Genpact Limited (G) Earnings Call Transcript

Good day, ladies and gentlemen, and welcome to the 2026 Second Quarter Genpact Limited Earnings Conference Call. My name is Carmen, and I will be your conference moderator for today. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. The replay of the call will be archived and made available on the IR section of Genpact's website. I would now like to turn the call over to Kyle Vikstrom, Head of Investor Relations at Genpact. Please proceed.

Good afternoon, everyone, and welcome to Genpact's Q2 2026 Earnings Conference Call. We hope you've had a chance to read our earnings press release posted on the Investor Relations section of our website, genpact.com. Today, we have with us BK Kalra, President and CEO, and Mike Weiner, Chief Financial Officer. BK will start with an overview of our results, and then Mike will cover our financial performance in greater detail before we take your questions. Please note that during this call, we will make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions and expectations as of today, which may change over time. Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors in our 10-K and 10-Q filings with the SEC. During this call, we will discuss certain non-GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release. These non-GAAP measures are not intended to be a substitute for our GAAP results. Supplemental investor information can also be found in our earnings press release, fact sheet, and investor presentation posted to our Investor Relations website. And finally, this call in its entirety is being webcast from our website, an audio replay and transcript will be available shortly after the call. With that, I'd like to turn it over to BK.

Thank you, Kyle. Hello, everyone, and thank you for joining us today. Q2 was another strong quarter for Genpact. We delivered $1.343 billion in total revenue, up 7.1% year-over-year. Advanced Technology Solutions revenue grew 24.1% year-over-year, demonstrating that our flywheel is firing on all cylinders. We expanded gross margin for yet another quarter, providing continued leverage for significant investments to drive future growth. Adjusted diluted EPS, again grew double digits, faster than revenue, up 13.6% year-over-year and non-FTE revenue surpassed 50% of total revenue for the first time. Last quarter, I spoke about something rare, a moment when a structural shift in the market, a differentiated capability set, and the right strategic positioning all converge at the same time. I want to build on that today. First, at the macro level. Demand continues to remain very strong even as AI is redrawing markets. Enterprises want autonomous workflows that do the work, not just support it. Every function now has a mandate to leverage AI with clear ROI. This is opening new buying centers with new sets of requirements and complexities. At the same time, one universal truth has not changed. There is no artificial intelligence without process intelligence. And yes, frontier models are getting better by the week, but they are also beginning to converge on interchangeability with switching costs getting lower, but models do not know how a global enterprise actually runs. The exceptions, the controls, the handoffs and the actual flow of work, the last mile. This is where the outcome is actually won or lost. This is where the actual differentiation sits. And among enterprise clients, we continue to observe that readiness is low even if aspiration remains very high. The foundational work, the data harmonization work, the process intelligence work still has to happen first to get ROI from investments in AI. That is why AI has not scaled for most companies, and it is precisely why clients are looking to Genpact and our differentiated IP solutions. I said earlier, when such a rare structural shift is presented and a company can sharpen its differentiation and has the courage and discipline to act, the resulting advantage compounds in ways that are difficult to replicate. This is our moment. We are intentionally disrupting ourselves to be the leader in Agentic Operations. Genpact is not the company you knew. We are entering a new category with expanding TAM, building a higher quality, more durable and structurally more valuable business. At Investor Day last June, when we first outlined our ambition for the year, we expected to deliver revenue growth of 7% with Advanced Technology Solutions growing mid-teens. Since then, our conviction in the opportunity ahead has only strengthened. The momentum we are seeing makes it clear that the shape of our business is changing for the better and the strategic pivot is taking hold much faster. As a result, we are leaning in and embracing this moment to further accelerate durable long-term growth, and we are allocating our capital against this opportunity. Most