Cognizant Technology Solutions (CTSH) 31 Jul 242024 Q2 Earnings call transcript

Ladies and gentlemen, welcome to the Cognizant Technology Solutions Second Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Tyler Scott, Vice President, Investor Relations. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. have investor copy second supplement results. should release the quarter you the and for now, received of a earnings XXXX By the company's

you Officer. Ravi Kumar, our Executive Officer; available we If Dalal, on Chief copies Chief Jatin The Financial have are cognizant.com. speakers on call today's and not, have website, are

These the the on today's statements. call Before we to are like contain made would statements your remind you may some release the the comments uncertainties of responses other to begin, I that to questions SEC. some the filings with risks of described as subject and and company's forward-looking and earnings in

Reconciliations call we company's measures, the now where of financial today, our GAAP SEC. With provide will appropriate, measures to go during the I'd turn believe certain Please can the to information the that useful filings in corresponding be found non-GAAP other with Ravi. that, investors. call to ahead. over non-GAAP Additionally, provide measures, earnings financial we our and release like for

Belcan, and total acquire value the high-growth $XXX to million into of quarter-over-quarter and and defense ER&D Tyler, and good XXXX is margin, year-over-year, each a for our both quarter market. an capabilities sustained remains sectors. our second expand large pleased in revenue you, call. delivered our operating agreement deal contract the diversifying deals with high or momentum results by our Thank above of guidance everyone. We expected aerospace range, I'm and our signing our earnings a while X announced joining with challenging you what end adjusted strong afternoon, to more, execution Thank expanded which

priorities the quarters, results clients' high environment from we adjusted end our remains we was of points program billion, year-over-year. set since behavior year. QX With believe of currency. XX.X%, X.X% was discipline, $XX last strategic in execution $X.XX increase of challenging above XXXX. sequentially which our grew demonstrate these Although we margin spending sequentially revenue million and highest against range unchanged discretionary the was strong the XXX rigorous the achieved forth quarter-over-quarter demand execution operating and constant basis is our recent This and cost basis points guidance NextGen overall XX an of growth and

Our tech trailing attrition voluntary was nearly for prior compared in XX-month year XX.X% the to services XX% period.

quarter bookings were basis, trailing $XX.X a book-to-bill. year-over-year. representing X.Xx X% on a And bookings Second grew billion, XX-month

first deals of signed In included $XXX this addition sequentially by first modest which banking business a X% the growth segment were TCV sequential to Financial QX of above pace, TCV are especially the in to we deals size of now XXXX. quarter ahead signed perspective, XX entire deals growth have year-over-year of year. From a half XX we currency the Services, time Americas. pleased constant our posted XXXX year, X deals, X over the Financial million, second growth well $XX of and for which constant that with each Within this grew currency, In million, over in driven each. $XXX since returned with of million with we for in of the Services, our consecutive each

hyper being demand and in modernization. seeing by client personalization, investments infrastructure driven platform are We

in reflect insurance last place quarter the since business stabilize these drove QX. Our the And TCV new was provider. leadership results grew focus this these industry we subsegment deals believe million-plus that our period, also signed a in we I to with customer and greater actions insurance sequentially one on of American put $XXX segments. year. Over large BFSI

hub number payment sequentially modernization in by banking. Health offerings currency, a in secular we fraud payments our launched aligned and also areas X% and detection, constant trends. Sciences go-to-market see approach real-time We digital service and industry-led like of grew positive

reducing on helping focused billion remain benefiting in providers outcomes. patient are We provide and and as manage $XXX we in our clients where of the are management improve capabilities clearing than this revenue payers care. TriZetto house and more cycle cost example, is platform, believe both claims -- services. TriZetto's ability gaining the end-to-end complex our traction to value clients of see For

returned ahead. GenAI side, I seeing revenue data members. And for progress clients On continue demand and best-in-class region, are by in being the and with as projects one modernization proud the opportunities cost monetization with confident driven have has digital and payer to enterprise Life and to in our in growth optimization modern, X.X% consumer beyond our drive very deliver to accelerates Sciences, moving experience we grew where we clients extremely seek that made, SAP begun are their cloud a year-over-year. transformation the team am By R&D S/XHANA. performance Americas, the to sequentially pleased the I'm of in

around first we and revenue with back off investments strategic process operating last foundation clients We leadership on Looking which the months, operational in this in margin And over on investments our to believe starting organization. can rigor platform invested deals growth. earnings revenue our sustainable our talent XX strengthening year-over-year particularly are attracted half and our through are the drive recent believe the focus our year. and performance relevance on in internal in changes has We drove and large of and and team talent. improvements, pay we sharply our new and these our the offerings. We further innovation strengthened we expansion focus to strategy reflected improving

and Places on Starters. Job America's focus our choice to our one an industry, in Work of maintained and employer the for by have we're Places recognized of We as Greatest becoming Greatest Newsweek

