Jonathan Lee

Jonathan Lee asked what specific customer conversations in January and February 2026 are driving confidence in the conversion timelines outlined in Globant's outlook, especially given past client caution and conversion challenges. He also requested a breakdown of expectations across different industry verticals for the year, identifying which are expected to accelerate or decelerate.

Answer

CEO Martín Migoya and CRO Fernando Matzkin noted increased client openness to resuming big deals and a reduction in volatility and uncertainty in recent conversations. They highlighted that relevant deals closed in Q3 and Q4 2025, along with anticipated Q1 2026 closures, provide confidence in a different trajectory for conversion. CFO Juan Urthiague detailed vertical expectations: Financial Services, Consumer Retail, and Manufacturing are expected to continue strong growth. Professional Services was a drag in 2025 but Technology is showing signs of recovery with new deals. Healthcare and Gaming have significant signed deals that are ramping up, contributing to sequential growth.

Jonathan Lee asked what specific customer conversations in January and February provide confidence in the conversion timelines outlined in the outlook, given client caution and historical conversion challenges. He also requested a breakdown of expectations across different verticals for the year, identifying any expected to decelerate or accelerate.

Answer

CEO Martín Migoya indicated that clients are more open to resuming large deal conversations, with reduced volatility and uncertainty. Relevant deals closed in Q3 and Q4 2025, plus anticipated Q1 2026 closures, are factored into the guidance, providing confidence in a different trajectory. CFO Juan Urthiague detailed vertical expectations: Financial Services, Consumer Retail, and Manufacturing performed well in 2025 and are expected to continue. Professional Services was a drag, while Technology is showing signs of recovery with big deals. Healthcare and Gaming have significant signed deals ramping up, contributing to sequential growth.

Jonathan Lee asked for clarification on the assumptions in the revised growth outlook, the level of conservatism, and potential for acceleration. He also inquired about pricing discussions, particularly the impact of the AI Pod model and the competitive environment.

Answer

CFO Juan Urthiague explained the guidance revision was a minor tweak on revenue but an increase in EPS, reflecting structural changes to capture future growth. CEO Martín Migoya added that the AI Pod model offers better margins for Globant and cost-effectiveness for clients, creating a win-win scenario by sharing productivity gains.

Jonathan Lee asked about the composition of the revised outlook in terms of new versus existing business, and for an update on the top client's growth expectation for the year.

Answer

CFO Juan Urthiague explained the revised forecast is 'derisked,' based heavily on contracted work and assumes current uncertainty continues without a significant second-half recovery. Regarding the top client, he revised the full-year growth expectation down to 'around the mid-single-digit' level, noting that while conversations on new projects are ongoing, they will take time to materialize.

Jonathan Lee asked about the level of visibility into the full-year 2025 outlook compared to prior years and the expected mix of growth between hunting for new clients versus farming existing ones.

Answer

CFO Juan Urthiague stated that visibility is similar to the previous year. He noted that the sales pipeline has grown significantly, but conversion needs to accelerate. The guidance range reflects this uncertainty: the low end accounts for potential weakness in Latin America, while the high end assumes an acceleration in deal closures in the U.S. and for AI-related projects.

Jonathan Lee asked if Globant was observing any sales cycle elongation or deal delays that could affect its commitment to double-digit growth next year.

Answer

CFO Juan Urthiague responded that the sales environment remains stable and similar to recent quarters, with no signs of elongated closing cycles. He noted a positive shift towards more revenue-oriented projects and stated that customer budgets for 2025 appear stable. This, combined with a clearer macro picture, supports the company's optimistic outlook.

Jonathan Lee from Guggenheim Partners inquired about TaskUs's 2026 outlook, specifically asking about the factors influencing the low and high ends of the guidance range, the required 'go-get' to achieve targets, and the anticipated acceleration or deceleration across service lines in the near to medium term. He also asked about the types of AI transformation investments planned for the year and their cost layering.

