Genpact Reports Fourth Quarter and Full Year 2025 Results

Rhea-AI Summary

Genpact (NYSE: G) reported 2025 net revenues of $5.080 billion, up 6.6% (6.4% constant currency). Advanced Technology Solutions revenue grew 17% to $1.204 billion; Data-Tech-AI reached $2.442 billion, up 9.3%.

2025 diluted EPS was $3.13 (up 9.8%); adjusted diluted EPS was $3.65 (up 11.3%). Cash from operations was $813 million (including $170 million client prepayments). Board raised the quarterly dividend 10% to $0.1875, annualized $0.75. Outlook: FY2026 revenue growth at least 7% and adjusted diluted EPS growth ~10%.

Positive

• Net revenue +6.6% to $5.080 billion in 2025
• Advanced Technology Solutions +17.0% to $1.204 billion
• Adjusted diluted EPS +11.3% to $3.65
• Board increased quarterly dividend 10% to $0.1875
• Genpact repurchased ~6.0 million shares for $283 million

Negative

• Cash from operations net of $170M prepayments was $643 million
• Cash from operations net growth only +4.5% year-over-year

Key Figures

2025 Net Revenues: $5.080 billion 2025 Diluted EPS: $3.13 2025 Adjusted Diluted EPS: $3.65 +5 more

8 metrics

2025 Net Revenues $5.080 billion Full year 2025, up 6.6% YoY (6.4% constant currency)

2025 Diluted EPS $3.13 Full year 2025, up 9.8% year-over-year

2025 Adjusted Diluted EPS $3.65 Full year 2025, up 11.3% year-over-year

2025 Gross Profit $1.831 billion Full year 2025, 36.0% gross margin

2025 Net Income $552 million Full year 2025, 10.9% net margin, up 7.6% YoY

Q4 2025 Net Revenues $1.319 billion Quarter ended Dec 31, 2025, up 5.6% YoY

Advanced Technology Solutions 2025 $1.204 billion Full year 2025, up 17.0% year-over-year

Annual Dividend 2026 $0.75 per share Planned 2026 annual dividend, up from $0.68 in 2025

Market Reality Check

Price: $37.70 Vol: Volume 4,054,580 vs 20-da...

high vol

$37.70 Last Close

Volume Volume 4,054,580 vs 20-day average 1,657,279, indicating elevated trading interest ahead of earnings. high

Technical Price at $38.34, trading below 200-day MA of $44.05 and 32.45% below 52-week high.

Peers on Argus

G fell 1.62% while key peers like KD (+6.13%) and EPAM (+2.66%) traded higher, s...

G fell 1.62% while key peers like KD (+6.13%) and EPAM (+2.66%) traded higher, suggesting today’s weakness was stock-specific rather than a sector-wide move.

Common Catalyst Select peers (e.g., EXLS) highlighted AI-related initiatives, but no broad earnings or sector event drove a unified move.

Previous Earnings Reports

5 past events · Latest: Nov 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	-1.1%	Solid Q3 growth and raised 2025 guidance, but shares fell modestly.
Aug 07	Q2 2025 earnings	Positive	+4.4%	Strong Q2 growth in Data‑Tech‑AI and ATS with guidance raised.
May 07	Q1 2025 earnings	Negative	-15.2%	Good Q1 metrics but full‑year revenue and EPS guidance cut.
Feb 06	FY/Q4 2024 results	Positive	+11.2%	Strong 2024 results, higher 2025 outlook and increased capital returns.
Nov 07	Q3 2024 earnings	Positive	+9.9%	Robust Q3 growth with higher full‑year guidance and buybacks.

Pattern Detected

Earnings releases have generally led to positive share reactions, with one notable selloff when guidance was cut. Markets have sometimes faded otherwise solid quarters when expectations were high.