Score, committed has half with which since of level are. And office our through bringing in I'm opening since grassroots to has our India as from generated our to Indore, consistently year. we last smaller which Promoter closest the cities footprint in of ideas in We to feedback to remain our customers the our I'm its first also Bluebolt, where innovation offices hearing Net say our with expand We're newest XXXX. program, pleased by through XXX,XXX XXXX positive inception also continue associates pleased our project improved employees

our NPS highest date. to marks quarter This

in efforts engineering, supplier A of number and update research expanding growth differentiation and acquire our industries shareholders stakeholders. the to we strategy a capabilities growth and things, our market, other to and and is services. improvements, higher development or actions of other an our for update look our first example the value of leading our create shareholders to we to to investor investments global taken have prime of date forward provide agreement to a Belcan, and long-term progress. To to of plan accelerate drive among on ER&D discuss, that to operational continuing in We end, half XXXX our

has seen been by and ER&D technology demand growing have the high the whose services We and market of physical billion digital $XXX fueled in world. estimated convergence growth

automotive our of Over starting ESG vehicles. my focuses digital the IoT we last acquisition Mobility, Mobica, acquired ER&D our on X year, chip capabilities a with XXXX the we provider engineering connected embedded years, cloud. of the electric autonomous to capabilities, have the term and for last which ER&D strengthened start from at And software

innovate the digital opportunity world AI. Earlier automotive of growth expand life vectors over the personalization quo of generation dynamic, acquisition is help Belcan within called We grow. The cycle expect powered, our focus becomes of this agency we to are provide Moment, help Cognizant and an clients increasingly in practice years content physical on model the the to an harnessing data into service with the Cognizant that new move and and combined status week, and age introduced by into for to services models. on transformation next aerospace digital offerings And business to us manufacturing disrupt brings, AI to our see next-generation builds the and and which the as of integrated experience power Moment creative human through is differentiate Cognizant to years go that XX generated expected experience. orchestrated data-led we evolution services Generative our opportunity creative area in GenAI-led significant will AI expertise a ahead. programmatic content experience that that and ingenuity

the from relationship IT and extended quarter. to Victory Capital We Moving our analytics rational data on with to infrastructure support. highlights provide

provide cost business Over for with the Capital in productivity, ability Victory scale for to service management we improved aim capabilities, effectively growth. the years, this of support and opportunities next cost client service savings to X new

of an Additionally, aimed we engineering thermal automotive the agreement management leader customer signed for pneumatic next elevating services at technologies of to our we'll innovative products help and generation provide comfort this market vehicle expand to the agreement, Gentherm, develop a services existing Under experiences. global to industry.

the expertise verification in and proposition. in and Mobica our acquisition a firmware Our validation value role development critical differentiating from played

our Thirdera acquired Gen-AI platform increased seen in business, We drive boosted in helped first we quarter. have the And infrastructure-led our which adoption. demand have part transformation for to also investments increased cloud by

on we As have AI-led Neuro operations, our platforms, and clients of including this Flowsource. IT quarter, XXX over Skygrade

with GenAI? one the business with transformation tech development With with need lead of Cognizant. see believe with of our we of hyper less for into biggest leveraging do reimagine like next companies with productivity. the that applies are higher We software where the tech, as of times, for we the to cost GenAI in tech cycles. GenAI which recent capital to Now more combined Generative wave the will an AI stack as this modernize seek digital to fuel clients believe partners We workflows era of and opportunities

the to our globally disadvantage. XXXX a in with released could they're respondents fast Economics, GenAI. not recently in of indicated, execution with indicated at fact, And analysis study In them moving XX% put follow-on delay a XX% a Oxford

our move are from seeing a We quickly. more own to desire clients

few journeys. past GenAI our the involved more become in Over we quarters, have deeply clients'

along quarter. to and innovation end finally, experience; areas: seeing third, And engagements pipeline in key X early from over summarization; with and activity the engagements, content in and of across first, of over client last and generation; resources we for compared have opportunities services tech verticals and customer QX. accelerate been have early healthy the content demand XXX technology to health XXX in up XXX As second, with second have tech financial quarter, products across cycles. we sciences. We're These development employee XXX

to Cognizant and and partnership support recommended business a support for example of our across This required ecosystem services As development data architecture define organization. And strong GenAI for a relevant work building firm. our the AI to work, sets, infrastructure, audit are strategy. multinational an technology recent skill accounting AI development we processes technologies, and a and the designed

