EXL Reports 2026 First Quarter Results

Rhea-AI Summary

ExlService Holdings (NASDAQ: EXLS) reported Q1 2026 results: revenue $570.4M (up 13.8% YoY) and GAAP diluted EPS $0.43 (up 5.7% YoY). Adjusted diluted EPS $0.58 rose 20.2% YoY. Management raised full‑year 2026 guidance to $2.30B–$2.33B revenue and $2.18–$2.23 adjusted EPS.

Q1 segment revenue: Insurance $194.0M; Healthcare & Life Sciences $151.9M; Banking & Diversified $127.4M; International Growth $97.1M. Conference call scheduled April 29, 2026 at 10:00 A.M. ET.

Positive

• Revenue +13.8% YoY to $570.4M
• Adjusted diluted EPS +20.2% YoY to $0.58
• Raised 2026 revenue guidance to $2.30B–$2.33B (10%–12% growth)
• Raised 2026 adjusted EPS guidance to $2.18–$2.23 (12%–14% growth)

Negative

• None.

Market Reaction – EXLS

+8.19% $33.15

15m delay 5 alerts

+8.19% Since News

$33.15 Last Price

$30.45 $34.00 Day Range

+$363M Valuation Impact

$4.79B Market Cap

0.0x Rel. Volume

Following this news, EXLS has gained 8.19%, reflecting a notable positive market reaction. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $33.15. This price movement has added approximately $363M to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Q1 2026 revenue: $570.4M Q1 2026 GAAP EPS: $0.43 Q1 2026 adj. EPS: $0.58 +5 more

8 metrics

Q1 2026 revenue $570.4M Quarter ended March 31, 2026; up 13.8% year-over-year

Q1 2026 GAAP EPS $0.43 Diluted EPS; up 5.7% from $0.40 in Q1 2025

Q1 2026 adj. EPS $0.58 Adjusted diluted EPS (Non-GAAP); up 20.2% from $0.48 in Q1 2025

Segment revenue total $570.4M Total Q1 2026 revenue across all reportable segments

Operating margin 16.1% Q1 2026 operating income margin vs 15.7% in Q1 2025

Adj. operating margin 20.5% Q1 2026 adjusted operating income margin vs 20.1% in Q1 2025

2026 revenue guidance $2.30B–$2.33B Full-year 2026 revenue outlook; raised from $2.275B–$2.315B

2026 adj. EPS guide $2.18–$2.23 Full-year 2026 adjusted diluted EPS guidance; raised from $2.14–$2.19

Market Reality Check

Price: $30.38 Vol: Volume 1786802 vs 20-day ...

normal vol

$30.38 Last Close

Volume Volume 1786802 vs 20-day average 2035666 suggests activity was near typical levels before this release. normal

Technical Shares at 30.38, trading below the 200-day MA of 38.66 ahead of the earnings report.

Peers on Argus

EXLS slipped -0.07% pre-release while only one close peer (KD) appeared in momen...

1 Up

EXLS slipped -0.07% pre-release while only one close peer (KD) appeared in momentum scans, moving up slightly; other key peers like G, GDS, EPAM and PSN showed mixed, mostly negative moves, indicating stock-specific rather than sector-driven dynamics.

Historical Context

5 past events · Latest: 2026-04-27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2026-04-27	Award recognition	Positive	-0.1%	Recognized as 2025 Genesys New Partner of the Year for AI CX work.
2026-04-13	Investor event	Positive	+2.8%	Announced May 13 Investor and Analyst Day focused on data and AI strategy.
2026-04-08	Earnings scheduling	Neutral	-0.7%	Set date and call details for Q1 2026 financial results release.
2026-04-02	Cloud partnership	Positive	+1.6%	Announced strategic services collaboration with Google Cloud to scale AI.
2026-03-25	Industry award	Positive	-0.1%	Won Gold Stevie Award for AI integration in contact centers.