Answer

Bryce Maddock, Co-founder and CEO of TaskUs, explained that the 2026 outlook's range is largely influenced by the largest client's automation plans and the acceleration of demand for AI services, particularly from autonomous vehicle and foundational model clients. He noted that AI services and DCX are expected to grow, while Trust & Safety volumes at the largest client are under pressure due to automation. Maddock detailed investments in expanding the AI consulting organization, internal technical teams for support efficiency (e.g., 50% increase in recruiter efficiency with AI agents), and go-to-market talent for AI services.

Jonathan Lee asked about TaskUs's 2026 outlook, including the factors influencing the low and high ends of the guidance range, the amount of 'go-get' needed, and the expected acceleration or deceleration across service lines in the near to medium term. He also inquired about the specific types of investments TaskUs plans to make throughout the year for its AI transformation and how these costs will be layered in.

Answer

Bryce Maddock, Co-Founder and CEO, explained that the 2026 outlook's range is largely influenced by the largest client's pace of AI adoption and the acceleration of demand for AI services from autonomous vehicle and foundational model clients. He anticipates continued growth in AI services and DCX, with Trust & Safety facing pressure from automation. Maddock detailed investments in expanding the AI consulting organization, deploying agentic AI pilots, enhancing internal technical teams for support spending efficiency (e.g., 50% increase in hiring efficiency per recruiter), and bolstering go-to-market and consultative functions for AI services.

Jonathan Lee from Guggenheim Securities asked for more details on Dava Flow adoption, including the approximate number of clients or percentage of revenue touched, and its impact on pricing or margin compared to traditional engagements. Jonathan Lee also inquired about trends in signings, covering both large and small deals, and whether there were any unexpected delays or cancellations during the quarter.

Answer

CEO John Cotterell explained that Dava Flow is strategically focused on larger, outcome-based deals to leverage higher velocity and participate in upside, rather than being rolled out across the entire estate. He declined to provide specific client numbers but noted its application to significant projects. CFO Mark Thurston stated that signing velocity has been consistent with the current market environment, with no surprises or cancellations, though larger deals involve more due diligence. He observed stabilized opportunity velocity, with particular strength in financial services.

Jonathan Lee sought more details on the adoption of Dava.Flow, including the approximate number of clients or percentage of revenue it touches, and its impact on pricing or margins compared to traditional engagements. He also inquired about trends in signings, covering both large and small deals, and whether any unexpected delays or cancellations occurred during the quarter.

Answer

CEO John Cotterell explained that Dava.Flow is strategically focused on larger, outcome-based deals to leverage higher velocity and participate in upside, rather than being rolled out across the entire client base. He noted good pickup and performance metrics across several clients but did not provide specific client numbers, emphasizing the scale of projects over quantity. CFO Mark Thurston stated that signing velocity has stabilized at current levels, with no surprises like delays or cancellations, though larger deals involve more due diligence. He highlighted particular strength in financial services, including payments and banking capital markets.

Jonathan Lee sought a breakdown of the fiscal year outlook, specifically the high and low ends of the range, detailing pipeline conversion requirements, go-get needed, and any allowances for macro uncertainty. He also inquired about potential margin expansion levers and investment plans into early 2026.

Answer

CEO John Cotterell provided pipeline conversion percentages for the full year and Q2, noting the impact of fewer working days in December. He explained Endava's high operational leverage means profitability recovers strongly with increased revenue, but the strategic pivot to AI-native delivery creates short-term margin friction due to skill shifts and investments.

Jonathan Lee requested a decomposition of Endava's outlook across the high and low ends of the guidance range, specifically regarding pipeline conversion, required 'go-get,' and any allowance for macro uncertainty. He also asked about the potential for margin expansion levers and investments into the end of the calendar year and early 2026, given current margin challenges.

