Accenture (ACN) 26 Sep 242024 Q4 Earnings call transcript

Thank you for standing by. Welcome to Accenture's Fourth Quarter Fiscal 2024 Earnings Call. [Operator Instructions] As a reminder, today's conference is being recorded.

And I will now turn the conference over to our host, Katie O'Conor, Managing Director, Head of Investor Relations. Please go ahead.

thanks, and joining announcement. full and our today operator, quarter fourth fiscal you, everyone, us for on Thank XXXX earnings

the I'm of mentioned, operator Managing As Head Director, Katie Investor O'Conor, Relations. just

Chief time Angie review you you've will short had We issued current Julie Chair McClure, On today's the incoming we Executive Officer; Chief a hear KC and call, Officer; Financial hope to news our Sweet, release an from ago. our opportunity and Park, Chief Officer. our Financial

will Let before results. for with a market quarter operational on begin our provides along statement me financial then Angie today's call. and update with an income outline the XXXX. metrics for sheet, the year. provide full quarter for quickly agenda take brief some the the positioning Julie fourth business and key our overview KC through the outlook balance full year will of you including first fiscal our Julie details, and fiscal will

will We the questions a provides call. end Julie at before the wrap-up of take then your

on to, the forth materially today's annual to risks uncertainties expressed call, and risks of those news uncertainties, unknown release known quarterly discuss and not results our could and are These from are filings. as call. this cause as discussed XX-K report set we'll matters outlook, differ and and Form to XX-Q on SEC including in our in subject reports on other but including, and those actual forward-looking this Form and, factors Some limited business such, in

our information non-GAAP GAAP or at our measures accenture.com. which include financial of where appropriate we of Investor will release website we today, for reference financial our During non-GAAP certain news the section reconciliations measures, believe We useful Relations investors. in to in provide call

call. this always, presented no update assumes conference obligation the As on Accenture to information

Now Julie. let call the turn me over to

deliver who world our our you and center the people to be at our XXX-degree day for joining, the XXX,XXX and stakeholders. around have all Katie, everyone business worked thank value you, of and to every Thank clients'

Our of and reinvention our resilience the performance of the and power model, in this year our action. clearly business demonstrates scale agility

was 'XX significant we that have have shifted early our and Accenture's the leadership yet our expertise scale clients rapidly large again where to market will challenging at buying, we what by the GenAI. decade, the with investment environment, are of we in FY utilize reinvention action And relationships. most and transformative a Accenture put into be technology marked believe reinventions next and of ecosystem

last As strong successfully conditions 'XX. quarters, a over improve, market them. capitalize FY have will result, the to X well we positioned growth be for we positioned When Accenture in

continued the take 'XX, to deliver margin cash strong deliver growth and shareholders. flow, free disciplined to and while expansion, value we earnings In faster market on allocation enduring FY shareholder cash return proposition than and in significant grow to our investing share, with capital scale

our to 'XX. large-scale foundation strategy we doubled our clients. to have our With our and for we on results the clients growth of prioritizing FY down built Turning partner transformations, be reinvention the for

last million the success growth such bookings local of than bookings year, in total is $XX bringing Our our bookings year the including XX XXX full clients than reflected year. with of billion, representing XX currency, greater in fiscal more $XXX to quarter, XX% for the quarterly fourth in

relationships deep an point Diamond XX have proud XXX We our we base to have and last the relationships, of largest clients, client from are year, on vantage the of expanding market. client now our increase

calculate traded on take our competitors, basket local currency, against global we representing rolling closest year, our market while continuing $XX of delivered market share of revenues how basis X% We share. billion a publicly in to the X-quarter which for is growth

with in adjusted operating learning to billion business points in significantly R&D and and by our development. basis margin in billion invest while $X.X people in acquisitions, X%, growth billion our expanded and continuing delivered adjusted EPS We $X.X and of strategic XX $X.X

free return to $X.X to We of cash of billion, $X.X allowing flow shareholders. generated us cash billion

We announced March costs. business the structural to XXXX completed reduce optimization we actions in

full we the nearly for billion we billion For revenue. QX. million full bookings, year, in fiscal had in had new And $XXX GenAI $X including in $X year, the fiscal

had in here. this in revenue seen and achievement and small in we roughly buy on is sales $XXX where 'XX, GenAI. approximately magnitude our comparison we clients from This accelerating of million FY the to to an continue The deals, focus area where million growth $XXX was our

continued have our XX,XXX of and XX,XXX people continue and invested our FY of goal practitioners against develop to on workforce, steadily data by their reinvent services our our approximately to AI skills We increase us to We end to GenAI. 'XX. marketable help the reaching using

