Jason Kupferberg

Bob expressed confidence, saying the back half only needs revenue growth in line with the last two quarters (both ~6%) to reach the guide midpoint.

Schrader said organic 7-8% plus the historical 1-2% from M&A supports the upper-single-digit target; answered directly.

Management addressed Management Solutions organic growth acceleration and EPS guidance conservatism.

Follow-up on Management Solutions organic growth acceleration and EPS guidance conservatism.

Schrader: expects modest MS organic acceleration toward 5% range over time. Back half of this year will show some improvement from revenue synergies building and easier compares. Not ready to commit to long-term post-anniversary rate until integration further along.

Schrader: 3pp acceleration already demonstrated Q1-to-Q2 (from 3% to 6%). January enrollment anniversary will provide another comparable tailwind. PEO itself grew high single digits (agency is the drag). Double-digit demand and strong retention continuing. Combination of easier comps and strong execution.

Follow-up on Management Solutions organic outlook and macro assumptions.

Management addressed Management Solutions organic outlook and macro assumptions.

Schrader confirmed Q3 math and noted Q3 had year-end processing discounting tailwind that won't repeat. Q4 headwinds: checks per client assumed to continue Q3 trends, and 401k asset balances impacted by recent market decline.

Gibson deferred revenue synergy quantification to Q4 call. Said focus has been on customers, partners, and employees first, now pivoting toward growth planning post-close.

Gibson described largest M&A pipeline in recent history with more rational valuations. No M&A assumed in FY25 guide. Multiple targets approaching Paychex proactively.

Gibson said no competitive changes expected. Focus on advertising award-winning products (HR analytics Premium Plus, Recruiting Copilot, Perks). Market remains rational.

Schrader declined to give MS-specific quarterly guide but reiterated that ex-ERTC growth gating is consistent quarter-to-quarter. No true acceleration assumed.

Angie quantified the Middle East at roughly $1 billion annualized and said continued pressure is baked into the guidance range. Direct.

Angie attributed the consulting softness to the $100 million Middle East impact and expects a Q4 tick up.

Julie said AI permeates everything now. Key metrics: market share gains, overall growth, ecosystem partner revenue growth outpacing total, emerging partner bookings doubling, and client AI initiation rate.

Angie said 3-5% is best view. Record $22B bookings, third consecutive quarter of $20B+. They aim for the top. Will anniversary AFS headwind in Q4 and expect Federal to grow then.

Angie said revenue per person grew 7% driven by talent rotation. Expect it to moderate as new hiring comes in. Julie added the breakage goes back to RPA introduction and will continue.

Julie redirected from specific partnership revenue timing to overall market adoption pace. Said expectations are reflected in guidance. Can scale as fast as needed.

Julie said ACN does sophisticated integration not greenfield code, so simple code metrics don't apply. They look at AI usage across the full lifecycle and manage it like prior technology waves.

Angie noted bookings can be lumpy and pointed to the trailing 12-month consulting book-to-bill of 1.1 as the relevant metric.

Management clearly stated no pauses seen. Julie added clients are discussing accelerating cost programs, not pausing.

Angie declined to give quarterly federal revenue growth, redirecting to full-year organic outlook of 2-4%. Consulting mid-single-digit, managed services high-single-digit.

Angie noted 24K adds concentrated in India with 90% utilization. Julie added organic momentum with 1-4% organic growth range at high end of guidance.

Angie confirmed no change in consulting assumptions, top end still assumes more of the same macro, bottom allows for some deterioration.

Kehoe attributed the miss predominantly to lower first-half ACV sales, which convert at ~75% in-year, plus some backlog-conversion timing slippage.

Management declined to guide Payments specifically but said it should continue at similar mid-single-digit levels and outpace Banking.

Ferris did not disclose specific economics, saying agent pricing is still being worked out, though confirmed FIS owns the agents.

Kehoe noted banking's 10% was boosted by license revenue and that payments will outpace banking on recurring growth longer term.

Stephanie attributed broad-based demand across core, digital, payments, and lending products. Key drivers: reenergized sales engine, higher renewal rates, buy-build-partner strategy delivering strong organic products like Money Movement Hub, and acquired capabilities like Amount for digital account opening.

James noted banking clearly outperforming on organic basis (recurring ~4.5%+), capital markets slightly lighter due to fewer tack-on acquisitions post-credit issuer close. Emphasized quality shift: above 80% recurring, greater tilt to payments, digital, and core.

Stephanie acknowledged FIS is ahead of Investor Day banking targets organically and with M&A, but not ready to raise midterm guide. Cited commercial excellence, strong end markets, and large-scale M&A as multifactor drivers.

James emphasized 150bps banking acceleration is from prior-year ACV sales (up 11-12%) and high 90s retention rates, not new selling. Called conviction extremely high since it's all already sold.

Stephanie cited favorable revenue mix from higher-margin products, accelerating cost programs (running ahead of 175bps annual target), and easier comps. James confirmed visibility is excellent.

James confirmed recurring will grow slightly ahead of adjusted revenue. Worldpay revenue expected slightly below $140M in 2025, creating a 20-30bps headwind vs tailwind in 2024.

James explained the gap: M&A contribution at 140bps vs 150-200bps Investor Day target, plus Q4 2024 license outperformance raised the base year by ~40bps. Called it predictable 7% growth.

Greg said average asset size was on par year-over-year because credit union wins were smaller but bought trifectas. He emphasized 45 multi-billion wins over three years (~$100 billion in assets) versus 15 (~$26 billion) prior, and now 52 clients over $5 billion in assets.

