Genpact Limited (G) Earnings Call Transcript & Summary

Thanks, operator. Hello everyone, and good afternoon. It's great to have you join Genpact's Q4 2025 Earnings Conference Call. Hopefully, you've already looked at the earnings press release we put up in the Investor Relations area of genpact.com. Joining us today are Balkrishan Kalra, our President and CEO, along with Michael Weiner, our Chief Financial Officer. BK is going to kick things off with a summary of how we did, and after that Mike will walk through our financial results in more depth, and then we'll open it up for your questions. Before we go further, keep in mind that on this call, forward-looking statements will be made, covering things like our business outlook, our strategies, and our long-term goals. Those remarks reflect our plans, predictions, and expectations as they stand today, and they might shift down the road. A number of significant risks and uncertainties, among them the risk factors laid out in our 10-Ks and 10-Q filings with the SEC, could cause actual results to come in materially different. We'll also be talking about some non-GAAP financial measures on this call. Reconciliations of those to the most directly comparable GAAP financial measures appear in our earnings press release. These non-GAAP measures aren't meant to stand in for our GAAP results. You can find further information about our constant currency growth rates in our earnings press release and fact sheet, both of which are available on our investor relations website. Last thing: this entire call is being webcast through our Investor Relations website, and within a few hours an audio replay and transcript will be posted there as well. With all that said, I'll hand things over to BK.