signed we powered and driven our industries. problems agreement have This And various solutions across we expertise have manufacturing by AWS GenAI bring GenAI complex manufacturing addressing to market smart with an operations AWS-specific by GenAI solutions. selected collaboration in quarter, to in partner, our competency capabilities transform strategic industry AWS a and as

up journey. part of a helped as AWS another set GenAI world's As we the the infrastructure pharmaceutical companies example, largest

large foundation the We the into a first for build desperate launched sources Vertex suite and vector language also operations, automated models. health we data Health center model solutions Google's store of Google that clients of operations, data marketing addressing AI a platform workflows: GenAI channeling solutions The including call set technology, care of GenAI management programs. In single X contracted. and to provider Sciences, Gemini Cloud's and

these our lay to dedication clients pursuing for we're care foundation for clients. We employees to process become around administrative a to and for cloud to the thank &A want and health in I GenAI aim enterprise-grade data journey, Our improve implementations. In who for Cognizant. experiences has behind the and them GenAI believe help world our and are clients or their clients closing, is projects our the modernization their catalyst

focused half to executing drive that, hand of growth, the simplify We remain priorities our well to in Jatin. of employer environment. have the back choice challenging over XXXX, our I'll it to we'll and industry revenue been macro In become operations. With in on a our strategic

us. Thank you, thank joining Ravi, and all for you

revenue currency. QX with constant velocity allowed exit the to in execution revenue supported and This X.X% the trends our for customer came growth quarter operating unchanged, growth revenue above guidance and has increase expectations. behavior and in the us of discretionary largely sequential of large our revenue Second strong and ramp-up provides to margin organic midpoint spending of year. Despite us remaining full deals

was operating margins Our the program efforts, cost adjusted point XX.X%. the This us actions a XXX period. increase structural and of basis including modest helped year increase sequentially NextGen under optimization prior deliver from

expand pleased We margin achieved we the cost growth funding program, with are to under savings have operating us investments. allowed the while adjusted which

Now let's details. turn to the

and end approximately XX were points basis by approximately In of deals. driven Second basis our constant decline high or end Ravi X.X% in revenue which range. the year-over-year currency. was the points represented approximately growth of guidance $X.X recent acquisitions. QX bookings higher midsized range. our a exceeded a quarter billion, from mentioned, This guidance of performance year-over-year decline growth of better X.X% XX X% was of Year-over-year the than currency, grew includes constant

from XX-month to Our slightly up QX. X.Xx ticked book-to-bill X.Xx in trailing

by to timing provided of larger a has durations continue This visibility. longer-term a driven We see contracts. but conversion the contract lengthening forward also to revenue extended shift improved

As X% Ravi Financial Services, the sequentially. pleased which we improved performance were mentioned, in with grew

Our business constant our provider and was Products to discretionary payer, spending X% over across and solid due growth sciences in year-over-year currency. down Sciences ongoing with [indiscernible] The down Health customers. grew X% and sequentially approximately was among quarter-over-quarter, Resources decline life customers. revenue

We have seen like modernization demand utility our customers. investments cloud areas modernization, and grid in among

and personalization We GenAI of well to differentiated deliver travel hospitality pockets have travel as seen sector, improved led power in demand also guest by as in strength the interest experiences.

Communications, will segment. provide acquisitions. and Media are Technology healthy growth excited Our the by resources recently grew acquisition, in expect again, which year-over-year, Belcan & opportunities close to pipeline products this we supported new completed in we and remains

from We the comms among over customers. By media, America, of in the new level helped few the of and to [indiscernible] technology were quarters. by part within ramping business ramp up which we have offset also in driven discretionary North benefit pleased large has the with growth lower geography, continued last spending

opportunities. also of region, parts challenged sequential the and remained this, where to won in seeing Despite world, World soft of are were by spending. logos Rest pipeline large recently return our we discretionary healthy Europe, new of particularly and with other early However, growth from our deals progress a new we the pleased

Now moving to margins.

impact helped of NextGen large steel continue margin us the and progress savings to rents. recent offset cost

During we related approximately approximately basis our negatively GAAP the to operating which impacted margin million XX quarter, $XX costs in NextGen, by incurred points.

