Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a revenue growth of 7%, adding $5 billion in revenue, with over $80 billion in bookings [5][23] - Adjusted earnings per share (EPS) for Q4 was $3.03, reflecting a 9% growth compared to the previous year [15][24] - Free cash flow for the quarter was $3.8 billion, and for the full year, it was $10.9 billion, up 26% year over year [22][24] Business Line Data and Key Metrics Changes - Consulting revenues for Q4 were $8.8 billion, up 6% in U.S. dollars and 3% in local currency [19] - Managed services revenues for Q4 were also $8.8 billion, reflecting an 8% increase in U.S. dollars and 6% in local currency [20] - The capital projects business grew 49% year on year, reaching $1.2 billion [10] Market Data and Key Metrics Changes - Revenue growth in the Americas was 5% in local currency, driven by banking and capital markets, while EMEA saw 3% growth led by insurance and life sciences [20] - Asia Pacific revenues grew 6% in local currency, with significant contributions from banking and capital markets [21] Company Strategy and Development Direction - The company aims to be the number one partner for the tech ecosystem, with 60% of revenue coming from partnerships with top technology companies [7] - A significant investment of $3 billion in Gen AI is expected to drive future growth, with revenue from advanced AI reaching $2.7 billion in FY25 [9][10] - The company is focusing on reinvention services to streamline operations and enhance service delivery [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for FY26, citing strong bookings and a solid pipeline for large transformation deals [44] - The company anticipates revenue growth of 2% to 5% in FY26, with an estimated 1% to 1.5% impact from federal business [39][40] - Management highlighted the importance of AI in driving growth and productivity, emphasizing that AI is seen as expansionary rather than deflationary [46][47] Other Important Information - The company initiated a business optimization program with an expected total charge of approximately $865 million, aimed at talent rotation and divestiture of non-strategic acquisitions [18] - The board declared a quarterly cash dividend of $1.63 per share, a 10% increase over the previous year [41] Q&A Session Summary Question: Visibility on revenue growth and discretionary spending - Management noted strong bookings of $80.6 billion in FY25 and a solid pipeline for large transformation deals, with discretionary spending assumptions allowing for potential deterioration [44] Question: Thoughts on AI-driven productivity and potential deflationary effects - Management does not see AI as deflationary but rather as expansionary, with savings being reinvested into new priorities [46][47] Question: Balance between Gen AI and managed services - Both consulting and managed services are expected to grow in the low to mid-single-digit range in FY26, with managed services becoming increasingly strategic [52][54] Question: Details on CapEx investments - The company expects about $1 billion in CapEx for FY26, primarily for expanding real estate and leasehold improvements [57] Question: Client behavior in seeking Gen AI solutions - Many clients initially attempted to implement Gen AI independently but later sought assistance for scaling, highlighting the need for change management and process reinvention [71]

Financial Data and Key Metrics Changes - Revenue for the quarter was $16.7 billion, reflecting an 8.5% increase in local currency and a 5% increase in U.S. dollars [7][17] - Operating margin was 13.5%, a decrease of 20 basis points compared to the adjusted operating margin from the previous year [15][20] - Diluted earnings per share (EPS) were $2.82, representing a 2% growth over the adjusted EPS from the same quarter last year [21] - Free cash flow for the quarter was $2.7 billion, with a cash balance of $8.5 billion at the end of the quarter [21][22] Business Line Data and Key Metrics Changes - Consulting revenues were $8.3 billion, up 3% in U.S. dollars and 6% in local currency [17] - Managed services revenue was $8.4 billion, up 8% in U.S. dollars and 11% in local currency, driven by double-digit growth in technology managed services [18] - New bookings totaled $20.9 billion, with consulting bookings at $10.5 billion and managed services bookings at $10.4 billion [16][91] Market Data and Key Metrics Changes - In the Americas, revenues grew 11% in local currency, led by banking and capital markets, industrial, health, and consumer goods retail [18] - EMEA saw 8% growth in local currency, driven by public service and life sciences [19] - Asia Pacific revenue grew 1% in local currency, with growth in insurance and utilities, but offset by declines in chemicals and natural resources [19] Company Strategy and Development Direction - The company is focused on reinvention through Gen AI, with significant investments in technology and training [8][24] - A transformative hospitality skilling program was launched in India to prepare disadvantaged youth for jobs in the hospitality sector [8] - The company aims to maintain a diversified portfolio across markets and industries to adapt to changing market conditions [12] Management's Comments on Operating Environment and Future Outlook - Management noted an elevated level of uncertainty in