Hi, everyone, and thanks for being with us today. For Genpact, we finished a record year on a strong note. Revenue reached $5.08 billion, up 6.6% for 2025, powered by disciplined execution, faster innovation, and demand across a broad base. At Advanced Technology Solutions, revenue rose 17% to $1.2 billion and now represents 24% of our total revenue. We posted yet another year of solid margin improvement. Gross margin was up 60 basis points, while adjusted operating income margin gained 40 basis points, despite the sizable investments we are making for long-term growth. Adjusted diluted EPS rose 11% faster than revenue, marking the fifth consecutive year of that pattern. In 2025, we built a solid base for growth that can be sustained over the long haul, focusing on purpose on rapidly expanding data AI plus domain-driven identity offerings so that the way customers run their operations gets reimagined. As a result, our company's overall shape is shifting in a significant manner. The caliber of what we deliver, what's in the pipeline, and what lies ahead keeps improving, and it lines up strategically with how we put advanced technology solutions and agentic-led work first. Bookings for new business exceeded $5.5 billion, and advanced technology solutions grew at a healthy pace, now accounting for over one-third of all bookings; 16 large deals were signed by us, and our momentum continues with the next wave of market disruptors. As we head into 2026, our position is exceptionally strong. Demand is robust and expanding. The deals coming in and the opportunities we're seeing are strong, and we've never had a bigger backlog — that's because a growing number of clients see Genpact as a partner they can rely on for the long haul to overhaul the operations that matter most to them. We chose to disrupt things on purpose in 2025, and it was also a year of huge accomplishments. When I look back, the thing that fills me with the most pride is everything we've created, introduced, and grown with our agentic solutions. The way companies run is being changed at its core by us, and we're moving fast while doing it. AP Capture came out last February as the initial piece of our agentic suite for accounts payable, and then AP Advance and Assist became available in June. Even though we're only at the beginning, the total contract value we've booked for our AP agentic solutions alone has passed $200 million. In that mix, more than 40% of the value from contracts we won was brought in by clients who are new. And when it comes to accounts we already had that have made the shift away from being led by FTE over to AgenTik, the growth in both revenue and gross margin is clearly higher than the figures we shared during Investor Day back in June. Through AP Suite, we've established the playbook for providing clients, and Genpact as well, with value that lasts and keeps growing. And we've only just begun. Our robust product roadmap, which includes numerous solutions built for specific domains such as AP, is plainly matched to the operational areas where we excel. The agentic suite for insurance policy and record-to-report that we introduced toward the end of last year are merely two illustrations. Our view is that the biggest winners will be organizations that use AI to reach greater autonomy and transform the way their operations are conducted. At Genpact, we're changing the way knowledge work is delivered. A new operating model is being introduced by us, and it's called agentic operations. With agentic operations, we move beyond automation into a collaborative structure that connects agents and human specialists through three central pillars. The first is domain-specific agents that take on tasks on their own inside processes that have been redesigned. The second is last-mile experts, whose job is to review exceptions, coach and enhance the models, and lock in the learning; and the third consists of clearly defined roles, skills, and governance backed by responsible AI. Agentech operations move us beyond a sequence of human process, human validated, machine processed, human validated. With 2026 now here, a new Genpact is taking shape. We're setting the standard for transformation led by AI. Our position is unlike any other when it comes to helping clients rethink the most critical parts of what they do. That ranges from a complete reworking of processes from start to finish, to building out data and AI capabilities, to delivering at scale through agentic collaboration. A sizable opportunity sits in front of us. AI is moving quickly from generating insights toward actually executing tasks, and CXOs face a clear business imperative. They must turn investments in AI and agentic technology into financial outcomes that can be measured. In the US alone, more than 70 million knowledge workers will see their jobs reshaped as AI agents and human expertise work together seamlessly. Research indicates that when you combine enterprise app integration with agents specialized by domain—agents that are grounded in last-mile expertise—that combination will increasingly become the norm. You can see it happening. For an enterprise to transform, it has to focus simultaneously on reengineering its processes, modernizing its data, and building an agile technology architecture, all with AI at the center, plus the discipline to let go of old habits. That's exactly what Genpact does best. And it's where we continue to stand out. Through Genpact Next, our strategy, we're expanding what we can do, who we serve, and the catalysts we bring, so we can capture this significant opportunity. We're also moving away from simply meeting clients at their current position and toward carrying them to the destination they're aiming for. Let me walk you through the main points of each. First, our capabilities. Advanced technology solutions grew to $1.2 billion, and that segment contributed more than half of the overall revenue growth in 2025. We're seeing demand for our data and AI expertise rise rapidly, and the investments we've made are accelerating how quickly we can deliver. Our AI Gigafactory continues to expand. Right now, more than 400 GenAI solutions are in the market — either already deployed or in the process of going live. That's nearly triple what we had last year. Recently, we also introduced AI Maestro, a software platform that helps AI builders and AI practitioners embed AI into last-mile processes much faster. Innovations like this are giving our set a significant lift, and our data and AI pipeline has increased 50% year over year. No product in Genpact's history has grown as fast as AgenTeq. It's clear our agentic solutions are gaining real traction — we're seeing it with new customers coming on board, and also through bigger volumes and broader scope within the accounts we already serve. Our core business services continued to expand, up 3.7% during 2025. Clients come to us because they need someone to run operations that are critical to their mission, at scale, and to handle the groundwork that has to be in place before any AI transformation can happen. They recognize that process intelligence is a prerequisite for artificial intelligence. Our extensive knowledge of specific domains and industries makes us more competitive and drives greater appetite for our sophisticated technology offerings, particularly when it comes to large, strategic engagements. As we head into 2026, the number of large deals we've won is higher than at the start of any previous fiscal year, which shows even more clearly that clients rely on Genpact to deliver tangible business results. Now, on to clients. The reason clients pick Genpact is our capacity to bring together data, AI, and AgenTeq along with close to 30 years of expertise in running core operations. Let me take you through a few examples to show this. The first one shows how our core business services put us in a position to steer clients through their wider AI-driven transformation. Humana is a top American health and well-being firm, mainly centered on providing a broad array of healthcare services and insurance products. They've been a digital operation client in finance and accounting for a long time. Not long ago, we broadened our partnership to assist Humana's AI-enabled transformation in revenue cycle management, procurement, and, naturally, finance and accounting. We're using our extensive process intelligence and last-mile know-how to generate efficiency and consistency via process redesign and operating model enhancement. As time goes on, we see a chance to back more sophisticated AI-enabled operating models, such as agentic operations. This fits squarely with Humana's enterprise transformation and AI plans and opens a path for Genpact to turn into a crucial partner for Humana's workforce of the future.