Greg deferred specifics to the September Investor Day, reiterating that FY2027 should look similar to FY2026 with possible upside, and said the company remains very bullish on FY2028.

Mimi declined to quantify the medical benefit specifically but said it was a savings not expected to continue in H2. Margin expansion was front-end heavy from cost savings and timing. H2 will see higher commissions, cloud infrastructure costs, and benefits normalization. Proud of 3-year compounding margin expansion trajectory.

Mimi said H1 outperformance driven by better-than-expected card. Payments expected to slow modestly in H2 from seasonality and comps. Complementary strong from Financial Crimes Defender, treasury management and digital. Core benefited from convert-merge and one-time items not expected to repeat at same pace in H2.

Mimi expressed comfort with ~10% key revenue growth sustaining, citing digital, cloud migration, and new product trends as long-term sustainable drivers. Nonkey revenue contracting 2% is the headwind.

Mimi declined FY26 specifics citing active budget cycle. Noted sales pipeline remains robust with no elongation of sales cycle. Previewed that FY26 revenue guide width will likely expand.

Greg confirmed 75% private cloud penetration, on pace for 40-45 migrations this year. Several more years of runway, with a large long-term holdout planning to move in 2026.

Mimi expressed confidence in 65-75% range, said H2 will continue strength seen in H1. Noted further improvement potential in future years.

Greg confirmed 50-55 target on track, pipeline at all-time high, already tracking well on >$1B wins.

Mimi detailed H2 drivers: hardware comp easing, cloud growth continuation, faster payments ramping, card pickup, new products like Defender, and prior year sales implementations.

CEO revealed close to 10 large vendor consolidation opportunities, all non-T&M with different commercial models combining AI and tokens. Size outside EPAM's historical norm. CFO confirmed only a small risk-adjusted subset is captured in guidance, not assuming wins on all opportunities.

CFO described typical Q2-to-Q3 seasonal uplift from additional bill days plus some deals beginning to ramp. Higher H2 growth rate driven by opportunities within line of sight. CEO confirmed deals known to start in Q3 plus pipeline targeting close and ramp in Q3 and Q4.

CEO explained sales cycle elongation is structural as AI programs get larger with more formal procurement, not a demand issue. Affects shape of year (Q1 softer) not full-year guide. Confirmed these dynamics did not impact how they guided the full year.

CFO expects FCF conversion to normalize back to 80-90% range after exceeding in 2025. Gross margin improvement expected from better execution in expanding geographies, India profitability expansion, and modest price improvement. SG&A savings recycled into business development investments.

CFO explained Q4 deceleration primarily due to absence of excess budget release seen in prior year Q4. Demand remains broad-based. CEO stated organic growth rate will be higher in 2026 than 2025 with pipeline building very nicely.

CFO clarified some QoQ growth was from additional month of NEORIS/FD. Banking is the biggest area of organic improvement.

CEO explained returning work is broadly distributed across Eastern Europe, India, and Western Central Asia rather than reverting to original locations.

CFO noted wage pressure is concentrated in delivery locations outside US and Europe, but declined to name specific countries.

CEO described qualitative improvement in discretionary spending and linked high-end guidance to pricing improvement. Did not quantify.

Cameron declined to parse Q3 vs Q4 tightly but said Q4 should be marginally better than Q3, driven by sales-force productivity ramp, Genius progress contributing more to revenue, and enterprise signed-but-not-live boarding (about 1/3 went live in Q2, examples Aldi, Morrisons, Careem). He confirmed the Q2 Middle East impact ran closer to 100bp vs the ~70bp signaled in Q1 (which had presupposed a faster end), partly offset by World Cup volumes; H2 guide allows for a range of Middle East outcomes.

Josh pointed to $600M of onetime integration costs matching synergies, with ~$300M incurred in H1 2026 and ~$100M more expected (including separation costs), tailing into 2028; declined a specific 2027 GAAP FCF range but reaffirmed confidence in reaching 3x leverage and committed capital returns. Cameron added they are pulling forward Worldpay separation work from FIS into 2026 (raising this year's costs but offsetting the tax gain on the Issuer sale), with costs drifting down into 2027-2028.

Josh reiterated $4B+ FCF in 2027 and $5B in 2028 adjusted, noted GAAP FCF will improve as one-time integration costs come down. Cameron on conservatism: prudent approach given businesses just combining, focused on right-footing integration and go-to-market channel realignment, expects exiting above 5% growth sets up well for 2027-2028 medium-term trajectory.

Cameron cited 20% QoQ new location growth, 37% increase since June launch, ARR up ~75%, and deal size 50%+ higher. Bob explained wins vary by geography, head-to-head competitive in U.S., net new POS adoption internationally; challenge is mind share not product. Cameron confirmed pricing environment constructive with no unusual actions.

Cameron and Bob clearly explained front-book focus near-term, back-book migration at customer's own pace with no forced conversions; Bob emphasized Genius provides only upside for existing customers.

Cameron confirmed purely organic Worldpay growth. Josh quantified buybacks: well over $2 billion in 2026, over $3 billion in 2027, with 10% increase vs standalone plan.

Josh clearly quantified ~50bp from takepayments (anniversaries Q2) and de minimis from ZMS orchestration acquisition.

Josh provided clear SBC figure of ~$170M for modeling, confirmed 10-11% cc EPS growth and 175bp FX headwind.