Pattern Detected

Recent AI- and partnership-focused news has generally produced modest price moves, with a mix of small gains and slight declines, suggesting that even positive strategic updates have not driven outsized reactions.

Recent Company History

Over the last month, EXLS reported several positive developments, including a Google Cloud strategic services collaboration on 2026-04-02, an upcoming Investor and Analyst Day announcement on 2026-04-13, and multiple industry awards highlighting its AI capabilities. Price reactions to these items ranged from small gains (about 1.58%, 2.77%) to slight declines near -0.68% and -0.07%. Against that backdrop, this Q1 2026 earnings release with double-digit revenue and EPS growth extends the narrative of steady AI-led execution.

Market Pulse Summary

This announcement highlights Q1 2026 revenue of $570.4M with 13.8% year-over-year growth and adjuste...

Analysis

This announcement highlights Q1 2026 revenue of $570.4M with 13.8% year-over-year growth and adjusted EPS of $0.58, up 20.2%, alongside operating and adjusted operating margins of 16.1% and 20.5%. Management raised full-year 2026 revenue guidance to $2.30B–$2.33B and adjusted EPS guidance to $2.18–$2.23. Investors may track execution against this higher outlook, segment growth trends, and upcoming events like the earnings call and Investor Day within the broader context of EXLS’s data and AI strategy.

Key Terms

adjusted diluted EPS, non-gaap, constant currency, operating income margin, +2 more

6 terms

adjusted diluted EPS financial

"Q1 Adjusted Diluted EPS (Non-GAAP) (1) of $0.58, up 20.2%..."

Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.

non-gaap financial

"These non-GAAP measures, including adjusted diluted EPS and constant currency..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

constant currency financial

"an increase of 13.8% on a reported basis and 13.4% on a constant currency basis."

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

operating income margin financial

"Operating income margin for the quarter ended March 31, 2026 was 16.1%..."

Operating income margin shows the share of each dollar of sales a company keeps after paying the regular costs of running its business (like wages, rent and materials) but before interest and taxes. Investors use it to judge how efficiently a company turns sales into profit from core operations—think of it as the portion of revenue that remains in the company’s pocket after running the day-to-day business, useful for comparing profitability across firms.

ai/ml technical

"Selected by AWS as the 2025 AI/ML Market Disruptor of the Year..."

AI/ML stands for artificial intelligence and machine learning, software systems that identify patterns in data and make predictions or automate decisions, improving performance as they process more information. Investors care because these technologies can boost revenue, cut costs and create competitive advantages — like a factory that learns to produce goods faster and with fewer mistakes — while also introducing execution, ethical and regulatory risks that can affect a company’s value.

gpu-accelerated technical

"integrating NVIDIA’s powerful AI frameworks and GPU-accelerated technologies..."

Using graphics processing units (GPUs) to run compute‑heavy tasks much faster than standard central processors by handling many small operations at once. For investors, GPU‑acceleration can shorten time to insight and lower costs for advanced workloads like artificial intelligence, large‑scale data analysis, or simulations, potentially boosting product performance, enabling new services, and improving competitive position—think switching from a bicycle to a high‑speed train for moving large data loads.

AI-generated analysis. Not financial advice.

2026 First Quarter Revenue of $570.4 Million, up 13.8% year-over-year
Q1 Diluted EPS (GAAP) of $0.43, up 5.7% from $0.40 in Q1 of 2025
Q1 Adjusted Diluted EPS (Non-GAAP) ⁽¹⁾ of $0.58, up 20.2% from $0.48 in Q1 of 2025

NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended March 31, 2026.

Chairman and Chief Executive Officer Rohit Kapoor said, “We entered 2026 with strong momentum, delivering revenue growth of 14% and increased our adjusted diluted EPS by 20% year-over-year. Our sustained double-digit growth demonstrates the strength of our competitive position as well as strong execution against our data and AI strategy. EXL’s recognized industry expertise and leadership in helping clients adopt AI throughout their enterprise is resonating strongly with the market.”

