Gaushi Sri

Gaushi Sri from Singular Research asked about evidence of the revamped go-to-market strategy's impact on the commercial segment's top-of-funnel, particularly in outrunning the lagging client and affecting 2026 performance. She also questioned the strategy for the healthcare segment (depth vs. breadth) and how AI-driven fraud reduction on the government side would translate into margin improvement and revenue for 2026, specifically regarding gain-share versus fixed-price models. Finally, she sought confidence levels by segment for ACV conversion and realistic sustainable margin expectations for 2026.

Answer

CFO Giles Goodburn noted strong momentum in government and transportation segments for 2026, while the commercial segment still requires work, with growth not anticipated in 2026 but a positive trajectory expected for 2027. CEO Harsha Agadi added that he is actively involved in the commercial segment's leadership review and client engagement, emphasizing a disciplined sales approach and potential focus on specific strong sectors. Regarding healthcare, Mr. Agadi stressed getting deeper into sectors with existing market share rather than just acquiring more logos, especially given the scale of healthcare spending. For AI, he indicated a strategy of partnering with nimble disruptors to increase accuracy and lower costs, potentially sharing savings with clients, rather than innovating from scratch. He also stated that while 2026 guidance isn't provided yet, the company aims for 8-10% EBITDA margins in the medium term, with significant cost-takeout opportunities.