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]