DXC Technology Co (DXC) 2026 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome you to the DXC Technology Services second-quarter fiscal year 2026 earnings conference call. (Operator Instructions)

女士們、先生們，感謝你們的耐心等待。我叫克麗斯塔，今天我將擔任你們的會議接線生。此時此刻，我謹代表 DXC Technology Services 公司，歡迎各位參加 2026 財年第二季財報電話會議。（操作說明）

I would now like to turn the conference over to Roger Sachs, Head of Investor Relations. Roger, you may begin.

現在我將把會議交給投資者關係主管羅傑·薩克斯先生。羅傑，你可以開始了。

Thank you, operator. Good afternoon, everybody, and welcome to DXC Technologies second quarter fiscal 2026 earnings conference call. We hope you've had a chance to review our earnings release posted to the IR section of DXC's website. Speaking on today's call are Raul Fernandez, our President and CEO; and Rob Del Bene, our Chief Financial Officer.

謝謝接線生。各位下午好，歡迎參加 DXC Technologies 2026 財年第二季財報電話會議。希望您已有機會查看發佈在 DXC 網站投資者關係部門的收益報告。今天參加電話會議的有我們的總裁兼執行長勞爾·費爾南德斯，以及我們的財務長羅布·德爾·貝內。

Here is today's agenda. First, Raul will update you on our strategic initiatives, Rob will then cover our quarterly financial performance as well as provide thoughts on our third quarter and fiscal full year guidance. Raul and Rob will then take your questions.

以下是今天的議程。首先，Raul 將向大家介紹我們的策略舉措，然後 Rob 將介紹我們的季度財務業績，並就我們第三季和全年業績指引提出看法。接下來，Raul 和 Rob 將回答您的問題。

Please note certain comments on today's call are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from those expressed on the call. Details of these risks and uncertainties are in our annual report on Form 10-K and other SEC filings. We do not commit to updating any forward-looking statements during today's call.

請注意，今天電話會議上的某些評論屬於前瞻性評論，存在風險和不確定性，可能導致實際結果與電話會議上表達的結果有重大差異。這些風險和不確定性的詳情請參閱我們的 10-K 表格年度報告和其他提交給美國證券交易委員會的文件。我們不承諾在今天的電話會議中更新任何前瞻性聲明。

Additionally, during the call, we will be discussing non-GAAP financial measures that we believe provide useful information to our investors. Reconciliations of the most comparable GAAP measures are included in the tables, included in today's earnings release.

此外，在電話會議期間，我們將討論我們認為能夠為投資者提供有用資訊的非GAAP財務指標。今天發布的獲利報告中的表格中包含了最可比較的 GAAP 指標的調整表。

And with that, let me turn the call over to Raul.

那麼，現在讓我把電話交給勞爾。

Thank you, Roger. Our financial performance in the quarter was mixed. We were above our guidance and adjusted EBIT margin and non-GAAP diluted EPS and generated very strong second quarter free cash flow. However, I am disappointed in our performance in revenue and bookings, and we are laser-focused on building a predictable and growing company with better execution and pipeline conversion in the quarters ahead.

謝謝你，羅傑。本季財務表現喜憂參半。我們超出了預期，調整後的息稅前利潤率和非GAAP攤薄後每股收益均高於預期，且第二季度自由現金流非常強勁。然而，我對我們目前的收入和預訂感到失望，我們將全力以赴，在接下來的幾個季度裡，透過更好的執行力和更高的銷售轉換率，打造一家可預測且不斷成長的公司。

I believe the strategic and tactical game plan we have in place will position us to create value in the rapidly evolving AI global economy. We have a strong balance sheet and consistent free cash flow and have the flexibility to continue to make the necessary investments to execute on our AI strategy.

我相信我們制定的戰略和戰術計劃將使我們能夠在快速發展的人工智慧全球經濟中創造價值。我們擁有穩健的資產負債表和持續的自由現金流，並有靈活性繼續進行必要的投資，以執行我們的人工智慧策略。

In the quarter, we formalized a two-track approach to running our business, core track and Fast-track. Our core track represents our existing business where we are working to bring our portfolio of offerings to their full potential in the market. For an example on how we plan to energize our core business, let's take SAP. We have a 15,000-person strong SAP practice and ranked number three among all system integrators for certified SAP business AI consultants, our business needs to convert this strong capability into strong revenue growth.

本季度，我們正式確立了雙軌制業務運作方式，即核心軌道和快速軌道。我們的核心業務代表了我們現有的業務，我們正在努力使我們的產品組合在市場上發揮其全部潛力。為了舉例說明我們計劃如何為核心業務注入活力，讓我們以 SAP 為例。我們擁有 15,000 名 SAP 專業人員，在所有系統整合商中，我們的 SAP 商業人工智慧認證顧問人數排名第三，我們的業務需要將這種強大的能力轉化為強勁的收入成長。

We now have a structured plan to scale our SAP business over the coming quarters. We expect this will double our SAP revenue over the next three years. Fast-track represents our new AI native or highly AI-infused solutions that we have been building and piloting with a combination of our existing team, a new group of experienced leaders we have brought into the company in the last 20 months.

我們現在製定了一個結構化的計劃，將在未來幾季擴大我們的 SAP 業務規模。我們預計這將使我們的 SAP 收入在未來三年內翻倍。Fast-track 代表了我們全新的 AI 原生或高度 AI 融合的解決方案，這些解決方案是我們與現有團隊以及過去 20 個月內引入公司的一群經驗豐富的新領導團隊共同構建和試點的。

Fast-track solutions have a goal to be 10% of our business within 36 months. These AI-based SaaS solutions are highly replicable and built on proprietary methodologies models and frameworks that create defensible competitive moats. And the best part is that clients can expect to see measurable results in weeks and months rather than quarters and years.

快速解決方案的目標是在 36 個月內占到我們業務的 10%。這些基於人工智慧的 SaaS 解決方案具有高度可複製性，並建立在專有的方法論模型和框架之上，從而創造了可防禦的競爭優勢。最棒的是，客戶可以在幾週或幾個月內看到可衡量的結果，而不是幾個季度或幾年。

Each product has a growth target and a net margin goal higher than our existing core portfolio baseline. We are targeting our first set of products for large and growing markets.

每個產品都有成長目標和淨利潤率目標，都高於我們現有核心產品組合的基準水準。我們的首批產品目標市場是規模龐大且不斷成長的市場。

Let me give you a few examples of our Fast-track products. Within financial services, we are leveraging our strong legacy. Decades ago, one of DXC predecessor companies developed Hogan, the preeminent core banking platform used by some of the largest financial institutions in the world, supporting $5 trillion of deposits and facilitating $2.5 trillion-plus in daily transactions.

讓我舉幾個我們快速通道產品的例子。在金融服務領域，我們正在充分利用我們強大的歷史遺產。幾十年前，DXC 的前身公司之一開發了 Hogan，這是世界上一些最大的金融機構使用的卓越的核心銀行平台，支援 5 兆美元的存款，並促成超過 2.5 兆美元的每日交易。

To enhance and modernize this essential banking platform, we are developing a new offering, DXC CoreIgnite. We are redefining how banks unlock value from their core infrastructure by turning existing deposits and payment systems into cloud-native API-driven services that power new revenue streams.

為了增強和現代化這個重要的銀行平台，我們正在開發一款名為 DXC CoreIgnite 的新產品。我們正在重新定義銀行如何從其核心基礎設施中釋放價值，將現有的存款和支付系統轉變為雲端原生 API 驅動的服務，從而創造新的收入來源。

DXC CoreIgnite converts cost centers into growth engines, empowering banks to launch innovative, monetizable services at speed and scale without ever disrupting the core. Recognizing the untapped potential of Hogan, we identified the opportunity to transform it from a legacy core into a growth platform solving for challenges of interoperability. We recruited a new entrepreneurial team and are standing up a dedicated group to bring this vision to life. Our recently announced partnership with Splitit builds on that same Fast-track strategy.

