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 [6][24] - Adjusted earnings per share (EPS) for Q4 was $3.03, reflecting a 9% growth compared to the previous year [18][23] - Free cash flow for Q4 was $3.8 billion, with a total of $10.9 billion for the fiscal year, marking a 26% year-over-year increase [18][25] Business Line Data and Key Metrics Changes - Consulting revenues for the year were $35.1 billion, up 6% in U.S. dollars and 5% in local currency, while managed services revenues reached $34.6 billion, up 9% in both U.S. dollars and local currency [25] - The capital projects business grew 49% year-over-year, reaching $1.2 billion, largely driven by organic growth [11] Market Data and Key Metrics Changes - Revenue growth in the Americas was 5% in local currency, with significant contributions from banking and capital markets, while EMEA and Asia Pacific saw growth rates of 3% and 6% respectively [21][22] - The company added 37 clients with quarterly bookings greater than $100 million in Q4, totaling a record of 129 such bookings for the year [10] Company Strategy and Development Direction - The company aims to be the number one partner for the tech ecosystem, with 60% of its revenue derived from partnerships with top technology companies, which grew 9% in FY 2025 [9] - A significant focus is placed on advanced AI, with a $3 billion multi-year investment leading to a tripling of revenue from Gen AI to $2.7 billion [10][11] - The company is implementing a refreshed talent strategy to upskill its workforce, with over 550,000 employees trained in Gen AI fundamentals [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for FY 2026, citing strong bookings and a solid pipeline for large transformation deals [46] - The company anticipates revenue growth of 2%-5% in local currency for FY 2026, with an estimated 1%-1.5% impact from its federal business [41][42] Other Important Information - The company initiated a business optimization program with a total expected cost of approximately $865 million, aimed at talent rotation and divestiture of non-strategic acquisitions [19] - The board declared a quarterly cash dividend of $1.63 per share, a 10% increase over the previous year, and approved an additional $5 billion for share repurchases [43] Q&A Session Summary Question: Visibility on revenue growth and discretionary spending - Management indicated strong demand for large transformation deals and a solid backlog, with guidance reflecting a range of discretionary spending scenarios [45][46] Question: Thoughts on AI-driven productivity and potential deflationary effects - Management does not view AI as deflationary but rather as expansionary, with efficiency gains being reinvested into new priorities [47][48] Question: Balance between Gen AI and managed services - Management sees both consulting and managed services growing in the low to mid-single-digit range, emphasizing the strategic importance of managed services [53][54] Question: Details on CapEx investments - The company expects about $1 billion in CapEx, primarily for expanding real estate and leasehold improvements [61][62] Question: Client behavior regarding Gen AI adoption - Many clients initially attempted to implement Gen AI independently but later sought assistance for scaling, highlighting the need for change management and process reinvention [80][81] Question: Expected savings from the business optimization program - The company anticipates over $1 billion in savings from the optimization program, which will be reinvested in the business and workforce [83]

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]