Recent Company History

Across the last five earnings or annual results since Nov 2024, Genpact consistently reported mid‑single‑digit revenue growth with stronger expansion in Data‑Tech‑AI and Advanced Technology Solutions. Guidance changes have been key: the Q1 2025 guidance cut coincided with a -15.16% move, while the full‑year 2024 and later 2025 quarters, which featured raised outlooks or strong momentum, saw double‑digit gains. Today’s 2025 results and 2026 outlook sit against that backdrop of generally constructive earnings reactions.

Historical Comparison

earnings

+1.8 %

Average Historical Move

Historical Analysis

Over the last five earnings releases, Genpact’s average move was about 1.84%, with most reports producing positive reactions when outlooks improved or remained solid.

Typical Pattern

Recent earnings show steady mid‑single‑digit revenue growth with faster expansion in Data‑Tech‑AI and Advanced Technology Solutions, building from 2024’s strong baseline into a more technology‑weighted mix through 2025.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-11-13

Genpact has an effective automatic shelf registration (Form S-3ASR) dated Nov 13, 2025, allowing it to issue various securities over time. Specific offering sizes are determined in later prospectus supplements, and the shelf has already been used in two 424B5 filings.

Market Pulse Summary

This announcement delivers steady expansion, with 2025 net revenues of $5.080 billion and adjusted d...

Analysis

This announcement delivers steady expansion, with 2025 net revenues of $5.080 billion and adjusted diluted EPS of $3.65, alongside a planned dividend increase to $0.75 per share. Growth in Advanced Technology Solutions outpaced the core, reinforcing the shift toward data, tech, and AI. Historically, earnings reactions have hinged on guidance tone, so investors may watch 2026 revenue and margin targets closely when assessing these results.

Key Terms

constant currency, adjusted diluted EPS, gross margin, basis points

4 terms

constant currency financial

"up 6.6% year-over-year, and 6.4% 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.

adjusted diluted EPS financial

"Diluted EPS of $3.13, Up 9.8%; Adjusted Diluted EPS3 of $3.65, Up 11.3%"

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.

gross margin financial

"Gross profit was $1.831 billion, up 8.3% year-over-year, with a corresponding margin of 36.0%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

basis points financial

"Gross margin of approximately 36.5%, up approximately 50 basis points year-over-year"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

2025 Net Revenues of $5.080 billion, Up 6.6% (6.4% constant currency)¹
2025 Advanced Technology Solutions Net Revenues² of $1.204 billion, Up 17.0%
2025 Core Business Services Net Revenues² of $3.876 billion, Up 3.7%
2025 Data-Tech-AI Net Revenues of $2.442 billion, Up 9.3%
2025 Digital Operations Net Revenues of $2.638 billion, Up 4.1%
2025 Diluted EPS of $3.13, Up 9.8%; Adjusted Diluted EPS³ of $3.65, Up 11.3%
Increases Planned Quarterly Dividend by 10%

NEW YORK, Feb. 5, 2026 /PRNewswire/ -- Genpact Limited (NYSE: G), an agentic and advanced technology solutions company recognized for its deep industry knowledge, process intelligence, and last-mile expertise, today announced financial results for the fourth quarter and full year ended December 31, 2025.

"2025 was a strong year for Genpact driven by disciplined execution, accelerating innovation, and broad-based demand for our solutions. Advanced Technology Solutions grew 17% year over year, as we continue to rapidly scale data, AI, and domain-driven agentic solutions," said Balkrishan "BK" Kalra, President and CEO, Genpact. "With our strong momentum across Advanced Technology Solutions and our deep industry and domain expertise, we are clear partners of choice to define how clients will operate in the future."

