Sean Kennedy • Mizuho Securities

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CFO Juan Urthiague attributed the North American decline to a specific professional services client but noted optimism due to a strong pipeline and recent wins, with large deals starting to close again. For Latin America, he highlighted Argentina as the top performer, with stabilization and recovery beginning in Brazil, Peru, and Mexico.

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CFO Juan Urthiague stated that the outlook for the professional services vertical is stable, with better performance expected in BFSI, travel, and healthcare. He specified that the weakness in Latin America is concentrated by country, particularly in Brazil and Mexico, while Argentina is performing well. He noted that strength in BFSI in the U.S. and Europe is offsetting the weakness in that vertical within Mexico.

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CFO Juan Urthiague explained that the weakness in the top 2-5 client cohort is directly linked to their concentration in the professional services sector, which has faced industry-wide headwinds. He countered the idea of a broader large-client slowdown by pointing to strong 17% growth in the 11-20 client cohort and growth in the number of accounts across all major revenue thresholds. COO Patricia Pomies added that the company is reinforcing its '100-squared' strategy to focus top talent on the most strategic accounts to drive further growth.

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CTO Diego Tartara explained the growth is driven by two main areas. In media, they have a strong pipeline from projects consolidating platforms like Disney+, Hulu, and ESPN. In parks and experiences, the strategic focus is shifting towards improving the guest experience, an area where Globant is strong, positioning them well for future work.

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CEO Balkrishan Kalra noted that solutions like AgenTeq are seeing strong adoption from both existing clients and new logos. He added that client conversations are now centered on leveraging data and AI for ROI, with Genpact's process intelligence as a key differentiator. CFO Mike Weiner commented that while the macro is muted, the 'paralysis' from early in the year has eased, which is reflected in their cautious guide.

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CFO Mike Weiner clarified that Genpact primarily views its Data-Tech-AI business by deal duration rather than by end market. He noted that large, multiyear transformational deals performed very well in Q1. The company's conservative adjustment to the DTA forecast reflects caution around shorter-cycle, more discretionary deals that could be susceptible to changes in client buying behavior in the current environment.

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CEO BK Kalra clarified that content moderation represents less than 10% of Genpact's revenue and that the company maintains close client relationships, seeing no immediate threat from policy changes. He noted that while there is an opportunity to use AI to combat harmful content, it's a collaborative effort, as large technology clients also deploy their own proprietary solutions.

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CEO Martina Cheung explained that the business's revenue is not directly correlated with commodity prices, as they charge a subscription or license fee for their price assessments. She stated that an impact would only be felt in an extreme scenario causing widespread provider shutdowns. The company's current guidance already contemplates oil prices in the low $70s.

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CEO Robert Fauber responded that uncertainty could potentially be a catalyst, as it drives customers to seek more data and tools for managing risk. He highlighted the launch of a new corporate platform, MAKS side, which serves use cases like supplier risk in addition to KYC. He noted strong early traction with over 150 quoted opportunities in the pipeline, particularly in logistics, healthcare, and TMT.

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