Earnings ShortfallReported earnings per share missed expectations due to a small margin shortfall and a higher-than-anticipated non-GAAP tax rate, creating near-term profit pressure.
Excess Capacity And Margin PressureExcess capacity and required upfront investments are compressing gross and adjusted operating margins, which could limit cash generation until utilization improves.
Growth And Execution RisksAutomation, offshoring, and runoff of low-complexity work have weighed on growth, while longer sales cycles, smaller deal sizes, and slower project ramps raise execution risk.