Key Financial Highlights – Full Year 2025

• Net revenues were $5.080 billion, up 6.6% year-over-year, and 6.4% on a constant currency basis.¹
  • Advanced Technology Solutions net revenues² were $1.204 billion, up 17.0% year-over-year, representing 24% of total net revenues.
  • Core Business Services net revenues² were $3.876 billion, up 3.7% year-over-year, representing 76% of total net revenues.
  • Data-Tech-AI net revenues were $2.442 billion, up 9.3% year-over-year, and 9.2% on a constant currency basis,¹ representing 48% of total net revenues.
  • Digital Operations net revenues were $2.638 billion, up 4.1% year-over-year, and 3.8% on a constant currency basis,¹ representing 52% of total net revenues.
• Gross profit was $1.831 billion, up 8.3% year-over-year, with a corresponding margin of 36.0%.
• Net income was $552 million, up 7.6% year-over-year, with a corresponding margin of 10.9%.
• Income from operations was $750 million, up 6.9% year-over-year, with a corresponding margin of 14.8%.
• Adjusted income from operations was $888 million, up 9.0% year-over-year, with a corresponding margin of 17.5%.⁴
• Diluted earnings per share was $3.13, up 9.8% year-over-year.
• Adjusted diluted earnings per share³ was $3.65, up 11.3% year-over-year.
• Cash generated from operations was $813 million and includes $170 million in client prepayments. Cash from operations was $643 million net of the client prepayments, up 4.5% year-over-year.
• Genpact repurchased approximately 6.0 million common shares during the year for total consideration of approximately $283 million at an average price per share of $46.16.

Key Financial Highlights – Fourth Quarter 2025

• Net revenues were $1.319 billion, up 5.6% year-over-year, and 5.0% on a constant currency basis.¹
  • Advanced Technology Solutions net revenues² were $323 million, up 15.0% year-over-year, representing 24% of total net revenues.
  • Core Business Services net revenues² were $996 million, up 2.9% year-over-year, representing 76% of total net revenues.
  • Data-Tech-AI net revenues were $639 million, up 7.4% year-over-year, and 7.0% on a constant currency basis,¹ representing 48% of total net revenues.
  • Digital Operations net revenues were $681 million, up 4.0% year-over-year, and 3.2% on a constant currency basis,¹ representing 52% of total net revenues.
• Gross profit was $482 million, up 8.2% year-over-year, with a corresponding margin of 36.6%.
• Net income was $143 million, up 0.8% year-over-year, with a corresponding margin of 10.8%.
• Income from operations was $195 million, up 2.8% year-over-year, with a corresponding margin of 14.8%.
• Adjusted income from operations was $232 million, up 5.0% year-over-year, with a corresponding margin of 17.6%.⁴
• Diluted earnings per share was $0.82, up 3.8% year-over-year.
• Adjusted diluted earnings per share³ was $0.97, up 6.6% year-over-year.
• Genpact repurchased approximately 2.0 million common shares during the quarter for total consideration of approximately $100 million at an average price per share of $45.24.

Capital Allocation

Genpact's Board of Directors declared a quarterly cash dividend for the first quarter of 2026 of $0.1875 per common share, a 10% increase, payable on March 31, 2026 to shareholders of record as of the close of business on March 16, 2026. The newly approved quarterly dividend represents a planned annual dividend of $0.75 per common share, an increase from $0.68 per common share in 2025.

Outlook

Genpact's outlook for the full year 2026 is as follows:

• Net revenue growth of at least 7% on an as reported basis, or 6.8% on a constant currency basis.¹
  • In Advanced Technology Solutions, we expect revenue to grow at least high-teens.
  • In Core Business Services, we expect growth to continue.
• Gross margin of approximately 36.5%, up approximately 50 basis points year-over-year.
• Adjusted income from operations margin⁵ of approximately 17.7%, up approximately 25 basis points year-over-year.
• Adjusted diluted EPS⁶ growth of approximately 10%.

Genpact's outlook for the first quarter of 2026 is as follows:

• Net revenues in the range of $1.282 billion to $1.294 billion, representing year-over-year growth of approximately 5.5% to 6.5% as reported, or 4.4% to 5.4% on a constant currency basis.¹
  • In Advanced Technology Solutions, we expect revenue to grow at least high-teens.
  • In Core Business Services, we expect growth to continue.
• Gross margin of approximately 36.3%.
• Adjusted income from operations margin⁵ of approximately 17.3%.
• Adjusted diluted EPS⁶ in the range of $0.92 to $0.93.