XX%, predominantly due Our training training. an GenAI representing people XX year, had approximately to of hours million increase this

purpose; actions, are feel physical; to and talent creator our our X in well-being, among our where next they people talent belong financial, over through, and at unlock people across net our they to have dimensions: marketable access being to a working to through better to and thrive. the other potential addition the In working skills; ensuring for talent investment relationships mental can talent for our is best off strategy Accenture the succeed learning, feel decade a and of

which continuously turn talent market leadership lead in in essential which that addition, observations provide In of pools and are broad to the the to in variety innovate. of prospective access we requires to requires insights, our innovation,

measurement organizations, having XX-XX which Diversity Global over our Index, have and on by XXX,XXX centers workplace, of the third #X technology on gender demonstrated recognition global depend year with the superior is fostering our spot our strategies and these advanced for inclusive execution diverse of in and an objective achievement the Inclusion These FTSE recent our of strategies equality and us XX,XXX people. in over India, a

on value communities, work successfully country She operate, to we empower AI, our Our a continue as partnering communities where and program, Regenerative communities Can aims on in digital skills. gap long-term thriving growth new digital their build Kingdom's the socioeconomically United depends address and people across the the to with create helping disadvantaged such to we that Tech inclusion

proud Management are and to I earned #X World's spot to acknowledge have list on list Firms Finally, spot top we how Companies Best the the want Forbes. on by the TIME's World's Best Consulting

KC. you to Over

business. on and thanks reflect expectations fourth today's improvement for of you, quarter, and joining with We're which to Thank our Julie, all dimensions results call. in our us our all across pleased very were aligned to you the of

market while value significant shareholders. our leadership, delivering We for continue long-term to invest for

So few for me a begin summarizing the by let quarter. highlights

as industrial, Revenue and grew and growth industries, platforms, energy in X X sciences. high as tech, positive or X% had of of for type health, in in growth in local services work currency, to markets, driven XX public market take We well growth, continue improved growth the time to all by service, and our including to revenue X X consulting return quarters. Organic life mid-single-digit we slightly share. well in software all higher first as

last basis an increase was year. margin over QX points XX XX%, operating of Adjusted

making We our our investments significant and in continue expansion, drive to people. while margin business

which EPS $X.XX, of last represents to X% year. EPS adjusted delivered growth We compared adjusted

delivered $X.X flow shareholders we and to free $X.X returned of and billion through billion cash finally, dividends. And repurchases

me high-level comments, to let details. of some the those turn With

of and growth book-to-bill $XX.X quarter, representing local an with with X.X. X.X. the for XX% of XX% growth a billion book-to-bill U.S. were $XX.X in were in bookings Managed with Consulting $X.X a currency, book-to-bill billion of were New bookings X. dollars billion overall services

range, to reflecting dollars now quarter were in in quarter U.S. Turning $X.X $XX.X currency. revenues. the revenue U.S. billion, for dollars X% our a up up and in currency. the in increase local in revenues above services for Revenues were in and X% currency. Managed billion, X% $X.X billion, dollars X% U.S. of the guided X% local local and were midpoint Consulting X%

look a closer service dimensions, digits, low at single technology mid-single grew Taking digits. consulting services strategy and and operations grew both and our

geographic and In United service markets. Italy banking grew by in EMEA, by growth currency by growth driven North service decline Turning a In public a sciences, and local grew capital life revenue the by offset public in by local offset X% in growth America, partially and to revenue in industrial. currency, our driven in X% decline was partially Kingdom, France. and Revenue markets. led

led In currency, growth local capital grew banking and platforms by X% in and was growth software Japan. markets, Revenue industrial. driven by growth in markets, and revenue and Argentina

for year. were XX.X% compared X.X% statement. margin XX.X% with income marketing last the Sales the X.X% for expense period the last last quarter was administrative for XX.X% year. to the for General the compared down quarter same Moving fourth and the with same quarter for XX.X% year. quarter was expenses compared Gross and

business following costs margin note to FY want I FY impacts impacted actions, optimization in of operating results. which these comparisons include exclude continue, results adjusted I with 'XX The EPS. and QX reflect Before and that 'XX associated and

Adjusted year. operating operating quarter, was $X.X basis QX last XX% up in income adjusted fourth margin, reflecting a compared the points billion with XX

rate quarter effective for was quarter the of with for tax effective tax adjusted rate the compared Our adjusted XX.X% an last XX.X% year.

in to XX Days in year. $X.XX Adjusted quarter adjusted days fourth last diluted service days the the last compared were earnings and EPS fourth of of days quarter quarter share were compared year. $X.XX per outstanding with XX XX last

net cash was quarter operating billion, generated flow $XXX from of XX activities billion, equipment for the of property $X.X and cash Free was of additions -- million. $X.X by resulting

with August cash year. Our was $X balance billion billion August XX at $X last at XX compared

our repurchased at ongoing of paid an With shareholders, total to approved Board November share. Also fourth to we $X.XX dividend per $XXX paid share cash billion million. Directors X.X of quarter, for and quarterly average be redeemed regards year, over repurchase fourth per a $XXX authority. for share last $X.XX cash XX, share to we per additional our August, shares in in million of return to price a quarterly of XX% And million dividend increase our on cash objective declared $XXX.XX of the a $X or of

to year. to like Now moment take summarize I'd the a

diversity durability to continue and as reflecting $XX.X with to our 'XX billion, the 'XX. a business rigor million, local well growth illustrate year of in manage for results fiscal $XXX the client in as positions bookings growth Our record We our of business as currency. of with and delivered discipline. of XX% $XX.X reflects bookings ability X% our over local XXX U.S. quarterly record FY well dollars growth which and currency, billion we begin Revenue us XX%

fiscal which full rate Creek to and impacted 'XX investment results I operating the EPS. Duck Before in and I gain reflect fiscal with associated results adjusted note and and fiscal optimization actions, impacts continue, also our The 'XX tax year exclude these technologies, on following our 'XX business for costs that a want margin, reflect include comparisons results.

over expansion growth EPS. point 'XX. basis XX Adjusted over a FY per XX.X%, adjusted FY of margin reflecting $XX.XX, were X% earnings a operating Adjusted share 'XX

Free with cash a of billion return flow to of ratio shareholders, across And flow approximately of our ongoing returned cash income strong acquisitions. regards investing XX to billion $X.X very net objective billion $X.X while to to free we cash cash shareholders, reflected $X.X to X.X.