Excluding impact, XXX an margin sequentially operating increase basis basis year-over-year. and adjusted this XX.X%, was of XX points points

reminder, period As included recovery. year basis a prior points an a XX insurance from the benefit

rate was the rate tax from and adjusted reflecting discrete in tax quarter QX was the for QX timing was and quarter GAAP of diluted GAAP a EPS adjusted items. $X.XX XX%, Our the XX.X% was benefit EPS $X.XX.

sheet. flow Turning billion. $X.X by million, and of our ended mix. in X increased or reflecting balance the cash DSO XX business year-over-year to with of up Free cash days and quarter $XXX of QX billion investments primarily $X.X the cash days the was X We seasonality. short-term days sequentially driven net was

dividend. $XXX had $X.X under quarter, we the repurchases the $XX end through repurchase our returned At QX, shareholders, million the share During $XXX share million to of remaining and our including million we regular through authorization. billion

than the expected inorganic Belcan do as for As initial of closing we the work. of closing anticipate its on not is acquisition other today, year immediate Belcan, any activity material the the and of focus remainder integration our

to issue and offset in million the exclude of for share These amounts to second expected plan in billion half we $X of approximately to shares this additional full shareholders capital to activity the repurchase to year. expected acquisition. as shareholders share new the Belcan to part is total to of year. bring form expect approximately dividends return $XXX return the repurchases the We This

Turning to our forward outlook now.

include the from that which There has to still after time expect in acquisition Belcan. We does of to changes third Our the estimated not no to financial closed, update quarter. provided announcement. our the updated plan outlook are occur the we guidance we at the impact contribution

of For constant the quarter, growth currency. currency. we flat to Sequentially, X.X% a expect in implies up third X.X% this constant to revenue in X.X% year-over-year to be

outlook the expect year-over-year, We and growth which currency. revenue to range of full growth year, as in now organic has decline billion, X% both For constant million to is revenue $XX.X of to be reported our X.X% a in the modestly $XX.X improved. of

from our approximately outlook at of includes of prior transactions. basis updated contribution This our Therefore, our midpoint, guidance Our the points. by points organic XXX up improved only the reflects to basis completed basis contribution has inorganic growth approximately guidance XX versus points. XX

adjusted on margin. operating Moving to

to with XX.X% We are year XX.X%. continue our half the first pleased to the range we of be performance, and in expect to full

X. effect Our will impact on guidance take August of expected includes our merit which cycle, the

will by savings this expect from NextGen We operational and the discipline. program partially our be offset

compares net full approximately of million we $XX income For the anticipate to million, year, previously. interest $XX which

XX% remains adjusted tax rate to unchanged. XX% of guidance Our

free $XXX also XXXX made net tax of our and million the matter. quarter to tax Indian to the our guidance represent flow year negative to This income. includes of in will first ongoing in payment Our authorities full we XX% from expect it continue is cash unchanged, relation appeal impact

midpoint which call the Our guidance approximately our for to $X.XX. With unchanged that, will the reflects increase we shares in at outstanding open This is our share adjusted $X.XX to range $XXX $X.XX full leads for $X.XX $X.XX, of your year million. per questions. of prior guidance versus earnings a and

Jim comes Snyder from question line Goldman the first Our with of Instructions] [Operator Sachs.

Generative all, of maybe your AI the this are are you mentioned XXX stage? you amount Could taking? indicate moving are and what tied of whether Ravi, quantify have you commentary, you those of -- early on Generative to First bookings proof-of-concept And form client at beyond And engagements stage? AI, larger currently what engagements. clients helpful the the any they can

question. that for you Thank Yes.

I one AI very, is projects is way. want all a diffusing fast in to think very thing technology-led the you Generative know our into

So a to do technology, ring hard. you does fence it doesn't the or a it to it to always what to is about back and ability place start how what technology it do think

Generative best projects was number for find AI. we to the out us So doing metric the of around are

the So last XXX is was gave we number quarter XXX, quarter. this from which up

with we're early So the number engagements. very pleased of very,

spoke remember, XXX We have quarter we more about active the in of if XXX X engagement. last pipeline. year, you And

way the all from gone we've So XXX. to XXX

think because of cloud production think you and real infrastructure. say start as going that start the of also I grade get need about to everything into to of to to your talent data work. multiple think And work? you number cost you would production to is, the going are reasons. need projects number about One small your to this of into much about the production how very you work, start compute, of small Now And is availability is architecture, need else.

So we going are A I get past a season is live to of productivity we only a what these curve. going sharpest if it portion production see automation. small believe lot related going the actually sharpest to I into as work. But minor pleased be a to curve. task are is we're them inhibitors, of and may,

did just business through we productivity we to go in related projects surveys has progressively, cost are countries, it the from model. also tangible. doesn't tell curve. But projects mean start sharpest reduction. and And very innovation, us new change benefits a new weeks related more to new all executives revenue services. So with X,XXX to more in just few will hence, Productivity And the also the operating of see fact, means ago, and products that streams started XX to will

acceleration So again, quicker. much be is sharpest -- to if that the are, to going the we the revenue fact smart about excited generating, the curve it is