Fourth Quarter 2025 Earnings Call

Genpact's management will host a conference call on February 5, 2026, at 5:00PM ET to discuss the company's performance for the fourth quarter ended December 31, 2025. 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 U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties, and other factors include but are not limited to macroeconomic uncertainty, U.S. and global trade and tariff policies and general economic conditions, any deterioration in the global economic environment and its impact on our clients, our ability to develop and successfully execute our business strategies, technological innovation, including AI technology and future uses of agentic AI, generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments and client needs at sufficient speed and scale, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients' data from security incidents or cyberattacks, political, economic or business conditions in countries in which we operate, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the geographic regions or sectors in which we or our clients operate, the risks and uncertainties arising from our past and future acquisitions or divestitures, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation, tax audits, investigations and tax proceedings, changes in the interpretation or enforcement of tax laws and other laws and regulations, our ability to effectively execute our tax planning strategies, highly competitive markets and any inability to compete effectively, claims and lawsuits, including by clients, employees or other third parties, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management's current analysis of future events and should not be relied upon as representing management's expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.

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, 2024		As of December 31, 2025
Assets
Current assets
Cash and cash equivalents		$                         648,246		$                       853,836
Short-term investments		23,359		350,000
Accounts receivable, net of allowance for credit losses of $12,094 and $22,097 as of December 31, 2024 and  2025, respectively		1,198,606		1,240,550
Prepaid expenses and other current assets		209,893		211,981
Total current assets		$                      2,080,104		$                    2,656,367
Property, plant and equipment, net		207,943		190,448
Operating lease right-of-use assets		182,190		181,708
Deferred tax assets		269,476		258,789
Intangible assets, net		26,950		67,040
Goodwill		1,669,769		1,781,116
Contract cost assets		200,900		197,419
Other assets, net of allowance for credit losses of $7,320 and $10,659 as of December 31, 2024 and 2025, respectively		349,821		510,380
Total assets		$                      4,987,153		$                    5,843,267
Liabilities and equity
Current liabilities
Short-term borrowing		—		—
Current portion of long-term debt		26,173		376,027
Accounts payable		36,469		27,533
Income taxes payable		35,431		43,074
Accrued expenses and other current liabilities		812,994		1,103,625
Operating leases liability		52,672		52,221
Total current liabilities		$                          963,739		$                    1,602,480
Long-term debt, less current portion		1,195,267		1,166,274
Operating leases liability		153,587		150,667
Deferred tax liabilities		15,908		21,081
Other liabilities		269,041		353,364
Total liabilities		$                      2,597,542		$                    3,293,866
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued		—		—
Common shares, $0.01 par value, 500,000,000 authorized, 174,661,943  and 170,341,479 issued and outstanding as of December 31, 2024 and 2025, respectively		1,740		1,696
Additional paid-in capital		1,945,261		2,018,985
Retained earnings		1,236,696		1,390,164
Accumulated other comprehensive income (loss)		(794,086)		(861,444)
Total equity		$                      2,389,611		$                    2,549,401
Total liabilities and equity		$                      4,987,153		$                    5,843,267

 

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
		Three months ended December 31,
		2023		2024		2025
Net revenues		$              1,146,253		$               1,248,741		$                1,319,278
Cost of revenue		738,699		802,969		836,984
Gross profit		$                 407,554		$                  445,772		$                   482,294
Operating expenses:
Selling, general and administrative expenses		237,419		249,157		277,131
Amortization of acquired intangible assets		7,454		6,496		7,370
Other operating (income) expense, net		(51)		(55)		2,332
Income from operations		$                  162,732		$                  190,174		$                   195,461
Foreign exchange gains, net		576		(1,487)		2,047
Interest income (expense), net		(12,915)		(11,047)		(11,881)
Other income (expense), net		8,081		4,908		3,207
Income before income tax expense		$                  158,474		$                  182,548		$                   188,834
Income tax expense/(benefit)		(132,835)		40,633		45,740
Net income		$                  291,309		$                  141,915		$                   143,094
Earnings per common share
Basic		$                        1.61		$                        0.81		$                         0.83
Diluted		$                        1.59		$                        0.79		$                         0.82
Weighted average number of common shares used in computing earnings per common share
Basic		180,956,638		175,880,251		171,854,675
Diluted		183,354,187		179,183,557		174,994,509