importantly, we are doubling down in areas where we see the greatest long-term opportunity and the strongest returns. We are known for running mission-critical client operations at scale. We are moving from running business operations to running Agentic Operations. Therefore, we are codifying this process intelligence into a stronger moat and allocating even more capital here. We are investing behind the flywheel that is already accelerating with an even greater focus on Advanced Technology Solutions, where we believe growth is durable, margins are attractive, and client demand continues to build with expanding TAM. This momentum also gives us the opportunity to review components in core business services that are not aligned with our Agentic Operations strategy. We apply the test across our book of business with 3 simple questions: One, does combining our process intelligence with frontier models create durable value and an advantage that clients cannot easily replicate? Two, does it provide a compelling ROI for both the client and Genpact? And three, is it aligned with expanding TAM? Where the answers are yes, we are identifying at speed. This is a vast majority of our book across finance, supply chain, insurance, banking and many other mission-critical workloads. And this has expanding new TAM, which we have begun to capture already. And where the answers are no across the board, we are working with clients to transition work back and redeploying investments. These are very small parts of our business like certain areas of content management and commoditized parts of contact centers. This clarity is at the heart of becoming the Agentic Operations company. Even with this intentional disruption, we still have line of sight to deliver at least 7% year-over-year revenue growth in 2026. On a full year basis, we expect the transition away from this work, not aligned with our Agentic Operations strategy, will have nearly 2 points of impact to total revenue growth. Despite this, core business services revenue is still expected to grow for 2026. At the same time, we now expect Advanced Technology Solutions revenue to accelerate, growing at least 25% for 2026. This acceleration underscores the rapid pace of adoption and how our investments are paying off. While timing will be a factor for both 2026 and 2027, for 2027, we currently expect the dollar impact to be slightly larger, though offset by continued momentum in areas aligned with our strategy. Our deliberate focus and prioritization continue to show up in top and bottom line growth and in our demand signals. Demand for our deep domain and industry expertise is healthy and growing, as evidenced by our bookings, backlog and pipeline, all increasing across both core and Advanced Tech. This quarter marked our largest ever quarterly bookings. We signed another 6 large deals with a large pipeline of other transformational deals setting us up for a healthy close to the year. And our revenue retention continues to be strong. The mix of our business continues to move towards higher-value Advanced Tech offerings as we make meaningful progress against our 2x, 2x, 70/70 metric frame. Advanced Technology Solutions deliver more than 2x the revenue per head count and more than 2x the revenue growth of the total company with more than 70% annuitized revenue and more than 70% for non-FTE commercial models. As we fundamentally change how we contract and deliver, we are creating a robust, durable base to build on that is no longer tied to headcount. This includes more multiyear recurring annual revenue streams and margin leverage from agentic and AI driving more meaningful scale. Over the past few years, we have systematically expanded our advanced technology capabilities in areas of our core strength. This has effectively created a powerful flywheel that is fueling Agentic Operations. The flywheel starts with our core, expert operators, decades of client trust, clear domains, last mile knowledge, in a sense, process intelligence you cannot buy off a shelf. Then the flywheel turns with the expanded capabilities in Data & AI and through our partner ecosystem that power the Advanced Technology Solutions of today. And that enriches process intelligence further, which earns trust to deliver the agentic mandate. The mandate expands our scope, which deepens our intelligence and deeper intelligence makes the next solution better. This flywheel compounds building Agentic Operations at scale, making our success hard to replicate. We are actively moving from human-processed and human-validated to machine-processed and human-validated, all wrapped in responsible AI, driving compounding advantages from autonomous agents with the context, governance and oversight that only last mile experts like Genpact can provide. All of this is further accelerating Advanced Technology Solutions, and