DXC CoreIgnite 將成本中心轉化為成長引擎，讓銀行能夠快速、大規模地推出創新且可獲利的服務，而無需對核心業務造成任何干擾。我們認識到 Hogan 的未開發潛力，並發現了將其從傳統核心轉變為成長平台的機會，以解決互通性方面的挑戰。我們招募了一支新的創業團隊，並正在組建一個專門的團隊來實現這個願景。我們最近宣布與 Splitit 建立的合作關係也是基於同樣的快速通道策略。

With this partnership, we would enable banks to unlock their most valuable asset, their existing customer relationships into a powerful competitive advantage. By offering Buy Now, Pay Later directly from customers' existing accounts, banks can meet the growing demand for flexible payments without introducing new friction. This approach strengthens trust, deepens engagement and keeps consumers within the bank's ecosystem. At the same time, it unlocks entirely new streams of transaction and interchange revenue, turning a defensive necessity into a strategic growth opportunity.

透過此次合作，我們將幫助銀行釋放其最寶貴的資產——現有客戶關係，並將其轉化為強大的競爭優勢。透過直接從客戶現有帳戶提供「先買後付」服務，銀行可以在不引入新的摩擦的情況下滿足日益增長的靈活支付需求。這種方法可以增強信任，加深參與度，並將消費者留在銀行的生態系統中。同時，它也開啟了全新的交易和交換收入來源，將防禦性需求轉變為策略性成長機會。

Now turning to another product in development called OASIS, which is part of our GIS managed services transformation. OASIS is a unified AI-powered orchestration platform that enhances our clients' current technology ecosystems. It embodies our human plus AI approach, combining advanced automation with expert oversight to deliver complete IT estate visibility and better outcomes for customers. This positions GIS competitively as enterprises increasingly seek proven AI capabilities in their managed services partnerships while creating new revenue opportunities for us.

現在讓我們來看看另一款正在開發中的產品 OASIS，它是我們 GIS 管理服務轉型的一部分。OASIS 是一個統一的 AI 驅動型編排平台，可增強我們客戶目前的技術生態系統。它體現了我們的人機結合方法，將先進的自動化技術與專家監督相結合，為客戶提供全面的 IT 資產可視性和更好的成果。隨著企業在其託管服務合作夥伴關係中日益尋求成熟的人工智慧能力，GIS 在競爭中佔據了優勢，同時也為我們創造了新的收入機會。

Lastly, since we paused our strategic option process for our insurance business about a year ago, we continue to create a more valuable business by growing our SaaS portfolio from 30 to 45 products. We have execution plans in place to double our SaaS revenue in each of the next two years. These are three of our many fast-track pilots that are in the works. Fast-track is a prime example of bringing exponential outcomes to our clients and we are bringing this to life in our newly launched Xponential branding and framework. Xponential is a new AI framework that helps DXC clients move from pilots to real business impacts with confidence.

最後，自從我們大約一年前暫停了保險業務的策略選擇流程以來，我們繼續透過將 SaaS 產品組合從 30 個產品增加到 45 個產品來創造更有價值的業務。我們已製定執行計劃，力爭在未來兩年內每年將 SaaS 收入翻倍。這是我們正在推進的眾多快速試點項目中的三個。Fast-track 是為客戶帶來指數級成果的絕佳例證，我們正在透過新推出的 Xponential 品牌和框架將這一理念付諸實踐。Xponential 是一個全新的 AI 框架，可協助 DXC 客戶充滿信心地從試點階段過渡到真正的業務影響階段。

It blends governance, automation and human expertise to deliver measurable results fast. Early client successes show how Xponential is helping organizations, not just operate faster, but unlock new capacity, reduce manual effort and improve decision-making. As we integrate this framework across DXC, we're strengthening our position as a trusted AI transformation partner, helping customers turn AI potential into tangible productivity and growth. We are also showing up differently in the market, and it's getting noticed. Our engagement with the analyst and adviser community continues to deepen, and we are seeing a shift in how our capabilities and impact are being recognized.

它融合了治理、自動化和人類專業知識，以快速取得可衡量的成果。早期客戶的成功案例表明，Xponential 不僅能夠幫助企業更快地運營，還能釋放新的能力、減少人工投入並改善決策。隨著我們把這個框架整合到 DXC 的各個部門，我們正在鞏固我們作為值得信賴的 AI 轉型合作夥伴的地位，幫助客戶將 AI 的潛力轉化為實際的生產力和成長。我們在市場上的形像也與眾不同，而且正在被人們注意到。我們與分析師和顧問群體的互動不斷加深，我們看到我們的能力和影響力正受到越來越多的認可。

As a result, we were recently named as a leader in ISG's Provider Lens ServiceNow Ecosystem Partner study; IDC's MarketScape in Industrial IoT End-to-End Engineering; and in Everest Group's Custom Application Development Services PEAK Matrix. These recognitions matter as they validate the discipline and focus behind our strategy and help fuel confidence with our clients. With our rebuilt foundation and full stack expertise, we are reorienting ourselves around innovation and proactive solutioning. This signals to the market that we're more than steady operators of tech estates.

因此，我們最近被評為 ISG Provider Lens ServiceNow 生態系統合作夥伴研究的領導者；IDC MarketScape 工業物聯網端對端工程的領導者；以及 Everest Group 客製化應用開發服務 PEAK Matrix 的領導者。這些認可非常重要，因為它們肯定了我們策略背後的嚴謹性和專注性，並有助於增強客戶的信心。憑藉著重建後的基礎架構和全端技術專長，我們正在重新調整方向，圍繞著創新和積極主動的解決方案展開工作。這向市場表明，我們不僅僅是科技園區的穩定營運商。

We are better positioning ourselves as an enterprise technology and innovation partner that helps clients run more efficiently, modernizes their systems and harnesses the power of AI to drive outcomes through services, software and solutions. We're encouraged by our expanding pipeline, which includes several large deals with clear line of sight to close in the coming months. As a result, we're confident our book-to-bill will move back above 1 in the second half of the fiscal year. With that momentum, we have an incredible opportunity to work across our offerings, markets and teams to solve customer problems and show up as one DXC.

我們正在更好地將自己定位為企業技術和創新合作夥伴，幫助客戶更有效率地運營，實現系統現代化，並利用人工智慧的力量，透過服務、軟體和解決方案推動成果。我們不斷擴大的項目儲備令人鼓舞，其中包括幾筆預計在未來幾個月內完成的大交易。因此，我們有信心在本財年下半年，訂單出貨比將回升至 1 以上。憑藉著這種勢頭，我們擁有絕佳的機會，可以跨部門、跨市場、跨團隊地合作，解決客戶問題，展現 DXC 的整體形象。

And finally, as client zero, we are using existing and emerging AI across all corporate functions. In our legal department, we are using tools such as GC AI, Harvey and Legora for legal research, drafting and document comparison. This enables our attorneys to automate first pass reviews, rapidly assess risks against our playbooks and generate high-quality drafts. Our sales and marketing teams deploy AI across the full content life cycle.

最後，作為零號客戶，我們正在所有公司職能部門中使用現有和新興的人工智慧。在我們的法律部門，我們使用 GC AI、Harvey 和 Legora 等工具進行法律研究、起草和文件比較。這使我們的律師能夠自動進行初步審查，根據我們的操作手冊快速評估風險，並產生高品質的草稿。我們的銷售和行銷團隊在內容生命週期的各個階段都應用了人工智慧。

Agentforce automates CRM workflows and enriches e-mail marketing with real-time firmographic data. Loopio accelerates proposal generation. Midjourney generates presentation-ready graphics. Video generation platforms, Veo 3, Runway and XLT help us to create compelling video content. And voice and video synthesis tools, ElevenLabs and NotebookLM produce training materials and distill complex messaging. This integrated AI toolkit accelerates content production by 10x while elevating quality and enabling sales professionals to focus on high-value customer relationships.

Agentforce 可自動執行 CRM 工作流程，並利用即時公司資訊資料豐富電子郵件行銷。Loopio 可以加速提案產生。Midjourney 可產生可用於簡報的圖形。視訊生成平台 Veo 3、Runway 和 XLT 幫助我們創建引人入勝的視訊內容。語音和視訊合成工具 ElevenLabs 和 NotebookLM 可以產生培訓材料並提煉複雜的訊息。這款整合式人工智慧工具包可將內容製作速度提高 10 倍，同時提升質量，並使銷售人員能夠專注於高價值的客戶關係。

Our finance teams are using agentic AI, such as AI Foundry, UiPath Robot and Copilot to transform our back-office activities by automating manual and repetitive processes. And as an example of how AI will impact every job, including the CEO, this script was written by Raul Fernandez, but delivered by my custom AI-generated voice model.

