expertise and AI-enabled delivery are aimed at retaining and expanding client relationships [11][17] - The company is scaling and optimizing global delivery hubs to enhance talent and operational efficiency [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing demand conditions and improving growth trends, despite a complex macroeconomic environment [9][10] - The company anticipates continued differentiation in AI-native services and cloud modernization as key growth drivers [30] - Management is raising the bottom end of the range for full-year organic constant currency revenue growth due to strong H1 performance [44] Other Important Information - The CEO transition plan is on track, with the current CEO transitioning to the role of executive chairman [20] - The company has made strategic investments in key solution areas, including generative AI and cybersecurity [27] Q&A Session Summary Question: Workforce and Talent Addition - The company continues to hire to support revenue growth while being more thoughtful about bench optimization, leading to improved utilization [56] Question: Discretionary Spending Recovery - Clients are returning to discretionary spending due to regulatory requirements and the need for AI adoption, which aligns with the company's strengths [60] Question: Q4 Activity and Assumptions - The midpoint of the revenue growth range requires achieving the midpoint of the Q3 guide, with potential for sequential growth depending on demand [64][66] Question: New Discretionary Transformation Programs - The company is seeing incremental increases in discretionary spending, particularly in AI-driven projects, which is different from peers facing challenges [68] Question: Employee Upskilling Progress - The company launched an AI upskilling program with over 80% employee participation, focusing on continuous improvement and certification [73] Question: Margin and Profitability Outlook - The company aims to exit the year with improved utilization and profitability, focusing on appropriate pricing and deal selection [82]

Financial Data and Key Metrics Changes - In Q2 2025, EPAM generated revenue of $1.353 billion, an 18% year-over-year increase, surpassing the upper end of the revenue outlook [31] - Organic constant currency revenue grew 5.3% compared to Q2 2024, marking the third consecutive quarter of positive organic growth [31][32] - GAAP gross margin for the quarter was 28.8%, down from 29.3% in Q2 of the previous year, while non-GAAP gross margin was 30.1%, compared to 30.8% [37] - GAAP income from operations was $126 million, or 9.3% of revenue, compared to $121 million, or 10.5% of revenue in Q2 of last year [38] - Non-GAAP diluted EPS was $2.77, reflecting a $0.32 increase year-over-year [38] Business Line Data and Key Metrics Changes - Financial Services grew 34.4% year-over-year, with 6.5% organic growth in constant currency, driven by strength in banking and insurance [33] - Software and high-tech increased by 21.2% year-over-year, while Life Sciences and Healthcare grew 11.7% [33] - Emerging verticals delivered strong growth of 28.7% year-over-year, positively impacted by recent acquisitions [35] - Consumer Goods, Retail, and Travel showed 6.2% year-over-year growth, indicating improvement [34] Market Data and Key Metrics Changes - The Americas, representing 59% of Q2 revenues, grew 15.9% year-over-year, while EMEA increased by 21.7% [36] - APAC, making up 2% of revenues, saw a 13% year-over-year increase [36] - Revenues from the top 20 clients grew 8.8% year-over-year, while revenues from clients outside the top 20 increased by 23% [36] Company Strategy and Development Direction - The company is focused on AI-native services and core engineering strengths, positioning itself for sustainable growth [6][10] - EPAM is expanding its market-leading position as an AI-native transformation company, with significant investments in AI capabilities [12][13] - The company is optimizing its global delivery hubs to provide scalable options and enhance talent capabilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization and potential improvement in demand conditions, despite a complex macroeconomic backdrop [7][9] - The company anticipates further improvement in organic constant currency growth rates in Q3 and is raising the bottom end of the revenue growth range for 2025 [42][44] - Management highlighted the importance of quality execution and strategic efficiency for clients, which aligns with EPAM's strengths [10][21] Other Important Information - The CEO transition plan is on track, with the current CEO transitioning to the role of executive chairman [19] - The company has made strategic acquisitions to enhance capabilities in regulated industries and cloud-native engineering [26] Q&A Session Summary Question: Workforce and Talent Addition - Management acknowledged the balance between hiring new talent and optimizing existing resources, indicating a thoughtful approach to bench management [55][57] Question: Client Discretionary Spending - Management noted that clients are returning to discretionary spending due to regulatory requirements and the need for AI adoption, which aligns with EPAM's strengths [59][61] Question: Q4 Activity and Outlook - Management provided insights on the range of Q4 activity, indicating that achieving the midpoint of the guidance requires stable demand and seasonal adjustments [66][68] Question: New Discretionary Transformation Programs - Management highlighted that EPAM is seeing incremental increases in discretionary transformation programs, particularly in AI-driven initiatives [69] Question: Employee Upskilling Progress - Management reported that over 80% of employees have undergone AI upskilling, with ongoing efforts to enhance capabilities across the organization [75][76] Question: Margin and Profitability Outlook - Management indicated a focus on improving utilization and profitability, with expectations to exit the year with better margins compared to previous periods [78][84]

