Delivered $4.8 billion in revenue, sequentially flat and a decline of 1% year-over-year, both reported and in constant currency.
Adjusted operating margin expanded by 50 basis points to 15.1%.
First-quarter bookings on a trailing 12-month basis were $25.9 billion, an increase of 1% year-over-year.
Signed 8 deals each with a Total Contract Value (TCV) of $100 million or more.
Voluntary attrition for the Technology Services business ended at 13.1%, a decline of 10 percentage points year-over-year.
GAAP Operating Margin was impacted negatively by approximately 50 basis points due to costs related to the NextGen optimization program.
Q1 diluted GAAP EPS was $1.10 and adjusted EPS was $1.12.
Future Guidance
Expects Q2 revenue to be flat to 1.5% growth sequentially, in constant currency.
Anticipates a full-year revenue decline of 2% to growth of 2% in constant currency.
Adjusted operating margin for the full year expected in the range of 15.3% to 15.5%.
Full-year adjusted earnings per share guidance of $4.50 to $4.68, unchanged.
Plans to return over $1 billion to shareholders in 2024, including at least $400 million through share repurchases and $600 million through regular dividends.
Full-year free cash flow guidance remains unchanged, expected to represent 80% of net income.
Trends, Market Conditions, Sentiment
Navigating a challenging demand environment with progress made against strategic priorities.
Demand environment remains uncertain with geopolitical risks and shifting client spending priorities towards cost-saving projects.
Softness observed in smaller deals, indicating tight discretionary environment.
Strong deal momentum with significant contracts signed, indicating sustained traction with large deals.
Client projects show a focus on modern technology infrastructure, hyper-personalization, and customer experience improvements.
Investments in generative AI reflect the company’s focus on innovation and staying at the forefront of technological advancements.
The uncertain economic outlook and volatile geopolitical environment have impacted discretionary spending, particularly in financial services and health sciences.
Ongoing focus on cost optimization and efficiency improvements through the NextGen program.
Notable Quotes
”We delivered revenue growth that exceeded the high end of our guidance range and expanded our adjusted operating margin year-over-year."
"The timing of a return in discretionary spending remains unknown, but our thesis remains simple. We plan to be prepared when it returns."
"These dynamics are shifting near-term client spending priorities from discretionary projects towards projects that will drive near-term cost savings."
"Our NextGen optimization program has progressed well in helping us drive structural cost savings and simplification of our operations."
"In 2024, we will keep working to increase our revenue growth, become the employer of choice in our industry and to simplify our operations.”