Our following illustration involves Vesco, and it demonstrates the speed at which agentic operations are capable of expanding and producing substantial results. Vesco is also a Fortune 500 business and a top supplier of B2B distribution, logistics, services, and supply chain solutions, and it has worked alongside Genpact to rethink its finance department, which included a major reworking of its AP workflow. During our Investor Day held in June, the CFO from Vesco discussed the thorough transformation of their processes and technology. We moved their whole AP and procurement team onto a single, unified platform and automated their process from start to finish using pre-trained, outcome-focused agents. Starting in June, we've achieved still greater strides toward enhancing accuracy, shortening cycle times, and improving the supplier experience. Touchless handling of their 3 million invoices has risen from 40% to 65% at Vesco; additionally, they've now rolled out AP Advance, and intend to bring in AP Assist before long. HFS research pointed to our engagement with Vesco as proof that accounts payable has ceased to be merely a back-office operation. Rather, it's turning into a frontline for enterprise AI, laying a groundwork for real-time visibility and agility throughout the finance organization. Those represent only a handful of the successes we've witnessed over the last year. And last of all, Catalyst. During 2025, revenue tied to partners climbed by almost 50% compared with the prior year. Working alongside firms such as AWS, Microsoft, GCP, and Databricks is speeding up our capacity to push AI-driven transformation. We're integrating domain-focused solutions into their technology stacks, supported by shared go-to-market initiatives and roadmaps, which positions us to scale our execution swiftly. We're also persisting in heavy investment in AI talent, both by recruiting technology specialists and by deliberately training and upskilling our people; with more than 7,000 AI builders and close to 20,000 AI practitioners at present, we're swiftly assembling a workforce prepared for the future that can innovate, work together, and generate impact at scale. Turning to what's ahead, 2026 is going to be a decisive year for Genpact. Capitalizing on the momentum from Genpact Next, we anticipate delivering yet another year of robust, premium results. Revenue growth of no less than 7% compared with last year will be fueled by growth in advanced technology solutions, at minimum in the high teens. We'll keep investing heavily in our technology solutions, broadening product development in AgenTic, data, and AI, while bolstering our sales and partner network. Despite these considerable investments, we remain dedicated to once more achieving solid margin improvement. Lastly, we anticipate generating one more year of adjusted EPS growth in the double digits, all while handing back a large share of operating cash flows to our shareholders. To wrap up, allow me to share a remark from a recent technology recruit of ours that sums up perfectly why this new period excites us so much. Genpact provides a remarkably rare chance to assist clients in moving beyond the age of AI gimmicks and into the age of last-mile agent AI. Clients are coming to understand that we can accomplish what others cannot. Our approach puts technology alongside process, uniting deep expertise in functions and industries, along with proprietary data, AI, and agentic systems, so we can genuinely embed AI and reshape how their businesses operate; having said that, I'll now hand things over to Mike.

