Maggie Nolan

Maggie Nolan asked about the composition of ASGN's commercial consulting growth, specifically the mix of project-based versus longer-duration work, revenue visibility for 2026, and end-market performance, including client budget commentary.

Answer

Shiv Iyer, President, reported broad growth in commercial consulting, encompassing project-based implementation, enterprise platforms, application engineering, and data/AI work, with a healthy mix of longer-term and implementation-driven projects. He highlighted strong Q4 bookings (1.3x book-to-bill) for 2026 visibility. Mr. Iyer and Theodore Hanson, CEO, noted steady to moderately positive demand across end markets, with sequential improvements in financial services (excluding big banks), TMT, and software/services, expressing cautious optimism for overall growth.

Maggie Nolan asked about active discussions regarding pricing changes for ASGN's AI accelerators and if such discussions are expected in the future. She also inquired about the sustainability and drivers of the momentum observed in the commercial consulting segment.

Answer

President Shiv Iyer indicated that while ASGN is exploring opportunities, a significant uptick in pricing for AI accelerators is not yet seen, as they currently enable faster and more effective delivery. He noted that some AI-driven products, like Pathfinder, are being positioned for different pricing models. Mr. Iyer and CEO Ted Hanson affirmed that commercial consulting momentum is sustainable in specific areas like data and AI, custom engineering, and enterprise platforms, driven by client investments and the AI tailwind, as clients modernize systems to leverage agentic AI.

Maggie Nolan asked about discussions regarding pricing changes related to ASGN's AI accelerators and the sustainability of the momentum observed in the commercial consulting segment.

Answer

President Shiv Iyer stated that while ASGN is exploring opportunities, there isn't a significant uptick in pricing for AI accelerators today, as they primarily enable faster, more effective delivery. He noted potential for standalone product pricing in the future. Shiv Iyer and CEO Ted Hanson affirmed that commercial consulting momentum is sustainable, driven by client investments in data/AI, custom engineering, and modern enterprise platforms essential for agentic AI.

Maggie Nolan asked about client churn levels in the current quarter compared to recent past periods. She also questioned how Endava quantifies productivity gains from DavaFlow and its ability to scale this across the business model.

Answer

CEO John Cotterell confirmed no growth in client churn, clarifying the client with the credit is an ongoing relationship. He detailed DavaFlow's productivity gains, distinguishing between Gen AI accelerators (20-30%) and agentic DavaFlow (5x-10x), which accelerates client transformation and improves margins, especially in outcome-based deals, despite current T&M revenue erosion.

Maggie Nolan asked about client churn levels in the recent quarter compared to historical trends and sought clarification on how Endava quantifies productivity gains from its DARVA Flow methodology and its scalability.

Answer

CEO John Cotterell confirmed no unusual growth in client churn, noting the credit-impacted client remains an ongoing relationship. He explained DARVA Flow drives 5-10x productivity gains beyond typical Gen AI accelerators, enabling accelerated transformation and improved margins through outcome-based deals.

Maggie Nolan asked about how EXL is adapting its client relationship management and go-to-market strategies in response to the shift towards AI adoption, and the company's confidence in gaining market share.

Answer

Vikas Bhalla (COO) explained that EXL is training front-end teams to be proficient in AI and data technologies, engaging with a broader range of client stakeholders (CIO, CDO, CEO), and expanding from single use cases to enterprise-wide solutions. He also emphasized a significant shift towards joint go-to-market motions with technology partners like Microsoft Azure, Google Cloud, AWS, Databricks, Snowflake, Palantir, and private equity firms.

Maggie Nolan asked about EXL's evolving client relationship management and go-to-market strategies in response to demand shifts, and the company's confidence in gaining market share. She also questioned the puts and takes on revenue per employee growth, especially given the strong data and AI-led growth.

Answer

Vikas Bhalla, Chief Operating Officer, explained that EXL's go-to-market has shifted to focus on innovation and transformation, requiring front-end teams to be proficient in AI and data. Conversations now involve CIOs, CDOs, and CEOs, leading to larger, more strategic deals. The strategy involves starting with a single use case and then scaling across the enterprise, often in partnership with technology providers like Microsoft Azure, Databricks, and private equity firms. Regarding revenue per employee, Mr. Bhalla anticipates an upward trend over several years as AI is applied and work complexity increases, noting that employee headcount growth is expected to be in the single digits, much slower than double-digit revenue growth.

Maggie Nolan asked how Cognizant tracks the success of upskilling employees in AI-related skill sets. She followed up by asking if large deal and mega deal signings are expected to impact the quarterly cadence of revenue and margins in 2026, and for insights on the ramp-up.