that's playing out with the significant momentum we are seeing. Advanced Technology Solutions revenue grew another 24% in quarter 2, now accounting for 27% of total revenue. This quarter, Advanced Technology Solutions represented nearly 40% of our bookings and our pipeline increased meaningfully across all capabilities quarter-over-quarter, highlighting the significant demand our flywheel is driving. We are not adding a fast lane to the past. We are changing what the whole business is and moving to a new category. This is where it all comes together. Clients do not come to us to buy core or Advanced Tech. They come to us with a vision for the future and a reality of where they are today. we are enabling the journey to agentic-led autonomy that enterprises can trust. We call it Agentic Operations. Domain experts and AI agents working side-by-side through reimagined processes to execute transactions. Model agnostic built for enterprise governance and clear auditability, learning that compounds delivered through multiyear annuitized recurring revenues and the traction and demand are real. In Agentic Solutions, we are on track to book over $1 billion in total contract value just in 2026. This is not a trivial number, and it is not agentic washing. This represents just our productized AI offerings built with Genpact IP to run mission-critical business processes at enterprise scale. And it is delivered with multiyear annuitized recurring revenues through a commercial model that is not tied to head count. Looking at agentic booking to date, more than half has come from new clients, proving the additional TAM we are capturing at speed. And from the clients who rotate, we have seen more than 3% net revenue growth and more than 300 basis points of gross margin expansion. More clients, bigger wallets, a larger market and richer margins all at once. And we are quickly building a robust road map that aligns where our clients are going with what we can uniquely deliver. We recently announced Genpact Transaction Monitoring Analyst, the first module of our new Genpact Banking Analyst Suite to help banks complete routine investigations faster and more consistently with full auditability and human oversight built in. We also recently launched the Genpact Deductions Recovery solution, our agentic offering designed to help consumer goods companies recover millions in lost revenue by automating the identification, validation, and resolution of disputed deductions with faster cycle times and enhanced compliance. Adding to our existing agentic portfolio, which includes accounts payable, record to report, source to pay and insurance, these are just 2 additional examples of how we are actively delivering the outcomes clients need to reshape their operations. As clients see the compounding effects of our flywheel and expanding Agentic Operations, they are choosing Genpact over legacy and new competitors to work across even more workflows and the additional parts of their transformation. As a case in point, we recently embarked on a journey with Lumen, a global networking and technology company, to agentify their accounts payable operation. And Mondelez International, one of the world's largest snacking companies, expanded our relationship to build an enterprise-wide agentic operating model across their source-to-pay processes, spanning procurement through accounts payable. These are just a couple of examples. Partners also continue to be an important part of our strategy. In quarter 2, our partner-related revenue growth accelerated as we continue to deepen relationship with partners core to our clients' infrastructures. This quarter, we achieved the Databricks Brickbuilder specialization for manufacturing, transportation and energy. ISG recognized Genpact as a leader in the ServiceNow ecosystem partners for 2026 and as a Rising Star in their Databricks ecosystem report for AI/ML and managed data optimization. And earlier this week, NelsonHall identified Genpact as a leader in all 6 of their F&A transformation NEAT market segments for 2026, including agentic AI, procure-to-pay, record-to-report, order-to-cash, CFO advisory and finance transformation overall. These are just a few recent examples that highlight how focus in our strategic areas is having a clear impact. In closing, this quarter is a significant proof point for Genpact as we shape what comes next as a leader in Agentic Operations. We are changing our business in ways that matter, building a new Genpact in a fundamentally different category, doubling down on our most strategic priorities to accelerate the flywheel for Agentic Operations, building high-quality, durable revenue that compounds and is harder to replicate, driving structurally richer margins and ultimately opening daylight between Genpact and the market around us. With that, let me turn the call over to Mike.