我們的財務團隊正在使用 AI Foundry、UiPath Robot 和 Copilot 等智能體 AI，透過自動化手動和重複性流程來改變我們的後台辦公室活動。為了說明人工智慧將如何影響包括執行長在內的每一份工作，以下腳本由勞爾·費爾南德斯撰寫，但由我定制的人工智慧產生的語音模型朗讀。

Now let me turn the call over to Rob.

現在我把電話交給羅布。

Thank you, Raul, and good afternoon, everyone. Today, I'll go over our second quarter results and provide guidance for the third quarter and our updated full fiscal year 2026 outlook. Now starting with the second quarter results. Total revenue was $3.2 billion, declining 4.2% year-to-year on an organic basis within our guidance range and consistent with the past several quarters. Bookings grew approximately 2% year-to-year for a book-to-bill ratio of 0.85, which brings our trailing 12-month book-to-bill ratio to 1.08, a modest improvement from last quarter.

謝謝你，勞爾，大家下午好。今天，我將回顧我們第二季的業績，並對第三季和我們更新的 2026 財年全年展望進行展望。現在先來看第二季業績。總營收為 32 億美元，以有機成長計算年減 4.2%，符合我們的預期範圍，與過去幾季的情況一致。預訂量年增約 2%，訂單出貨比為 0.85，使我們過去 12 個月的訂單出貨比達到 1.08，比上一季略有改善。

This marks the third consecutive quarter with our trailing 12-month book-to-bill ratio above 1, positioning us for improved revenue performance entering fiscal '27. While we didn't get to the booking levels we anticipated for the second quarter, we continue to have a strong pipeline and anticipate a third quarter book-to-bill ratio greater than 1. Our confidence is grounded by the most robust list of new large opportunities in recent history. This is a reflection of the building of our go-to-market capabilities and newly developed AI-based solutions across all of our segments.

這標誌著我們連續第三個季度過去 12 個月的訂單出貨比超過 1，這為我們在 2027 財年實現更好的營收表現奠定了基礎。雖然我們第二季的預訂量沒有達到預期水平，但我們仍然擁有強勁的銷售管道，預計第三季的預訂出貨比將大於 1。我們之所以充滿信心，是因為我們擁有近年來最強大的全新大型投資機會清單。這體現了我們在所有業務領域建立市場推廣能力和新開發的基於人工智慧的解決方案。

Adjusted EBIT margin was 8%, coming in above the high end of our guidance range, reflecting disciplined cost management across the company particularly within our GIS segment and corporate functions. On a year-to-year basis, adjusted EBIT margin declined 60 basis points, primarily reflect continued productivity savings to offset top line pressure, higher investment levels to support future revenue growth and lastly, a onetime legal settlement that benefited the prior year second quarter results.

調整後的息稅前利潤率為 8%，高於我們預期範圍的上限，這反映出公司在成本管理方面採取了嚴格的措施，尤其是在 GIS 部門和公司職能部門。與去年同期相比，調整後的息稅前利潤率下降了 60 個基點，主要反映了為抵消營收壓力而持續提高生產效率、為支持未來收入增長而增加的投資水平，以及上年第二季度的一次性法律和解，該和解對去年同期業績有利。

The impact of the increased investment levels is visible in our insurance and CES segment margins. In our insurance business, we have been investing in our cloud-based software platform, building AI-based smart applications to deliver enhanced value and productivity to our clients. In CES, we are strengthening our advisory capabilities in developing asset-based AI solutions, which are included in the fast-track initiatives that Raul described earlier.

投資水準提高的影響已體現在我們的保險和消費電子業務部門的利潤率。在我們的保險業務中，我們一直在投資基於雲端的軟體平台，建立基於人工智慧的智慧應用程序，以提升客戶的價值和生產力。在 CES，我們正在加強我們在開發基於資產的 AI 解決方案方面的諮詢能力，這些解決方案包含在 Raul 之前描述的快速通道計劃中。

Non-GAAP EPS was $0.84, above the guidance range, consistent with our adjusted EBIT results, down from $0.93 in the second quarter of last year, largely driven by lower adjusted EBIT and higher taxes, partially offset by lower net interest expense and our share count.

非GAAP每股收益為0.84美元，高於預期範圍，與調整後的EBIT結果一致，但低於去年第二季度的0.93美元，主要原因是調整後的EBIT下降和稅收增加，部分被淨利息支出減少和股份數量減少所抵消。

Now turning to our segment results. CES, which represents 40% of total revenue, declined 3.4% year-over-year on an organic basis. This reflects ongoing pressure in discretionary custom application projects, which continues to impact the industry. Bookings for CES declined modestly year-to-year with a book-to-bill of 0.92. While bookings moderated from the prior three quarters of strong performance, the trailing 12-month book-to-bill is 1.15, which we expect to lead to improved revenue performance in the latter part of this year and into fiscal 2027.

現在來看我們各細分市場的業績。CES 佔總營收的 40%，以自然成長計算，年減 3.4%。這反映了自主客製化應用專案持續面臨的壓力，並持續對產業產生影響。CES 的預訂量較去年同期略有下降，訂單出貨比為 0.92。雖然預訂量較前三個季度的強勁表現有所放緩，但過去 12 個月的訂單出貨比為 1.15，我們預計這將在今年下半年以及 2027 財年帶來收入成長。

GIS, which represents 50% of total revenue, declined 6.3% year-to-year organically, which is in line with our full year expectation. Bookings for GIS grew modestly year-to-year with a book-to-bill of 0.82, reflecting longer closing cycles on several large deals we expect to close in the coming quarters. The trailing 12-month book-to-bill remained at approximately 1.1. To help drive our long-term performance, we are building our AI-powered orchestration platform and plan to begin pilot deployments with select customers over the next few months.

GIS 佔總收入的 50%，年減 6.3%，這與我們的全年預期相符。GIS 的預訂量年增幅不大，訂單出貨比為 0.82，這反映出我們預計在未來幾季完成的幾筆大交易的成交週期較長。過去 12 個月的訂單出貨比維持在 1.1 左右。為了幫助推動我們的長期業績，我們正在建立人工智慧驅動的編排平台，並計劃在未來幾個月內開始與部分客戶進行試點部署。

We expect to introduce the OASIS platform to the broader marketplace in the first half of calendar 2026. We are also enhancing our GIS offering portfolio with AI-enabled solutions targeting growth segments of the IT services market, and we're beginning to see the project pipeline build around these new solutions that we expect to convert and expand over time.

我們預計 2026 年上半年將 OASIS 平台推向更廣泛的市場。我們也在透過人工智慧解決方案來增強我們的 GIS 產品組合，目標是 IT 服務市場的成長領域，我們開始看到圍繞這些新解決方案的專案儲備正在建立，我們預計這些專案會隨著時間的推移而轉化和擴展。

Insurance, which represents 10% of total revenue, grew 3.6% year-to-year organically, largely due to growth in software and volume-based increases in existing accounts. We continue to expect this business to grow at mid-single-digit rates for the year.

保險業務佔總收入的 10%，年增 3.6%，主要得益於軟體業務的成長和現有客戶數量的增加。我們仍然預計該業務今年將以中等個位數的速度成長。

Now turning to our cash flow and balance sheet. During the quarter, we generated $240 million of free cash flow, up from $48 million last year. This increase in the quarter was largely driven by improved working capital and lower cash taxes. This brings our first half free cash flow to $337 million, an increase of $244 million year-to-year.

現在來看我們的現金流量表和資產負債表。本季度，我們產生了 2.4 億美元的自由現金流，高於去年同期的 4,800 萬美元。本季成長主要得益於營運資金改善和現金稅額降低。這使得我們上半年的自由現金流達到 3.37 億美元，比上年同期增加 2.44 億美元。

The second quarter results include an increase in software payments, which we had anticipated. As a result of those payments, capital expenditures as a percentage of revenue returned to more recent levels at 5.3%. We also continue to minimize new capital lease originations, recording $6 million this quarter. Over the last 6 quarters, we paid down more than $400 million of capital leases while limiting new capital lease originations to just $31 million.

