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CFO Bob Schrader explained that while separating organic growth is now difficult, the analyst's calculation was reasonable. He clarified the 3% Q4 exit rate was understated due to tough comps and specific headwinds; when adjusted, it aligns with the fiscal 2026 organic guide. President & CEO John Gibson added that the outlook assumes a more stable macro environment than the uniquely uncertain Q4.

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CFO Bob Schrader explained that while separating the businesses is difficult, the analyst's 4-5% organic growth calculation was reasonable, noting the Q4 exit rate was understated by temporary headwinds. President & CEO John Gibson clarified the macro assumption is for a return to the more stable environment of the first three quarters of fiscal 2025, without the unique shocks seen in Q4.

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Executive Robert Schrader confirmed the analyst's math on Q3 ex-ERTC growth was about right but noted a Q3 tailwind from lower discounting wouldn't repeat in Q4. He added the Q4 outlook assumes Q3 trends continue, including softer checks per client and a potential headwind from market performance on 401(k) asset values. CEO John Gibson reiterated that it is too early to size revenue synergies, with an update to come after the acquisition closes.

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CEO John Gibson responded that while the competitive approach is similar, the company will be leaning heavily into advertising its new award-winning products like HR Analytics Premium Plus and Flex Perks. He described the M&A pipeline as the largest he has seen, but emphasized that Paychex will remain disciplined on valuation and synergies, with no M&A included in the current guidance.

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Executive Robert Schrader declined to give specific quarterly segment guidance but reiterated the 4% to 5% total revenue growth outlook for Q2, noting the acceleration in the back half of the year is due to easing ERTC compares, not a change in underlying momentum. He attributed the Q1 margin beat to a combination of slightly better-than-expected revenue and favorable expense timing.

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CFO Angie Park noted that quarterly bookings can be lumpy and pointed to the strong trailing-twelve-month consulting book-to-bill of 1.1 as a better indicator. CEO Julie Sweet added that efficiencies from using GenAI in delivery are already factored into guidance and commercial models, and the focus remains on value delivered to clients, which is reflected in improving pricing and overall results.

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CFO Angie Park responded that the company focuses on the strong trailing twelve-month book-to-bill of 1.2 overall and 1.1 for consulting, as quarterly numbers can be lumpy. CEO Julie Sweet explained that the impact of GenAI on delivery efficiency is already built into their guidance and commercial models. She emphasized that Accenture focuses on the value delivered to clients, which is reflected in the company's overall financial performance and improving pricing.

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CEO Julie T. Sweet confirmed they are not seeing any pauses in client activity outside the federal business, though some discussions are about accelerating cost-saving programs. CFO Angie Park declined to provide a specific Q2 growth rate for the federal business, instead contextualizing the full-year guidance, which assumes 2% to 4% organic growth for the company overall.

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CFO Angie Park confirmed that the assumptions for the raised 4% to 7% full-year guidance remain the same: the top end assumes 'more of the same' market conditions, while the bottom end allows for some deterioration. CEO Julie T. Sweet added that the Q1 over-delivery was partly due to large deals materializing better than expected. Regarding headcount, Park noted the 24,000 net adds in Q1 reflect business momentum, with hiring concentrated in India. Sweet added that the hiring supports the organic momentum visible in their guidance.

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Incoming CFO Angie Park clarified that the guidance range accounts for different scenarios: the high end assumes the current environment persists, while the low end allows for potential deterioration in discretionary spending. CEO Julie T. Sweet described the macro environment as 'more of the same' and cautious, with no significant change in tone from CEOs, who are focused on their budgeting process for the new year.

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CEO Arkadiy Dobkin explained that returning client work is distributed broadly across delivery centers in Europe and Asia. CFO Jason Peterson clarified that the Q1 sequential growth in financial services was partly due to the full-quarter impact of the NEORIS and FD acquisitions, alongside underlying organic improvement in banking and insurance.