Chief Financial Officer Maurizio Nicolelli said, “While we remain prudent given the evolving macro-economic environment, our strong first quarter performance and continued business momentum give us the confidence to raise guidance. We now expect full-year 2026 revenue in the range of $2.30 billion to $2.33 billion, up from our prior guidance of $2.275 billion to $2.315 billion, reflecting 10% to 12% year-over-year growth on both a reported and constant currency basis. We now expect adjusted diluted earnings per share of $2.18 to $2.23, a 12% to 14% increase over 2025, up from our prior guidance of $2.14 to $2.19.”

^{______________________________________________________________}

1. Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.
   
   

Financial Highlights: First Quarter 2026

• Revenue for the quarter ended March 31, 2026, increased to $570.4 million, compared to $501.0 million for the first quarter of 2025, an increase of 13.8% on a reported basis and 13.4% on a constant currency basis. Revenue increased by 5.1% sequentially, both on a reported basis and on a constant currency basis, from the fourth quarter of 2025.
  
  

		Revenue												Gross Margin
		Three months ended												Three months ended
Reportable Segments		March 31, 2026				March 31, 2025				December 31, 2025				March 31, 2026				March 31, 2025				December 31, 2025
		(dollars in millions)
Insurance		$	194.0			$	172.0			$	185.8			37.7		%		36.6		%		36.5		%
Healthcare and Life Sciences			151.9				125.6				142.2			45.3		%		43.9		%		44.0		%
Banking, Capital Markets and Diversified Industries			127.4				117.7				122.6			36.9		%		37.3		%		38.8		%
International Growth Markets			97.1				85.7				92.0			34.1		%		36.6		%		34.3		%
Total		$	570.4			$	501.0			$	542.6			38.9		%		38.6		%		38.6		%

• Operating income margin for the quarter ended March 31, 2026 was 16.1%, compared to 15.7% for the first quarter of 2025 and 14.4% for the fourth quarter of 2025. Adjusted operating income margin for the quarter ended March 31, 2026 was 20.5%, compared to 20.1% for the first quarter of 2025 and 18.8% for the fourth quarter of 2025.
  
  
• Diluted earnings per share for the quarter ended March 31, 2026 was $0.43, compared to $0.40 for the first quarter of 2025 and $0.38 for the fourth quarter of 2025. Adjusted diluted earnings per share for the quarter ended March 31, 2026 was $0.58, compared to $0.48 for the first quarter of 2025 and $0.50 for the fourth quarter of 2025.
  
  

Business Highlights: First Quarter 2026

• Won 16 new clients in the first quarter of 2026.
• Named as "Advanced Technology Partner" of the Year by NVIDIA for EXL’s deep technical expertise on the NVIDIA AI Enterprise stack and co-creating differentiated industry solutions and platforms, integrating NVIDIA’s powerful AI frameworks and GPU-accelerated technologies.
• Selected by AWS as the 2025 AI/ML Market Disruptor of the Year, recognizing EXL’s exceptional innovation and leadership in leveraging AWS AI/ML services and setting new benchmarks for AI excellence in the industry.
• Named the 2025 Genesys New Partner of the Year, celebrating EXL’s ability to orchestrate AI-powered customer experience (CX) transformation through strategic collaboration with Genesys, advancing transformative solutions with real-world impact.
• Recognized by Google Cloud as a global strategic services partner, highlighting EXL’s strengths across data, AI, and customer experience (CX) transformation, and its development of Google's Gemini Enterprise powered solutions and accelerators that enable scalable, AI-driven business transformation.
• Named a leader in Everest Group Customer Experience Services in Insurance Operations Peak Matrix Assessment 2025, showcasing EXL’s deep domain expertise across both the P&C and L&A lines, robust data and AI capabilities and versatile suite of proprietary tools.
  
  

2026 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 93.0, U.K. pound sterling to U.S. dollar exchange rate of 1.33, U.S. dollar to the Philippine peso exchange rate of 59.5 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2026:

• Revenue of $2.30 billion to $2.33 billion, representing an increase of 10% to 12% on both a reported and constant currency basis from 2025.
  