So metric are know that's to we one doing. how well

governance, second I at have all about accuracy The The models, foundation of would AI. make AI spoke and it platforms. which great, I clients be are it responsible we have we -- on management, related production is, models Cognizant, it say, platforms, platforms, AI take it our be do them to how we the XXX-plus metric you be be which all

our clients sure because production these that with experimenting of So getting for part platform. to XXX a they're are they're ready us make

indication there So that that future. the a is in good me gives momentum

A different business are of into it experience tangible content aggregation lot the here. case X categories. Again, is this very We experience. and in employee and benefits also customer the dissect

-- we in see use cycles. faster development case challenges which tech biggest you see applying productivity the into to benefits for is is acceleration. Then, have share case course, will with tech, the clients. that your of particular So we The

more news if generation, good one, a would we take to increases content So curve, ahead save will And of is it our the little we win is accretive. say, the It are rates. which last some of longer time. the that. And is get I

we overall, are. with where we're So pleased very

lift and with pleased fact related work get monetized of leading dollars. by very us, are which structural We is this to then itself for some data is services cloud, will the into more a which heavy that to

can So the that's tap biggest And our broadly for opportunity much I clients the generate create makes it where we of and is. into about for how us AI story the to a Generative flywheel this, the productivity think excitement future.

on was gross I may, In down, I was utilization up. if margins. Headcount sequentially. was up believe, quarter, one, second the revenue And and

and So large margins costs quarters? what expanding the that prospects were some such those startup next for of the gross maybe comment margins over of factors deals? are pressuring the the the couple can pricing gross you higher project as And on on

Sure.

utilization. quarter our was So quarter where improved execution X a -- good we

terms while headcount. actually We continue of employees of in the reducing deliver to trajectory growth sequential the

in in or quarter and up not that's are that of flattish deals the is So quarter are that execution. And they overall, ramping large ramp-up initial the up. X. we and slightly growth margin get investment the there you gross margin ramp good those past Why is between you as of number have it seeing remained and has really margin the mentioned, gross reflected the won deals lower X an reason what

should as quarter. We are quarter that through gross quarter seeing move better into as you X, we performance on start we get slightly margin a optimistic X,

question it tight AI odd people. the and means dropped is we a productivity this, we really of lesser doing related math, that And is, sequentially benefit to running part at on with people, of therefore, a X,XXX people. to by for to your But what And year-on-year, X%. of back A grew you by work it look if by Just utilization. part with us. sequentially X,XXX we AI, link is number dropped creating

projects. that some to applied because to why is our starting automation is to of that -- and of So -- just AI is also explainable the the to some add reason AI be

comes Our Bergin of with the from Bryan Cowen. next question line

ask on to wanted I bookings.

uptick here. work that threads based kind latest net level you any Can versus on see to announced? growth activity renewals? a And new of recent in on And the bookings you to common deal just the So that announcements. deals were had highlight across seem return of to nice it comment a does your just you've like

add. take renewals can So ask and higher tell the you our business. new We XXXX versus than me and of renewable split I'll thing, is give in that renewal to XXXX. one don't the let a But Jatin -- I shot the significantly new it, business at and

So we're about happy very, very it.

The second there and is bookings. new is also the logos expansion in

So again, very we are, pleased.

the we grew reasons grew it I after financial of also XXXX, expansion because services new grew logos. One why services for opened in well well. financial existing and mean sequentially We started to look customers.

So million, our X X we $XXX large We the that's more with had all to bookings. contributing of deals $XX-plus-million. had in and range than them of

all new X the expansion fact, business in them actually had mix. In in of

how very again, are, work which is new of getting, we're amount increasing. we and So is expansion pleased about the

deals also the duration of Of is increasing. course,

end, On $XX increasing. above higher the the the duration deals, million, I larger is mean,

creates realized we a on to going it tail stickiness, when While but be forward. revenue it little as the also go of creates is a bit

I Okay. And that then detail. appreciate on follow-up my Belcan.

the waiting phasing of versus cost just the X deal over that Belcan? about how XX margin plus million you the years. estimated detail then some any thought still to believe synergies synergies the you structural about further a bps to XX of the X over and deal, transitory headwind understand you detail margin I I revenue So of Can of in kind kind was close years? be on it And the $XXX mentioned revenue bps of costs, then

Yes.

accurate, and of -- mentioned the numbers dilution basis So that I margin you synergy are point we XX the mean, numbers.

shared Belcan juncture. share numbers point this will that detailed making new no rest to We data including for update our had guidance the on There acquisition that more on a is closing, the Belcan update then or at of the the reflects sure we before year.