Good afternoon, everyone, and thank you for joining us today. We delivered a strong fourth quarter that exceeded our expectations, underscoring the considerable progress we've made throughout the fiscal year. As we continue to execute consistently across our businesses, the momentum behind the Genpact Next Strategy continues to grow, demonstrating that our strategic investments are paying off. In the fourth quarter, total revenue increased 5.6% to $1.319 billion. Advanced technology solutions revenue — encompassing data and AI, digital technologies, advisory, and agentic — rose 15% to $323 million, with particularly strong performance in data and AI. Our advanced technology solutions continue to create incremental value for clients and generate higher-value revenue for Genpact, delivering more than two times the revenue per headcount compared with the company average. That revenue is also growing more than two times faster than Genpact's overall revenue, with roughly 70% annuitized revenue and 70% from non-FTE models. Advanced Technology Solutions is high quality, sticky, and above all, strategically aligned with where we are headed. Our rapid acceleration in AgenTeq reflects the strong foundation and client trust we've built over the years, along with our leadership in driving AI-led transformation. As BK mentioned, we closed over $200 million in AgenTeq contracts across new and existing clients in 2025, and more than 40% of awarded contract value came from new clients. Among existing AP clients rotating to AgenTeq-led, we continue to see revenue and margin improvement driven by higher volumes, increased scope, or both, which demonstrates the expansive opportunity of our AgenTeq investment. Core business services — covering digital operations, decision support services, and technology services — grew 2.9% to $996 million in the fourth quarter, reflecting continued client trust and demand for our domain and industry expertise. Growth in core was offset by softness in decision support services as we continue working through our go-to-market approach. In the fourth quarter, data tech and AI revenue rose 7.4% to $639 million, and digital operations rose 4% to $681 million. Non-FTE revenue, which captures our strategic shift to fixed fee, consumption, and outcome-based deals, accounted for 48% of fourth-quarter revenue. At a segment level, high-tech and manufacturing grew 9.9%, followed by financial services growth of 5% and consumer and healthcare revenue growth of 1.5%. Sales execution and demand remained strong, as we continue making headway with new and existing clients. Existing client relationships continue expanding, as shown by our improvements in our net revenue retention rate. Our large deal momentum also persists. As noted earlier, beyond the deals closed in the fourth quarter, we have a number of large deals awarded that we expect to close in the coming months, including some net new to Genpact. As a reminder, large deals are $50 million or more in total contract value; and across clients and cohorts, we are seeing a growing mix of advanced technology solutions pipeline and bookings. Turning to profitability, gross margin in the fourth quarter expanded by approximately 90 basis points to 36.6%. Looking back over the past 24 months, the consistent way our margins have improved reflects our commitment to a disciplined approach to operational efficiencies, along with a rising contribution from our high-value advanced technology solutions. SG&A represented 20.3% of revenue. Adjusted operating income came in at $232 million, which yielded a 17.6% adjusted operating income margin, and we continue to self-fund our strategic investments. Our effective tax rate for the fourth quarter was 24.2%, above the prior-year rate, which had benefited from a favorable nonrecurring discrete item. Our effective tax rate for the full year was 24.3%. Fourth-quarter net income was $143 million, and diluted EPS was $0.81. Adjusted diluted EPS climbed 6.6% to $0.97, again growing faster than revenue; we ended the fourth quarter with $854 million in cash and cash equivalents, up $207 million from twelve months earlier. In the quarter, we returned $129 million to shareholders, comprising $100 million in share repurchases and $29 million in dividends. Turning to the full year: revenue was $5.08 billion, up 6.6% from the prior year. Advanced technology solutions grew 17% to $1.204 billion, while core business services revenue increased 3.7% to $3.876 billion. Data tech and AI grew 9.3% to $2.442 billion, and digital operations rose 4.1% to $2.638 billion. In 2025, we delivered an additional 60 basis points of gross margin expansion, reaching 36%, driven by rigorous operational discipline and our strategic focus on higher-value revenue streams. SG&A expenses as a percentage of total revenue were 20.3%, unchanged from the prior year. We remain disciplined on costs while prioritizing strategic investments. Adjusted operating income increased 9.1% to $888 million, and adjusted operating income margin expanded 40 basis points year over year to 17.5%. Net income rose to $552 million. Adjusted diluted EPS increased 11.3% to $3.65, a record, and outpaced revenue growth for a fifth consecutive year; in 2025, operating cash flow was $813 million, including $170 million from a client prepayment in the third and fourth quarters. Excluding that, cash flow from operations grew 5% year over year. Finally, we returned $401 million to shareholders, consisting of $283 million in share repurchases and $118 million in dividends. This includes our dividend of $0.1875 per quarter, or $0.75 on an annual basis. Now to our outlook, which assumes a relatively stable operating environment: our strong execution, significant backlog, and rapidly growing demand for advanced technology solutions position us very well entering the year. As a result, we expect to deliver at least 7% growth for 2026 on an as-reported basis. This guidance reflects committed revenue consistent with historical ranges. Within advanced technology solutions, we expect revenue to grow at least high teens for the full year, driven by continued demand for data and AI, along with strengthening partnerships and ongoing momentum in AgenTeq. When it comes to our core business services, we expect that growth will carry on, even as we help our clients accelerate their AI-driven transformations through agentic operations, and we intensify our focus on delivering sustainable growth by way of advanced technology innovations. Across the full year, we expect gross margin to expand by another 50 basis points, to 36.5%. We also anticipate that the adjusted operating income margin will increase 25 basis points, to 17.7%, reflecting our continued commitment to funding our own growth investments. As a result, adjusted diluted EPS ought to increase by approximately 10%, again growing faster than revenue. On capital allocation, our approach remains balanced and disciplined. Our intention is to return about 50% to shareholders through dividends and share repurchases, while preserving capacity for strategic investments. Accordingly, our Board of Directors has approved a 10% increase in the regular quarterly dividend, taking it to $18.75 per quarter and 75¢ on an annual basis, which works out to $0.1875 per quarter and $0.75 on an annual basis. Turning now to the first quarter on an as-reported basis, we expect total revenue to come in between $1.282 billion and $1.294 billion, reflecting 6% growth at the midpoint. In advanced technology solutions, we expect acceleration from the fourth quarter to high teens growth year over year; and in core business services, we foresee continued growth. Gross margin should expand to 36.3%, and adjusted operating income margin should increase to 17.3%. Finally, for the first quarter, we estimate adjusted diluted EPS of between $0.92 and $0.93. In closing, pairing our last-mile expertise with cutting-edge technology offerings puts us in a unique position to shape how enterprises will operate in the future. With our Genpact Next strategy, we are driving innovation at scale to accelerate high-quality revenue growth and steadily expand margins, while further reinforcing our distinctive standing in the market. We remain committed to investing boldly in the most strategic areas of our business to fuel durable growth and improvements to our margin profile, supported by long-term partnerships that create better economics for Genpact and our clients alike. That puts us in position to continue growing adjusted diluted EPS at double digits while generating long-term value; with that said, I'll turn the call back over to BK.