 

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
		Year ended December 31,
		2023		2024		2025
Net revenues		$               4,476,888		$               4,767,139		$                5,079,879
Cost of revenue		2,906,223		3,077,073		3,248,867
Gross profit		$               1,570,665		$               1,690,066		$                1,831,012
Operating expenses:
Selling, general and administrative expenses		913,061		967,145		1,046,713
Amortization of acquired intangible assets		31,463		26,476		24,292
Other operating (income) expense, net		(4,716)		(5,616)		9,800
Income from operations		$                  630,857		$                  702,061		$                   750,207
Foreign exchange gains, net		4,274		2,937		7,390
Interest income (expense), net		(47,935)		(47,214)		(49,597)
Other income (expense), net		15,028		19,036		22,147
Income before income tax expense		$                  602,224		$                  676,820		$                   730,147
Income tax expense/(benefit)		(29,031)		163,150		177,653
Net income		$                  631,255		$                  513,670		$                   552,494
Earnings per common share
Basic		$                        3.46		$                        2.88		$                         3.18
Diluted		$                        3.41		$                        2.85		$                         3.13
Weighted average number of common shares used in computing earnings per common share
Basic		182,345,548		178,385,972		173,892,795
Diluted		185,141,843		180,436,900		176,646,644

 

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
		Year ended December 31,
		2023		2024		2025
Operating activities
Net income		$               631,255		$               513,670		$               552,494
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Depreciation and amortization		72,530		69,778		70,667
Amortization of debt issuance costs		1,967		2,412		2,331
Amortization of acquired intangible assets		31,463		26,476		24,292
Write-down of  property, plant and equipment		—		—		2,424
Write-down of operating right-of-use assets		—		—		7,656
Loss on sale of business classified as held for sale		802		—		—
Allowance for credit losses		3,979		13,806		20,532
Unrealized (gain)/loss on revaluation of foreign currency assets/liabilities		(1,061)		(11,354)		4,366
Stock-based compensation expense		88,576		66,383		89,616
Deferred tax expense		(157,932)		36,610		19,943
Others, net		1,477		(2,179)		643
Change in operating assets and liabilities:
Increase in accounts receivable		(130,791)		(96,555)		(44,221)
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use assets and other assets		(39,075)		(73,512)		(169,594)
Increase (decrease) in accounts payable		(8,215)		8,733		(6,415)
Increase  in accrued expenses, other current liabilities, operating lease liabilities and other liabilities		1,862		63,340		230,250
Increase in income taxes payable		(6,025)		(2,184)		7,872
Net cash provided by operating activities		$               490,812		$               615,424		$               812,856
Investing activities
Purchase of property, plant and equipment		(55,421)		(82,766)		(78,203)
Payment for internally generated intangible assets (including intangibles under development)		(3,356)		(2,469)		(10,326)
Purchase of short term investments		—		(23,359)		(350,000)
Payment for business acquisitions, net of cash acquired		(682)		—		(80,384)
Proceeds from sale of property, plant and equipment		25		2,635		59
Payment for divestiture of business		(19,510)		—		—
Proceeds from maturity of short-term investments		—		—		23,359
Net cash used for investing activities		$               (78,944)		$              (105,959)		$              (495,495)
Financing activities
Repayment of finance lease obligations		(12,165)		(11,358)		(9,508)
Payment of debt issuance and refinancing costs		—		(4,165)		(4,137)
Proceeds from long-term debt		—		400,000		350,000
Repayment of long-term debt		(19,875)		(433,125)		(26,500)
Proceeds from short-term borrowings		148,000		50,000		85,000
Repayment of short-term borrowings		(289,000)		(60,000)		(85,000)
Proceeds from issuance of common shares under stock-based compensation plans		39,485		17,215		17,506
Payment of earn-out consideration		(21,529)		(22,278)		(33,381)
Payment for net settlement of stock-based awards		(2,399)		—		—
Dividend paid		(100,014)		(108,466)		(117,747)
Payment for stock repurchased and retired (including expenses related to stock repurchased)		(225,499)		(252,671)		(283,048)
Net cash used for financing activities		$              (482,996)		$              (424,848)		$              (106,815)
Net increase in cash and cash equivalents		(71,128)		84,617		210,546
Effect of exchange rate changes		8,033		(20,041)		(4,956)
Cash and cash equivalents at the beginning of the period		646,765		583,670		648,246
Cash and cash equivalents at the end of the period		$               583,670		$               648,246		$               853,836
Supplementary information
Cash paid during the period for interest		$                 47,989		$                 68,913		$                 59,691
Cash paid during the period for income taxes, net of refund		$               156,733		$               113,629		$               143,645
Property, plant and equipment acquired under finance lease obligations		$                   2,459		$                 11,483		$                 11,600