Group 1 - The successful development of a 6mm thick rare earth permanent magnet motor marks a significant advancement in China's high-end rare earth permanent magnet motor research and industrialization, opening new avenues for global competition [2] - The "Xingchen No. 1" chip, developed by Hubei Chipking Technology Co., is set for large-scale deployment in vehicles next year, filling a gap in domestic high-performance smart driving chips and has already attracted attention from major automotive manufacturers [2] - Samsung has decided to extend the production of DDR4 1z DRAM until December 2026, reversing its previous plan to cease production this year, which indicates a strategic shift in its product lifecycle management [2] - LG CNS will build its first overseas artificial intelligence data center in Jakarta, Indonesia, with an investment of 100 billion KRW (approximately 72 million USD), marking a significant step for Korean companies in the AI sector [2]

Core Insights - CDW Corporation reported second-quarter 2025 non-GAAP EPS of $2.60, exceeding the Zacks Consensus Estimate of $2.49, with a year-over-year increase of 3.9% [1][9] - Net sales for the quarter reached $5.98 billion, reflecting a solid 10.2% year-over-year growth, with a 9.8% increase on a constant currency basis [2][9] Financial Performance - The Corporate segment's net sales were $2.6 billion, up 17.6% year-over-year, while the Small Business segment reported $431 million in net sales, a 12.6% increase [7] - The Public segment generated $2.3 billion in revenues, representing a 2.2% growth, driven by a 24.1% increase in Healthcare and a 2.7% increase in Government, offset by a 10.9% decline in Education [7] - Gross profit grew 4.9% year-over-year to $1.24 billion, but gross margin declined from 21.8% to 20.8% due to pricing pressures [11] - Non-GAAP operating income increased 1.8% year-over-year to $519.7 million, with non-GAAP operating margin falling to 8.7% from 9.4% [11] Market Dynamics - Growth was supported by strong demand in IT lifecycle services, device refresh cycles, and international markets [9] - CDW's customer-focused approach and extensive product portfolio are crucial for addressing complex technology needs across the IT stack [4] Future Outlook - CDW aims to outpace U.S. IT market growth by 200–300 basis points on a constant currency basis, focusing on trends like cloud modernization and cybersecurity [5] - The company announced a quarterly dividend of 62.5 cents, payable on September 10, 2025 [5] Share Performance - Following strong demand across core commercial and international markets, CDW's shares rose 4.3% in pre-market trading on August 6 [6] - Over the past year, CDW's shares have declined by 21%, compared to a 3.1% decline in the Zacks Computers-IT Services industry [6] Balance Sheet and Cash Flow - As of June 30, 2025, CDW had $481 million in cash and cash equivalents, with long-term debt remaining at $5.623 billion [13] - For the first half of 2025, CDW generated $443.1 million in cash flow from operating activities, down from $589.9 million a year ago [13]

Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my investment decisions. My hands-on experience shaped deep understanding of risk, reward and the delicate balance between these two variables. Driven by a desire to share my insights and contribute to the inv ...

Core Insights - Kyndryl has expanded its global strategic alliance with HPE to enhance customer adoption of HPE Private Cloud AI, a co-developed solution with NVIDIA [1][3] - The collaboration aims to provide seamless AI private cloud services and accelerators, facilitating the development, implementation, and scaling of AI solutions [2][3] Company Collaboration - Kyndryl Consult will leverage HPE's observability, automation, and unified control plane solutions to improve the deployment and management of AI workloads [2][3] - The partnership is designed to empower customers to maximize their AI strategies in a secure and scalable manner [3] Industry Applications - The collaboration will support various AI private cloud use cases across industries, including healthcare and financial services [4][6] - In healthcare, Kyndryl's AI services will enhance the handling of sensitive patient data and improve diagnostics and operational efficiency [6] - In financial services, the combined offerings will help organizations meet data security requirements and automate processes within compliance-rich environments [6]