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LTM Targets Growth Acceleration in FY28 Driven by AI and Randstad Acquisition
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CNBC TV18•19-10-2026, 09:42
LTM Targets Growth Acceleration in FY28 Driven by AI and Randstad Acquisition
- •LTM expects its FY27 growth rate to match FY26 levels closely, with a stronger performance anticipated in FY28.
- •MD and CEO Venu Lambu stated that the second half of the year will be driven by rising demand for AI-led services.
- •The upcoming completion of the Randstad acquisition is expected to expand LTM's presence in mainland Europe and Australia, adding nearly $500 million in annualised revenue.
- •The revenue impact from Saudi Arabia is considered permanent, with no growth factored in from that market for the next two quarters.
- •AI-native services are projected to deliver materially higher gross margins compared to traditional services through reusable assets and specialized skills.
Key Questions Answered
LTM expects revenue growth to accelerate in FY28, supported by investments in AI capabilities and the planned completion of its Randstad acquisition. The company also anticipates materially higher margins from its AI-native services.
The Randstad acquisition has an annualised revenue of nearly $500 million and is expected to expand LTM's presence in mainland Europe and Australia. LTM expects a quarter of that revenue to contribute in Q4 of FY27, with a full-year contribution in FY28.
The revenue impact from Saudi Arabia is permanent and considered lost for good, meaning the impact has bottomed out. LTM is not factoring in any growth or contribution from the Saudi market for at least the next two quarters.