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 and impairment 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 and years ended December 31, 2024 and 2025:

Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin
(In thousands)
		Three months ended December 31,				Year ended December 31,
		2024		2025		2024		2025
Net income		$         141,915		$         143,094		$         513,670		$         552,494
Foreign exchange (gains)/losses, net		1,487		(2,047)		(2,937)		(7,390)
Interest (income) expense, net		11,047		11,881		47,214		49,597
Income tax expense		40,633		45,740		163,150		177,653
Stock-based compensation expense		19,107		25,561		66,383		89,616
Amortization of acquired intangible assets		6,493		7,428		26,456		24,288
Acquisition-related expenses		—		—		—		1,310
Adjusted income from operations		$         220,682		$         231,657		$         813,936		$         887,568
Net income margin		11.4 %		10.8 %		10.8 %		10.9 %
Adjusted income from operations margin		17.7 %		17.6 %		17.1 %		17.5 %

 

Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin
(In thousands)
		Three months ended December 31,				Year ended December 31,
		2024		2025		2024		2025
Income from operations		$         190,174		$         195,461		$         702,061		$         750,207
Stock-based compensation expense		19,107		25,561		66,383		89,616
Amortization of acquired intangible assets		6,493		7,428		26,456		24,288
Other income (expense), net		4,908		3,207		19,036		22,147
Acquisition-related expenses		—		—		—		1,310
Adjusted income from operations		$         220,682		$         231,657		$         813,936		$         887,568
Income from operations margin		15.2 %		14.8 %		14.7 %		14.8 %
Adjusted income from operations margin		17.7 %		17.6 %		17.1 %		17.5 %

 

Reconciliation of Diluted EPS to Adjusted Diluted EPS7
(Per share data)
		Three months ended December 31,				Year ended December 31,
		2024		2025		2024		2025
Diluted EPS		$                0.79		$                0.82		$              2.85		$              3.13
Stock-based compensation expense		0.11		0.15		0.37		0.51
Amortization of acquired intangible assets		0.04		0.04		0.15		0.14
Acquisition related expenses		—		—		—		0.01
Tax impact on stock-based compensation expense		(0.02)		(0.03)		(0.05)		(0.09)
Tax impact on amortization of acquired intangible assets		(0.01)		(0.01)		(0.04)		(0.03)
Adjusted diluted EPS		$                0.91		$                0.97		$              3.28		$              3.65

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 Margin8
		Year ending December 31, 2026
Net income margin		11.0 %
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 %
Adjusted income from operations margin		17.7 %