  
• Adjusted diluted earnings per share of $2.18 to $2.23, representing an increase of 12% to 14% from 2025.
  
  

Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, April 29, 2026 at 10:00 A.M. ET to discuss the Company’s first quarter operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.
EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business and other factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)
	Three months ended March 31,
		2026				2025
Revenues, net	$	570,351			$	501,019
Cost of revenues(1)		348,270				307,705
Gross profit(1)		222,081				193,314
Operating expenses:
General and administrative expenses		69,051				59,417
Selling and marketing expenses		47,201				41,925
Depreciation and amortization expense		14,003				13,557
Total operating expenses		130,255				114,899
Income from operations		91,826				78,415
Foreign exchange gain, net		1,135				1,192
Interest expense		(3,951	)			(4,144	)
Other income, net		2,391				4,703
Income before income tax expense and earnings from equity affiliates		91,401				80,166
Income tax expense		24,318				13,496
Income before earnings from equity affiliates		67,083				66,670
Loss from equity-method investment		(2	)			(109	)
Net income	$	67,081			$	66,561
Earnings per share:
Basic	$	0.43			$	0.41
Diluted	$	0.43			$	0.40
Weighted average number of shares used in computing earnings per share:
Basic		156,049,147				162,490,179
Diluted		156,904,203				164,557,333
(1) Exclusive of depreciation and amortization expense.

EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)
	As of
	March 31, 2026				December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	145,405			$	146,326
Short-term investments		108,358				182,041
Restricted cash		12,409				12,392
Accounts receivable, net		388,563				343,105
Other current assets		142,626				146,093
Total current assets		797,361				829,957
Property and equipment, net		109,388				111,821
Operating lease right-of-use assets		92,980				97,411
Restricted cash		6,964				7,251
Deferred tax assets, net		140,602				129,968
Goodwill		418,659				419,654
Other intangible assets, net		32,978				36,204
Long-term investments		17,532				8,198
Other assets		59,915				61,771
Total assets	$	1,676,379			$	1,702,235
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	11,260			$	4,753
Current portion of long-term borrowings		4,886				4,886
Deferred revenue		22,905				15,356
Accrued employee costs		71,604				146,775
Accrued expenses and other current liabilities		171,934				135,498
Current portion of operating lease liabilities		16,925				16,857
Total current liabilities		299,514				324,125
Long-term borrowings, less current portion		412,491				293,712
Operating lease liabilities, less current portion		84,277				88,167
Deferred tax liabilities, net		1,707				2,125
Other non-current liabilities		99,586				81,401
Total liabilities		897,575				789,530
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued		—				—
Common stock, $0.001 par value; 400,000,000 shares authorized, 209,929,764 shares issued and 152,999,425 shares outstanding as of March 31, 2026 and 208,855,566 shares issued and 156,430,028 shares outstanding as of December 31, 2025		210				209
Additional paid-in capital		674,662				677,562
Retained earnings		1,600,060				1,532,979
Accumulated other comprehensive loss		(237,374	)			(180,727	)
Total including shares held in treasury		2,037,558				2,030,023
Less: 56,930,339 shares as of March 31, 2026 and 52,425,538 shares as of December 31, 2025, held in treasury, at cost		(1,258,754	)			(1,117,318	)
Total stockholders’ equity		778,804				912,705
Total liabilities and stockholders’ equity	$	1,676,379			$	1,702,235
EXLSERVICE HOLDINGS, INC.
Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

	(i)	Adjusted operating income and adjusted operating income margin;
	(ii)	Adjusted EBITDA and adjusted EBITDA margin;
	(iii)	Adjusted net income and adjusted diluted earnings per share; and
	(iv)	Revenue growth on a constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, certain defined social security contributions, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

EXL provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's underlying business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period. Foreign currency translation impacted revenue growth, primarily driven by movements in the U.S. dollar against the Indian rupee (INR), the U.K. pound sterling (GBP), and Australian dollar (AUD).