Answer

CFO Mark Thurston detailed that the non-strategic deal pipeline conversion for the full year is projected at 79-81%, with Q2 being very high (93-95%). He noted Q2 accounts for fewer working days in December and that Q3/Q4 pipelines are sanitized and achievable, with the overall guide reduced to reflect this. He emphasized Endava's high operational leverage, where top-line performance drives profitability recovery. CEO John Cotterell added that the strategic pivot to AI-native involves a 'friction element' (skills change, workforce adjustments) that impacts short-term margins.

Jonathan Lee expressed concern about a potential 'extended revenue air pocket' given the delays in client decision-making and the ramp-up time for large deals, asking what provides confidence against this risk. He also asked about any spending impact from ownership changes at a top customer.

Answer

CEO John Cotterell conveyed confidence based on the growing pipeline of large, late-stage deals, stating that while the lack of signatures is frustrating, the pipeline's strength should help the company exit the 'air pocket' relatively soon. Regarding the top customer, he confirmed that they are not seeing any negative dynamics, with contracts continuing to be signed and program momentum remaining strong.

Jonathan Lee inquired about the underlying assumptions for the fiscal year outlook, the drivers of the expected back-half revenue acceleration, and how that aligns with recent headcount trends.

Answer

CEO John Cotterell stated the outlook assumes a stable macro environment but with continued high scrutiny on IT investments, leading to longer sales cycles. Confidence in back-half acceleration comes from large transformation programs already underway and a strong pipeline. CFO Mark Thurston added that the pipeline is growing, enhanced by the GalaxE acquisition and new India delivery capabilities, which underpins their confidence.

Jonathan Lee asked for clarification on why EPAM's 2026 organic constant currency growth outlook, at the midpoint, is slower than 2025's, given previous expectations for acceleration, and if NEORIS's largest client is the primary factor. He also inquired about the assumptions for the low and high ends of the guidance range and expected vertical performance.

Answer

Jason Peterson, CFO, confirmed that the decline from NEORIS's largest client is expected to have a negative 100 basis point impact on 2026 organic constant currency growth, explaining the difference from prior expectations. Balazs Fejes, CEO and President, stated that the high end of the guidance does not assume a changing macro environment but rather successful deal wins and client expenditure acceleration in later quarters. He highlighted strong demand in Financial Services and Energy, anticipated momentum in Life Sciences & Healthcare later in the year, and continued growth in Software & Hi-Tech.

Jonathan Lee asked for clarification on how EPAM's 2026 organic growth outlook, which is slower at the midpoint than 2025, reconciles with previous expectations of faster growth, specifically inquiring if the NEORIS client situation or other factors are responsible. He also asked what is contemplated across the low and high ends of the guidance, how much 'go-get' is still needed, and which verticals are expected to accelerate or decelerate.

Answer

CFO Jason Peterson confirmed that the decline in NEORIS's largest client is expected to have a negative 100 basis point impact on 2026 full-year organic constant currency growth, explaining the difference from prior expectations. He noted that guidance is based on current visibility without assuming an improving environment. CEO Balazs Fejes highlighted strong demand in financial services and energy, anticipated momentum in life sciences and healthcare later in the year, and continued growth in software and high tech. He added that achieving the high end of the range does not require a changing macro environment but rather winning deals and clients accelerating expenditures.

Jonathan Lee of Guggenheim Partners asked for details on the assumptions underpinning the high and low ends of the full-year guidance, particularly regarding macro factors and Q4 activity. He also requested more color on the net new discretionary transformation programs EPAM is winning, given that peers have cited challenges.

Answer

CFO Jason Peterson detailed the guidance scenarios, stating the midpoint assumes a seasonal Q4 decline, while the high end would require an improved demand environment to overcome seasonality. CEO Arkadiy Dobkin explained that EPAM's unique portfolio benefits when clients face pressure from AI and automation, driving demand for new types of builds. This trend, which they have been anticipating, is contributing to their growth in discretionary projects.