Answer

CEO Ravi Singisetti highlighted tracking the percentage of AI-assisted code (30%), being a GitHub Copilot AI Partner of the Year, partnerships with Google Gemini Enterprise and Anthropic, and the Guinness World Record hackathon. He also mentioned doubling new graduate hires and training over 250,000 employees on AI-led skills. For deals, he noted trailing 12-month bookings increased from $24 billion to over $27 billion, with TCV from large and mega deals up 40%, expecting continued momentum into Q4 and next year, driven by both productivity-led and innovation-led deals, with Europe and Asia Pacific increasingly contributing.

Maggie Nolan asked how Cognizant tracks the success of upskilling employees in AI-related skill sets. She followed up by asking if large deal and mega deal signings are expected to impact the quarterly cadence of revenue and margins in 2026, and for insights on the ramp-up.

Answer

CEO Ravi Singisetti highlighted tracking the percentage of AI-assisted code (30%), being a GitHub Copilot AI Partner of the Year, partnerships with Google Gemini Enterprise and Anthropic, and the Guinness World Record hackathon. He also mentioned doubling new graduate hires and training over 250,000 employees on AI-led skills. For deals, he noted trailing 12-month bookings increased from $24 billion to over $27 billion, with TCV from large and mega deals up 40%, expecting continued momentum into Q4 and next year, driven by both productivity-led and innovation-led deals, with Europe and Asia Pacific increasingly contributing.

Maggie Nolan questioned whether the Globant Enterprise AI platform enhances customer stickiness compared to traditional projects. She also asked for details on large deals nearing closure and the expected growth trajectory by geography and vertical.

Answer

CEO Martín Migoya and CTO Diego Tártara described the Enterprise AI platform as a 'golden path' for AI adoption that provides governance and integration, thereby increasing stickiness. Migoya confirmed large deals are in advanced stages in US financial services and healthcare, and Latin American CPG. CFO Juan Urthiague added that Latin America is stabilizing while key US verticals show strong performance.

Maggie Nolan of William Blair & Company, L.L.C. asked for commentary on the sales pipeline development, including the size and types of deals, and questioned the strategy behind a small acquisition made in July.

Answer

CFO Asaf Berenstin and CEO Guy Bernstein explained that the pipeline's growth is significantly driven by cloud and AI, with over 270 projects in progress that often follow a 'land and expand' model. CTO Yuval Lavi clarified that the company acquired Axiom, a small consultancy with approximately $2.5 million in turnover, to bolster its 'Faster AI' operations in the U.S., rather than it being a major strategic acquisition.

Maggie Nolan of William Blair & Company, L.L.C. asked for more details on the company's sales pipeline development, including the size and types of deals, and questioned the strategy behind a small acquisition completed in July.

Answer

CFO Asaf Berenstin reported that the pipeline is being driven significantly by cloud and AI, with hundreds of projects in progress showing a high conversion rate. CEO Guy Bernstein added that the company is successfully executing a 'land and expand' strategy, particularly with generative AI. CTO Yuval Lavi clarified that the recent acquisition was of Axiom, a small consultancy firm with ~$2.5M in turnover, acquired to bolster the 'Faster AI' operation in the U.S.

Maggie Nolan from William Blair & Company, L.L.C. asked for commentary on the sales pipeline's development, including the size and types of deals, and questioned the strategy behind a small acquisition made in July.

Answer

CFO Asaf Berenstin identified Cloud and AI as significant pipeline drivers, with hundreds of projects underway. CEO Guy Bernstein added that many opportunities follow a 'land and expand' model, particularly in Generative AI. Regarding the acquisition, CTO Yuval Lavi clarified it was Axiom, a small consultancy with ~$2.5M in turnover, acquired to enhance the company's Faster AI operations in the U.S.

Maggie Nolan of William Blair & Company, L.L.C. asked for details on the company's sales pipeline, including the size and types of deals, and inquired about the strategic rationale and financial impact of the recent Axiom acquisition.

Answer

CFO Asaf Berenstin highlighted that the pipeline is strongly driven by cloud and AI projects, which have a high conversion rate and are expanding into new regions like Canada and the UK. CEO Guy Bernstein added that the company is pursuing a 'land and expand' strategy, particularly with GenAI projects. CTO Yuval Lavi clarified that the Axiom acquisition was a small, strategic move to bolster the 'Faster AI' operation in the U.S., involving a consultancy with approximately $2.5 million in annual turnover.

Maggie Nolan from William Blair & Company, L.L.C asked if client spending has reached an inflection point and questioned the expected growth trajectory for managed services as a percentage of revenue.

Answer

Founder, Chairman & CEO Kenneth Tuchman noted that while economic uncertainty causes clients to make smaller initial commitments, TTEC is winning new logos due to industry consolidation and its superior technology. He added that poorly executed AI by competitors is making clients cautious, reinforcing TTEC's approach. Tuchman also stated that a dramatically expanded partner network (AWS, Azure, Google) and a shift beyond CCaaS are creating significant new opportunities for higher-margin managed services.

