Q1 2026 revenue of $1.4 billion, at the high end of outlook, with year-over-year growth of 7.6% (GAAP) and organic constant currency growth of 3.7% (CFO)
Pure AI-native revenues exceeded $125 million in Q1, up nearly 20% sequentially from Q4; full-year target of $600 million reiterated (CEO)
5 of 6 verticals grew year-over-year: Financial Services +11.5%, Software & Hi-Tech +10.9%, Consumer Goods Retail Travel +7.2%, Life Sciences & Health Care +5.9%, Emerging Verticals +6% (CFO); Business Information Media -0.7% (CFO)
By geography, Americas (57% of revenue) grew 2.5% year-over-year; EMEA (41% of revenue) grew 15.9% (8.4% constant currency); APAC (2% of revenue) grew 1.2% (CFO)
GAAP gross margin 27.7% (vs 26.9% a year ago); non-GAAP gross margin 29.4% (vs 28.7% a year ago) (CFO)
GAAP income from operations $117M (8.3% of revenue), up ~18% YoY; non-GAAP income from operations $201M (14.3% of revenue), up >14% YoY (CFO)
DSO 76 days (vs 72 days in Q4 2025; vs 75 days in Q1 2025) (CFO)
Delivery professionals ~56,500 (+1.6% YoY); total headcount >62,750; utilization 77% (vs 77.5% a year ago) (CFO)
Over 100 new AI-native projects launched in Q1; more than 80% of top 100 clients engaged in AI initiatives (CEO)
Official Guidance (CFO)
Full Year 2026: Revenue growth 4% to 6.5%; organic constant currency growth 2.5% to 5%; GAAP income from operations margin 10% to 11%; non-GAAP income from operations margin 15% to 16%; GAAP diluted EPS $8.29 to $8.59; non-GAAP diluted EPS $12.98 to $13.28; weighted avg diluted shares ~52.7M
Q2 2026: Revenue $1.4B to $1.415B (year-over-year growth ~4% at midpoint; organic constant currency growth ~2.7%); GAAP income from operations margin 9% to 10%; non-GAAP income from operations margin 15% to 16%; GAAP diluted EPS $1.79 to $1.87; non-GAAP diluted EPS $3.10 to $3.18; weighted avg diluted shares ~52.4M
Mgmt Quotes
“We delivered a solid first quarter with revenue growth at the high end of our outlook range, year-over-year improvement in adjusted profitability and gross margins and strong adjusted earnings per share.” (CEO)
“Pure AI revenues exceeded $125 million in Q1, up nearly 20% sequentially from Q4. This momentum gives us a strong line of sight to our $600 million target for the full year.” (CEO)
“As the industry works through the models, we intend to be ahead of the curve as we continue to evolve our approach to AI investment pricing, client engagement and delivery models for some quarters to come.” (CEO)
“While the economic environment impacted visibility and added some vulnerability...we feel good about our pipeline, including the larger strategic opportunities I described earlier, which represent a meaningful step in our evolution.” (CEO)
“We are lowering our full year revenue growth outlook. We remain committed to improving overall profitability and gross margins.” (CFO)