Jonathan Lee asked about the growth contribution from Global Capability Centers (GCCs) and the level of reinvestment needed to sustain AI-related volume.

Answer

CEO Arkadiy Dobkin stated that GCC contracts and profitability are largely in line with other business, without sharing specific numbers. CFO Jason Peterson added that GCCs are part of the growth story but not the largest part. On AI investment, Peterson confirmed it continues as previously discussed and is producing benefits, with spending levels similar to the start of the year.

Jonathan Lee asked for the vertical outlook embedded in the 2025 guidance, specifically which industries are expected to accelerate or decelerate, and what factors could catalyze a return to a more favorable pricing environment.

Answer

CEO Arkadiy Dobkin and CFO Jason Peterson indicated that Life Sciences, Financial Services, Energy, and the Tech vertical are expected to show good dynamics and growth. They expressed less certainty about Retail and Business Information & Media. Regarding pricing, Dobkin stated that a better environment depends on a broader client shift toward 'change' programs where the value of quality execution is better understood, a trend they are seeing in spots but need to become more widespread.

Jonathan Lee of Guggenheim Securities asked if there is evidence of demand reverting back to Eastern and Central Europe delivery centers. He also inquired about shifts in the composition of the top client cohort and changes in the types of work or delivery locations being pursued by these accounts.

Answer

CEO Arkadiy Dobkin and CFO Jason Peterson confirmed they are beginning to see a recovery in demand for Eastern Europe, with hiring starting to increase across all locations, not just India and Latin America. Dobkin noted positive changes in top accounts, with a shift from stabilization to the activation of more transformational programs that are moving to realization faster than in previous quarters.

Jonathan Lee asked about the foundational elements that instill confidence in Kyndryl achieving its fiscal 2028 targets despite the fiscal 2026 shortfall, and the expected timeframe for closing elongated sales deals.

Answer

Chairman and CEO Martin Schroeter expressed confidence in fiscal 2028 targets, citing consistent high single-digit PTI margins in new backlog, which will eventually dominate the P&L, and an improved cash tax position driving faster cash flow growth. Interim CFO Harsh Chugh added that the strong gross profit book-to-bill ratio and the consult team's expanded ecosystem engagement support this confidence. He also noted that elongated sales cycles are typically a matter of a 'couple of quarters' and are viewed as an opportunity to embed more future-proof content into deals.

Jonathan Lee asked about the underlying building blocks that give Kyndryl confidence in achieving its fiscal 2028 targets despite the fiscal 2026 shortfall, and sought a timeframe for closing deals impacted by sales cycle elongation.

Answer

Chairman and CEO Martin Schroeter explained that confidence in 2028 targets stems from cash flows growing faster than profit due to a stable cash tax position and improved profitability. He highlighted that profitability is driven by the shift to high single-digit PTI from post-spin backlog, which will constitute over 90% of the P&L. Revenue growth is expected from diminishing IBM impact and continued expansion of hyperscaler and Consult businesses. Interim CFO Harsh Chugh added that the gross profit book-to-bill ratio consistently adds more projected profit to the backlog, and the Consult team's relevance in broader ecosystem discussions, along with a better opening position for the next fiscal year, supports confidence. Chugh clarified that sales cycle elongation is typically a matter of a couple of quarters, often linked to customer renewals, and is seen as an opportunity to include more future-proof content.

Jonathan Lee followed up on the "connect-don't-convert" strategy for AI-infused solutions, asking about potential client hesitancy or risks associated with not fully modernizing tech stacks.

Answer

President and CEO Raul Fernandez emphasized that the strategy offers optionality, addressing clients who have failed at large "lift and shift" modernization projects. He highlighted the use of AI-based tools for code conversion and building lightweight, AI-based offerings quickly and disruptively. Fernandez stated that the era of "rates times hours" is ending, moving towards value-based pricing, which is a win-win for DXC and clients, aiming to reverse revenue decline and leverage AI as a tailwind.