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CEO Arkadiy Dobkin explained that the high end of the revenue guidance assumes a continued pragmatic return to discretionary 'change' programs, driven by clients seeing value in GenAI. CFO Jason Peterson and Dobkin clarified that wage pressure is most pronounced in 'off-site' delivery locations, driven by the strategic need to retain top technical talent with skills in new GenAI-enabled software development life cycles, which is crucial for future demand.

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CFO Jason Peterson stated that EPAM definitely expects to return to organic revenue growth in 2025, though the definition of 'meaningful' is debatable. Regarding Nedis, he noted it is a growing business and that its major customer, CEMEX, is significant but not a majority of its business. He declined to give a specific pre-acquisition growth rate for Nedis but expressed excitement about the combined growth opportunities.

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CFO Mimi Carsley responded that it is too early to provide a full fiscal 2026 outlook but noted the sales pipeline remains robust. She confirmed that the growth in key revenue, driven by digital, cloud, and new products, reflects a sustainable long-term trend for the business, though it is partly offset by headwinds from the non-key business segment.

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CFO Mimi Carsley expressed confidence in hitting the full-year free cash flow conversion guidance range of 65% to 75%. President and CEO Greg Adelson stated that 75% of core clients are now on the private cloud, with the company on pace to meet its annual migration targets of 40-45 clients per year. He noted some clients may hold out to move directly to the public cloud offering, which is on track for a 2026 launch.

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CFO Mimi Carsley detailed several factors driving second-half confidence: easier hardware comps, continued strong cloud growth, accelerating faster payments revenue, a pickup in card volumes, and the ramp-up of new products like Financial Crimes Defender. CEO Greg Adelson affirmed confidence in the 50-55 core win target for the fiscal year, stating the sales pipeline is at an all-time high even after a record Q4 and Q1.

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CEO Stephanie Ferris and CFO James Kehoe attributed the expected margin expansion to a positive revenue mix shift, ongoing execution of cost-saving programs, and easier year-over-year comparisons. For revenue acceleration, Kehoe stated their confidence is high because it is driven by 150 basis points of growth from 'commercial excellence'—primarily revenue from deals already sold in 2024, a record year for core wins—combined with very high client retention rates.

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CFO James Kehoe stated that 2025 recurring revenue in Banking will grow slightly faster than the segment's overall adjusted growth. He and CEO Stephanie Ferris clarified that Worldpay revenue will be a slight headwind in 2025. For Capital Markets, Mr. Kehoe explained the guide reflects a lower M&A contribution than the long-term target and a tougher comp due to a strong Q4 finish.

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CFO James Kehoe explained the slight downward revision for the Banking guide was due to two factors: a tougher comparison basis from a prior-period accounting revision and minor, client-requested delays of a few conversions into H1 2025. Regarding 2025, CEO Stephanie Ferris and Kehoe stated that while they are not yet providing a formal guide, they stand by their Investor Day commitments and pointed to the accelerating growth trends in H2 2024 as positive indicators.

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CEO Cameron Bready and COO Bob Cortopassi explained the Genius rollout will initially be a 'pull-based' offering focused on the front book, with no plans to force back-book conversions, thus minimizing attrition risk. Bready confirmed Worldpay's growth is organic, driven by investments in its e-commerce and platforms businesses. CFO Josh Whipple detailed the capital return plan, expecting over $2 billion in share repurchases in 2026 and over $3 billion in 2027, supporting the mid-teens EPS growth target while deleveraging.

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CFO Joshua Whipple confirmed that the CaixaBank payments acquisition would contribute about 50 basis points to 2025 Merchant growth and that the recent orchestration platform acquisition was de minimis. He stated that 2025 stock-based compensation would be approximately $170 million and reiterated the 10% to 11% constant currency EPS growth guide, noting a 175 basis point headwind from FX.

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CFO Josh Whipple credited the margin outperformance to a favorable revenue mix, ongoing EVO payment synergies, and strong execution. CEO Cameron Bready added that growth is concentrated in attractive, higher-margin areas. Regarding bookings, Bready acknowledged the quarterly lumpiness but stated the overall goal is to maintain strong double-digit growth, which is key to the merchant acceleration expected in 2026-2027.