In shareholder value XXX-degree proposition our committed closing, how remain challenging we macro our FY feel we a all on good environment to while manage and creating navigating for while enduring business, about delivering value 'XX, stakeholders. we in our

to And now you, Julie. back

Thank you, KC.

clients to and data, growth working. building driven a In be was of core. requires significant then productivity AI Reinvention seeking digital core driver our to digital growth. clients our tech, digital to using continue 'XX, FY it 'XX their of strong and out helping ways by new drive transformation, a FY including growth using reinvent Our with will our and

a for its as advent acting the potential of GenAI see reinvention. catalyst We and tremendous

unique combination services clients of our song, operations. Industry and Our consulting, X, strategy, us turn across technology to for

industry, clients strategists Our and deliver technology deep these with services and hand-in-hand functional, reinventions. consultants to work and across and customer shape our

solutions, our are the advanced us. in process our our and key and expertise, design investments assets managed for solutions, the and build from diversification insights Our scale our differentiators services, to platforms, and both our ability with our combined

every of technology and and At see AI the the digital, come part is built new Like way of both growth. AI both in working, will from new value a only we And and enterprise. the the will be the full it same on as digital. strategies time, used productivity

so. and GenAI believe for continues much era digital drive like introduction to the us the do last decade, over transformative We in the clients decade has of growth technology a set is next that and to our signifies

which part increasing the to As expect the work data, will of that, that be is fuel part enterprise our we for growth. AI, of an prepare

people people talent, potential on ability is their ability their to of as talent to talent to creator the focus item. accomplish the relevant; To talent at to and unlock AI, agenda best C-suite and a access be the reinvention businesses see take critical. keep and cost; their right need ability market of their place advantage a We to time, the top

services clients' Today, important long-term part strategy. of managed talent an our are our

Our them change, talent, ability gaps. And close our services. to differentiates and all HR talent harness organizations our is expertise helping across AI strong

helps training their so Our be creator. launch of comprehensive upskill people, provides technology our talent LearnVantage, services, and reskill they learning which a and clients can

Let at me of market on In banking doing. X%, you while a reinventions retirement a give lagged growing few services, types their global journey, addressable of are reinvention the $XX examples behind. are services, and has billion financial insurance about we

and our to invested grow this growth. have capabilities wave talent next capture to We of

the of the provider lifetime Leveraging the time power the cloud, easier their company's over TIAA, with the of the income, company customers. AI, operations. accelerate transformation we helping and new recordkeeping capabilities to largest implement technologies, U.S. automation processes making We and are are efficient in more of recordkeeping retirement working for

Through of TIAA's operations, this partnership, back-end parts supporting processes technology. strategic and including recordkeeping are we

easier experience sponsors find will plan and will selections. investment account it openings example, and changes, initiate faster to retirement For plan participants

personalized we for a Americans. of for making planning Together, secured and mission more more retirement are retirement meet TIAA and helping more efficient clients, accessible, its individuals

drive work we IT are our operations reducing Through estimated a cost with world's of largest strong program, increasing by are telecom's vendors, and expertise, global and managed we industry technology our the we services providers. an productivity services Today, With by half. consolidating core to modernizing IT XX% XX% communication growth.

resolving customer to orders, issues and infusing availability. We tools GenAI or as are technical life automate our invoices development software also enhance the tasks, with service cycle manual such

experience. this and on customer to employees overall Now improve initiatives strategic will free growth the focus up

outcomes the and the into are to more working, upskill a train create ways and the tools will These changes implementing for also markets. to expansion company team for and of framework new company. GenAI management We profitable then helping create use new stronger the we'll effectively, more prepare new

Security continues business, XX% year, in this of the be of $X parts one reaching representing billion revenue fastest-growing growth. our to

the Central Kuwait security its with partnering of are technology national Agency government We information posture the public for critical and infrastructure. revolutionize services to

cyber detection the with traditional up agency implementing and to to GenAI, a by quicker scalable models. are act We on managing evolving containment XX% platform and powered than enabling including response threats technologies,

analysts time research the platform, before type its drill government systems down attack, quickly and they manually a one with threats information into the incident, about security a with can just the open the using handing now when more In under past, as progressed. limited click. incident impacted to entity, details users, attack new analysts valuable But of losing potential attack

data ability to GenAI's significant and amounts to context. automatically of Thanks process elaborate

develop threat we experts we confidence a and local faster As are entities detected, over XX talent. government our while as is also decisions with supporting progressively we in making onboard

commitment our the safeguarding enhanced towards and cybersecurity journey nation's resilience. underscores collaboration empowering to assets strategic The Kuwait's digital

seek for marketing, enterprise. reinvention A data tangible potential and tech, to is the for to drive drive outcomes in companies where growth, to the use key creativity area