Jonathan Lee inquired about client spending intentions for calendar 2026 based on January conversations, comparing it to the previous year, and sought confidence drivers for pipeline conversion given recent deal delays. He also asked about potential client hesitancy and risks associated with DXC Technology's 'connect-don't-convert' strategy for AI-infused solutions, particularly how clients are convinced not to fully modernize their tech stacks.

Answer

President and CEO Raul Fernandez noted increased opportunities from corporate spinouts and restructurings, and a strong resonance of AI's economic value in C-suites, though rollout pace might cause some decision delays. CFO Rob Del Bene added that the Q4 pipeline is robust, win rates stable, and pricing consistent, but short-term project delays persist. Regarding the 'connect-don't-convert' strategy, Raul Fernandez emphasized providing optionality, leveraging AI-based toolsets for quick, value-based offerings, and shifting towards value-based pricing to address past modernization failures.

Jonathan Lee from Guggenheim Partners asked about the macroeconomic assumptions embedded in the fiscal 2026 revenue guidance, the rationale for maintaining the outlook despite a Q1 beat, and any changes to booking win rates.

Answer

CFO Rob Del Bene stated that the guidance range of -3% to -5% organic growth still accounts for potential economic worsening. He expects CES revenue declines to narrow through the year. Del Bene also confirmed that win rates increased by low-to-mid single digits in Q1 for both CES and GIS, with pricing remaining consistent.

Jonathan Lee asked about the macroeconomic assumptions embedded in the high and low ends of the company's guidance range. He also inquired about the current pricing environment and how it compares to the previous year.

Answer

CFO Rob Del Bene stated that DXC widened its guidance range for Q1 and the full year to account for potential macroeconomic uncertainty at the low end. CEO Raul Fernandez described the pricing environment as 'very stable,' noting favorable terms on mega-deal renewals and consistent pricing for project-based services, which has been a positive for the company.

Jonathan Lee inquired if the strong Q3 bookings were driven by seasonal budget flushes and asked about the demand outlook for calendar year 2025 based on customer conversations.

Answer

CEO Raul Fernandez attributed the bookings improvement to internal operational execution, including better leadership, pipeline quality, and conversion rates, rather than a temporary demand surge. He described the overall demand environment as solid, driven by ongoing technology transformation and AI, emphasizing that DXC's focus remains on improving its internal performance.

Jonathan Lee requested more detail on the contrasting performance between the softness in GBS and the improvement in GIS, and asked what specific factors would be needed for DXC to achieve the high end of its revenue outlook. He also followed up with a question on pricing dynamics within the CES business.

Answer

CFO Rob Del Bene explained that reaching the high end of the revenue outlook depends on the CES business, specifically an acceleration in custom application projects, which would push GBS revenue closer to flat. Regarding pricing, he noted stability in current deals and expects a long-term margin benefit as the business mix shifts from custom apps to higher-margin enterprise solutions.

Jonathan Lee asked to bridge the gap between the previously expected Q4 exit rate of just under 4% and the current Q4 outlook of 3.5% at the high end. He followed up by asking about pyramid initiatives, how Cognizant balances client needs while managing margins, especially with higher-value AI work in Vectors 2 and 3 requiring higher-skilled talent beyond freshers.

Answer

CFO Jatin Dalal stated that the 2.5%-3.5% range is the current view for Q4, acknowledging strong momentum in large deal wins and better execution in Q3, and expressed satisfaction with 2025's execution, guiding above the original range despite a dynamic market. On pyramid initiatives, CFO Jatin Dalal emphasized that freshers and AI are complementary strategies, accelerating the organization's AI journey, noting that Cognizant more than doubled the number of freshers hired this year compared to last, including in principal markets like the U.S., to improve the pyramid and accelerate AI readiness.