Good afternoon, everyone, and thank you for joining us today. We delivered a strong second quarter, highlighting how our focus and investments are strengthening our position in Agentic Operations. Total revenue grew 7.1% year-over-year to $1.343 billion as momentum in Advanced Technology Solutions continues to build. Advanced Technology Solutions revenue, which includes Data & AI, Digital Technologies, Advisory and Agentic, reached $363 million, growing again over 24% year-over-year with broad-based strength across our flywheel. Demand for our Advanced Technology Solutions is scaling quickly, and our strategic investments are delivering results. Our advanced technology capabilities are compounding with agentic and AI-led innovation showing up across a growing set of offerings. We are focused on exponentially expanding our total addressable market, delivering more value for clients across end-to-end workflows and driving higher value, more durable revenue for Genpact. As BK mentioned, we're doubling down on our most strategic priorities to accelerate the flywheel for Agentic Operations, and we can start seeing the payoff. In the second quarter, our agentic bookings grew significantly quarter-over-quarter. For 2026, we are tracking to deliver over $1 billion in agentic TCV, 5x more than 2025. And as BK noted, our agentic business continues to capture a broader TAM and wallet share with meaningful traction across both new and existing clients. To date, more than 50% of our cumulative awarded contract value is coming from new clients. For existing accounts that are rotating from traditional to agentic delivery, both net revenue growth and gross margin expansion continue to be above what we reported at Investor Day in June of last year as we continue to drive higher volumes, increased scope or both within our existing clients. This momentum is compounding into what we believe is a more durable revenue base with higher gross margins that continue to improve with scale. Core Business Services revenue, which includes Digital Operations, Decision Support Services and Technology Services, grew 1.9% to $980 million in the second quarter. We continue to see strong demand for our deep domain and industry experience built on decades of client trust as we help clients navigate through the different stages of their transformational journeys. Our sales team continues to execute well with strong demand for our core and advanced technology capabilities across new and existing clients. Net revenue retention remains accretive, and we continue to feel good about our pricing as we deliver incremental value for our client base. In 2Q, our large deal momentum also continued. We signed 6 large deals compared to 3 in the same period last year. This brings us to 12 large deals year-to-date, double of what we did in the same period last year. As a reminder, large deals are $50 million or greater in total contract value. Our bookings performance in the quarter was also the largest ever with nearly 40% coming from Advanced Technology Solutions. And we continue to have a strong pipeline of additional large deals. With the record backlog and pipeline, we are in a very strong position for the second half of the year. This quarter, non-FTE revenue surpassed 50% of total revenue, reflecting our disciplined focus on shifting to fixed fee, consumption and outcome-based models. And we are building a meaningful recurring annual revenue base that is decoupled from FTEs. At a segment level, Consumer & Healthcare grew 9.5%, followed by High Tech & Manufacturing growth of 7.6% and Financial Services growth of 3.3%. Turning to profitability. Gross margin expanded for the 13th consecutive quarter to 36.5%, up approximately 60 basis points year-over-year. Our margin profile reflects our continued operating and pricing discipline as well as revenue contribution from our high-value Advanced Technology Solutions. Notably, we are also seeing revenue growth decoupled from headcount as we embed these solutions in our own operations and delivery. Moving down to the P&L. SG&A expense as a percentage of revenue was 21.9%. Adjusted operating income was $234 million, up 7.5% year-over-year, faster than our revenue growth. Adjusted operating income margin was 17.4% as we continue to self-fund our strategic investments. Our effective tax rate in the second quarter was 23.7%. Net income was $146 million and diluted EPS was $0.86. Adjusted diluted EPS increased 13.6% to $1 per share, growing significantly faster than revenue for yet another quarter. Shifting to cash. We generated $72 million of cash from operations, ending the second quarter with $517 million in cash and cash equivalents. This was impacted by timing of collections as well as prepayments made in 2025. Credit quality remains high. In the quarter, we returned $82 million to shareholders, $50 million in share repurchases and $32 million in dividends. Turning to the outlook. As BK noted, the momentum we're seeing in Advanced Technology Solutions is significant. As a result, we are doubling down behind the flywheel that is already accelerating, focusing resources on where we can drive durable value and demand over the long term. With a strong backlog, pipeline and demand for our differentiated capabilities, we have line of sight to deliver at least 7% revenue growth on an as-reported basis in 2026, even with nearly 2 points of impact from our transition away from work not aligned with our Agentic Operations strategy. Given the exceptional demand, we now expect Advanced Technology Solutions revenue growth to accelerate in the second half of the year, increasing at least 25% for the full year. In Core Business Services, we still expect 2026 to grow even after roughly 2 points of impact from the transition noted earlier. From a timing perspective, the impact of the transition will be concentrated in the second half numbers. On margins, we continue to expect full year gross margin to expand 50 basis points to 36.5% with adjusted operating income margin expected to increase approximately 25 basis points to 17.7%, reflecting our continued commitment to self-fund investments for growth. And we now expect adjusted diluted EPS to grow at least 12%. Turning to the third quarter on an as-reported basis. We expect to deliver total revenue between $1.369 billion and $1.382 billion or 6.5% growth at the midpoint. We expect Advanced Technology Solutions revenue growth to accelerate to at least 25% year-over-year. We expect Core Business Services to be flat to slightly down, even after about 3 points of impact from the transition away from work not aligned with our Agentic Operations strategy. We expect gross margin to expand to 36.6% and adjusted operating income margin to increase to 17.8%. Finally, we expect adjusted diluted EPS of $1.04 to $1.05 for the third quarter. In closing, as BK made it clear, a new Genpact is taking shape. To capture this enormous opportunity, we are reshaping how businesses operate, leveraging our unique strengths rooted in domain and industry expertise with significant advancements in our Advanced Technology Solutions. We are focused on differentiating our position in the market, expanding our TAM dramatically, accelerating high-quality revenue growth and consistently expanding margins, all of which will allow us to continue to deliver double-digit growth in adjusted diluted EPS and long-term client value. With that said, let me turn the call back over to Kyle.