true to to of marketing ability efficiency very improve and the working to creative investment proud with HP, business business sets, and move agency impact, BXB marketing American tangible significantly global to are develop for technology be efficacy the and to an away the new multinational We information brand capability and goal powerhouse company right from traditional drive results. partnership model a their technology with the data that fulfills their transformation to their

solve. now challenge or every that In GenAI a industry, can uniquely opportunity is there

best of real clients. us GenAI at from to our creating and positions the understanding with technology the deep value industry Our the be both

of typically and and coverage of do all insurance a for insurance, quote in well XXX% companies risk leverage XXX% ability example, assess submissions. For effectively. The it GenAI to growth. This can't creates quickly more policies process their submissions write read to as better companies more bottleneck revenue as and cost allows to

of across created, of business to replicated to solutions, company new we industry-leading Sydney, the Group, Insurance more set lines scale we're underwriting multiple headquartered make with a solutions to a and help faster multinational business working in company AI-powered accurate Utilizing insurance QBE decisions.

time. employee new Board, build design all and check analyze market solutions level executive sessions and were series risk for A the and those appetite XXX% They help conducted drive business brokers, learning received completeness, evaluation insights. of process that to now submissions response accelerating of submissions can greatly from

awards, select to and solutions improve months collaboration and industry will to bind early winning multiple and After innovation identify support results X an QBE Group are experience customer and effectively, indicate in This risk rate these increase market, both Insurance premium. broker enable growth. in and more quote

with in GenAI with powered are using solutions. drive integrated major proactive warning of a insights safety, instead data hours X aim improvements to provider for improve sustainability from We We continue incidents by potential test. to minutes GenAI collaborating performance XX% significant downstream to planning operational faster new from to and to signs energy reducing access, appear. time This inform planners means to per reactively of waiting safety specific

leaks will help resolutions. real and methane solution in Another time prioritize detect their

We path refinery a downtime. insights to engineers also is a solution a process on and operators in to set standard helped new custom for The and build energy to for innovation reduce industry optimize provider performance smart refinery drive operations.

of uses across experience impactful GenAI is in consumer powerful most the of One today industry transformation.

snacking International, help organization Mondelez their with world Oreo, with leader brands behavior. working consumer with well-known transform drive and to GenAI belVita are marketing to in like a We Cadbury,

model refreshed upskilling a this primary on in technologies. of program, part As GenAI focus we're a up their with employees standing operating

means images not and weeks, text, to developed consumers helping creation are creative as videos generate demands change. content to across new a to also catered allowing capability quickly enable content hours, be be This markets. can personalized exceptional and We in scale

established core collect experiences. data using makers the insights real-time allows digital be contextualized across to company. accessed, create and that messaging by shared used GenAI company the more create increase will strong impactful the to we The of and and decision to efficiency can new effectiveness work also process easily This

Now let's turn our acquisitions. to

sole have last our XX% built with market we average home, becoming decade, the a good Over the acquisition tuned finely approximately acquisitions as on of a capability, known in sourced.

to ability formidable. our is critical, While has that and it made evaluate capabilities ability our identify successfully acquisition so acquisitions our to them integrate is our

opportunity made excited to and to acquisitions As we look year. this fiscal last the forward, we've our clients the the we serve about better differentiate market are in

we reminder, our to acquisitions a do drive As growth. ultimately organic

global strong across as as unique Our footprint, opportunities. client relationships well deep a on industries perspective gives ecosystem us growth

use deepen to to skills acquisitions We functional adjacent areas, scale in new our to and in quickly growth technology, industry and markets build expertise.

years, like the built Song of practice. growth acquisitions call have we what our Over in major security areas today

Here now to waves where are examples growth. are we few investing lead the a in of next of

approximately Starting we In over with U.S. in an global X%. had billion acquisition the We growing 'XX, projects, capital million with Anser approximately market in of capital Advisory. projects market 'XX FY addressable $XXX $XXX revenue. the globally, FY entered

'XX, QX, in this on Comtech Since the projects we acquired QX. Canada year over in revenue recognized $XXX our capital fiscal And FY EMEA. into expanded with million beginning this of we reach 'XX. BOSLAN We in

next see new in early digitization, decade. an significant our industry $XX federal added U.S., health is market a over in Cognosante service billion where This the Health business. addressable we is year, still global X%. It a federal creating portfolio in approximately we growing the opportunity

from and consultancy consus.health, services a to patient the and U.K., logistics, in also electronic planning in management care acquire specializing offer Nautilus that intent procurement Germany management records. services. patient construction to acquired health consultancy ranging infrastructure our strategy in medical we and We announced a And digital Consulting

with industry accelerating that market for And acquisitions in us that transformation, allocated growing share X%. $XX in to growth are Europe, our up an public early digitization investment take our setting in is and approximately a significant service, is billion

provider consultancies, in In Italy's and health Intellera SirfinPA professional sector transformation We public and Consulting, safety. administration technology Management and acquired owned acquired justice public Customer public of sector providers services supporting Arns, we public Europe. main Aris the care jointly services operating the one in Germany, across Italy, and a specializing sectors, and supporting IT the

gives who'll Angie for our hand new take who CFO guidance us FY will great Angie? it 'XX. me our Now to over pleasure December through to Park, become on X,

