Genpact Reports First Quarter 2026 Results
Rhea-AI Summary
Genpact (NYSE: G) reported Q1 2026 results: net revenues of $1.296B (+6.7% YoY; +5.6% constant currency), Advanced Technology Solutions revenue of $345M (+24.3% YoY; 27% of revenues), net income of $148M (+13.1% YoY), and diluted EPS of $0.86 (+17.8% YoY). The company repurchased ~1.8M shares for ~$70M. Q2 revenue guidance: $1.324B–$1.336B; full‑year revenue growth target: at least 7%. Management expects Advanced Technology Solutions revenue to grow at least 20% in 2026.
AI-generated analysis. Not financial advice.
Positive
- Advanced Technology Solutions +24.3% YoY to $345M, now 27% of net revenues
- Diluted EPS +17.8% YoY to $0.86, adjusted EPS +16.7% to $0.98
- Share repurchase of ~1.8M shares for ~$70M during Q1
Negative
- Operating cash use of $24M in Q1 versus $40M generated in Q1 2025
- Core Business Services revenue growth only 1.4% YoY ($951M)
- Net revenue growth of 6.7% in Q1, below the company’s full‑year target of at least 7%
Key Figures
Market Reality Check
Peers on Argus
G slipped 0.82% while momentum scanner shows peer EPAM up about 0.66%. Broader peers are mixed: EXLS, KD, EPAM down modestly, while PSN and GDS are up, pointing to stock-specific trading rather than a clear sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | FY 2025 results | Positive | +7.1% | Full-year 2025 growth with stronger EPS, ATS and Data‑Tech‑AI expansion. |
| Nov 06 | Q3 2025 earnings | Positive | +15.9% | Solid Q3 revenue and ATS growth with higher guidance and strong EPS. |
| Aug 07 | Q2 2025 earnings | Positive | +4.4% | Strong Q2 with double‑digit ATS growth and raised full‑year guidance. |
| May 07 | Q1 2025 earnings | Negative | -15.2% | Strong Q1 results but lowered 2025 revenue and EPS guidance. |
| Feb 06 | FY 2024 results | Positive | +11.2% | FY 2024 revenue growth, record bookings and higher adjusted EPS with 2025 outlook. |
Earnings releases have typically driven positive price reactions, with even negative guidance surprises aligning with downside moves rather than diverging.
Recent earnings history for Genpact shows steady growth and generally favorable market reactions. Full-year 2024 and 2025 results highlighted mid‑single‑digit revenue growth, expanding Data‑Tech‑AI and Advanced Technology Solutions, and rising adjusted EPS. Quarterly 2025 reports consistently delivered revenue and EPS growth, often accompanied by raised guidance, with shares reacting positively. An exception was Q1 2025, when lowered guidance led to a sharp decline. Today’s Q1 2026 report fits the pattern of growing high‑value tech revenue and margin expansion.
Historical Comparison
Across the last 5 earnings announcements, Genpact’s average next-day move was about 4.69%, with reactions consistently aligned to the tone of results and guidance.
Earnings releases show steady mid‑single‑digit revenue growth, expanding Data‑Tech‑AI and Advanced Technology Solutions, rising adjusted EPS, and periodic dividend increases and guidance updates from 2024 through 2025.
Regulatory & Risk Context
Genpact has an effective automatic shelf registration (Form S-3ASR) filed on November 13, 2025, allowing the company and certain subsidiaries to issue debt, equity and related securities over time via future prospectus supplements. The shelf has been used at least 2 times through 424B5 offerings, providing flexibility to raise capital for general corporate purposes.
Market Pulse Summary
This announcement highlights Q1 2026 revenue growth, faster EPS expansion, and continued gross margin improvement, with Advanced Technology Solutions now 27% of revenue. Historically, Genpact’s earnings reports with similar growth profiles have produced aligned market reactions, especially when guidance trends positive. Investors may track execution against the 2026 outlook, mix shifts toward higher‑value tech services, and any future use of the existing S‑3ASR program as key factors for the medium term.
Key Terms
constant currency basis financial
gross margin financial
income from operations financial
AI-generated analysis. Not financial advice.