Jonathan Lee asked to bridge the gap between the previously expected Q4 exit rate of just under 4% and the current Q4 outlook of 3.5% at the high end. He followed up by asking about pyramid initiatives, how Cognizant balances client needs while managing margins, especially with higher-value AI work in Vectors 2 and 3 requiring higher-skilled talent beyond freshers.

Answer

CFO Jatin Dalal stated that the 2.5%-3.5% range is the current view for Q4, acknowledging strong momentum in large deal wins and better execution in Q3, and expressed satisfaction with 2025's execution, guiding above the original range despite a dynamic market. On pyramid initiatives, CFO Jatin Dalal emphasized that freshers and AI are complementary strategies, accelerating the organization's AI journey, noting that Cognizant more than doubled the number of freshers hired this year compared to last, including in principal markets like the U.S., to improve the pyramid and accelerate AI readiness.

Jonathan Lee of Guggenheim Partners questioned the assumptions behind the full-year revenue guidance, particularly the implied deceleration in the second half, and asked for clarity on the expected Q4 exit rate. He also sought to understand which verticals and geographies might accelerate or decelerate.

Answer

CFO Jatin Dalal provided a Q4 exit rate range with a midpoint around 1% growth, noting the wide range reflects market uncertainty. CEO Ravi Kumar S expressed optimism for all-around performance, highlighting continued strength in Financial Services, productivity-driven opportunities in Healthcare, and a return to growth in the Communications, Media, and Technology sector. He emphasized that all geographies are showing positive momentum.

Jonathan Lee from Guggenheim Securities asked about the trends in blended pricing and rate cards for new wins, and questioned the potential risk of existing clients shifting work offshore using new accent neutralization capabilities.

Answer

Founder, Chairman & CEO Kenneth Tuchman responded that he does not see new technology as deflationary to pricing; instead, it drives clients to allocate more business to TTEC from competitors or their own captive operations. Regarding the offshore shift, Tuchman stated it's difficult to size the risk but emphasized that with a tight U.S. labor market and a massive total addressable market, TTEC is well-positioned to capture new business and achieve its historical growth and margin targets.

Jonathan Lee from Guggenheim Partners asked about trends in blended pricing and rate cards for new wins, and questioned the potential risks of customers increasingly shifting work offshore, aided by technologies like accent neutralization.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, responded that he does not view technology adoption as deflationary. Instead, he sees it as an opportunity to secure more business from large enterprise clients, as improved performance and capabilities lead to a greater share of their wallet. Regarding the offshore shift, he acknowledged the trend is driven by a tight US labor market but did not quantify the risk, emphasizing that TTEC's total addressable market is vast, and the company is focused on capturing a larger share to return to historical growth rates and margins.

Jonathan Lee from Guggenheim Partners asked about blended pricing trends, the rate cards for new client wins, and the potential risk of customers using accent neutralization capabilities to shift more work offshore.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, clarified that he does not see technology adoption as deflationary; rather, it leads to clients allocating more business to TTEC from a very large total addressable market. He could not quantify the specific risk of an offshore shift but expressed confidence in the company's ability to get back to historical growth rates and margins, emphasizing that TTEC only needs to capture a small fraction of the massive market opportunity to grow significantly.

Jonathan Lee from Guggenheim Securities asked about trends in blended pricing and rate cards for new wins, particularly with the adoption of potentially deflationary technologies, and also inquired about the risk of customers shifting more work offshore using new accent neutralization capabilities.

Answer

Founder, Chairman & CEO Kenneth Tuchman explained that he does not view technology as deflationary; instead, it enables TTEC to win a larger share of business from large enterprise clients. He could not quantify the specific risk of work shifting offshore but expressed confidence in the very large total addressable market (TAM) and TTEC's ability to capture more of it, ultimately returning the company to its historical growth rates and margin levels.