the global economic and geopolitical environment, but remains confident in the fundamentals of the industry [11] - The company expects revenue growth in the range of 5% to 7% in local currency for the full fiscal year 2025 [41] - Operating margin is expected to expand by 10 to 20 basis points for the fiscal year [42] Other Important Information - The company plans to invest $2 billion to $3 billion in acquisitions during the fiscal year [42] - The effective tax rate is expected to be in the range of 22.5% to 24.5% for the fiscal year [42] - The company has been recognized as one of the world's most ethical companies for the eighteenth consecutive year [8] Q&A Session Summary Question: Can you clarify the extent of clients pausing new initiatives? - Management indicated no overall change in client activity, with some discussions about accelerating projects [46][47] Question: What was the growth rate in U.S. Federal revenue? - Specific growth rates for U.S. Federal revenue were not provided, but management expressed confidence in their positioning for larger deals [48][49] Question: How is the margin outlook changing? - The decrease in gross margin was attributed to higher subcontractor costs, but operating margin is expected to expand for the year [55][56] Question: How are budgets set and conversations changing? - Management noted that there was no significant increase in budgets, with clients continuing to prioritize larger transformation projects [65][67] Question: Can you provide insights on the slowdown in recent weeks? - Management clarified that while there is significant uncertainty, they have not seen a slowdown in business activity [81][82]

Financial Data and Key Metrics Changes - Revenue for the quarter was $16.7 billion, reflecting an 8.5% increase in local currency and a 5% increase in U.S. dollars [17][14] - Operating margin was 13.5%, a decrease of 20 basis points compared to the adjusted operating margin from the previous year [20][15] - Diluted earnings per share (EPS) were $2.82, representing a 2% growth over the adjusted EPS from the same quarter last year [21][15] - Free cash flow for the quarter was $2.7 billion, with a cash balance of $8.5 billion at the end of the quarter [21][22] Business Line Data and Key Metrics Changes - Consulting revenues were $8.3 billion, up 3% in U.S. dollars and 6% in local currency [17] - Managed services revenue was $8.4 billion, reflecting an 8% increase in U.S. dollars and 11% in local currency, driven by double-digit growth in technology managed services [18][17] - New bookings totaled $20.9 billion, with consulting bookings at $10.5 billion and managed services bookings at $10.4 billion [16][15] Market Data and Key Metrics Changes - In the Americas, revenues grew 11% in local currency, led by banking and capital markets, industrial, health, and consumer goods retail [18] - EMEA revenues increased by 8% in local currency, driven by public service, life sciences, and consumer goods [19] - Asia Pacific revenue grew 1% in local currency, with growth in insurance and utilities, partially offset by declines in chemicals and natural resources [19] Company Strategy and Development Direction - The company continues to focus on large-scale transformations for clients, with a strong emphasis on Gen AI as a catalyst for reinvention [6][23] - Significant investments were made in strategic areas, including over $250 million across six strategic acquisitions [8] - The company aims to increase its data and AI workforce to approximately 80,000 by the end of FY 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management noted an elevated level of uncertainty in the global economic and geopolitical environment, but remains confident in the fundamentals of the industry [11][12] - The company expects revenue growth in the range of 5% to 7% in local currency for the full fiscal year 2025 [39] - Operating margin is expected to expand by 10 to 20 basis points for the fiscal year [40] Other Important Information - The company has been recognized as one of the world's most ethical companies for the eighteenth consecutive year [8] - A transformative hospitality skilling program was launched in India in collaboration with Marriott International [8] Q&A Session Summary Question: Are clients hitting the pause button on new initiatives? - Management indicated that there has been no overall change in client activity, with some discussions focusing on accelerating initiatives [45][46] Question: What was the growth rate in U.S. Federal revenue? - Specific growth rates for U.S. Federal revenue were not provided, but management expressed confidence in the overall positioning of the business [47][48] Question: How is the margin outlook changing? - The decrease in gross margin was attributed to higher subcontractor costs and business optimization actions, with expectations for a slight expansion in operating margin for the year [54][55] Question: How are budgets being set in the current environment? - Management noted that there has not been a meaningful increase in budgets for services, with discretionary spending remaining constrained [64][66] Question: How is the company managing its workforce mix? - The company added over 2,000 employees in Q2 and continues to manage its supply and demand effectively, maintaining a utilization rate of 91% [92]