Advanced Technology Solutions net revenue growth accelerates to
"The first quarter was a record start to the year, with Advanced Technology Solutions net revenue growth accelerating to
"We delivered another strong quarter — with net revenues up
Key Financial Highlights – First Quarter 2026
- Net revenues were
$1.296 billion 6.7% year-over-year, and5.6% on a constant currency basis.[2]- Advanced Technology Solutions net revenues were
$345 million 24.3% year-over-year, representing27% of total net revenues. - Core Business Services net revenues were
$951 million 1.4% year-over-year, representing73% of total net revenues.
- Advanced Technology Solutions net revenues were
- Gross profit was
$472 million 9.9% year-over-year, with a corresponding margin of36.4% . - Net income was
$148 million 13.1% year-over-year, with a corresponding margin of11.4% . - Income from operations was
$199 million 8.1% year-over-year, with a corresponding margin of15.3% . - Adjusted income from operations was
$224 million 6.6% year-over-year, with a corresponding margin of17.3% .[3] - Diluted earnings per share was
$0.86 17.8% year-over-year. - Adjusted diluted earnings per share1 was
$0.98 16.7% year-over-year. - Cash utilized in operations was
$24 million $40 million - Genpact repurchased approximately 1.8 million common shares during the quarter for total consideration of approximately
$70 million $38.61
Outlook
Genpact's outlook for the second quarter of 2026 is as follows:
- Net revenues in the range of
$1.324 billion $1.336 billion 5.5% to6.5% as reported, or5.4% to6.4% on a constant currency basis.2- In Advanced Technology Solutions, we expect revenue to grow at least
20% . - In Core Business Services, we expect growth to continue.
- In Advanced Technology Solutions, we expect revenue to grow at least
- Gross margin of approximately
36.4% . - Adjusted income from operations margin[4] of approximately
17.4% . - Adjusted diluted earnings per share[5] in the range of
$0.96 $0.97
Genpact's outlook for the full year 2026 is as follows:
- Net revenue growth of at least
7% on an as reported basis, or6.8% on a constant currency basis.2- In Advanced Technology Solutions, we now expect revenue to grow at least
20% . - In Core Business Services, we expect growth to continue.
- In Advanced Technology Solutions, we now expect revenue to grow at least
- Gross margin of approximately
36.5% , up approximately 50 basis points year-over-year. - Adjusted income from operations margin4 of approximately
17.7% , up approximately 25 basis points year-over-year. - Adjusted diluted earnings per share5 growth of more than
10% .
First Quarter 2026 Earnings Call
Genpact's management will host a conference call on May 7, 2026, at 5:00PM ET to discuss the company's performance for the first quarter ended March 31, 2026. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time. A live webcast will be available on the Genpact Investor Relations website. For those unable to attend the live call, an archived replay and transcript will be available on the website shortly after the call.
About Genpact
Genpact (NYSE: G) is an agentic and advanced technology solutions company. We leverage process intelligence and artificial intelligence to deliver measurable outcomes. With a strong partner ecosystem and decades of client trust, we provide innovative solutions that transform how businesses run. Powered by a team with an active learning mindset and client centricity at its core, we deliver lasting value for the world's leading enterprises.
Safe Harbor
This press release contains certain statements concerning our future growth prospects, including our outlook for 2026, financial results and other forward-looking statements, as defined in the safe harbor provisions of the
Contacts | ||
Investors | Investor.Relations@genpact.com | |
Media | PublicRelations@genpact.com | |
GENPACT LIMITED AND ITS SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In thousands, except per share data and share count) | ||||
As of December 31, | As of March 31, 2026 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 853,836 | $ 578,079 | ||
Short-term investments | 350,000 | 350,000 | ||
Accounts receivable, net of allowance for credit losses of | 1,240,550 | 1,259,922 | ||
Prepaid expenses and other current assets | 211,981 | 217,257 | ||
Total current assets | $ 2,656,367 | $ 2,405,258 | ||
Property, plant and equipment, net | 190,448 | 180,669 | ||
Operating lease right-of-use assets | 181,708 | 187,421 | ||
Deferred tax assets | 258,789 | 269,073 | ||
Intangible assets, net | 67,040 | 69,742 | ||
Goodwill | 1,781,116 | 1,767,683 | ||
Contract cost assets | 197,419 | 192,871 | ||
Other assets, net of allowance for credit losses of | 510,380 | 544,522 | ||
Total assets | $ 5,843,267 | $ 5,617,239 | ||
Liabilities and equity | ||||
Current liabilities | ||||
Current portion of long-term debt | $ 376,027 | $ 376,180 | ||
Accounts payable | 27,533 | 26,231 | ||