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended March 31, 2026 and March 31, 2025, and the three months ended December 31, 2025:

Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)
	Three months ended
	March 31,								December 31,
	2026				2025				2025
Net income (GAAP)	$	67,081			$	66,561			$	60,246
add: Income tax expense		24,318				13,496				15,230
add/(subtract): Foreign exchange gain/(loss), net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net		427				(1,642	)			2,547
Income from operations (GAAP)	$	91,826			$	78,415			$	78,023
add: Stock-based compensation expense		22,101				19,187				20,751
add: Amortization of acquisition-related intangibles		3,226				3,246				3,307
Adjusted operating income (Non-GAAP)	$	117,153			$	100,848			$	102,081
Adjusted operating income margin as a % of Revenue (Non-GAAP)		20.5	%			20.1	%			18.8	%
add: Depreciation on long-lived assets		10,777				10,311				13,037
Adjusted EBITDA (Non-GAAP)	$	127,930			$	111,159			$	115,118
Adjusted EBITDA margin as a % of revenue (Non-GAAP)		22.4	%			22.2	%			21.2	%

Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share amount)
	Three months ended
	March 31,								December 31,
		2026				2025				2025
Net income (GAAP)	$	67,081			$	66,561			$	60,246
add: Stock-based compensation expense		22,101				19,187				20,751
add: Amortization of acquisition-related intangibles		3,226				3,246				3,307
add: Changes in fair value of contingent consideration		—				—				2,300
add/(subtract): Other tax expenses/(benefits) (a)		—				—				267
add: Amortization of prior service cost (b)		521				—				—
subtract: Tax impact on stock-based compensation expense (c)		(1,316	)			(9,105	)			(5,895	)
subtract: Tax impact on amortization of acquisition-related intangibles		(812	)			(799	)			(892	)
subtract: Tax impact on amortization of prior service cost		(133	)			—				—
Adjusted net income (Non-GAAP)	$	90,668			$	79,090			$	80,084
Adjusted diluted earnings per share (Non-GAAP)	$	0.58			$	0.48			$	0.50

(a) To exclude tax expenses related to certain deferred tax assets and liabilities.

(b) To exclude amortization of prior service cost arising from the implementation of the new Labor Codes in India.

(c) Tax impact includes $1,280 and $14,526 for the three months ended March 31, 2026 and 2025, respectively, and $1,138 for the three months ended December 31, 2025, related to discrete benefit recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.

Contacts:
Investor Relations
Andrew Thut
Head of Investor Relations and Capital Markets
ir@exlservice.com

Media - US
Keith Little
Head of Public Relations
media.relations@exlservice.com

FAQ

What were EXLS Q1 2026 revenue and EPS results?

Q1 2026 revenue was $570.4 million and GAAP diluted EPS was $0.43. According to the company, adjusted diluted EPS was $0.58, up 20.2% year‑over‑year, with revenue up 13.8% versus Q1 2025.

How did EXLS change its full‑year 2026 guidance on April 28, 2026?

EXLS raised full‑year 2026 guidance to $2.30B–$2.33B revenue and $2.18–$2.23 adjusted EPS. According to the company, this reflects 10%–12% revenue growth and 12%–14% adjusted EPS growth versus 2025.

Which EXLS segments contributed most to Q1 2026 revenue (EXLS)?

Insurance and Healthcare & Life Sciences led Q1 revenue, at $194.0M and $151.9M respectively. According to the company, these segments were the largest contributors to the $570.4M quarterly total.

What profitability metrics did EXLS report for Q1 2026?

Operating income margin was 16.1% and adjusted operating margin was 20.5% for Q1 2026. According to the company, adjusted margins improved versus prior periods, supporting the raised full‑year guidance.

When and how can investors access EXLS's Q1 2026 conference call?

The conference call is scheduled for April 29, 2026 at 10:00 A.M. ET and will stream live on the investor relations website. According to the company, a replay will be available on the site for 12 months.