第二季業績包括軟體支付額的成長，這與我們先前的預期一致。由於這些款項的支付，資本支出佔收入的比例恢復到近期水平，為 5.3%。我們也持續減少新增資本租賃業務，本季新增業務量為 600 萬美元。在過去的 6 個季度裡，我們償還了超過 4 億美元的資本租賃款項，同時將新的資本租賃額限制在 3,100 萬美元。

These efforts, partially offset by currency movements on our euro-denominated bonds have brought our total debt down $107 million to approximately $4 billion. Over the same time period, our ability to consistently generate strong free cash flow enabled us to increase our cash balance by more than $660 million since the start of fiscal 2025, bringing it to $1.9 billion. As a result, we have reduced our net debt by approximately $770 million and in doing so, created additional financial flexibility.

這些努力，加上歐元計價債券的匯率波動，部分抵銷了債務，使我們的總債務減少了 1.07 億美元，降至約 40 億美元。同期，我們持續產生強勁自由現金流的能力使我們自 2025 財年開始以來現金餘額增加了 6.6 億美元以上，達到 19 億美元。因此，我們減少了約 7.7 億美元的淨債務，並在此過程中創造了更大的財務靈活性。

With this solid foundation, we will continue to execute with focus and discipline against our capital allocation priorities for the year that include continuing to invest in our business to accomplish our top priority, driving sustained profitable revenue growth, further strengthening our balance sheet by minimizing new financial lease originations and maintaining our investment-grade debt levels by retiring a portion of our senior notes maturing in the next 12 months and returning capital to shareholders.

憑藉這一堅實的基礎，我們將繼續專注且自律地執行我們今年的資本配置優先事項，包括繼續投資於我們的業務以實現我們的首要目標，推動持續盈利的收入增長，通過最大限度地減少新的融資租賃業務來進一步加強我們的資產負債表，並通過償還未來 12 個月內到期的部分高級票據並將資本返還給股東債務來維持我們的投資等級並將資本再返還給股東債務。

With our strong free cash flow through the end of the second quarter, we've repurchased $125 million of shares, $50 million in Q1 and $75 million in Q2. In the third quarter, we intend to maintain the same quarterly pace of buyback as the first half of the year. As a reference point, at the end of the second quarter, $467 million remained under our Board-authorized share repurchase program.

憑藉第二季末強勁的自由現金流，我們已回購了價值 1.25 億美元的股票，其中第一季回購了 5,000 萬美元，第二季回購了 7,500 萬美元。第三季度，我們計劃維持與上半年相同的季度回購速度。作為參考，截至第二季末，我們經董事會授權的股票回購計畫下仍有 4.67 億美元。

Now let me provide you with our full year 2026 guidance. We now expect total revenue of $12.67 billion to $12.81 billion, with the organic revenue year-to-year decline narrowed to 3.5% to 4.5% from the prior decline of 3.0% to 5.0%. At the segment level, we expect CES to decline in the low single digits organically with third quarter performance roughly in line with last quarter and an anticipated improvement in the fourth quarter as larger longer duration deals ramp. GIS is anticipated to decline at a mid-single digit rate organically and insurance is expected to grow organically at a mid-single-digit rate, in line with recent performance.

現在讓我為您提供我們2026年全年的業績指引。我們現在預計總收入為 126.7 億美元至 128.1 億美元，有機收入年減幅度從先前的 3.0% 至 5.0% 收窄至 3.5% 至 4.5%。從業務部門來看，我們預計消費電子展 (CES) 的有機成長將出現個位數百分比的下滑，第三季業績與上一季大致持平，隨著規模更大、持續時間更長的交易增加，預計第四季度業績將有所改善。預計GIS業務將以中等個位數的速度自然下降，而保險業務預計將以中等個位數的速度自然成長，與近期的表現一致。

We continue to expect adjusted EBIT margin to be between 7% and 8%, and we continue to expect non-GAAP diluted EPS to be between $2.85 and $3.35. We are increasing our full year free cash flow from approximately $600 million to approximately $650 million, driven by our updated view of working capital and help from the new tax law legislation. With strong first half working capital performance, we anticipate a more balanced cash flow cadence over the course of the year relative to prior years that was more heavily weighted toward the second half.

我們仍預期調整後息稅前利潤率將在7%至8%之間，非GAAP攤薄後每股收益將在2.85美元至3.35美元之間。由於我們對營運資本的評估有所更新，以及新稅法的推動，我們將全年自由現金流預期從約6億美元上調至約6.5億美元。由於上半年營運資金表現強勁，我們預計今年的現金流節奏將比往年更加平衡，往年現金流更集中在下半年。

Now for the third quarter of fiscal 2026, we expect total organic revenue to decline 4% to 5%. We anticipate adjusted EBIT margin in the range of 7% to 8%. And finally, non-GAAP diluted EPS of $0.75 to $0.85.

現在，對於 2026 財年第三季度，我們預計總有機收入將下降 4% 至 5%。我們預計調整後 EBIT 利潤率在 7% 至 8% 之間。最後，非GAAP稀釋後每股盈餘為0.75至0.85美元。

With that, let me turn the call back over to Roger.

那麼，我把電話轉回給羅傑。

Thank you, Rob. We'd now like to open the call for your questions, operator, can you please provide the instructions?

謝謝你，羅布。現在我們開始接受提問，接線員，請您提供一下提問說明？

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。現在開始問答環節。（操作說明）

Bryan Bergin, TD Cowen.

Bryan Bergin，TD Cowen。

Hey guys, good afternoon. Thanks. I wanted to start on CES. So you've got, I guess, a quarter or so under the belt of your new lead there. Can you talk about just how that business is kind of faring under the covers, talk about any early areas to improve, particularly on the go-to-market to restart momentum in bookings? Any natural disruption that's occurring here just in the early stages?

各位，下午好。謝謝。我想從CES開始。所以，我猜你現在已經取得了大約四分之一的成績，這是你新領導的成績了。您能否談談該業務目前的內部營運情況，以及有哪些方面需要改進，特別是如何透過市場推廣來重新激發預訂量？這裡是否存在任何處於早期階段的自然災害？

And then, Rob, you just mentioned CES picking up, I think, in 4Q. Is that in hand? Or is that go get type of revenue still?

然後，羅布，你剛才提到CES在第四季有所回升。拿到手了嗎？或者，那仍然是獲取收入的方式嗎？

All right. Let me just start. So we look at everything in terms of each of these offerings as core track and Fast-track. So let me start on the core track. There are many elements of that business and that operation that Ramnath has really dug into and has a very targeted goal and go-to-market plan to improve. Our SAP share in the marketplace is high from an engineering standpoint, but it's not commensurate with the revenues that we get from that practice. So that's a really good example of a core part of the business that we just have to operate at a much better functional level.

好的。讓我先開始吧。因此，我們從核心課程和快速課程的角度來審視所有課程。那麼，就讓我從核心部分開始吧。Ramnath 對該業務和營運的許多方面進行了深入研究，並制定了非常明確的目標和市場推廣計劃來加以改進。從工程角度來看，我們在 SAP 市場上的份額很高，但這與我們從該業務中獲得的收入並不相稱。所以，這很好地說明了我們業務的核心部分需要我們提升到更高的運作水準。

So there's two or three other major areas that have revenue implications, that have pipeline implications, both longer-term projects, bigger projects as well as smaller, shorter cycle projects.

因此，還有兩三個其他主要領域會對收入產生影響，會對專案儲備產生影響，包括長期專案、大型專案以及規模較小、週期較短的專案。

On the Fast-track, as I mentioned in the call, that's an area that we're super excited. We are using our legacy as leverage, and we are building on top of some incredible technical connections and footprints that we've got with Hogan software to very quickly on a fast-track basis develop and deploy agentic solutions that will unlock many new services for our existing banking customers and new ones.