Income taxes payable | 43,074 | 42,639 | ||
Accrued expenses and other current liabilities | 1,103,625 | 926,419 | ||
Operating lease liabilities | 52,221 | 54,789 | ||
Total current liabilities | $ 1,602,480 | $ 1,426,258 | ||
Long-term debt, less current portion | 1,166,274 | 1,160,163 | ||
Operating lease liabilities | 150,667 | 149,708 | ||
Deferred tax liabilities | 21,081 | 21,385 | ||
Other liabilities | 353,364 | 384,532 | ||
Total liabilities | $ 3,293,866 | $ 3,142,046 | ||
Shareholders' equity | ||||
Preferred shares, | $ — | $ — | ||
Common shares, | 1,696 | 1,688 | ||
Additional paid-in capital | 2,018,985 | 2,021,588 | ||
Retained earnings | 1,390,164 | 1,436,409 | ||
Accumulated other comprehensive income (loss) | (861,444) | (984,492) | ||
Total equity | $ 2,549,401 | $ 2,475,193 | ||
Total liabilities and equity | $ 5,843,267 | $ 5,617,239 | ||
GENPACT LIMITED AND ITS SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share data and share count) | ||||
Three months ended March 31, | ||||
2025 | 2026 | |||
Net revenues | $ 1,214,926 | $ 1,296,072 | ||
Cost of revenue | 785,932 | 824,404 | ||
Gross profit | $ 428,994 | $ 471,668 | ||
Operating expenses: | ||||
Selling, general and administrative expenses | 241,084 | 270,337 | ||
Amortization of acquired intangible assets | 4,320 | 3,112 | ||
Other operating (income) expense, net | (112) | (364) | ||
Income from operations | $ 183,702 | $ 198,583 | ||
Foreign exchange gains, net | 1,289 | 7,302 | ||
Interest income (expense), net | (11,446) | (11,602) | ||
Other income (expense), net | 1,678 | (289) | ||
Income before income tax expense | $ 175,223 | $ 193,994 | ||
Income tax expense | 44,370 | 46,002 | ||
Net income | $ 130,853 | $ 147,992 | ||
Earnings per common share | ||||
Basic | $ 0.75 | $ 0.87 | ||
Diluted | $ 0.73 | $ 0.86 | ||
Weighted average number of common shares used in computing earnings per common | ||||
Basic | 175,528,308 | 170,307,477 | ||
Diluted | 178,435,142 | 172,845,179 | ||
GENPACT LIMITED AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||
Three months ended March 31, | ||||
2025 | 2026 | |||
Operating activities | ||||
Net income | $ 130,853 | $ 147,992 | ||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||||
Depreciation and amortization | 16,892 | 17,733 | ||
Amortization of debt issuance costs | 550 | 770 | ||
Amortization of acquired intangible assets | 4,320 | 3,112 | ||
Allowance for credit losses | 7,294 | 4,719 | ||
Unrealized (gain)/loss on revaluation of foreign currency assets/liabilities | 3,207 | (3,400) | ||
Stock-based compensation expense | 20,036 | 22,273 | ||
Deferred tax expense | 8,063 | 8,563 | ||
Others, net | (66) | (48) | ||
Change in operating assets and liabilities: | ||||
(Increase) Decrease in accounts receivable | 6,972 | (29,014) | ||
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use | (23,915) | (45,931) | ||
Increase (Decrease) in accounts payable | 1,835 | (1,939) | ||
Decrease in accrued expenses, other current liabilities, operating leases liabilities and other liabilities | (140,240) | (148,811) | ||
Increase in income taxes payable | 4,635 | 446 | ||
Net cash (used for) provided by operating activities | $ 40,436 | $ (23,535) | ||
Investing activities | ||||
Purchase of property, plant and equipment | (21,979) | (23,930) | ||
Payment for internally generated intangible assets (including intangible assets under development) | (601) | (7,516) | ||
Proceeds from maturity of short term investments | 23,359 | — | ||
Net cash (used for) provided by investing activities | $ 779 | $ (31,446) | ||
Financing activities | ||||
Repayment of finance lease obligations | (2,349) | (2,423) | ||
Payment of debt issuance and refinancing costs | (394) | |||
Repayment of long-term debt | (6,625) | (6,625) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 6,943 | 2,818 | ||
Payment for net settlement of stock-based awards | (30,742) | (18,445) | ||
Dividend paid | (29,784) | (31,773) | ||
Payment of earn-out consideration | — | (77,500) | ||
Payment for stock repurchased and retired (including expenses related to stock repurchased) | (62,987) | (69,992) | ||
Net cash used for financing activities | $ (125,544) | $ (204,334) | ||
Net decrease in cash and cash equivalents | (84,329) | (259,315) | ||
Effect of exchange rate changes | (2,302) | (16,442) | ||
Cash and cash equivalents at the beginning of the period | 648,246 | 853,836 | ||
Cash and cash equivalents at the end of the period | $ 561,615 | $ 578,079 | ||
Supplementary information | ||||
Cash paid during the period for interest | $ 7,145 | $ 6,623 | ||
Cash paid during the period for income taxes, net of refund | $ 21,402 | $ 40,336 | ||
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following non-GAAP financial measures:
- Adjusted income from operations;
- Adjusted income from operations margin;
- Adjusted diluted earnings per share; and
- Revenue growth on a constant currency basis.