comes from of the Partners. question next line Lee Guggenheim with Our Jonathan

competition I seeing, I you much how about pace thinking here of hiring And wins for in the any the here. pipeline? utilization deal efficiency around on given of but gains the how the insight runs room you appreciate saw? look support Additionally, attrition understand before hot? of you you and are particularly year, call-outs do some as too for to higher talent perhaps the the have remainder you're

Jatin first, this Ravi and is -- request So I'll add. I'll go and to

I the stability marketplace. in It reflected talent think there is far, our attrition. in so is

We couple to are than think that that of skill set to find the There good others. marketplace. the market of talent we basis, or as hot for seeing from the availability sufficient more need skill second need hire specific an we sets, But aggregate we still be for to will the on hire of look always we year. a I have difficult the are reasonably talent half which at

as Was first a part well, the question Jonathan? of there

room in Yes, it it you was more about have the before runs utilization perhaps too hot?

quarter headspace we not and sort -- utilization. think the have exit mean, as the of still I for we have some we in head sure continued Certainly, third it's space I improvement quarter X. as to of utilize this is

it. improve continuing we So are to

as and space. are which able year. space the And well visibility and the some execute of supply we the said confident supply through second space, door. it's chain wouldn't of equation I chain the a coming and half with are say is demand we the that into be demand significant we have that We manage managing to we'll the

Yes.

add just on some So to this. Jonathan, more color,

us spot at momentum where also we hire. have market our attractiveness for us. gives employees We market a the significant us -- also the to are is to in -- in now ability I allows the join mean,

We also have returners.

talent engine a Cognizant have at as returners, fulfillment of people months. we before. And coming and better In back is return who and hiring fact, from XX inside are freshers, company, things: the reskilling better better getting and lateral since rotating adjacencies I the think the talent. our mean, a is we call I combination X, X it All of worked last I it. historic

a to we high situation be demand we're whenever, So it. up prepared but for are for gearing going

They're spot. in Healthcare both Our and our Services industries, good a great business. is X big and XX% Financial together in of

confidence. I us gives where verticals X Cognizant's mean that was legacy these heritage So were and strong. so

So we X a good positive verticals momentum. those on with are back

elongation how [indiscernible] especially these project of the these pyramid around of large potential And about Thanks the deals? large deals? large there. the around about we should deal margin, you thinking given think stabilization structure staffing are for in How duration some

Yes.

-- of and thing optimization complete. have revenue So are large consolidation, kind deal. lot these I kind downstream a upfront deals cost deals vendor and because Jatin in of Large as do chip cost of transition always and a you

will on transition have and to everything invest you else. So

there pretty works. But that have how So to we them lumpiness muscle now is execute on well.

done and the delivering now. cycle this have on months of large We've for We XX to been winning deals.

of on very that process. we're continuing confident So

this the of doing muscle on are of only historic Cognizant. We heritage not services was application the now, which

We it are more ER&D. comes in hopefully, closed, services. Belcan as in in get are as to infrastructure of can -- will now see doing we'll And we we it hopefully Subsequently, And it traction BPO have well. as and good starting

So of breadth large much which are on. comprehensive deals, of breadth the we more executing a capability and it's

anything? the We why arbitrage and levers also It on of from labor, to compete to more. you of we competing the think up want and [indiscernible] one I is levers to are peers. Jatin, winning in do are add curve. wallet the the productivity which picking That's a are are market share, are levers reasons compete not we're ahead just we the our

Yes.

deal, the are ability initially at to looking improve sort the to them pyramid price into call superior in talent, fresh at the far they the period, company, Z, gold a One your overall of ability -- But fixed of pyramid deals construct with larger margins. automation a deploy think or as is way you much X better, a large we on dynamics financials. means additional there only are which your our ways execute come there internally, the of over typically program. Gen long-term is see projects your that bottom color a I is of large is do lower if

looking is So really of a at of a overall, envelope in able way you than material you would push and be to the better second can do time much construct. what deal large the and that productivity efficiency

also deal angle it positive as it So has the matures. to a

with from DeepDive comes question next Research. Bourgeois line the Our Equity of Rod

a picture Ravi, Great. questions. Okay. of big couple

situation last X.X a turnaround been while demand. a also cyclical wrestling years, the Over in in you've downturn with

winning now you the goals shoring to these the on main I process. large improvement like deals. for and Cognizant's You've next culture up to now you're talent speak just of definitely made wanted and see can progress phase your if

and always Rod, I've thank question. performance change. of been you believer layering for a that

the more using you performance end year, started believe XX and And layer for At and to first it. to I bought performance we constantly that a change. changes generating performance making make Thirdera. the changed have as the was time So has months of the that called first been company