正如我在電話會議中提到的，快速通道是我們非常興奮的一個領域。我們正在利用我們的歷史優勢，並依賴我們與 Hogan 軟體公司建立的一些令人難以置信的技術聯繫和基礎，以快速通道的方式開發和部署代理解決方案，這將為我們現有的銀行客戶和新客戶解鎖許多新服務。

And you saw a little bit of that in the release with Splitit as well. So coming in very quickly and having a huge impact since the end of July, joining the team. And so I'm very happy with the progress there. Let me turn it over to Rob.

在與 Splitit 的合作發布中，你也看到了這一點。所以，他加入團隊後，很快就產生了巨大的影響，從七月底開始就一直如此。因此，我對那方面的進展非常滿意。讓我把麥克風交給羅布。

Yes, Bryan, on your question on fourth quarter, is it in hand or go get. The -- you know the dynamics of the business require bookings and revenue generation in quarter and especially two quarters out. However, we do see, based on the bookings we've had over the last several quarters --

是的，布萊恩，關於你問的第四節比賽，是已經掌握在手還是需要去爭取？你知道，商業運作的動態要求在未來一個季度，尤其是兩個季度內實現預訂量和收入目標。然而，根據我們過去幾季的預訂情況來看，我們確實看到了這一點。--

Can you guys hear me? I'm still here. Okay, good, thank you. Sorry about that.

你們聽得到我說話嗎？我還在這裡。好的，謝謝。抱歉。

So based on the strength of the bookings over the last several quarters, which reflected in the trailing-12 months being 1.15 for CES, we have a solid base entering the fourth quarter and beyond into fiscal '27. So I'd describe it as we have the base, we could see the improvement coming, but there's always more to go get. And we're looking to really strengthen the hand we have now with the third quarter for CES. The -- we have a robust pipeline. So we expect to do well in the quarter -- to continue the momentum, let me say it that way.

因此，基於過去幾季強勁的預訂量（CES 過去 12 個月的預訂量為 1.15），我們為進入第四季以及 2027 財年奠定了堅實的基礎。所以我覺得，我們已經有了基礎，可以看到進步的跡象，但總是有更多目標需要實現。我們希望在第三季CES展會上真正鞏固我們目前的優勢。我們擁有強大的管道系統。所以我們預計本季會取得好成績——繼續保持這種勢頭，我這麼說吧。

Okay. Okay. On the free cash flow, it was good to see that move higher within the guide. You mentioned a couple of primary sources, I think. As you consider those, are those lasting as you think about kind of free cash flow conversion or somewhat transitory?

好的。好的。自由現金流方面，很高興看到它比預期有所上升。我想，你提到了一些主要資料來源。當您考慮這些因素時，這些因素是能夠帶來持久的自由現金流轉化，還是只是暫時的？

So the dynamic in the first half of the year was different than the dynamics for the last couple of years. In that last couple of years, working capital was a drain in the first half of the year and snapped back in the second half of the year, which generated most of our cash flow in the back half of the year. This year, we did a really good job, effective job on receivables in the second quarter. So we've -- if you will, we've managed to pull in some of the benefits we used to get later in the year. So we expect that to be maintained for the rest of the year.

所以今年上半年的市場動態與過去幾年的市場動態有所不同。在過去的兩年裡，營運資金在上半年是一個消耗品，但在下半年迅速恢復，這為我們下半年帶來了大部分現金流。今年第二季度，我們在應收帳款方面做得非常出色，卓有成效。所以，我們——如果你願意這麼說的話——我們已經設法獲得了一些我們以前在一年中的晚些時候才能獲得的福利。因此，我們預計這種情況將在今年剩餘的時間內保持不變。

We do expect good performance in working capital, but we will not get the commensurate bump that we've got in the last few years. So that I'd describe as -- it's sustainable. We're going to keep that benefit. And then on cash taxes, similar. We expect full year cash taxes to be better. So that's -- that will also be sustained. And those were the 2 primary drivers. The third driver was capital expense. And so there, again, we expect to maintain a rate and pace that's similar to the first half of the year. However, I will say if opportunities come around that are worth deploying more capital, we will do that, and we won't hesitate.

我們預期營運資金方面會有良好的表現，但不會像過去幾年那樣獲得相應的成長。所以我會把它描述為——它是可持續的。我們將繼續保留這項福利。現金稅的處理方式也類似。我們預計全年現金稅收狀況會更好。所以，這一點——這一點也會持續下去。這就是兩個主要驅動因素。第三個驅動因素是資本支出。因此，我們預計今年上半年將保持與上半年類似的成長速度和節奏。不過，如果出現值得投入更多資金的機會，我們一定會毫不猶豫地把握這些機會。

Okay, thank you.

好的，謝謝。

Welcome.

歡迎。

James Fawcett, Morgan Stanley.

詹姆斯‧福西特，摩根士丹利。

It's Antonio on for James. I wanted to ask about the GIS business. If maybe like you could walk through any trends in that business. And then specifically within Hogan, like how that fits into GIS and any trends you're seeing there would be helpful. Thanks.

安東尼奧換下詹姆斯。我想諮詢GIS業務方面的問題。如果您能介紹一下該行業的趨勢就太好了。然後具體到 Hogan，例如它如何融入 GIS，以及你看到的任何趨勢，都會很有幫助。謝謝。

So Hogan is part of the CES offering and the new product development and the team is all under Ramnath. On GIS, we've got a great upward tick on all kind of customer-related elements. So our scores are higher, our churn is lower. From an operating statistical standpoint, we're finishing like probably the best 2 quarters of uninterrupted service across the board around the world. So super solid from a foundation standpoint, from an operating standpoint.

所以 Hogan 是 CES 產品線和新產品開發團隊的一部分，整個團隊都隸屬於 Ramnath 領導。在地理資訊系統方面，所有與客戶相關的要素都出現了大幅成長。因此，我們的得分較高，客戶流失率更低。從營運統計的角度來看，我們可能已經取得了全球範圍內服務不間斷性最好的兩個季度。所以無論從基礎或營運角度來看，都非常穩固。

Again, new products are the key, not just for generating more revenue opportunities for us and more pipeline, but for us to change the narrative, frankly, from a safe pair of hands of legacy to a safe pair of hands for legacy and innovators for today's AI economy. So I feel good across all the offerings, all 3 offerings that we've laid the right foundation. Rob?

再次強調，新產品是關鍵，不僅能為我們創造更多收入機會和更多銷售管道，而且坦白說，還能改變人們的固有印象，讓我們從傳統企業的可靠傳承者轉變為當今人工智慧經濟中傳統企業和創新者的可靠領導者。所以我對所有產品都感到滿意，我們為這三款產品都打下了良好的基礎。搶？

Yeha. And Antonio, I would just add a little to what Raul described. Year-to-date, we have had -- the project-based services marketplace has experienced difficulty across the board. So it impacts us not only in CES, but also in GIS. So that's been prevalent through the first half of the year. I will say, though, that the momentum building in GIS from a pipeline perspective. And our large deal -- I mentioned it in the prepared remarks, the large deal pipeline has been building. We've got a robust list of opportunities.

耶哈。安東尼奧，我只想在勞爾描述的基礎上補充一點。今年以來，基於專案的服務市場全面遭遇了困難。所以它不只對CES有影響，對GIS也有影響。所以這種情況在今年上半年一直很普遍。不過，我要說的是，從管道的角度來看，GIS 的發展動能正在增強。還有我們的大筆交易——我在準備好的發言稿中提到過，大筆交易的儲備一直在增加。我們有很多不錯的機會。

Those are longer term in nature, longer closing cycles, but we're seeing really good demand both from a resale -- new content and resale perspective and new customer perspective. And the pipeline for the new offerings that the GIS team is bringing to market are also starting to gain traction. So we're seeing an uptick in that pipeline as well. So I think the future is looking brighter. We now have to convert the pipeline, obviously, and bring that home.

這些交易本質上屬於長期交易，成交週期也更長，但我們看到無論是從轉售（新內容和轉售）的角度，還是從新客戶的角度來看，需求都非常旺盛。GIS 團隊推出的新產品也開始獲得市場認可。所以我們也看到這方面的訂單量增加。所以我認為未來會更加光明。現在我們顯然需要改造管道，然後把它運回家。

Yeah. That's helpful. And then as a follow-up, I wanted to ask about your investments within AI. Like what is the runway for that? And how far are you guys there?