Thank you, Mike. Operator, we're ready to go ahead and take questions.

[Operator Instructions] Our first question is from Bryan Bergin with TD Cowen.

So on the strategic prioritization that you're taking here, maybe the segment dynamics, just based on this conscious disruption of the business with the 2-point CBS headwind this year and what sounds like a similar headwind next year, what does the target growth model kind of look on the other side of these changes? If I adjust for the 2% that's second half weighted, it seems like you're still somewhat in the CBS target model. But I want to confirm whether you do have a different view of the target model versus the Investor Day kind of the 4% to 5% CBS and the 15% plus ATS? And if it is different, maybe speak to the sustainability of the very strong ATS growth.

Yes, I'll take that, Brian. Thanks. Overall, we feel exceptionally good about how we are ramping the business, not just in Advanced Tech, but also Core Business Services, because this is how the flywheel is delivering, which starts from core and Data & AI advisory, partner solutions and landing and Agentic Operations, which we are building and delivering on a new category. So if I see the demand signals, demand signals are obviously exceptionally high in Advanced Tech, continue to be very, very strong in core. Our backlog is really building up very strongly. We mentioned highest ever quarterly booking this previous quarter and pipeline continues to be strong. So fundamentally, we are shaping the business to become a far higher growth and more durable, richer business as we cycle through '26, '27. Mike?

Yes. So the only thing I'd add to that, first of all, let's level it up the discussion a little bit. Our clients don't really come to us to buy Core Business Services or ATS related. These are just revenue classifications of the services and the products that we offer, right? They come to us to solve problems and run critical operations. We're working aggressively to identify those operations as BK just spoke about. So when you think about it, we still continue to feel very, very good about the guide we put forth for this year and our long-term guide, which we articulated at our Investor Day, arguably, I guess, that was in June of last year.

Okay. Understood. And my follow-up maybe on bookings and backlog visibility. So you highlighted here record bookings, backlog growth and obviously strong pipeline still. Just at this juncture, how much visibility is that base providing you into 2027 growth?

Yes. So I'm not going to really talk about 2027 specifically. Let me just build up on how we're thinking about our guide this year and you can extrapolate that into next year. I think that will be somewhat helpful, right? So as you correctly repeated, we had record bookings and backlog from just a tremendous first half of this year, right? So if you think about it because this will help perpetuate us into next year as well, we had 12 large deals in the first half. That's double what we had in the first half of last year, right? Add on to that an incredibly strong pipeline, which we're working hard to execute on, right? So we're seeing continued strength in demand across both core and ATS. With regard to the work that we're transitioning back to our clients, correct, that will manifest itself over the next 4 to 6 quarters with 2 points being affected full year this year, right? And I would also just continue to think through how the business continues to roll out and execute. So again, we feel very good about where we are. We have good line of sight to driving these results for this year and then through into next year.

And I think if I was to add, there is a strong momentum building up in Advanced Tech. And Advanced Tech is also annuitized business. And therefore, the flywheel from core to Advanced Tech, which lands into Agentic Operations is creating a pretty strong momentum and durable, richer revenues.

Next question comes from Maggie Nolan with William Blair.

Another one maybe on the nonstrategic work. Can you help us understand where those fall in terms of margins versus other offerings within your portfolio? And then maybe how that would show up this year versus next year? And then is this process sort of complete for now?

Yes. Maybe I'll take it, and Mike, feel free to add. First, what you can see, Maggie, consistently with 13th quarter of our gross margin expansion. I think that trajectory is not changing. That momentum is not changing. So I think we are shaping the business, as I mentioned, with more durable and more richer revenues. And therefore, margin profile, we are expecting be it gross margin or AOI continue with the trajectory that we are talking about. And I think just more specifically, this is, again, a very small portion of our business. That didn't stood the test of the 3 tests that we talked about. How do we create a durable value that can be easily replicated or does it provide a strong ROI, both for Genpact and obviously for our clients. And is it aligned with large, fast-growing market and expanding TAM. And these are, again, a very small portion of our business, as I mentioned, small portions of content management or some of the commoditized contact center play, which is what we are walking away from.

Understood. And then as we get comfortable with sort of the new Genpact with new pricing models and I'm wondering if you can help us better understand on the Agentic workflows, what happens to pricing and margins as token prices increase and how that impacts your ability to drive margin expansion?