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CEO Maria Black responded that U.S. results and enterprise pipelines are strong, though she noted a 'tiny bit of pipeline aging' on large multinational deals, but no significant sales cycle elongation. For the down-market, she stated it's always competitive but highlighted the strength of the Run platform, the Fiserv partnership, and high client satisfaction and retention as key differentiators.

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CEO Maria Black indicated that sales pipelines are up year-over-year, providing good visibility and confidence heading into the seasonally important second half. CFO Don McGuire reiterated the back-half cadence, attributing a softer Q3 to FX headwinds, lower short-term interest rates impacting the client funds portfolio, and WorkForce Software integration costs, with a reacceleration expected in Q4.

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CFO Chris Suh acknowledged that the 8% growth in April did benefit from the timing of Easter. He cautioned against over-extrapolating from a few weeks of data and emphasized that the overall message is one of a stable, healthy, and resilient consumer spending environment, advising not to read too much into the 6% vs. 8% variance.

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Ryan McInerney, Chief Executive Officer, described tokens as a top investment priority and a platform for innovation, noting over 12.5 billion tokens have been issued. For direct monetization, he provided two examples: a credential enrichment service for merchants to prevent lost sales from expired cards, and a 'heat map' service for issuers to help consumers manage their tokens. He stated the revenue from these services is already meaningful and expected to grow.

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CFO Chris Suh explained the one-time adjustment was a rebate reversal after a client missed a milestone, which helped boost new flows growth. He did not quantify the amount but reiterated the overall assumption that FY25 volume trends would remain stable with FY24.

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Taylor Lauber, President and incoming CEO, did not provide a specific revenue split but highlighted the long-term strategic importance of international growth. He described a two-pronged approach: enabling large enterprise clients globally across 50+ countries and bundling software and payments for SMBs in key markets like the U.K., Ireland, and Germany.

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CEO Alex Chriss highlighted three growth levers: the improved checkout, accelerating Pay with Venmo, and BNPL growth, expressing confidence in long-term targets. CFO and COO Jamie Miller added that the impact from the new checkout is ramping gradually. She noted U.S. performance was consistent with Q4, while international markets, particularly in Europe, continue to gain share and will see new product rollouts starting in Q2.

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CFO Jamie Miller stated that international branded TPV saw a slight pullback of less than one point due to softness in Europe. She clarified that the TPV and transaction margin split between U.S. and international is roughly 50-50, with international margins being slightly healthier but generally in line with the U.S.

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CEO Alex Chriss confirmed expectations for consistent branded checkout trends and expressed confidence in the new checkout experiences, which have shown conversion lifts of 100-400 basis points. He noted that while PayPal can ramp up adoption on about a third of its volume, the remainder requires merchants to implement the changes. He expects continued momentum on the 5% adoption rate through the holiday season and into 2025 as merchants are now incentivized by the significant conversion improvements.

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CFO Robert Hau clarified that recent acquisitions will have a minimal revenue impact in 2025, with contributions expected in late 2025 and beyond. He stated that the anticipated acceleration in growth will come from organic drivers, including increased VAS penetration, significant international expansion for Clover, new product launches like Clover Hospitality, and growth in the Commerce Hub platform.

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CFO Bob Hau identified continued growth in Value-Added Services (VAS) as a primary driver, noting the company expects to reach 25% VAS penetration in 2025. He also cited a 'very nice uptick' in hardware sales, driven by five new product rollouts, and a favorable business mix shift towards more direct clients as other key contributors to the spread.

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CFO Bob Hau reiterated the company's 2026 target of $4.5 billion in Clover revenue, which requires a ~28% compound growth rate, a level they are currently achieving. He noted that while volume growth has eased from last year's highs due to tougher comps and moderating consumer spending, it remains good. He also highlighted the sequential increase in value-added services (VAS) penetration to 21%.

