Shlomo Rosenbaum

Shlomo Rosenbaum with Stifel Financial Corp. inquired about market concerns regarding AI's potential to disrupt established businesses, seeking clarification on why IQVIA's business is resilient to such disruption and how AI serves as an enabling technology rather than a threat.

Answer

IQVIA CEO Ari Bousbib emphasized that AI is an opportunity, not a challenge, for the company, highlighting IQVIA's proprietary, dynamic, and regulatory-compliant healthcare data, deep domain expertise, and significant investment in AI agentification across clinical and commercial workflows. He stressed that IQVIA's scale and integral role in clients' ecosystems make it a natural AI partner, augmenting client teams rather than replacing services.

Shlomo Rosenbaum asked about the specifics of the new multi-year T-Mobile agreement, including its duration, comparison to previous terms, expected revenue trajectory beyond fiscal 2026, and the scope of services, particularly in light of T-Mobile's recent billing system charges. He also inquired about the strategic rationale and expected revenue contribution of the MATRIXX Software acquisition, especially given Amdocs' existing Openet charging platform.

Answer

Tamar Rapaport-Dagim, CFO and COO, clarified the T-Mobile agreement is for five years, encompassing managed services, software development, AI innovation, and integration activities, including support for UScellular integration, which is non-recurring. She noted T-Mobile's cost-cautious approach is expected to lead to a revenue decline in fiscal 2026. Shuky Sheffer, President and CEO, emphasized the long-standing partnership with T-Mobile since 1999. Regarding MATRIXX, Mr. Sheffer explained it provides an additional charging engine for tier-two customers, complementing Openet's tier-one focus, and strengthens Amdocs' market leadership. Ms. Rapaport-Dagim added that MATRIXX's contribution was factored into the initial fiscal 2026 guidance, and while revenue expectations are conservative for the first year, Amdocs continues to explore M&A opportunities.

Shlomo Rosenbaum sought granular details on the GfK integration's status, including top-line growth, operational efficiencies, margin expansion drivers, and a comment on ARDSO.

Answer

CFO Mike Burwell explained that the GfK revenue playbook is successfully driving top-line growth, contributing a couple hundred basis points. He noted that back-office integration is largely complete, with operations finishing next year, and GfK integration accounts for about half of total margin improvement. He clarified that a Q2 timing issue with DSO due to system integration was resolved in Q3. CEO Jim Peck and CFO Mike Burwell attributed APAC margins to investment in coverage and North America's to tougher revenue comps.

Shlomo Rosenbaum inquired about the pace of portfolio moves, specifically if S&P Global would focus on other divisions (e.g., Commodity Insights) for similar portfolio optimization after Market Intelligence, and sought clarification on market growth versus S&P Global's execution in Market Intelligence.

Answer

Martina Cheung, President and CEO, confirmed MI portfolio optimization is "substantially complete" with the EDM/ThinkFolio divestiture. She stated S&P Global will continue "tactical divestitures" from time to time, but nothing at the scale of Mobility. Regarding MI market conditions, she pointed to Capital IQ Pro's strong performance, growing faster than the end market, emphasizing S&P Global's execution, product strength, and ability to consolidate services for customers.

Shlomo Rosenbaum asked if the uptick in industrial volumes, excluding WM Healthcare Solutions internalization, indicated a general improvement in the underlying business or just a bounce off the bottom. He also sought clarification on the timing of ERP system stabilization for WM Healthcare Solutions and the distinction between customer credits and write-offs. Finally, he asked how to interpret the $200 million in renewals at low double-digit PIs in the context of the 5%-6% revenue growth target.

Answer

John Morris (President and COO) confirmed that about half of the industrial volume increase was unrelated to healthcare internalization, indicating an improvement in the underlying business. Devina Rankin (EVP and CFO) clarified that customer credits reduce revenue, while write-offs are SG&A costs, and write-offs were well in hand. She stated that the ERP stabilization period is expected to conclude by the end of Q1 2026, moving into a scalable and growth period starting Q2 2026. Jim Fish (CEO) explained that the $200 million in renewals with low double-digit PIs is an indication of pricing power but is an aggregation of annualized revenue renewals and contract terms, not directly translating to the 4%-6% growth target yet.

Shlomo Rosenbaum of Stifel Financial Corp. followed up on the pickup in client activity in the last six weeks, asking if it was attributable more to FactSet's specific product efforts or to broader market optimism, potentially linked to the conclusion of presidential elections.

Answer

CEO Frederick Snow noted that bankers are excited about a post-election environment potentially favorable for M&A. Chief Revenue Officer Goran Skoko attributed the pickup to a combination of factors: increased client-facing activities initiated by FactSet and a tangible improvement in market sentiment and sales force optimism compared to three months prior.