Yes. So maybe I'll quickly take that again. Agentic Solutions, one, we are leveraging the scale, and these are not bespoke agents that we build. And I think that's a very, very important distinction versus what you see elsewhere. And because there's a component of a compounding learning within the solution set and the scale from an economic perspective as well. And these are annuitized recurring revenues with minimum volume commit. So there is a floor on the revenue we earn and then upside as client expands use cases or add agentic workflows. And obviously, very high retention, multiyear and far more sticky relationship. And again, from a margin standpoint, structurally, we expect to gain from both sides of the equation. Technology costs decline over time as compute advances. We own the stack, so efficiency gains flow to us. And then labor cost decrease as agents handle more of the workflow. So -- and humans are brought only for high judgment situation and not for volume processing. As far as token economics is concerned, it is also how we are building the architecture that allows dynamic switching, model flexibility without any client disruption. And I think there is a strong, I will say, token FinOps that we have. So we procure well. There isn't overall underprovisioning or what have you. So feel really good about as to where we are taking the company.

Our next question is from Surinder Thind with Jefferies.

BK, when we think about the Advanced Technology Solutions segment and the acceleration that we've seen there in the work or the revenue growth, can you maybe talk about like when I think about the Agentic solutions that are available, how much of that is being driven by just more products that you have and more services that tie into that business line item versus what I would call just accelerating demand for an existing product set of service? I'm just trying to understand that as you build and create more agentic solutions, should we expect to see Advanced Technology Solutions continue to maybe accelerate in growth rate? Or how do we characterize or understand or put context around what the current growth rate is and maybe the sustainability of it?

Yes. Short answer, yes, you should expect it to accelerate. And I think it is the flywheel effect that we are talking about. And the flywheel builds actually from the strength of our core, the deep process intelligence, domain expertise, decades of operational excellence. And then that brings in process, data, enterprise technology, all of that together in a room, and then we own the driving change management at the client end as well. It also opens up new workloads for us. And we are moving from just running client operations to getting to own the entire part of transformation for them, be it the foundational work or the data modernization, enterprise architecture, as I mentioned, and therefore, building the scale agentic solutions that are -- that will create the exponential effect as we go along. So yes, you should expect that this acceleration will continue, and it is firing across all the components.

I can just add one thing to that, BK. When you talked about Advanced Technology Solutions revenue in the quarter grew 24%, right? That's about $360-ish million. Very little of that is agentic-related revenue, right? We talk a lot about the bookings. So that's going to just support the growth, particularly on a go-forward basis. We're very pleased with the agentic bookings, and we laid out, we're looking forward to that getting to about $1 billion this year.

That's helpful. And then BK, over the last couple of years, the partnerships, partnership sourcing revenues have been an important part of the strategy. Can you maybe provide a bit more color there, maybe in terms of -- there was some commentary in the prepared comments like when we think about the bookings that you're realizing now, how much of that is coming through your partners? And maybe how does that compare over the past year? And how we should think about it on a go-forward basis?

Look, partners is an integral part of the flywheel. And I constantly believe that you could be anybody, but all solutions don't exist in just any 4 walls even if you are a coolest model company. And therefore, the tech and partner ecosystem is integral to how you bring value to clients, and we have invested heavily here. And I think I'll say we are in the early stages of that journey, and there's a significant opportunity ahead. And if I give you a very quick example in a recent case for a supply chain, where we partnered with ServiceNow. This is for a leading energy equipment manufacturer, and they wanted to transition heavily customized legacy platform into a new domain-specific platform that is supported by ServiceNow. And they chose Genpact to drive that transformation, where we built the data model standardization, governance, workflows, almost 100 fragmented workflows got integrated and a lot of customizations that we resolved and then built a future-ready platform. Now all of this was a combination of our supply chain domain expertise and a strong relationship with ServiceNow. And all of this is showing up in our results and actually hopefully in their results, too.

Our next question is from Sean Kennedy with Mizuho.

Congrats on the results. I wanted to ask if you're seeing any incremental pressure from customer in-sourcing trends or crowding out to the AI token infrastructure spend as some of your peers are experiencing?

Thanks, Sean. Look, I think overall, all of this is rooted into the strategy as to what we are driving and how we are wanting to shape the future of this company. If I think about where our clients prioritizing their engineering resources, it is more of the harder problems that is hard to their company strategy. As an example, for a pharmaceutical company, it is sitting in how do they develop a new molecule or a food or a beverage company, it is kind of what is the next best drink or the next best brand that they can bring to the market. And for running mission-critical operations, finance, HR, supply chain, procurement, which is core to Genpact, that's where we are taking the company. That's where we are bringing in all of these agentic solutions that our clients are taking in a significant way.

That's great to hear. And then for those agentic bookings, are you seeing particular success with any specific type of customer?