Bryan Bergin

Julie said the guide assumes more of the same on budgets, with client budget cycles only starting; falling token costs seen as a longer-term demand tailwind. Direct.

Julie said it will be a mix. Non-FTE models work for solving new bespoke problems in mission-critical areas requiring deep domain knowledge. Delivery overall is changing with more technology and cross-functional teams.

Angie said record $5.2B YTD free cash flow driven by operational efficiencies and DSO improvement of 2 days versus prior year. 1.3x free cash flow to net income ratio.

Angie said 2-5% reflects their best view with three quarters remaining. Strong bookings and backlog visible but maintaining range. Federal came in better than anticipated.

Julie positioned Sora as a productivity tool ACN helps clients embrace. Song is critical because you can't cut your way to growth. Clients need new experiences, not just tools.

Julie confirmed many clients start AI internally but cannot scale. The barrier is not technology but process reinvention, change management, and organizational rewiring.

Angie said over $1B in savings expected, which will be reinvested in business and people while still delivering modest margin expansion.

Julie declined to project Federal impact beyond Q4, saying it is too early. Providing data as they see it but not making forward assumptions.

Julie emphasized the growth model change is growth-driven, not cost-driven. Cited 9% CAGR from 2013-2019 digital model and 10% CAGR from 2020-2025 scaling model as precedents.

Angie said sub-contractor mix fluctuates by quarter and client work. Added 2,000+ people in Q2, utilization at 91%, exactly the target range.

Julie noted elevated uncertainty was only last few weeks with no impact on bookings. Angie highlighted 32 clients over $100M and strong 1.3 book-to-bill.

All service lines were strong. Angie detailed mid-single-digit consulting and 11% managed services growth, with full-year consulting mid-single and managed services mid-to-high.

Angie said no change in wage inflation dynamics, with focus on market-relevant pay, pricing discipline, differentiation, and cost/delivery efficiencies.

Peterson framed the FCF miss as timing (client payments slipped 2 days into Q3) plus higher DSO, and reiterated confidence in an 80-90% conversion range beyond 2026.

Fejes tied the reduced outlook to a July shift in client spend from task-based services to AI modernization, concentrated in North America SaaS/Hi-Tech clients, plus a self-owned go-to-market gap.

CEO described following established playbook of internal development then rapid certification pivot. Over 1,400 certified Claude architects as of call date, targeting 5,000 by Q3 and 10,000 by year-end. Will go to market together with Anthropic on applied AI solutions.

CFO confirmed it's a handful of customers with delayed decision-making, visible more so in April and May. CEO added close to 10 unusually large opportunities being targeted but not assuming geopolitical environment changes. Pipeline of large vendor consolidation deals provides confidence for H2.

CFO noted vacation-adjusted utilization improved Q3-to-Q4 with lower bench. Better cost outcomes and execution in Western/Central Asia, Eastern Europe and India with improving profitability in each growing geography. CEO added ongoing pyramid optimization with junior onboarding started in Q4 2025.

CFO confirmed NEORIS customer impact is approximately 100bps for both Q1 and full year 2026. Fewer bill days Q4-to-Q1 partially offset by lower vacation. Ex-NEORIS customer, organic CC growth would be 100bps higher.

CFO detailed seasonal impacts (fewer bill days, vacation, furloughs) producing tens of millions headwind Q3-to-Q4. Sequential growth rate surprisingly consistent after adjustments. High end of Q4 guide would be about 5% organic CC growth.

Incoming CEO explained clients can no longer suspend discretionary spend due to regulatory requirements and AI adoption needs. Data infrastructure modernization playing to EPAM's sweet spot.

CFO explained focus on bench optimization driving utilization improvement. Expects greater net additions in Q3 and Q4 as company prepares for 2026.

CEO shared strong double-digit QoQ AI revenue growth from Q1 to Q2 but did not provide absolute bookings figures.

CFO confirmed solid Q3 book of business with possible Q4 softness. CEO noted H2 projection unchanged from prior quarter.

CFO showed the revenue beat was in standalone business, with strength in November and December. CEO noted new and returning clients.

CFO confirmed target of returning to 16%+ adjusted IFO, with improvement expected in H2 2025.

Pressed on agentic/AI monetization and how model costs and tokenomics shape contracting; Dines emphasized customer appetite for a platform combining intelligence with deterministic exactness.

Asked to break down the net-new-ARR improvement and AI contribution; Gupta declined a product-level split but said AI raises deal ROI and size, deferring guidance detail to Ramani.

Direct: Ashim said the environment stayed relatively stable, pipeline health and conversion are strong, and called variability the new normal.

Partial: declined to size AI product ARR this quarter, pointing instead to the 16-of-20 top-deal AI attach as a momentum proxy.

Ashim said FX is a minimal impact versus prior estimates (yen headwind, euro tailwind net out) and expansion is stabilizing net new ARR.

Management stated no direct shutdown impact; federal projects are funded through the bills and many are critical operations like the Department of Defense.

Daniel confirmed strong agentic momentum and platform pull-through but did not reconcile the 950 vs prior ~450 figure; called highest-ROI use cases customer-specific.

