Dave Koning

Dave Koning asked about the split of the 5% organic constant currency growth between enterprise and SMB segments, and between Worldpay and Global Payments' standalone businesses, inquiring if all parts are growing at mid-single digits.

Answer

CFO Josh Whipple clarified that Global Payments' merchant business exited the year slightly over 6% organically, while Worldpay exited at approximately 4%, leading to the 5% full-year guide. He detailed the pro forma revenue composition: SMB is approximately 50%, and Platforms and Enterprise/e-commerce each represent about 25%. CEO Cameron Bready added that the 2026 outlook is prudent given the early integration, with an expectation to exit the year above 5% growth, setting momentum for 2027.

Dave Koning inquired about the organic constant currency growth split for Global Payments, specifically asking for a breakdown between the enterprise and SMB segments, and the individual contributions from Worldpay and Global Payments businesses.

Answer

Josh Whipple, CFO, explained that the full-year guide is 5% constant currency ex-disposition, with the merchant business exiting the year slightly over 6% and Worldpay at approximately 4%. He noted that SMB represents about 50% of pro forma revenue, with platforms and enterprise/e-commerce each at 25%. Cameron Bready, CEO, added that the 2026 outlook is prudent given the early integration, aiming for acceleration into 2027.

Dave Koning questioned the experience with attrition and yield when migrating existing customers to Genius, and whether the company plans to more aggressively push Genius into its back-book.

Answer

Cameron Bready (CEO, Global Payments) and Bob Cortopassi (President and COO, Global Payments) explained that Genius migration often involves unlocking incremental capabilities on an existing platform, not a full-scale conversion. They noted that yield is neutral to slightly enhanced, and the current focus is on front-book opportunities while being prepared for back-book migrations.

Dave Koning questioned Global Payments' strategy for its Genius back-book, asking about the experience with attrition and yield when migrating existing clients, and if positive results would lead to a more aggressive push into this segment.

Answer

President and COO Bob Cortopassi explained that the strategy is to inform existing customers about Genius capabilities and facilitate migration at their convenience, often by unlocking incremental features on existing solutions. He noted that migrations typically result in neutral to slightly enhanced yield due to incremental capabilities, with no meaningful price compression. The current focus remains on front-book opportunities, but the company is prepared for back-book client migrations.

Dave Koning from Baird asked about the expected performance of the non-Clover portion of the SMB segment in 2026, particularly how it will achieve slight growth given its past trends, and the impact of Argentina's merchant cash advances on this segment.

Answer

Mike Lyons, CEO of Fiserv, stated that slight growth is expected for the non-Clover SMB segment in 2026, noting that Argentina is no longer a significant growth factor. He clarified that while the non-Clover piece was flat to slightly down in 2025, excluding Argentina, it did show growth, and the 2026 guidance embeds a roughly flat to slightly growing non-Clover SMB picture.

Dave Koning asked about the expected performance of the non-Clover SMB portion of the Merchant Solutions segment in 2026, particularly considering its recent decline and the impact of Argentina's merchant cash advances.

Answer

CFO Paul Todd indicated expectations for slight growth in the non-Clover SMB segment for 2026, noting that Argentina is no longer a significant growth factor. He clarified that excluding Argentina, the non-Clover SMB segment was flat to slightly growing in 2025.

Dave Koning inquired about the minority interest line, specifically why it was so high at approximately $27 million on an adjusted basis in the quarter, and what the expected quarterly run rate for this line item should be going forward.

Answer

Ron Clarke, Chairman and CEO, suggested taking this question offline for a more detailed modeling conversation.

Dave Koning from Robert W. Baird & Co. asked about the strategic balance between Gen AI and managed services, and how this interplay influences Accenture's revenue and margin trajectory over time. He also inquired about the expected duration and impact of the federal business headwind.

Answer

CEO Julie Sweet and CFO Angie Park clarified that both consulting and managed services are expected to grow in the low to mid-single-digit range for FY2026. Julie Sweet explained that managed services have become strategic, enabling clients to adopt advanced AI faster and reinvest cost savings into their businesses, rather than solely being a cost play. Angie Park confirmed the federal business headwind is expected to anniversary at the end of Q3 FY2026.

Dave Koning asked about the strategic balance between Gen AI and managed services, specifically how Gen AI work might displace or complement existing managed services, and the net effect on Accenture's revenue and margins. He also inquired about the expected timeline for the federal business headwind to anniversary.

Answer

CFO Angie Park indicated that both consulting and managed services are expected to show balanced low to mid-single-digit growth in FY2026. CEO Julie Sweet explained that managed services are increasingly strategic, helping clients adopt advanced AI faster, with savings reinvested into the business. Angie Park confirmed the federal business headwind is expected to anniversary at the end of Q3 FY2026.