Thanks, Julie.

business me let outlook. to Now turn our

This expect first the X% of revenues $XX.XX X.X% compared of $XX.XX be assumes quarter For in quarter will we approximately impact range estimated positive of the an to billion the local 'XX fiscal and to FX be to the currency. first 'XX, reflects in of to growth fiscal X% billion.

full fiscal the fiscal in based be how For over X.X% currently few FX we last positive 'XX. U.S. on will our the results impact have of the compared weeks, the rates upon been assume 'XX, trending to dollars approximately

revenue includes invest $X For local X% fiscal the fiscal to And currency expect fiscal bit a 'XX, range over growth contribution expect in we our full than about an to more in the 'XX, inorganic billion X%. to this be we X% of of year. acquisitions which in

results. For 'XX to we 'XX adjusted be to a expansion year XX XX.X%, expect basis fiscal point operating XX XX.X% margin, to over fiscal

our to expect to This effective of XX.X%. adjusted tax 'XX. in range an We XX.X% effective the rate be tax fiscal XX.X% of annual in compares rate to

to fiscal fiscal 'XX the year per We expect adjusted $XX.XX over our results. diluted or in X% for 'XX $XX.XX growth range of to X% be share full to earnings

billion operating property $X.X the equipment $XX.X range of to additions $X.X million 'XX, to expect flow be For billion, cash free billion. we fiscal flow in range the cash full billion of to and approximately the $X.X be $XXX be and in to to

flow X.X cash net cash reflects of income flow free Our X.X. free a ratio guidance to to

at committed billion return repurchases through shareholders. returning to dividends substantial remain a and least $X.X share cash portion of we to to as our expect We

to tap our structure expect as we to corporate of in near look general liquidity reduce for and we our Finally, to the our market debt our capital. review our optimize increase capital capital term the of as of long-term part cost structure, routine purposes

amount modest a raise debt. to expect We of

and net remain capital credit which our our In look connection our ratings will change be use at and leverage strategy, strong with how low. that, there allocation we or to no D&A includes would

for long-term interest potential our a debt incorporated into guidance, the including expense. have We

so Katie? open let's it can take we With your that, up, that questions.

would Thanks, on the Angie. for those you Instructions] instructions provide [Operator Operator, call?

[Operator to of the Instructions] JPMorgan. line Huang We'll Tien-Tsin of go

bookings. I strong to Really visibility. revenue translates think how into about that wanted

you but maybe the how and ACV, know doesn't Accenture ACV current don't between comment evolving? can that's If mind, about normally TCV on I you relationship talk and

as important revenue It up, about like of seems Duration think as to lot converting and visibility. but we have us really looks a it's deals also large well. you

comment can on So you that?

Tien-Tsin, it's Angie.

let maybe a will me because So cover how help to paint of year. thinking we're it picture guidance about the fiscal full

think I really important. it's

Let's we start with how ended QX.

If highlighted X% did posted important that we in that in you quarter, fourth we think the the growth we exit about have the year. is we growth was organic, what as slight which

And we've quarters, does which sold. to last just that about, transformation our to what on large better our pivoted is it positions than the as are the buying, revenue last over us And deals. time already the you clients business really same are the year that talked what we've few compared

on I over inorganic the that, for range, end of to X% our at do year, growth. of highlight flat. expect bottom organic guidance to imply then which From bit with end that contribution, we're X%, the we an the X% organic a top of want And growing range, the the overall, is in X% would

market and across type see, at for we growth of of And and out it our back at then well, to see then all across services by work and the And now as you when you that the growth managed that revenue peel what coming we low saw is right would year. the be both it as that and we rates mid-single-digit as groups. industry of look QX, -- consulting broad-based, is we see you it look it

the looking ourselves 'XX. color we're guidance, very our have stepping how pleased so ourselves at set how we back positioned with fiscal for we're and with And and up

Yes.

we the we specifically Tien-Tsin, because we're that But to said what megas. more means that not that and that commenting TCV way to level you so right, is had year, on the have you a ACV and the strategy as think about is isn't. confidence told going to And

year, We've you bookings XX with more that more. these $XXX shared last or of we had million than

So quantum. you big a can there's see

year, about And revenue into these fiscal into did base so year we've bigger coming the as think online than a from 'XX. deals going of going coming we you got larger

that's really you that's and clear how think help -- how all we being and quantum about is and to of so think about that about trying year. the the by And we're then strategy how it that,

hopefully, view gives that on with insights you more So guidance. the together some the

No, it just does that out. it's very and to well, reasonable as loud say

you around on I side, Julie, the the I last productivity ask so of examples I it busy. quarter, Just acquisition very like deals the getting some been and know I'll I examples asked gave again. you've think that the gave the you're you from again.

term? just seeing see to this Anything about you add? Could appetite overall short still how or year? good Are But the opportunities? we a step-down a else in pause

Yes.

just inorganic X%, -- for year, we're right that And about plan year with of $X -- Angie and we I is the plan year guidance, what we revenue would is, the an X% now billion if going capital. think you our what for we'll we're as into in said, say of nearly reflects think of So above terms for 'XX. little plan expected the -- is about right bit deployed seeing of fiscal now, a kind