是的。那很有幫助。然後，作為後續問題，我想詢問您在人工智慧領域的投資情況。那條跑道是什麼樣的？你們離目的地還有多遠？

I think one of the most interesting things about this kind of technological wave that we're living through is that the total cost of ownership of creating ideas has dropped almost down to 0. And that's due to a bunch of factors. One, all of these tools. But two, we're living in an era today of incredible cross subsidies. So the compute power I use to generate my AI script, what I paid for versus what it cost is way off, right? If you use Sora, if you use any of these platforms, you're getting an unbelievable level of compute and rendering and creation at a fraction of what the real cost is. So we are very happy to be corporate consumers of many of these tools and to infuse them into our solutions. And so it's a very achievable and maintainable level of investment to keep us at the forefront. Rob?

我認為我們正在經歷的這種技術浪潮中最有趣的事情之一是，創造想法的總擁有成本幾乎降至 0。這歸因於多種因素。第一，所有這些工具。但第二，我們如今生活在一個交叉補貼極為嚴重的時代。所以，我用來產生 AI 腳本的運算能力，我支付的費用和它的實際成本相差甚遠，對吧？如果你使用 Sora，或使用這些平台中的任何一個，你就能以遠低於實際成本的價格獲得難以置信的運算、渲染和創作能力。因此，我們非常高興能夠成為這些工具的企業用戶，並將它們融入我們的解決方案中。因此，這是一個完全可實現且可維持的投資水平，足以讓我們保持領先地位。搶？

Yeah. And I'd just add that we have the capacity with the balance sheet that we've built over the last 18 months to make the necessary investments and take advantage of opportunities when we see them.

是的。我還要補充一點，憑藉過去 18 個月建立的穩健資產負債表，我們有能力進行必要的投資，並在機會出現時抓住它們。

Great. Thank you both.

偉大的。謝謝你們兩位。

Jonathan Lee, Guggenheim Partners.

喬納森李，古根漢合夥公司。

Great, thanks for taking my questions. First from me, can you help calibrate what's contemplated across your revenue and margin outlook range from a macro perspective and a project ramp perspective, particularly as it seems there's some variability contemplated quarter-to-quarter in the back half from a margin perspective?

太好了，謝謝你回答我的問題。首先，我想請您從宏觀角度和專案啟動角度，幫助我們校準一下您在收入和利潤率預期範圍內的預期，特別是考慮到下半年利潤率似乎存在一些季度間的波動？

Yes, Jonathan, we -- in the back half of the year from a margin perspective, if you took the midpoint of the range, it's pretty consistent. And I would describe it this way that, in that guide, we don't anticipate any significant changes to the macro environment. So we're not dependent on any uptick in the economy or anything, any other -- up or down, any big changes economically that would drive increased demand or decrease demand. So it's pretty stable in terms of our assumptions. We're basing our forecast strictly on backlog -- our own data backlog, pipelines, conversion rates and all the metrics you'd expect us to be utilizing.

是的，喬納森，從利潤率的角度來看，在下半年，如果你取範圍的中點，它就相當穩定。我的解釋是，在該指南中，我們預計宏觀環境不會發生任何重大變化。所以我們不依賴經濟的任何改善或其他任何因素——無論是上升或下降，任何可能推動需求增加或減少的經濟大變化。所以就我們的假設而言，它相當穩定。我們的預測完全基於積壓訂單——我們自己的資料積壓、銷售管道、轉換率以及您期望我們使用的所有指標。

That's good color. And just a follow-up. What in your customer conversations gives you confidence in your ability to close these large deals that are in your pipeline, especially given the competitive pricing environment that some of your peers are highlighting? And are there any concessions that you may have to provide to close these deals?

顏色真好看。還有一個後續問題。在您與客戶的溝通中，哪些因素讓您對完成這些正在洽談中的大筆交易充滿信心？尤其是在一些同業強調的競爭激烈的定價環境下？為了達成這些交易，您是否需要做出任何讓步？

I've been personally active selling a lot of our new offerings on previewing them to CEOs, CTOs, COOs, et cetera. And I am just really energized by the interest, the sincere interest, the fact that we are showing up with brand new ways of doing things with tools at an enterprise and global level. And so I think the narrative of the conversation changes as we have more of these proof points out as we deploy more customers with these new tool sets, and it will build upon itself.

我親自積極地向執行長、技術長、營運長等推銷我們的許多新產品，並向他們進行預覽。我真的被大家的興趣，這種真誠的興趣所鼓舞，我們正在以全新的方式，在企業和全球層面使用工具來做事。因此，我認為隨著我們向更多客戶部署這些新工具集，並獲得更多此類證據點，對話的敘述方式也會隨之改變，並且會不斷發展完善。

But I think the great work we've done for the last 20 months to get this stuff together as a really solid foundation for new growth with new products is terrific as well as solidifying all of the legacy work that we continue to do and frankly, we'll continue to do because these systems will evolve, they will change. But as all of us have been in technology, it always appears like it's going to change faster than it actually does.

但我認為，在過去 20 個月裡，我們為將這些內容整合起來，為新產品帶來的新增長奠定了堅實的基礎，這非常棒，同時也鞏固了我們一直在做的所有傳統工作，坦白說，我們將繼續做下去，因為這些系統會不斷發展變化。但正如我們所有人在科技領域所經歷的那樣，它看起來總是比實際變化得更快。

And just add one final point on that in terms of concession. Our pricing has been stable. We -- look at the first -- last several quarters, there's been stability in pricing.

關於讓步這一點，我還要補充最後一點。我們的定價一直很穩定。我們——看看前幾季——過去幾個季度，價格一直保持穩定。

Appreciate that, Rob.

謝謝，羅布。

Tien-Tsin Huang, JP Morgan.

黃天進，摩根大通。

Hi, thanks so much. Just thinking about the CoreIgnite product there. Is that going to be -- are you going to go after the back book of Hogan? Or is this really a new opportunity? I'm just asking if you're converting existing Hogan account, thinking about the revenue change there if you flip to a SaaS or a subscription model under CoreIgnite, what's the delta between that and the existing Hogan account?

您好，非常感謝。我正在考慮CoreIgnite這個產品。那是不是——你打算去調查霍根的後半段故事？或者，這其實是一個全新的機會？我只是想問，如果您要轉換現有的 Hogan 帳戶，考慮到如果您在 CoreIgnite 下轉向 SaaS 或訂閱模式，收入會發生怎樣的變化，與現有的 Hogan 帳戶相比，收入會有什麼差異？

Everything that we are building with CoreIgnite is accretive and additive. It is not cutting into any existing terms. What's really cool is because we've got the legacy relationship, we/we've built the thing, and we know the code in a way that nobody else does and frankly, have some data rights that are pretty interesting. We are uniquely positioned to do this in a way that no one else can do as quickly as well and with a high level of technical confidence in being able to deploy an enterprise-grade solution.

我們使用 CoreIgnite 所建構的一切都具有累積性和增益性。它不會對任何現有條款造成影響。真正酷的是，因為我們擁有歷史淵源，我們/我們建構了它，我們對程式碼的了解程度是其他人所不了解的，坦白說，我們還擁有一些非常有趣的資料權限。我們擁有獨特的優勢，能夠以其他人無法企及的速度和高度的技術信心部署企業級解決方案。

And you've been at this for a while. So thinking about this ability to break the linearity and go after more of the subscription type with this kind of new model. Do you feel like with AI in this product push you're discussing, this is really a turning point for that?

你從事這項工作已經有一段時間了。因此，我們正在思考如何打破線性模式，利用這種新模式來更多地追求訂閱類型。你覺得在你討論的這款產品中融入人工智慧，是否真的是個轉捩點？

Absolutely. Look, when I started, AI was still in experimenting. A lot of what was machine learning was being used as AI. And now we really have revolutionary products that are literally leapfrogging existing players on a week-over-week basis. It's also going to create a new discussion with customers about how we charge and how we get paid. And it will be much more value-based over time. It will not happen overnight, but we are very well positioned to be aggressive players in that value-based discussion, which is around, as you know, replicable solutions, whether it's full SaaS, ARR or some replicable combination of software and services.