do big start bets. the to some big big get also to You license -- some bets,

buyer think buyer be automotive, research a our industry the single different stand-alone players of different company. give journey largest muscle, of we and will ServiceNow big and us which of a we started we bet X continue. In services, to And very a I to breadth year, vectors, BPO, now, buying a services, top in I business for confident another I'm increase is right for going different going So this look put always took opportunity of which vector half us if that cloud, which the and group we and because embedded gives development, tech we think bet said: made as are Belcan, to that growth. took X infrastructure-led first ER&D. bet we it's We services, the And new Thirdera, ServiceNow the market, of probably that on is bet in and and a take of and may. aerospace a the to -- engineering which security, X everything software has look the our wanted together in group to is and clients. And that's big any for

and a I think we bets the heavy and so resilient for make platform. Remember, that and Services, constant on Financial looking to on layer keep I basis we this So Healthcare a it. big performance change want are

Now is going to we're create on vector. very going which manufacturing, to industrial, be a different automotive, industry muscle aerospace,

because keep a internationally we looking are of the go forward over indexed new bridging expanding we -- and and We also on for gaps will U.S. in those are as breadth constantly industries we capabilities

a will our employees and create our create goal resilient be platform to that and for is So momentum sustained create clients. my to

very maybe my your related That's Belcan. follow-up, given Great. helpful. to And change I'll answer

last Or automotive recently in Those Belcan that as at weakened the weakening? now, verticals and most the year and automotive. that Are demand seeing aerospace similar trends fact you really that business? you in over very questions . One of especially the is in strong we're been a are players. aerospace onboard had cited not right concern, seeing Gemini

a That's great seeing automotive. question. Organically, strength in we are

pivot be on everything Our decade is Belcan physical. going is about We very digitizing next simple. the to think

[indiscernible]. industrial, we So manufacturing, automotive, is industry believe the like

into be in And little services, is there's years going XX I If think headroom and embedded better. very services, XX software, are are in pivot there which to which last the nature, therefore, into next pivot significant are digital spend the you much years.

and actually for So there more -- is are us. therefore, I space more there believe room

and Our very Healthcare concentration is in Financial Services. high

gives actually much an different vertical us to us technology -- closer a physical but also industries. gives this manifestation it of bring these very industry the to So opportunity

we And So mix -- mine industry thesis the holds. flourish. the now, to that with believe going segment as I of will AI be to I in to but think and offerings actually contemporary continue still therefore, are now we'll present

my at thesis would me would be looked thesis that's -- when I remain Belcan, with it remain would that even that and that So the now.

next line the Stanley. with Morgan question from James of comes Faucette Our

et of see we've in the nature it work of before if changed end color. things doing your Kind Encouraging turn the that's And all of it end wondering Great. others. like the say, the your what now, what Financial seems of versus market, some Appreciate to [indiscernible] and Services down of you're the cetera. And visibility part the from base? kind that market that on all? at is is turned

been XXXX. we is working industry leading vertical the we I a XXXX. in We consolidation there ensured -- consolidation. happened, had on business Services, the lost we the that were XXXX, solutions. share And since stabilized we good on are very it teams. did think we Financial leaks that market of other job side, we've when gaining with We now when

discretionary some helped into back coming which of pivot the spend, behind us that it. small is So to to added -- we

industry proactively firm. stable the breadth a with for work, capability corridors, services of approach, pitching team, no I we So a now. are solution working tech longer mean, value-led

capability. of breadth a have We

All services. to has us financial stabilize that helped of

course, But shape. underneath subsegments fact quarter-on-quarter. confident of about we variability there's the good feel Of to those that in each going be that one are

well business Americas X and a for quarters Our pretty sequentially done banking in row. in has

we the -- progressively are starting So same template take so that to we in that now market that replicate international could -- take success. to the

just is it. priorities? which it's consulting if seeing having so, that. as we those you're that then GenAI, an if Or crowd-out, full of ones? implementation I'm -- suggest, Got so moving And are other really to not back still on early production, GenAI projects still Appreciate impact? And projects wondering much you of before

a very good question. That's

are case of to I to agree dollars -- reorganizing you all governance mean, need AI. creation we now X.X. with getting companies some the In consulting reestablish I are know fact, an companies Generative from -- their the lot diverted to a which saying, are that way I enterprise business to

a So that be could be versus and organization a setup. together technology can it network hierarchal and process distributed

led is change organizational by Generative So lots actually and of experimentation AI.