So a as back-end last and probably our step look at loaded more year down from pipeline. we

up only our the how this as in to think about to flex we we're down. have year opportunities that's But tie We seeing or we the investments. ability market. obviously, always the it Now

James Stanley. Morgan the Faucette line of We'll to next with go

the over you projects James. this. through This going follow-up Could on should Antonio technology we cloud growth trending 'XX? then talk last And been after. I for how think has how migration segment. days? is into actually wanted big fiscal about clients is cloud have component the a these XX year into to And dig I of I a on spend know cloud

happening, going It applications. you to lot not in on but it XX is where been we So compute going, that's days. still cloud, of we've think have I'm about the right? we're a last think Antonio, high-performance about migration of the think just of and more where sort

So are their mainframe, also you and very, right? clients -- some have who in things very still So early journey. like cloud

about example, an segment was And early the cloud talked where services. of entire things the one That's retirement script, in journey. I in for the very, they're very

the at time, journey. early, just very their companies so that cloud got same And you've are starting

the we are trying what applications along infrastructure pandemic You feeds harder get people that the in modernization of savings of into like the have are do, functional things then a not happened who and we were the modernization. course, get now to And cloud farther to have all mainframe. right, to is have the modernization, the because expertise. lot who who to the getting those brings the industry And done yet still

into see so And strengths. we as to FY look we going those continue 'XX,

So context right? that of but to significant is well different a driver cloud industry health knowledge. continue going be in banking. the all requires very of we as those deep growth, And high-performance of dimensions, on expect of very context to the Doing mainframe the compute than is

helps that hopefully, you. So

geographies organic that's on looking that? wanted on quite your Could to shape the actually headcount. strategy a bit. looks like ask of hiring Got to and helpful. in it. that It then sort what up you're No, I ticked comment And you

then and any Why and as Yes. Julie comments don't additional well. start, I

how So 'XX. we we're see can I organic with momentum start and as growth see, the year. We slight to QX, want FY you that into in saw exiting

is year that QX, we for looking of business. we ahead, reflective seen the also people added the right, we always, which XX,XXX in see And as You will the we about the see. hire demand will skills and momentum in have that always that this

-- balancing to would you the be a our continue and competency rates, just see managing about And And our core supply supply that as through remind is utilization just demand. as range. which that more think us you I broadly, XX% business, in us

we're And hiring right, from in -- talent hiring strategy, a we India. are primarily

at So a and, course, our -- India of lot is pyramid are that technology time. addresses also of hiring this in refreshing we

So in. you've graduates college of got the kind coming new

lot the of FY hiring all in of talent is India. change no that that technology, our going in and a over And the is now really there's So driver in big a which into 'XX, We world. growth we're seeing hire strategy.

to of Bank next go of Kupferberg the America. We'll line with Jason

for pick the commentary outlook to the wanted on about 'XX. consulting up fiscal I

to mid-single said You up low digits.

think of very fiscal 'XX. exit with I of rate consistent out the coming that's X%

not So F guide? of does into are initial building spending you a that discretionary much 'XX that this imply recovery

bit give as let on Jason, you you little that that of a and just think Yes. question the of about work you types color asked. me just the

If X% X% more to And right, you we discretionary assumes for terms top the in what is same, full at end, so spending year. see of at range our this think about we're environment. of the the overall, the

deterioration further for environment allows what it end, 'XX. the discretionary bottom the over in experienced in at spend FY we While

are then are wanted Okay. what months makers maybe That's Julie. guess, very more? X get ago? What on And one see the telling a for to broad take they open I helpful. I decision bit waiting macro your right backdrop. discretionary little versus to the just now to you budget

budget Well, they're season. now, a the the more really going kind same, of into has Right environment and cautious environment environment. of is that been

been on as So hasn't February, of right? see we'll January always, and really but change, a there much in

The the in come right? macro that there's of events thinking going people the up change, Obviously, big is same. not there's to are fall some about. a kind But tone

And a overall, improvement. better of 'XX, if environment, not I FY at maybe down lot to Europe. -- look the macroeconomic you click think in a U.S., little it the in going is because bit But

in like, right, I'm discretionary not ready every spending. -- So to and from CEOs, hearing hearing we're almost talking we're now them I'm "Hey, more," go day, some to not big spend

more same. just really of the it's So

by year normally big period changes this we was June. in was decades, the 'XX for of fiscal our then And one way, in December,and we promotion made a small that the one do last

right? lot we our year in visibility said or these, more switched January in a have we And fiscal so budgets We in that's are business because set. 'XX, February where

So a really I shifted nice had promotion, promotion, a past permanently really we this nice cycle. not this and did now would that but big, past very We've in very that promotion promotion year big say, June.

have on really and spending And for in June in in our better in January, our cycle and our one to is that Again, are what February. that's better promotion big visibility. we we're smaller clients December know when our and spending services match do the setting IT will their seeing. clear we'll budgets that the budgets we So justification

with BMO. go We'll Keith line Bachman of the next to

you XXX% if billion, help. M&A, your M&A year we if noted, math on revisit I X as the what starting to to revenue, FY was do get wanted up 'XX, sort you on just I $X.X with the 'XX of and about points which could, year-over-year. spent, In FY some are of clarification. And multiples like of normalized looks you're

right it? think to just is And way to so the understand, about that I want

M&A half you then M&A for plan be, more spend billion or billion second And you $X X% that you said, as had even is isn't But M&A I'm more struggling the that Why it weighted? And Julie, to number this year? weighted. why year. in will back-end just $X is indicated

Keith, just start a back with our let contribution bit. me inorganic peeling

approach and As capital math. over we do with so right? it's that's we back-end look contribution, the closed a X% in that at bit nearly we deals in the our deployed, 'XX, loaded the X%, And see just

lot It's going just a closed right? just it's in right? it's it's end and our see that way X% so what we right? we're Yes, we're And because And QX, spend timing, a timing, developing, to to of rolls going right, quite the at because of this and not of in -- think have QX we we in. going how QX view pipeline the

Okay.