Prior to starting the Q&A portion, I'd like to express gratitude toward an amazing leader. In 2026, Krista Bessinger will be moving into a different position at Genpact. Krista, your contributions at Genpact have been truly meaningful. I appreciate it. I'm grateful for the collaboration, and I'm eager to collaborate with you as you take on this new advisory capacity. In addition, I'd like to give a warm welcome to Kyle Wickstrom, who becomes the newest person on Genpact's leadership council and our head of investor relations. Kyle came to us from Microsoft during last spring, bringing more than 20 years of experience across a range of finance positions within technology. Having her join us is something we're quite thrilled about. And at this point, I'll turn things over for Q&A.

Hey, everyone. Good afternoon, and thanks. Given the significant strain coming from what Anthropic and other companies have announced, perhaps we should begin by asking if anything has shifted on your end during contract discussions — do you notice any cases where customers are attempting to handle more work internally? You know? I'm just wondering. Where do you think this is simply the nature of the market, versus where there might be legitimate concern about the dangers that certain established business models are exposed to?

Absolutely, Bryan. Thanks. I'll address that. Here's the thing. What's happening in Silicon Valley has us extremely energized, because it's speeding up our transformation; it's assisting us in delivering results for our customers more quickly. And each time one of these technology disruptions occurs, the way it will affect different individual businesses is always subtle, and we definitely view this as a favorable wind for us. We notice that in our deal flow. We notice that in our discussions; and if I pull back for a moment and maybe this is putting it too simply, Bryan, I view this as two primary areas of AI emphasis. The first is, shall we say, research AI, and the second is task-focused AI. What you're likely alluding to is more, you know, what's drawing greater attention currently in research AI, which is aiding us in speeding up our efforts. Whereas BCommon leans more toward task-focused AI, and that's where we're developing these agentic operations. We carry out particular tasks inside a process and ensure we're incorporating AI across the whole system of work, examining the data, examining the context, within these intricate end-to-end business processes, which differ for each industry. So at the core, if I look at it through the operator's perspective as we talk with numerous Fortune 500 firms, not merely the Frontier AI firms, we observe our importance growing; and we're witnessing that, once again, how our agentic operations are being adopted, how data and AI are being adopted. And what I'd say is we're only watching our transformation speed up and are only thrilled about this.

All right, got it. My next question is about ATS. You posted strong growth once more in Q4, at 15%. And now you're guiding toward a pickup from that pace. So I'd like to probe what's behind that confidence. Your prepared remarks mentioned a lot of activity. Could you share some sense of ATS bookings growth, and whether there's an uptick in work moving from CBS into ATS? Is anything shifting between the two in a mechanical way? Thanks.

I'll take that in two parts. And, Mike, jump in with any color you'd like. First, we're starting to find ourselves in many more discussions than before, ones we weren't initially asked to join. I've frequently noted that we go to where clients are, and more and more, we find we can bring them to their desired destination far more quickly. So whether large deals or mega deals, we're now getting into conversations we previously weren't part of, and that shows up in our pipeline. Second, from a core business services angle, demand remains extremely robust, since that's where our last-mile edge lies. That's where we've operated mission-critical functions at scale. And there, as you know, we grasp the complexities and combine process and technology discussions together. And basically, what we've observed is agentic contracts expanding, including with new clients — you know, 40% of bookings, or this contract value, arriving from new clients. You know, we're genuinely thrilled. And regarding rotation as well, we're seeing additional revenue growth along with gross margin growth.

Okay, so perhaps you could just click twice on that really quickly. If you truly want to approach it from that angle, consider how we see ourselves regarding ATS expansion at the pace we're forecasting—high teens for 2026. That's really powered by the two factors BK mentioned. First, the momentum we've witnessed in the AgenTeq ramp-up has been significant, right? We stated we had a TCV of roughly $200 million in bookings. That's where we finished the year, and it will speed up further as you introduce more AgenTeq-related solutions. That's going to help shift some revenue away from core business services; and a few points on that, as we discussed in our prepared remarks, the quality and sustainability of that revenue matters enormously to us. It's extremely sticky and keeps expanding at a steady rate. It's recurring annual revenue, if you want to look at it that way.

