Financial Data and Key Metrics Changes - Revenue for the first quarter reached $18.7 billion, growing 5% in local currency, with adjusted EPS growth of 10% compared to the same quarter last year [6][17][20] - Adjusted operating margin expanded by 30 basis points year over year, reaching 17% [7][17] - Free cash flow for the quarter was $1.5 billion, with a cash balance of $9.6 billion at the end of the quarter [21][22] Business Line Data and Key Metrics Changes - New bookings totaled $20.9 billion, representing 12% growth in U.S. dollars and 10% growth in local currency [16][17] - Consulting revenues were $9.4 billion, growing 4% in U.S. dollars and 3% in local currency, while managed services revenues were $9.3 billion, growing 8% in U.S. dollars and 7% in local currency [18] - Advanced AI bookings reached $2.2 billion, nearly doubling from the previous year, with revenue of approximately $1.1 billion [9][10] Market Data and Key Metrics Changes - Revenue growth in the Americas was 4% in local currency, with a 6% growth excluding federal business impacts [18][19] - EMEA saw 4% growth in local currency, driven by banking and capital markets, while Asia-Pacific experienced 9% growth, led by Japan and Australia [19] - The demand for reinvention remains strong, with 60% of revenue in Q1 coming from work with top 10 ecosystem partners [11][12] Company Strategy and Development Direction - The company aims to be the most client-focused, AI-enabled workplace, emphasizing the importance of partnerships and strategic acquisitions to enhance capabilities [5][14] - Recent acquisitions include a 65% stake in DLB Associates, expanding capabilities in the AI data center engineering market [14] - The focus is on embedding advanced AI across various solutions, moving beyond standalone projects to integrated end-to-end solutions [10][34] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are prioritizing large-scale transformational programs, with no significant changes in discretionary spending observed [24][66] - The company expects revenue growth for fiscal 2026 to be in the range of 2-5% in local currency, with an inorganic contribution of about 1.5% from acquisitions [37][39] - The outlook for adjusted diluted earnings per share for fiscal 2026 is projected to be between $13.52 and $13.90, reflecting 5-8% growth over the previous fiscal year [38][39] Other Important Information - The company recorded $308 million in business optimization costs related to employee severance, impacting operating margin and EPS [20] - The company continues to invest significantly in talent and technology, with nearly 80,000 AI and data professionals targeted [7][8] Q&A Session Summary Question: Shift in consulting industry's role in AI - Management acknowledged a shift in perception, emphasizing that enterprise AI adoption requires foundational work around data and processes [42][44] Question: Revenue impact of AI partnerships - Management indicated that partnerships are crucial for enterprise adoption and will contribute to revenue as the market evolves [50][51] Question: Sustainability of revenue per head growth - Management confirmed a 7% growth in revenue per person, driven by talent rotation, but expects moderation as new hires are integrated [52][54] Question: Discretionary spending outlook - Management stated that they are not waiting for discretionary spending to return, focusing instead on delivering results despite current market conditions [65][66] Question: Fixed-price work growth potential - Management expressed confidence in the competitive advantage of fixed-price contracts, which have increased significantly, and noted ongoing evolution in commercial models [67][68]

AeroVironment, Inc. (NASDAQ:AVAV) is one of the stocks Jim Cramer recently commented on. Cramer highlighted the company’s earnings during the episode, as he remarked: “What do we make of these numbers from AV, the old AeroVironment? The drone maker reported a mixed quarter, management cut their full-year earnings forecast. Long term, though, I think this remains a very compelling growth story.” A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels AeroVironment, Inc. (NASDA ...