Jonathan Lee from Guggenheim Partners asked about blended pricing, the rate cards for new wins, and the potential deflationary impact of new technologies. As a follow-up, he inquired about the risk of customers shifting more work offshore due to capabilities like accent neutralization.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, responded that he does not view technology as deflationary; instead, it leads to clients allocating more business to TTEC from their large overall spend. He emphasized that TTEC is capturing a small fraction of a massive Total Addressable Market (TAM). Regarding the offshore shift, Mr. Tuchman noted that the tight US labor market naturally pushes clients to nearshore and offshore locations for quality and scale, and TTEC is well-positioned to capture this business and return to historical growth rates and margins.

Jonathan Lee from Guggenheim Partners asked about the impact of new technologies on blended pricing and rate cards, and also questioned the potential risk of existing clients shifting more work offshore due to new capabilities like accent neutralization.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, explained that he does not view technology as deflationary; instead, it enhances value and encourages large clients to allocate more of their substantial business to TTEC. While unable to quantify the offshore shift, he emphasized that TTEC's focus is on capturing a larger share of the massive total addressable market to return to historical growth rates and margins.

Asked about the source of margin uplift (offshore delivery vs. cost-takeouts), how margins are defended, and how to gain confidence in the back-half loaded guidance given typical short-term visibility.

Answer

The executive clarified that while the offshore mix is growing, the 2025 margin expansion is more heavily weighted towards operational improvements and discipline, including AI. Confidence in the back-half forecast comes from the predictable onboarding cycle of new Engage client wins and a strong Digital pipeline, providing better long-range visibility than typical volume forecasts.

Jonathan Lee of Guggenheim Partners asked for more detail on the expected return of discretionary spending, questioning which verticals are driving this trend, how it is reflected in the outlook, and how pricing has been affected.

Answer

CFO Gopi Chande noted that clients are moving past 'paralysis of decision,' driving demand for cost transformation projects. President of Digital Solutions Tobias Dengel added that this rebound is broad-based across industries and is visible in both cost-optimization projects and classic digital transformation work like building apps and websites. He stated the company's main challenge is now hiring fast enough to meet this demand.

Jonathan Lee from Guggenheim Partners, LLC sought clarification on the guidance range, asking if the midpoint implies a slight deterioration in demand. He also asked about the progression of client demand from April through June.

Answer

CFO Jayesh Sanghrajka clarified that the guidance is built from models for the upper and lower ends, with the midpoint being an outcome, not a specific forecast. CEO Salil Parekh described client demand as a mix, with strong interest in AI, consolidation, and cost efficiency, but also constraints in sectors like logistics and manufacturing.

Jonathan Lee sought details on pricing conversations for new and existing deals amid a client focus on cost optimization, and also asked about the momentum for large deal TCV and any shift in client preference towards smaller deals.

Answer

CFO Jayesh Sanghrajka described the overall pricing environment as stable but noted progress from 'Project Maximus' in value-based selling, which is reflected in the delta between revenue and volume growth. CEO Salil Parekh added that the large deal pipeline remains strong, focused on cost efficiency and consolidation, and that the increase in smaller deal activity is an additive trend, not a replacement for large deals.

Jonathan Lee sought to clarify if the high end of the revenue outlook still assumes a 'status quo' environment and asked about the timing for stable pricing to flow through to the P&L.

Answer

CFO Angie Park confirmed the high end of the 5-7% full-year growth guidance does not assume an improvement in discretionary spending, while the low end allows for further deterioration. On pricing, she noted that it takes time to layer into financial results and is dependent on the mix of deals sold.

Jonathan Lee asked for clarification on the approximately 30% year-over-year increase in the fully diluted share count, specifically requesting the aggregate portion of the new shares, RSUs, and DSUs that were issued to management and insiders.

Answer

CEO Ernesto Balarezo Valdéz stated that management participated in 10% of the recent private placement. Executive Jean Pierre Del Rio added that while he did not have the full aggregate numbers on hand during the call, all the information is publicly available on SEDAR+ and offered to provide the information offline.