絕對地。你看，我剛入行的時候，人工智慧還處於試驗階段。許多原本屬於機器學習的成果都被用來當作了人工智慧。現在我們確實擁有了革命性的產品，這些產品每週都在快速超越現有競爭對手。這也將引發與客戶之間關於我們如何收費以及如何收款的新討論。隨著時間的推移，它將更加註重價值。這不會在一夜之間發生，但我們已做好充分準備，成為這場基於價值的討論中的積極參與者。如您所知，這場討論的核心是可複製的解決方案，無論是完整的 SaaS、ARR 還是軟體和服務的某種可複製組合。

Okay, no, thank you for that. Rob, if you don't mind, just one quick question. Forgive me for the third one. Just thinking about the segment profit, I just want to make sure I caught that. Any callouts as we model out the rest of the year across the three segments here and what to consider on the profit side?

好的，不用了，謝謝你。羅布，如果你不介意的話，我想問你一個問題。請原諒我第三次犯錯。我只是想確認一下細分市場的利潤狀況，確保我沒搞錯。在對今年剩餘時間的三大業務板塊進行建模時，有哪些需要特別注意的地方？在利潤方面又需要考慮哪些因素？

From a segment perspective, no real callouts in terms of different trajectories for what we have in 2Q.

從細分市場的角度來看，第二季我們並沒有看到任何不同的發展軌跡。

Thank you.

謝謝。

Jamie Friedman, Susquehanna.

傑米·弗里德曼，薩斯奎哈納。

Raul, I'm not sure if that was you or your digital twin, but the creativity is noticed. I don't want to be tone-deaf to that, and it sounds different. So I'm just wondering, first of all, in terms of how you're going to operate, manage and disclose Fast-track? How should we be thinking about the kind of -- is it a champion/challenger? Is that going to be a laboratory? How are you going to incubate the Fast-track opportunity?

勞爾，我不確定那是你還是你的數位孿生體，但你的創造力確實引人注目。我不想對此充耳不聞，而且聽起來確實不一樣。所以，首先我想知道的是，你們將如何運作、管理和揭露快速通道專案？我們應該如何看待這種類型的競爭者——是冠軍還是挑戰者？那會是一個實驗室嗎？你們打算如何孵化快速通道專案？

Yeah. Well, thank you. We -- I used the tool over the last -- literally the last few days, and it's just getting better and better. And so I thought I'd try it. So yes, the script was written by me but delivered by my AI twin. But this is really me. So the answer to that is in the beginning of the new fiscal year, we're going to have more clarity and more information to share on how these -- what are currently pilots and products in production and early stages of client use and give you a much better road map for the ramp-up of those. And look, we are going after -- we talked about a handful today.

是的。謝謝。我——就在最近幾天——一直在使用這個工具，它越來越好用了。所以我決定試試看。是的，劇本是我寫的，但由我的人工智慧雙胞胎演繹。但這真的是我。所以答案是，在新財年開始的時候，我們將更清楚地了解這些——目前處於試點階段和生產階段的產品以及客戶早期使用階段的產品——的情況，並為您提供更好的路線圖，以加快這些產品的推廣。你看，我們正在努力——我們今天談到了一些目標。

We're going after more than the ones that we talked about. Not all of them will be successful, but only a few of them need to be successful to help change the revenue trajectory of this company. And I'm super excited again about the creativity, the product focus we have. And really, the biggest thing for me is the replicability. These are not one-off solutions that have to get built or rescoped over and over again. These are built to be replicable, and they are then built also to have a higher gross and net margin contribution.

我們的目標是比我們之前討論過的更多的目標。並非所有人都會成功，但只需要少數人成功就能改變這家公司的營收軌跡。我再次對我們的創造力以及我們對產品的專注感到無比興奮。對我來說，最重要的還是可複製性。這些並非需要反覆建造或重新調整範圍的一次性解決方案。這些產品在設計之初就考慮到了可複製性，並且還考慮了更高的毛利率和淨利率貢獻。

Interesting. And then, yes, I mean, it makes a lot of sense to me to refresh the Hogan platform. Obviously, it was a real landmark platform of the industry. Is there any sizing that you can share? I think the last disclosure on Hogan, I remember were a little dated. Yes, anything that you could share? How big is it today? Do a lot of financial institutions still run it? How meaningful is it as any dimension of the business? Anything you could share about Hogan would be helpful.

有趣的。是的，我的意思是，對我來說，更新霍根平台是非常有意義的。顯然，它是業界一個真正的里程碑平台。請問您能分享一下尺寸資訊嗎？我記得上次披露霍根的事情有點過時了。是的，有什麼可以分享的嗎？現在它有多大？現在還有很多金融機構在運作它嗎？它對企業營運的各個面向有多重要？任何關於霍根的資訊都將對我們有所幫助。

Yeah. And again, like I said, we're going to -- as we enter the new fiscal year, we'll have some existing customers to talk about that are already using it. But I think the way to think about it is that it's not a revival, it's an extension of Hogan in a very lightweight manner in an AI API-centric manner that's going to allow the banks, the customer here, to offer new services at a fraction of the cost and speed. And because you have this legacy, meaning know the code, have access to the code, have maintained the code, we're in a unique ability to leverage it.

是的。再說一遍，就像我剛才說的，隨著新財年的到來，我們將與一些已經在使用它的現有客戶進行交流。但我認為，正確的理解方式是，這不是復興，而是以非常輕量級的方式，以人工智慧 API 為中心，對 Hogan 進行擴展，這將使銀行（也就是客戶）能夠以極低的成本和極快的速度提供新服務。正因為你們擁有這份傳承，也就是說，你們了解程式碼、可以存取程式碼、維護過程式碼，所以我們才擁有獨特的能力來利用它。

So it's a core banking platform and system. Some of our customers have used derivative versions. So we're not going to be in the business of trying to rebuild that. We're in the business of trying to expand and extend it using AI and create value for our customers, the banks and create obviously value for ourselves.

所以它是一個核心銀行平台和系統。我們的一些客戶使用了衍生版本。所以我們不會嘗試重建它。我們致力於利用人工智慧來擴展和延伸這項業務，為我們的客戶、銀行創造價值，當然也為我們自己創造價值。

Great. Thanks for the call. I'll jump back in the queue.

偉大的。謝謝你的來電。我重新排隊。

Brad Clark, Bank of Montreal.

布拉德克拉克，蒙特利爾銀行。

Alright, thanks for the question. You mentioned in the quarter, cost discipline driving some margin upside versus the guide. As you think longer term, DXC has been taking cost out of the business for a while. How sustainable do you think these sort of cost -- management cost takeout measures are in terms of growing -- aspiration to grow EBIT margin longer term? Thank you.

好的，謝謝你的提問。您在季度報告中提到，成本控制推動了利潤率高於預期。從長遠來看，DXC 已經降低了營運成本一段時間了。您認為這些降低管理成本的措施，對於實現長期成長的息稅前利潤率目標而言，其永續性如何？謝謝。

Yeah, Brad, this is Rob. So we've demonstrated that over a sustained period of time, we could manage costs to maintain margin levels. And I'm confident we could continue to do so. And when revenue stabilizes and beyond, it will provide a great platform for us, and we will maintain the spending discipline. It will then provide the platform for growing margins. So I feel, especially now with enablement of AI tools internally, we will continue to tightly manage spending, drive productivity from a margin perspective.

是的，布萊德，我是羅布。因此，我們已經證明，在一段持續的時間內，我們可以透過控製成本來維持利潤率水準。我相信我們能夠繼續做到這一點。當收入穩定下來並持續成長後，它將為我們提供一個良好的平台，我們將繼續保持支出紀律。這將為利潤率的成長提供平台。因此，我認為，尤其是在公司內部啟用人工智慧工具之後，我們將繼續嚴格控制支出，從利潤率的角度提高生產力。

Brad, as client zero, I've mentioned many of the internal products that we're using across every business function. One that I mentioned in the first call was our agentic SOC solution that we're now taking to market our partner 7AI. That has been running in place and clearly, that's going to have, from an operating standpoint, from an operator standpoint, a positive cost structure in terms of how we operate in the coming years. Again, that's not fully baked into next year's guidance, which we're still working on, and we're still working on the rollout of the product in terms of not just using it internally, they're reselling it externally.