to see to and start getting what you because to for taking to to in some Generative up to there And are good projects production grade. or earnings, support which to then -- either you is take which which production are which AI the diverted it which some to finish development. know go Generative come not you is mentioned started bottlenecks at least AI on bottlenecks in, using production. fields at company And the insurers take my of work claims there. least corrected been drug start a have is need I and prototypes. to have are So be The these -- discretionary news there the it have then pharmaceutical are, small prototypes, -- them grade. I it filled clarifications. as start you the But you

at I think XXXX, a productivity did go case the also are level, to starting task see we to we in The forward. business So this us up. put that's studies helped

in of better have Healthcare we clients, in my seen we've done AI. using Generative So claims one auto of adjudication

new So to use to allow the help look for very business more production-grade to cases and to pipeline this take the make case will will continue ones us the ability old to this ability a build outcome-centric mature. as us work the to

question next the from Huang comes of with JPMorgan. Our Tien-Tsin line

terms follow on to Ravi, work but on I the incremental ask is new Has coming changed, that on sourcing Has your duration. versus love where wanted up Is deals? question the all changed or Just of answer from then ACV updated I think, always Bryan, I'd bookings, just to dynamic? bookings. that also work your other takeaway from? thoughts you, you in vendors? mentioned improved, it to at worsened? And on TCV hear

sure. Yes,

reflect I change duration with I in think much a as you term, deal can in slightly mean, it in going So over fundamentally, longer point that continue. up growth has slower dynamics ACV, not from and imagine, the X to -- ACV

in quarter. we However, clearly as share -- execute winning we every market are

that deals of are the of present, where but not accounts, new that work we segment reflection a announcement were that really were work or Cognizant also that in but customer. are the in up with accounts done the many ramping we So deal is new have getting we addressing sometimes our

also new on there's focus logos. a And

work. that work you expansion tell new of can And new So at the XXXX. logos outpacing least it's a is combination and renewals, in certainly new I the

Just my there the follow-up year, Any fourth the implies some callouts quick it from for guide sequential on full seasonality? the implied beyond quarter deceleration.

Yes.

of at So we right a right, the you're quarter would does X, in it -- really as but now X deceleration performance, seasonality it. it midpoint that quarter imply see is

comes Dan from the Our line with Dolev of Mizuho. question next

#X make are mean, we right bottom get results. the question Can is pretty have what that. everyone comment in investors you cycle? Can strong we you on from seen services the maybe maybe in mean, like, to IT to Nice more we seat -- see where general I much now this is I trying your spend? a out. figure very is the Guys, from

So it's a broad question.

sort we see address performance me a after a of as Clearly, given X the growth from quarter Cognizant. Let part. in for we -- for it a have of guidance context for range that decline us, --

were. we from uptick seeing where an an are improvement we certainly, and So

positive in as certainly, we the there through uptick in an is So trajectory growth numbers the a year. progress

opportunities, as difficult still and we we on comment strong uncertain. on of with are remarks, clearly, reflected market remains health our a sequential covered are delivered sector, are performance pockets performance, been make market reflected both to in capitalizing It's have our there our prepared a it's there But been where as largest those very opportunities, as we which our in in BFSI numbers. has larger

unchanged, I as to said the don't improvement. this call that. before, I add or see Just it. see market to We we deterioration

However, very strong. our be execution, our ratios to win fulfillment rates our and continue

So are share a unchanged. market wallet therefore, winning remained has in which we

value is maybe about then on some the at you guess, point, know providing comfortable, I but I talking AI And of would GenAI. dollar a feel everyone the Understood. of this, follow-up projects? scope

not win clients win generate clients. to you more a you what almost to to of The ways We tell increase will we can Generative fast, as create categorize cycles you new It's deals, winability so and the your almost technology, productivity, use it which GenAI be AI, thinking Equally, this development could then could only into to a diffuses the is market, because Generative flywheel you right your with able you on know therefore, -- and of your and to through momentum you what create are as it. market diffusing share about it could you pervasive want don't could your and it and this can everything you our around own own-self AI. thing do. your GenAI. about with -- to is using teams flip disrupt keep rates, I create what And could in it say say categorize

which So I we about right talking are we now, projects mean, are doing.

a call data platforms. can't? AI. platforms mean, AI Generative because I be The can do is as call we monetization about on I talking or Generative this project, AI or have revenues which modernization you can guess, not say today, actually going you what Generative clients to project and -- AI how many the I it future, is is anybody's cloud are what traceability onboarded I Generative We mean and to

needed that because foundation creating it is more is momentum for However, Generative AI.

but where a much have nobody traceable the found evolve So I all right to seems extent to to this -- of have it. you to in an mean, communicate mean, nobody has we much do to could I way found we way

tell to have. our the are best traction we you We trying

questions. to further no would closing for turn over the back to are management I like There comments. floor

next Thank thank looking to you so joining and and Thank you much. you for forward quarter, all for the in today your support.

Cognizant today's concludes Call. XXXX Earnings This Technology Conference Second Quarter Solutions

now may disconnect. You