Maggie Nolan from William Blair & Company, L.L.C. asked whether client spending has reached an inflection point for AI-enabled programs and questioned the expected growth and business impact of managed services revenue.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, explained that while clients are cautious due to economic uncertainty, industry consolidation is creating new opportunities. He noted that new clients often start with smaller pilot programs that have significant expansion potential. Regarding managed services, he stated that TTEC's dramatically expanded partner network, including hyperscalers like AWS, Azure, and Google, is creating more opportunities for higher-margin managed services as clients seek broader CX transformation beyond traditional contact center solutions.

Maggie Nolan from William Blair & Company, L.L.C. asked whether clients are moving past the AI assessment phase and if an inflection point in spending has been reached. She also questioned the expected growth in managed services revenue and its business impact.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, responded that while broad economic uncertainty causes some client caution, TTEC is winning new logos, often through smaller initial programs that expand over time. He noted that poorly executed AI by others is creating fear, driving clients to seek expert partners like TTEC. Regarding managed services, he explained that a dramatically expanded partner network, including hyperscalers like AWS, Azure, and Google, is creating significant new opportunities beyond traditional contact center services.

Maggie Nolan from William Blair & Company, L.L.C. asked whether client spending on CX programs has reached an inflection point and questioned the expected growth and business impact of managed services revenue over time.

Answer

Founder, Chairman & CEO Kenneth Tuchman responded that while clients are showing interest, economic uncertainty and fear of poorly executed AI are leading them to start with smaller, pilot programs. He noted that TTEC is winning new logos due to competitor consolidation and its technology credentials. Regarding managed services, he stated that a dramatically expanded partner network, including AWS, Azure, and Google, is creating significant new opportunities beyond traditional CCaaS, driving future growth.

Maggie Nolan from William Blair & Company, L.L.C. asked whether client spending has reached an inflection point or if a pause persists due to AI assessments, and also questioned the expected growth of managed services revenue and its business impact.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, noted that while economic uncertainty causes caution, clients are still signing new deals, often starting with smaller pilot programs. He explained that TTEC's expanded partner network with hyperscalers like AWS, Azure, and Google is creating significant new opportunities for higher-margin managed services beyond traditional contact center solutions, driving future growth.

Maggie Nolan from William Blair & Company, L.L.C. asked whether client spending has reached an inflection point for new programs or if there is still a pause as they assess AI. She also inquired about the expected growth and business impact of managed services revenue over time.

Answer

Kenneth Tuchman, Founder, Chairman & CEO, noted that while general economic uncertainty causes some caution, TTEC is winning new logos, often starting with smaller pilot programs that expand. He explained that competitor consolidation and TTEC's superior technology credentials are creating opportunities. Mr. Tuchman also stated that the company's significantly expanded partner network with hyperscalers like AWS, Azure, and Google is driving more managed service opportunities beyond traditional contact center work, addressing broader client needs in their CX transformation.

Maggie Nolan of William Blair & Company, L.L.C. asked about the potential convergence of IT services and BPO driven by AI, and about the company's ability to decouple revenue from headcount over the long term, including key investment areas for its workforce.

Answer

CEO Balkrishan Kalra responded that Genpact's strategy is to leverage its 'last mile' expertise in process and domain with technology, noting clients seek value and outcomes rather than traditional service labels. On decoupling revenue from headcount, he described it as a multiyear transition, emphasizing the strategic goal of transforming the workforce into 'AI builders' and 'AI practitioners,' supported by the company's strong learning culture.

Maggie Nolan of William Blair & Company, L.L.C. asked for more detail on the drivers behind the increased adjusted EBITDA growth guidance and inquired if the resumed purchasing by large enterprise customers is a sustainable trend or merely project-based.

Answer

CEO and President Mark Marron attributed the stronger adjusted EBITDA outlook to a solid quarter with double-digit growth, an uptick in data center, cloud, and security demand, sequential growth in networking, and early AI-related wins. He also noted that operational expense management contributed. Regarding enterprise spending, Marron clarified that the recent activity was project-based with a few large customers and it is too early to call it a sustained trend for the year.

Maggie Nolan from William Blair & Company inquired about how EPAM is measuring progress in upskilling its employee base for AI and the scale of this investment. She also asked about the company's goals for gross and operating margins by year-end and for 2026.

Answer

Balazs Fejes, President of Global Business & CRO, stated that over 80% of employees have completed an AI upskilling program launched in February 2024, with ongoing efforts to certify engineers and other staff. CFO Jason Peterson added that a key focus for margin improvement is utilization, aiming to exit the year around 77% or higher. He noted a focus on account margin and taking deals with appropriate profitability.