Brad，身為零號客戶，我曾提到我們在每個業務職能部門使用的許多內部產品。我在第一次通話中提到的一個解決方案是我們的代理商 SOC，我們現在將其推向市場，我們的合作夥伴是 7AI。這項措施已經實施，而且很明顯，從營運角度和營運商角度來看，這將在未來幾年內為我們帶來積極的成本結構。同樣，這還沒有完全納入明年的業績指引，我們仍在製定中；我們也仍在努力推廣該產品，不僅供內部使用，還要向外部銷售。

Very helpful.

很有幫助。

(Operator Instructions)

（操作說明）

Darren Pellar, Wolfe Research.

Darren Pellar，Wolfe Research。

Hi, thanks, this is Paula Obrecht on for Dan. Can you provide a bit more detail on how you're thinking about headcount strategy going forward, especially as we think about AI being increasingly embedded across really every facet of the business, it sounds like.

您好，謝謝，我是Paula Obrecht，替Dan為您報道。您能否更詳細地說明您未來在人員配置策略方面的想法，尤其是在人工智慧似乎正日益融入業務的方方面面的情況下？

Yes. Sure. I'll give you a little bit of color commentary and then Rob will kick in. Look, I think the traditional labor pyramid and the traditional way of thinking about labor in terms of onshore, nearshore, offshore will be obsolete. Will it be obsolete in three years, six years, five years? I don't know. But the pyramid will start looking more like a diamond and at the bottom of it are going to be AI agents.

是的。當然。我先做些簡單的解說，然後羅布會接手。我認為，傳統的勞動金字塔以及傳統的以在岸、近岸、離岸為劃分標準的勞動力思維方式將會過時。它會在三年後、六年後、五年後過時嗎？我不知道。但金字塔的形狀會越來越像鑽石，而金字塔的底部將是人工智慧代理。

And part of what we're doing is making sure that our workforce is skilled to continue to move up the value chain as we deploy these forms of agents to do work that was done by Level 1 and Level 2 engineers. So it is an ongoing human capital discussion that we've got. It's a human capital investment that we're doing, but it's also one that's going to impact every company in this space.

我們正在做的部分工作是確保我們的員工具備足夠的技能，以便在部署這些類型的代理人來完成以前由一級和二級工程師完成的工作時，能夠繼續在價值鏈上向上發展。所以，我們一直在討論人力資本議題。這是一項人力資本投資，但它也將影響到該領域的每家公司。

Yes. So Paul, as that new model evolves, along the way, we'll continue to balance resources with our demand profile and delivery requirements while we continue to drive productivity throughout the overhead functions in the company. So we will maintain our normal management approach while the new model is evolving.

是的。所以保羅，隨著新模式的不斷發展，我們將繼續平衡資源與我們的需求狀況和交付要求，同時繼續提高公司各個營運環節的生產力。因此，在新模式逐步完善的過程中，我們將繼續沿用以往的管理方式。

Got it. That's helpful color. And then last quarter, you noted seeing your win rates increase. I think it was low to mid-single digits during the quarter across CES and GIS. Just curious any updates there if you observed a similar trend this quarter.

知道了。這是個很有幫助的顏色。然後上個季度，您注意到您的勝率有所提高。我認為本季 CES 和 GIS 的成長率都在個位數低到中段。想問您是否也觀察到了類似的趨勢，這方面有什麼最新進展嗎？

Yes. I'd say quarter-to-quarter, they were stable. So no real change in the trajectory.

是的。我覺得從季度上看，他們的業績比較穩定。所以軌跡沒有發生實質變化。

Got it, that's helpful, thank you.

明白了，很有幫助，謝謝。

Welcome.

歡迎。

Rod Bourgeois, Deep Dive Equity Research.

Rod Bourgeois，深度股數研究。

Hey guys, hey, I have a general question about your Fast-track solution plans. I like the sound of these new plans. It sounds like you're moving past some of the blocking and tackling turnaround work and you're now moving to improve positions in some key is there.

大家好，我有一個關於你們快速通道解決方案計劃的一般性問題。我喜歡這些新計劃的聽起來。聽起來你已經完成了一些阻擋和擒抱方面的調整工作，現在正在著手改善一些關鍵位置上的表現。

So on that note, I'd just like to ask if there's a certain milestone that you've reached that's now enabling you to better pursue these kind of Fast-track opportunities, whereas before those kind of new market approaches were seemingly somewhat on hold. So is the milestone that you have more room to invest or more of a readiness with execution? Or is it an AI opening the door factor? Can you just elaborate on the -- what the pivot point is here? Thanks.

所以，基於此，我想問一下，您是否已經達到了某個里程碑，使您能夠更好地追求這類快速通道機會，而在此之前，這類新的市場方法似乎在某種程度上被擱置了。所以，這個里程碑是指你有了更多的投資空間，還是執行上有了更大的準備？或者說，是人工智慧打開了這扇門？您能否詳細說明一下—這裡的關鍵點是什麼？謝謝。

The absolute number one pivot point is new talent that has come in with the skill sets to do this. And that talent has gotten here, and we've been able to bring others that we've all worked with in the past in different companies, and that is the absolute key to this transformation. That new talent came up with the opportunity. That new talent came up with the product framework. That new talent is building and deploying that as we speak.

最關鍵的轉捩點是引進了具備相應技能的新人才。而這些人才已經來到這裡，我們還能夠把過去在不同公司共事過的其他人才帶來，這才是這次轉型的絕對關鍵。那位新人才帶來了機會。那位新人才提出了產品框架。就在我們說話的時候，這些新人才正在建構和運用這些能力。

So that's the absolute key. And finding the right people, getting them onboarded. As you said earlier, it's a playing offense and playing defense. The defense is stabilizing our kind of our core business and operating in a more efficient and effective way as a professional services firm. And then the offense is going to market with these fast-track products.

所以，這才是關鍵。找到合適的人，並讓他們順利入職。正如你之前所說，這既包括進攻也包括防守。國防部正在穩定我們的核心業務，並以更有效率、更有效的方式作為專業服務公司運作。然後進攻方就會帶著這些快速上市的產品進入市場。

Okay. All right. And then just a follow-up to focus on the free cash flow from a different angle. If you produce $650 million in free cash flow this year, can you give us a sense of whether that creates a baseline for next year to grow on top of? Or given that you have some free cash flow benefit that you're reaping this year, is the $650 million more of a stable level to consider on a go-forward basis? Just -- I know you can't give guidance that far out, but a general idea on the trajectory and how this year's benefits will apply to next year. Thanks.

好的。好的。然後，我們再從另一個角度關註一下自由現金流。如果今年你們的自由現金流達到 6.5 億美元，你們能否大致說明這是否為明年的成長奠定了基礎？或者，考慮到您今年獲得了一些自由現金流收益，那麼 6.5 億美元是否是更穩定的未來發展水平？我知道您無法給出那麼長遠的指導，但能否大致說明一下發展軌跡以及今年的收益將如何應用於明年？謝謝。

Yeah. Sure, Rod. The way I'd describe it is this will be our third year in a row of producing free cash flow in that range. And I fully expect that to continue at this point, right? Without any major disruptions, I fully expect it to continue.

是的。當然可以，羅德。我的理解是，這將是我們連續第三年實現該範圍內的自由現金流。而且我完全預期這種情況會持續下去，對吧？如果沒有重大干擾，我完全相信它會繼續下去。

And that concludes our question-and-answer session. I am now going to turn it back over to Rao for closing comments.

我們的問答環節到此結束。現在我將把發言權交還給拉奧，讓他做總結陳詞。

Thank you so much. Before we sign off, we'd like to share a short video showcasing the AI capabilities I discussed earlier. It was created using AI tools at a fraction of the typical production cost. The video is available in the IR section of DXC's website, along with our other earnings material. Thanks everyone for joining us on the call today, and we look forward to speaking with you again next quarter.

太感謝了。在結束之前，我們想分享一段簡短的視頻，展示我之前提到的AI功能。它是利用人工智慧工具創建的，成本僅為典型生產成本的一小部分。該影片可在 DXC 網站的投資者關係 (IR) 部分找到，同時還可以找到我們的其他收益資料。感謝各位今天參加我們的電話會議，我們期待下個季度再次與大家交流。