Let me bookings to transition then.

that quarter and was FY help August the an that -- terms there or 'XX ratio any puts in if don't about bookings bookings, in think think higher lower? me? you the as you there? of of guide you of M&A signings, about kind excuse As it's an be want don't takes I output, to 'XX, or know us to you might book-to-bill well mind, FY but Any and in cadence And more

think In which bookings don't about million. we client over year, of billion the were the that for the Why included start? with was bookings way the of to XX% had which quarterly I terms our $XXX growth, bookings, XXX super pleased we $XX

transformation we driven super and was our pleased large which think were so you rate book-to-bill by growth And with. managed in that our that, I And saw deals. services, that in our

over or better, X.X for us, nothing or we're and and be trailing time managed be our changed quarters, always our for to there. of book-to-bill X.X has For X to better our consulting services looking

QX. in And nothing there was Yes. about M&A bookings our in

to the Deutsche next with Bryan Bank. of go line Keane We'll

just to want I ask GenAI. Julie, about

think there can quarter. about us bookings million understand? cadence in about the that $XXX up GenAI almost million I this of about you were and Anything there fall third help quarter up through $XXX sequentially, the

Sure.

we'd which with year, sort 'XX healthy expect for FY move So of see bookings billion clients important. from concept larger implementations, $X is in to There increase. is more ended our yes, the proof so We're another and demand. we clear starting of to of

is the of kind those is up. size So clicking -- of bookings

kind And other least at and that's got data also we're every see even has pull-through, kind moving to continuing of one of up.

the and is, limitations to big going on while the in also on -- of of to using into data, from that of kind work it's and the revenue take have will a GenAI a We'd bigger and data that, and is digital of of today be increase clients building see we're biggest year. continue why do healthy which of opportunity we'd that one for because course, our client part of and lot core expect a bigger needs So a our data us. out bookings kind another our our to going

low was I quarter said if revenue about clarification guide back you 'XX it. talking about and we're fiscal organic guide. it, And currency out positive, guys you Got on to know a the the organic X% flat fourth got the growth. basis. constant X% And the of acquisitions, on then growth I on we're think end, year talking just a

given would from in guys -- That be quarter, seeing would you be in some a of momentum are and which slight step the headcount is down growth. fourth bookings that surprising the a little

to So and that there quarter would wanted might imply fourth just a low of ended. from sure necessarily kind step understood be why what down I make the end where

with Yes. the bigger executed we're deals. on about No, we're going the strategy momentum. around thinking the had it, the into year right, way We and

a we acquisitions. got of stronger have base revenue. So We've the

deterioration the was if there bottom end so discretionary of a range, just spend we reason And some kind to flexibility. the of most the is see, the there So give be what to environment, in on trying we're right? likely would

not of sell We're right? this quarter. that, more the same seeing We

today of the mostly is the to we've a what right, year, of we if range, ourselves. into so that you end deterioration way of the go -- environment it's spending, forward. as in bottom And kind at current the was at positioned going kind me accommodated of range, so the there top the of because And the if were is ask

to Dan next with go of Dolev Mizuho. We'll the line

a more Great results Are and and being conversations of GenAI. on great guidance on seeing follow-up. here. you less and I questions incremental replacement purely GenAI? Two reallocation And your then have

in I what IT, it save of with free to continued are right? the IT change we're but think money Well, spending is trend starts spending on our up areas not Yes. on GenAI. are seeing on seeing trying of the to clients a -- what So we

we big expecting come now, February, we're budgets haven't the see a right hand, in a one the on not change. So January, seen We'll overall what change in spending. but

want is saving like But things that GenAI in they're what seeing as money, to we and also data. they are it invest

haven't save of signs dynamic on, we to that's change. that's seen the going but So really invest, overall

stands margins. then I touch the really that for And it. you on would a follow-up business? quick your Can services investors. Got GenAI traditional think margin, on helpful versus it maybe how be

different you and mean margin -- doing we're versus -- you of Are GenAI project that are technology? from is GenAI when other sort

Correct. traditional GenAI services business. versus consulting your

-- time. heard times, that and deals. still having particularly probably wouldn't And as lot as wouldn't I GenAI embed you different larger small a of it our at really in a business, a look, margin we're profile our starting I script in think about in my our GenAI -- is of this part to

way. it thinking about not really a we're separate so And a sort as of

think wouldn't business. than differently our too So about usual I it

go We'll of Sachs. Schneider next with to Goldman line Jim the

when spend. regulatory? on more understand outlook rates, discretionary discretionary they you to or commentary you to or us looking for the help factors, limited helpful -- on release Very But spend? client maybe talk unpack, be relates Is election that are it whether macro them, what can

priorities And budgets? it's latter, are into for going IT their looking to tied they're of if the factors getting clarity on micro more the increased terms what things in it XXXX? is those Or

look it's of Sure. there It's the at macro, the -- global. And right, sense are lot -- if really our good a question. a because overall, of a you is clients