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CEO Devin McGranahan identified key growth corridors as Europe to South America, Africa, and the Middle East. He attributed the wide transaction-revenue spread to the higher mix of account payout (APN) transactions in Europe's retail business, which drives volume but at a different yield. He affirmed the company is comfortable with this dynamic due to higher customer retention. CFO Matt Cagwin confirmed that the initial guidance did contemplate tuck-in acquisitions, including Euro Change.

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CEO Devin McGranahan stated that further retail improvement will stem from existing strategies, including network optimization, independent agent growth, and the rollout of the new point-of-sale system, with North America representing the largest opportunity. CFO Matt Hagan noted that the 2025 guidance range of 0% to 2% adjusted revenue growth provides flexibility for uncertainties like migration shifts. He specified that North America constitutes about 30% of revenue, with the U.S. to LACA corridor representing a low-to-mid 20s portion of that.

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CFO Matt Cagwin acknowledged the Latin America situation is fluid but stated the company feels confident in its Q4 guidance. CEO Devin McGranahan added that he does not expect a dramatic near-term impact from the U.S. election, as most clients are already established. Regarding the digital spread, Cagwin noted he is pleased with the wide spread as it signals transaction acceleration, particularly in sticky payout-to-account services. McGranahan reiterated the long-term 200-300 bps spread target but is willing to maintain a wider gap to drive growth.

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CEO Max Levchin identified personalization as a key focus, aiming to improve conversion and uptake by tailoring purchasing power and offers to individual consumers. He also highlighted international expansion and new product development with GenAI as priorities. Regarding the Affirm Card, he said there have been no major behavioral shifts, but the company is actively working to expand its utility into new categories like groceries and medicine to increase usage and reach its long-term spend-per-user goals.

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CEO Max Levchin explained that credit outcomes are by design and that the company's guidance represents a conservative 'floor' that the team is tasked to outperform. CFO Michael Linford clarified that for an initiative to be 'material,' it would need to be in the hundreds of millions to billion-dollar range, and since new wallet partnerships are not yet live, any contribution would be upside to the current outlook.

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CEO Ravi Kumar S explained that the guidance reflects strong visibility for the first half of the year, with hopes to reach the upper end as H2 visibility improves, noting the company's track record of hitting the high end of its guidance range. Regarding AI, he described a three-vector opportunity: improving software development efficiency, driving innovation through data modernization, and unlocking new service pools in business operations. He views DeepSeek as a positive inflection point that shifts value from back-end models to front-end services, benefiting Cognizant.

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CEO Ravi Kumar S confirmed the Q4 organic growth of 1-2% provides a good velocity entering 2025. He explained that AI productivity gains are shared with clients, which enhances competitiveness, helps win vendor consolidation deals, and encourages clients to increase their project backlogs. He emphasized that the elasticity of tech spend means lower deployment costs lead to more work, not reduced budgets.

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CFO Rob Del Bene acknowledged a significant renewal of approximately $400 million but noted the book-to-bill was still strong at around 1.2x without it. He described a healthy mix of project-based and longer-term outsourcing deals whose revenue impact will materialize in fiscal 2026. Regarding margins, he reiterated that Q4 revenue declines and merit pay increases would impact both segments.

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CFO Juan Urthiague confirmed the 2025 outlook of low-to-mid double-digit growth, comprising a slight acceleration in organic growth plus 2-3 points from M&A. Regarding margins, he explained that after facing pressure from LatAm currency appreciation, the company is now seeing a tailwind from recent depreciation and internal efficiencies, establishing the Q3 margin of 15.6% as a solid base for 2025.

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CEO Aman Narang responded that the trends for the 7,000 net adds were largely consistent with the past, representing a good mix of new restaurant openings and switches from existing restaurants. Regarding churn, he stated it remains largely aligned with historical disclosures, noting that when churn does occur, it is typically with smaller restaurants, resulting in a smaller impact on ARR.

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