Genpact Limited

What they do

Genpact provides business process services and advanced technology solutions to clients from more than 35 countries with over 146,500 employees. It operates through Advanced Technology Solutions (Data and AI, Digital Technology, Advisory Services, Agentic Solutions) and Core Business Services (Decision Support Services, Technology Services, Digital Operations). The company was founded more than 25 years ago as General Electric's global capability center and still draws on process design, data management and industry domain expertise.

Revenue drivers

• Advanced Technology Solutions — Data and AI, digital technology, advisory and agentic offerings; generated 2025 revenue of $1.2 billion, or 23.7% of net revenues, and $363 million in Q2 2026, up 24.1% year-over-year and 27% of total net revenues.
• Core Business Services — Decision Support Services, Technology Services and Digital Operations; the larger but slower-growing base, at $980 million in Q2 2026, up 1.9% year-over-year and 73% of total net revenues.
• Client concentration — Revenue comes from long-term MSAs supplemented by SOWs, typically two to five years; the top five clients were 15.2% of 2025 net revenues and the top twenty were 34.4%.

Recent performance

Q2 2026 net revenues were $1.343 billion, up 7.1% year-over-year and 6.9% on a constant currency basis. Advanced Technology Solutions revenue rose 24.1% to $363 million, while Core Business Services grew 1.9% to $980 million. Gross profit was $490 million at a 36.5% margin, net income was $146 million (10.8% margin), and diluted EPS was $0.86, up 14.7%. Cash generated from operations was $72 million, down from $177 million in the second quarter of 2025. The company repurchased about 1.6 million shares for roughly $50 million at an average price of $32.04.

Strategy

Genpact is shifting its mix toward higher-value Advanced Technology Solutions, particularly Data and AI and Agentic Solutions that combine large and small language models, robotic process automation and orchestration. It is embedding AI into both client offerings and internal operations, and now describes itself as an Agentic Operations company. Management is targeting at least 25% full-year 2026 growth in Advanced Technology Solutions and flat-to-slightly-down Core Business Services in Q3. It is also returning capital through buybacks and a growing dividend, which rose from $0.43 per share in 2021 to $0.68 in 2025.

Risks

• AI disruption of existing work — Genpact states that services it currently performs may be replaced in whole or in part by AI, generative AI, agentic solutions or other automation, potentially reducing demand or pressuring utilization and pricing.
• AI competition and execution — The AI and advanced technology market is highly competitive and rapidly evolving, with rivals including new entrants and clients building their own capabilities, and Genpact may not realize anticipated benefits from its significant AI investments.
• Macroeconomic and tariff uncertainty — U.S. tariffs and retaliatory measures have increased uncertainty and could slow client decision-making and sales cycles, which management says may materially affect results.
• Client and geographic concentration — Revenue depends on clients in North America and Europe and on certain industries, with the top twenty clients accounting for 34.4% of 2025 net revenues.

Outlook

For Q3 2026, management guides net revenues of $1.369 billion to $1.382 billion, roughly 6.0% to 7.0% reported growth, with Advanced Technology Solutions up at least 25% and Core Business Services flat to slightly down. Full-year 2026 guidance is net revenue growth of at least 7% as reported, gross margin of about 36.5%, adjusted income from operations margin of about 17.7%, and adjusted diluted EPS growth of at least 12%. Management also raised its 2026 adjusted diluted EPS growth guidance to at least 12%.