If big change. a there you the look isn't macroeconomic, at

still next like kind is it's of market, great. going up down looks into There's bit, year, which a not bit. the a big to but be -- it Europe's little little a U.S., going

macro. kind start in not seeing so big change a with you the And of they're

look have really it you factors. to has then at because But each industry industry by industry

in industries, the to shift change the how -- on renewables. have example, and investment for focused they're climate change in and they the do super So energy much

appetite for So big major there's investment. a

like, So I've got catalyst ton got a there's big a They've "Oh, that no of says, of thought." investments, lot right?

they've research latest a that you lot the able to the they've look consumer takes volume, their pricing, is big goods to which up improve their of got because they've manufacturing come. to get journey goods, means -- investments and X/X where got costs, in manufacturing, and companies of their digitization at efficiency got our still to says consumer get not If down to drive are

And so those are big investments.

example. is, through by great public growth The still reality this you the journey us, in many, industry obviously good is industry. take very another for like many digitization and That's service of kind can industries. early I so is And --

got they've So transformations going. big

investments, That's that And day, the do if potential are big the get it. smaller, like the see what's things got right, at now that's where of of when move the like, "We've going." focused needle. because deals And big you've enterprise, not everyone's, to driving And the they got a they're you're really they GenAI. end

move a on. that are really entirely "Help with of That's spending." Our bigger we're what faster bunch can't about, transformations." having that's us discussions we're why to on, unlock "I not focused our So wait discussions

as deterioration? And maybe you out fiscal expect helpful. X verticals the 'XX, potential as into most you follow-on, look maybe X verticals improvement or prospectively or risk referenced X call where you then see where you you very maybe several there. of maybe, and That's a Can X

end growth -- all that as X% 'XX markets. see in broad-based our across of think we guide FY industries services I our overall Jim, to our it's across well of look across Yes. as X%, we broad-based as really

we'll the time have we then one question, more wrap Operator, for and call. up

come that with Bryan Cowen. And TD will from Bergin

reached? a you GenAI, the of of programs size can give individual have largest the On of sense us some

then that to the or maybe it earliest relates where any on productivity metrics you you're progress, relates it internal comment more any the as in productivity as can impacts of programs? share lines seeing service And to advanced

were Sure. I -- that on this. now you've of kind But million, don't in want that you on tons went of right, to start that from got giving production deals move data GenAI above average, from sub-$X So million, you're see to into are moving sort of still POCs that starting some and $XX right? because But that's end scale. the you're to bookings. these things smaller larger were,

into and with seeing. respect productivity account we're internal course, our of And what takes to guidance, then

we're to differentiator about talking been that first I've the -- trying our big it's that GenAI clients. remember, anticipate fastest we embrace with because As a think area we is

our And so we we're services that's where where is platform. seeing have most because managed the in

to all you used we So about myWizard. talk remember

Now we talk about GenWizard, right?

the is the similar technology seeing before. we're that and what But ways productivity is like

So not than different we've right? of that kinds if myWizard, to XXXX, when been really So it's the first XXXX, back productivity introduced go you we experiencing.

they to are clients, not And other use there necessarily prioritize. cetera. a lot and productivity for that's our they course, want have our are it have using their to of areas et here, AI, platforms, there's many have it in GenAI with order they're where use already our to that use of using clients wrinkle of an technology they to GenAI, added us to in allow they us And in where

So go factors of how in we're we use there's it, quickly of use it that now into can places. to kind pace even lot a many ready the if of

use that in GenAI, is to that's little sense hopefully, it a So want prioritize because too. clients helpful bit they different to where have our because

tougher has That's has while M&A environment, okay. sheet on capital a commentary this I your the on on appreciate And understanding helpful. been returns been then upper and end. the the overall balance Okay, outlay

should be the leverage in forward, magnitude consider. we just how we guardrails just should But curious thinking going of model about any potential the

indicated it's be going maintain Yes. I strong around credit ratings, be say And leverage modest. a that couple that. We net would to and of will We'll low. things our that

And guidance the for so also year. to may margin in expense addition -- allowed we you, variability our interest is and which in our for the we the have and we the operating guidance, provided included in in potential see overall that throughout that

Great. Well, us. you, thank joining for everyone,

as an They've KC, that up, the been things years, these wrap we've been who's we partner want some X quite few all gotten together and Before I with. I just X work years. know, last thank in amazing a friend environment to

to would for next I'm her so and excited And KC chapter. few like words? a really And KC, say you

for just would. and Julie. best offer really It's a wishes plus the and my been thanks and I community to I the of really to analyst meant to me. support. want decade lot, It's counsel Thanks, sincere lot all appreciated. Thanks to investor you. a of

all and XXX-degree So to to create value and all you for giving I success in KC, us thanks people a you quarter. want everyone see to our of next and do for thank confidence new thank 'XX. the us your day, And us what again, every welcome Angie of and FY joining in role, we'll in our allowing lot

you. Thank

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