Record Bookings and Revenue Growth
Record quarterly bookings of $22.1 billion (up 6% in USD, up 1% in local currency); H1 bookings totaled $43 billion. Revenue for the quarter was $18.0 billion, up 8% in USD and 4% in local currency, coming in at the top end of FX-adjusted guidance.
Large-Scale Client Wins
Delivered a record 41 clients with quarterly bookings greater than $100 million (74 such bookings in H1, +12 vs. prior year), demonstrating continued demand for large transformational engagements.
Margin Expansion and EPS Growth
Operating margin expanded to 13.8%, up 30 basis points year-over-year. Diluted EPS was $2.93, representing 4% growth versus prior-year quarter.
Strong Free Cash Flow and Shareholder Returns
Generated $3.7 billion of free cash flow in the quarter (operating cash flow $3.8B less $150M CapEx). Year-to-date free cash flow noted at $5.2 billion. Returned $2.7 billion to shareholders this quarter (repurchases and dividends); repurchased 6.8 million shares for $1.7 billion this quarter and $4.0 billion year-to-date. Declared quarterly dividend of $1.63 per share (+10% YoY).
Active M&A to Drive Growth and Non-FTE Revenue
Deployed $1.6 billion of capital for 3 strategic acquisitions this quarter (Faculty, Decho, RANGR Data and other announced/closed deals including Ookla, CyberCX, DLB Associates stake, Orlade, Aidemy, mid-market tuck-ins). Now expect to deploy about $5 billion in acquisitions for the fiscal year to accelerate entry into higher-growth, higher-margin and non-FTE commercial models.
AI and Talent Momentum
Surpassed target with over 85,000 AI and data professionals (goal was 80,000 by end of FY'26). Reinventors completed 13 million training hours this quarter and 192,000 employees completed the Agentic AI fundamentals program, positioning the firm to capitalize on AI demand.
Broad-Based Segment and Regional Growth
Consulting revenues $8.9B (+7% USD, +3% LC); Managed Services revenues $9.2B (+10% USD, +5% LC). Book-to-bill was 1.2 overall (consulting 1.3, managed services 1.2). Regional growth: Americas +3% LC (≈+6% ex-Federal), EMEA +2% LC, Asia Pacific +10% LC.
Operational Efficiency Improvements
Gross margin improved to 30.3% from 29.9% a year ago. Days sales outstanding improved to 46 days (vs. 51 days last quarter and 48 days year-ago), supporting strong cash generation. Full-year free cash flow guidance raised by $1.0 billion to $10.8B–$11.5B (FCF/net income ratio ~1.3).