These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and 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, these non-GAAP financial measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact's GAAP financial statements to such non-GAAP financial measures should be carefully evaluated.
Given Genpact's acquisitions of varying scale and size, and the difficulty in predicting expenses relating to acquisitions and the amortization of acquired intangibles thereof, since July 2012 Genpact's management has used financial statements that exclude all acquisition-related expenses and amortization of acquired intangibles for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact's operating results to those of its competitors. For the same reasons, since April 2016, Genpact's management has excluded the impairment of acquired intangible assets from the financial statements it uses for internal management purposes. Acquisition-related expenses are excluded in the period in which an acquisition is consummated. Genpact's management also uses financial statements that exclude stock-based compensation expense. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting ASC 718 "Compensation-Stock Compensation," Genpact's management believes that providing non-GAAP financial measures that exclude such expenses allows investors to make additional comparisons between Genpact's operating results and those of other companies.
Additionally, in its calculations of non-GAAP financial measures, Genpact's management has adjusted foreign exchange gains and losses, interest income and expense and income tax expenses from GAAP net income, and other income and expenses from GAAP income from operations, because management believes that the Company's results after taking into account these adjustments more accurately reflect the Company's ongoing operations. In its calculations of adjusted diluted earnings per share, Genpact's management adds back adjusted stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses and the related tax impact of such adjustments from GAAP diluted earnings per share. For the purpose of calculating adjusted diluted earnings per share, the combined current and deferred tax effect is determined by multiplying each pre-tax adjustment by the applicable statutory income tax rate.
Genpact's management 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 true 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.
Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted diluted earnings per share and revenue growth on a constant currency basis, when read in conjunction with the Company's reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations.
A limitation of using adjusted income from operations and adjusted income from operations margin versus income from operations, income from operations margin, net income and net income margin calculated in accordance with GAAP is that these non-GAAP financial measures exclude certain recurring costs and certain other charges, namely stock-based compensation expense and amortization and impairment of acquired intangible assets. Management compensates for this limitation by providing specific information on the GAAP amounts excluded from adjusted income from operations and adjusted income from operations margin.
