Overview
- Shares fell about 8% premarket after the earnings shortfall and a reduced full-year outlook.
- Adjusted EPS came in at $1.49 versus $1.51 expected, and revenue was $2.89 billion versus $2.99 billion, down 8.1% year over year.
- Fiscal 2026 guidance now targets revenue of $11.3 billion–$11.5 billion and adjusted EPS of $5.45–$5.65, with an adjusted EBITDA margin in the mid-10% range and free cash flow of $850 million–$950 million.
- Backlog increased 2.9% to $40 billion with a 1.7x book-to-bill ratio, while organic revenue declined 4.7%.
- Operating income dropped to $283 million from $549 million a year ago and client staff decreased by about 3,100, as the company maintained a $0.55 quarterly dividend payable December 2 to holders of record November 14.