Dines cited 450 customers actively building agents to deploy in production and said agentic deals uncover more automation opportunities and larger combined deals.

Gupta said net retention is stabilizing and pointed to the guide but declined to commit to out-quarters beyond a prudent macro assumption.

Ashim attributed the revised linearity to a favorable shift in deal mix, especially larger deals driving revenue recognition timing.

Gupta pointed to more pronounced first-half pressure and a stronger second half, citing healthcare and financial services strength, but gave no specific trough figure.

Management declined to break out federal specifically but confirmed public sector is the third largest vertical, with procurement moratoriums slowing deals during the transition.

Ashim said streamlining is largely complete and focus has shifted to prioritizing spend by ROI and enabling the sales team on agentic.

Ferris said AI is at early innings but already driving productivity - 1.5-2x engineering throughput, 70% fewer manual tickets - and better client experience.

Kehoe tied the 4Q acceleration to lapping the UBS/Credit Suisse attrition and contribution from sales sold earlier in the year, with good line of sight.

Ferris described pricing as stable, with the strategy focused on adding products (digital, payments, agents) rather than raising prices.

James outlined four building blocks: capital intensity declining from 9.3% to 8% long-term; continued working capital optimization; the biggest driver being reduction in one-time costs, ~$200M credit issuer integration costs in 2026 that go away by 2028; and declining FIS transformation expenses. Core margins expanding ~80bps on base business.

Stephanie said clients are very positive about the Issuer acquisition. Plans to enable cross-sell products immediately at close. Cited excitement about the combined data advantage, seeing credit, debit across all cores, for AI-powered capabilities like Agentic commerce.

Stephanie confirmed loan syndication rebound on track. Private credit demand remains strong across nontraditional markets. Overall strength in all non-traditionals with FIS capabilities enabled for both traditional and nontraditional.

Stephanie characterized lending weakness as temporary and macro-driven, with strong recovery in July and August back to first-quarter levels. Gives confidence in Q3-Q4 recurring growth returning to 6% range.

James clarified no effective tax rate impact, only cash timing. May provide slight relief this year against ~$100M higher cash taxes in 2025. Broadly neutral by 2027. Confirming 12% ETR for the year.

Stephanie highlighted non-traditional wins in private credit and hedge funds, plus traditional strength in trading/processing. Acquisitions like Demica and Torstone driving increased pipeline.

James explained improvement from 18% to 71%: roughly half from lapping a bad Q1 2024 and half from initiatives (top-50 vendors moved toward 90-day terms, tighter governance). CapEx expected to stay at ~8% even with TSYS due to their modernization program.

Peter confirmed PPC improvement was broad-based across industry groups and client segments. Their base proves more resilient than wider small business market. Decided not to adjust guidance as they are around the half percent rounding point.

Peter said revenue mix hasn't really changed as large international deals take time to convert to revenue. Maria noted enterprise and international were larger contributors to Q2 bookings than in previous quarters but acknowledged the lumpy nature.

Maria provided thorough segment-by-segment attribution, explaining HRO softness was from delayed decisions on large complex deals, not lost to competitors, with pipeline still active and up year-on-year.

Maria cited product maturity (Next Gen, WorkForce Software), seller investments (headcount, technology, Zone AI portal), and partnerships. Declined to comment on July, saying it was too early at July 30th.

Don emphasized ADP's resilience: nondiscretionary business, slow macro pass-through taking several quarters, natural self-correcting levers (commissions, implementation pace, R&D focus). Deferred 2026 details to June 12 Investor Day.

Don confirmed PPC still at 1% with no specific industry tariff impact visible; noted this is below normal 2-3% pre-pandemic range but still positive growth with no month-to-month deterioration called out.

Don highlighted FX headwinds and Q3 short-term rate impact on client funds as key drags; Q3 has largest short portfolio with rates down 100 bps YoY before Q4 rebound.

Maria reported strength across all segments; down-market still hiring/buying, mid-market strength in HR outsourcing, upmarket pipelines healthy. Too early to call demand changes from new administration but change is good for ADP compliance business.

Direct. Dalal gave the 50/50 split, typical 24-36 month fixed-price contract lengths, and said Cognizant is roughly halfway through the embedding cycle.

Direct. Dalal quantified Q2 charges, confirmed savings are baked into guidance, and said the remainder spreads evenly across Q3 and Q4.

Jatin noted Q4 ACV softness driven by industry dynamic of smaller deals bundling into large consolidated contracts, not a growth challenge. SG&A remains area of focus with additional AI deployment opportunity in corporate functions for 2026.

Ravi noted limited Medicaid/Medicare exposure with strength in commercial healthcare. Life Sciences spending more on innovation. Won $1B mega deal in healthcare for AI productivity.

Ravi sees BPO convergence with AI as opportunity to capture new labor pools. Announced AI Data Training Services for Global 2000 clients leveraging 10,000+ existing specialists.

Management described all-round organic growth across Healthcare, Financial Services, CMT, and P&R with Belcan strengthening manufacturing.

Ravi confirmed rhythm established, citing ACV improvement, higher win rates, and deal spread across services and geographies.