The following tables show the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures for the three months ended March 31, 2025 and 2026:
Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin | ||||
Three months ended March 31, | ||||
2025 | 2026 | |||
Net income | $ 130,853 | $ 147,992 | ||
Foreign exchange (gains)/losses, net | (1,289) | (7,302) | ||
Interest (income) expense, net | 11,446 | 11,602 | ||
Income tax expense | 44,370 | 46,002 | ||
Stock-based compensation expense | 20,036 | 22,273 | ||
Amortization of acquired intangible assets | 4,318 | 3,111 | ||
Adjusted income from operations | $ 209,734 | $ 223,678 | ||
Net income margin | 10.8 % | 11.4 % | ||
Adjusted income from operations margin | 17.3 % | 17.3 % | ||
Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin | ||||
Three months ended March 31, | ||||
2025 | 2026 | |||
Income from operations | $ 183,702 | $ 198,583 | ||
Stock-based compensation expense | 20,036 | 22,273 | ||
Amortization of acquired intangible assets | 4,318 | 3,111 | ||
Other income (expense), net | 1,678 | (289) | ||
Adjusted income from operations | $ 209,734 | $ 223,678 | ||
Income from operations margin | 15.1 % | 15.3 % | ||
Adjusted income from operations margin | 17.3 % | 17.3 % | ||
Reconciliation of Diluted EPS to Adjusted Diluted EPS6 | ||||
Three months ended March 31, | ||||
2025 | 2026 | |||
Diluted EPS | $ 0.73 | $ 0.86 | ||
Stock-based compensation expense | 0.11 | 0.13 | ||
Amortization of acquired intangible assets | 0.02 | 0.02 | ||
Tax impact on stock-based compensation expense | (0.02) | (0.02) | ||
Tax impact on amortization of acquired intangible assets | (0.01) | — | ||
Adjusted diluted EPS | $ 0.84 | $ 0.98 | ||
The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the year ending December 31, 2026:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin7 | ||
Year ending December 31, 2026 | ||
Net income margin | 11.1 % | |
Estimated interest (income) expense, net | 1.1 % | |
Estimated income tax expense | 3.5 % | |
Estimated stock-based compensation expense | 1.9 % | |
Estimated amortization of acquired intangible assets | 0.2 % | |
Estimated foreign exchange (gain)/loss | (0.1) % | |
Adjusted income from operations margin | 17.7 % | |
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from | ||
Year ending December 31, 2026 | ||
Income from operations margin | 15.4 % | |
Estimated stock-based compensation expense | 1.9 % | |
Estimated amortization of acquired intangible assets | 0.2 % | |
Estimated other income (expense), net | 0.2 % | |
Adjusted income from operations margin | 17.7 % | |
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS7 | ||
Year ending December 31, 2026 | ||
Diluted EPS | $ 3.48 | |
Estimated stock-based compensation expense | 0.60 | |
Estimated amortization of acquired intangible assets | 0.07 | |
Estimated tax impact on stock-based compensation expense | (0.09) | |
Estimated tax impact on amortization of acquired intangible assets | (0.02) | |
Adjusted diluted EPS | $ 4.04 | |
The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending June 30, 2026:
Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin8 | ||
Quarter ending June 30, 2026 | ||
Net income margin | 10.6 % | |
Estimated interest (income) expense, net | 1.1 % | |
Estimated income tax expense | 3.3 % | |
Estimated stock-based compensation expense | 2.0 % | |
Estimated amortization of acquired intangible assets | 0.2 % | |
Estimated foreign exchange (gain)/loss | 0.2 % | |
Adjusted income from operations margin | 17.4 % | |
Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from | ||
Quarter ending June 30, 2026 | ||
Income from operations margin | 14.9 % | |
Estimated stock-based compensation expense | 2.0 % | |
Estimated amortization of acquired intangible assets | 0.2 % | |
Estimated other income (expense), net | 0.3 % | |
Adjusted income from operations margin | 17.4 % | |
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS8 | ||||
Quarter ending June 30, 2026 | ||||
Lower | Upper | |||
Diluted EPS | $ 0.82 | $ 0.82 | ||
Estimated stock-based compensation expense | 0.15 | 0.15 | ||
Estimated amortization of acquired intangible assets | 0.02 | 0.02 | ||
Estimated tax impact on stock-based compensation expense | (0.02) | (0.02) | ||
Estimated tax impact on amortization of acquired intangible assets | (0.00) | (0.00) | ||
Adjusted diluted EPS | $ 0.96 | $ 0.97 | ||
Net Revenues from Advanced Technology Solutions and Core Business Services9 | ||||
Three months ended | ||||
March 31, 2025 | March 31, 2026 | |||
Advanced Technology Solutions | $ 277,627 | $ 345,229 | ||
Core Business Services | $ 937,299 | $ 950,843 | ||
Total | $ 1,214,926 | $ 1,296,072 | ||
1 Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release. | ||||
2 Revenue growth on a constant currency basis is a non-GAAP measure and 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. | ||||
3 Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release. | ||||
4 Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for each of GAAP net income margin and GAAP income from operations margin to adjusted income from operations margin is attached to this release. | ||||
5 Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release. | ||||
6 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. | ||||
7 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. | ||||
8 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. | ||||
9 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided. | ||||
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SOURCE Genpact