So, one thing that genuinely fires me up is the way the configuration of our operations is shifting. The speed at which that shift is happening. On top of that, advanced technology solutions account for over a third of the booking. And most of the deals in AgenTeq are clearly non-FTE, yet they generate steady rec. Revenue that comes in every year. So this fresh commercial approach is really gaining serious traction.

All right, that makes sense. Thanks a lot.

You said — I believe it was 40% — that new customers accounted for that share of TCV in the AP suite. Last quarter, I think that figure sat nearer 30%. Do any patterns show up regarding who takes this on? In other words, do these buyers differ from the usual customers who previously would have worked with Genpact or with BPO more broadly? And after that, could you share some figures on how you view growth in the addressable market as these solutions get rolled out?

Thank you, Maggie.

Honestly, what this shows is that our total addressable market is set to grow quite a bit. And like I've mentioned, no solution in Genpact's history has taken off as quickly as what we're witnessing here; plus, lots of these new customers are clearly brand new to Genpact. That said, quite a few are clients we already have who weren't using finance, yet they've now started using our finance stack. So basically, it's the enterprise customer. It's the mid-market customer; it's our current clients who weren't using finance now turning to us for finance; so all of that combined is truly boosting things; and in many respects, this is also pulling us into the core foundational work we need to deliver for many of these customers.

All right, thanks. So over the past ninety days or so, have you seen any gains when it comes to the sales cycle or ramp times, especially on large deals, and I'd like to know what the full-year guidance assumes about those variables. And you kind of hinted that large deals in January were pretty strong, or that those are factored into the guide.

Look, I think you're right about large deals. Some of them progress very quickly, while others take far longer. And particularly when we combine more technology, process, data, and all of those capabilities together, especially for bigger awards, things don't happen in tidy ninety-day steps. That said, I'm genuinely excited about how many of these conversations we're having — the pipeline across cohorts, large deals included, sits at record levels.

Absolutely. Is there anything else to add there, BK? Maggie, I appreciate the question. Fine. Let me expand on this a bit. Our full-year guidance of 7% is something we have strong confidence in. We examine every deal and likely assign them weights as we go along in our business, but there are a few points I want to touch on quickly. When we consider that 7% figure for us, we view it from an absolute dollar standpoint. Correct? Last year we grew slightly above six and a half percent, and about the same figure the year before. So achieving that growth rate next year isn't a Herculean effort for us. I'd also like to mention that our committed revenue aligns with historical averages. That's roughly 75-ish percent. And once more, all of this is based on a substantial backlog at record levels, which factors in 2025. Bookings, plus an exceptionally strong 2023 and 2024. So we feel really good about that going forward; and to address your specific question, every deal is probability-weighted into how we assess the guide on a prospective basis.

Thanks. Nice work.

Thanks. I'd like to begin on margins, specifically gross margins and that expectation for 50 basis points of expansion. Could you take me through the levers you're pulling there, and then what's the potential to keep that trajectory going as we look further out into '27 and '28?

Maybe I'll kick it off, and Mike, jump in if you want to add anything. Look, at its core, this is a move toward advanced technology solutions, which delivers greater value to our clients. And for Genpact, that means higher value revenue; we've discussed this for a while, and I think the momentum is now building. We're seeing that come through, on top of the disciplined operational capabilities we're driving. But the bigger piece is advanced technology solutions. And, you know, I'd rather not speculate about what happens in 2027 to 2028, but at its core, our trajectory is clear, as we've shown over the past couple of years and lifted the margin by 90 bps or 100 bps across the last two years; and we're very clear that it will certainly grow further in this year, as we've guided the street.

Yes. Surinder, I just want to tack on two brief points there. So, as BK mentioned, with the higher mix coming from ATS — especially that — those commercial models that aren't FTE-based really do bolster our margin in that segment. Beyond that, when you look at our overall margin, or the AOI margin we've outlined, keep in mind it was up 40 basis points compared with a year earlier. And that's after accounting for substantial investments we've made across the organization. So our confidence in where margins are headed going forward is quite strong.