 

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin8
		Year ending December 31, 2026
Income from operations margin		15.3 %
Estimated stock-based compensation expense		1.9 %
Estimated amortization of acquired intangible assets		0.2 %
Estimated other income (expense), net		0.3 %
Adjusted income from operations margin		17.7 %

 

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS8
(Per share data)
		Year ending December 31, 2026
Diluted EPS		$                                                 3.48
Estimated stock-based compensation expense		0.58
Estimated amortization of acquired intangible assets		0.07
Estimated tax impact on stock-based compensation expense		(0.11)
Estimated tax impact on amortization of acquired intangible assets		(0.02)
Adjusted diluted EPS		$                                                 4.01

The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending March 31, 2026: 

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin9
		Quarter ending March 31, 2026
Net income margin		10.8 %
Estimated interest (income) expense, net		1.0 %
Estimated income tax expense		3.4 %
Estimated stock-based compensation expense		1.9 %
Estimated amortization of acquired intangible assets		0.2 %
Adjusted income from operations margin		17.3 %

 

Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin9
		Quarter ending March 31, 2026
Income from operations margin		14.9 %
Estimated stock-based compensation expense		1.9 %
Estimated amortization of acquired intangible assets		0.2 %
Estimated other income (expense), net		0.3 %
Adjusted income from operations margin		17.3 %

 

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS9
(Per share data)
		Quarter ending March 31, 2026
		Lower		Upper
Diluted EPS		$                  0.79		$                  0.80
Estimated stock-based compensation expense		0.14		0.14
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		$                  0.92		$                  0.93

 

Net Revenues from Advanced Technology Solutions and Core Business Services10
(In thousands)
	Three months ended
	March 31, 2023	June 30, 2023	September 30, 2023	December 31, 2023
Advanced Technology Solutions	$                         236,102	$                         257,161	$                         248,124	$                         243,326
Core Business Services	$                         853,217	$                         848,363	$                         887,668	$                         902,927
Total	$                      1,089,319	$                      1,105,524	$                      1,135,792	$                      1,146,253
	Three months ended
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024
Advanced Technology Solutions	$                         239,849	$                         249,461	$                         259,184	$                         280,639
Core Business Services	$                         891,388	$                         926,750	$                         951,766	$                         968,102
Total	$                      1,131,237	$                      1,176,212	$                      1,210,949	$                      1,248,741
	Three months ended
	March 31, 2025	June 30, 2025	September 30, 2025	December 31, 2025
Advanced Technology Solutions	$                         277,627	$                         292,655	$                         310,986	$                         322,849
Core Business Services	$                         937,299	$                         961,763	$                         980,271	$                         996,429
Total	$                      1,214,926	$                      1,254,418	$                      1,291,257	$                      1,319,278

1 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.
2 Advanced Technology Solutions net revenues include revenues from solutions and services focused on data and AI, digital technology, advisory and agentic solutions. Core Business Services net revenues include revenues from decision support services and technology services as well as Digital Operations.
3 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.
4 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.
5 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.
6 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.
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.
10 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.

 

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SOURCE Genpact

FAQ

What were Genpact (G) full-year 2025 revenues and growth rate?

Genpact reported full-year 2025 net revenues of $5.080 billion, up 6.6% year-over-year. According to the company, this equals 6.4% growth on a constant currency basis and reflects strength in Advanced Technology Solutions.

How did Genpact's Advanced Technology Solutions perform in 2025 (G)?

Advanced Technology Solutions net revenues grew 17.0% to $1.204 billion in 2025. According to the company, this business now represents about 24% of total net revenues and drove higher data and AI adoption.

What dividend change did Genpact (G) announce and when is it payable?

Genpact's board increased the quarterly dividend by 10% to $0.1875 per share, payable March 31, 2026. According to the company, the new planned annual dividend is $0.75 per share.

What is Genpact's outlook for full-year 2026 revenue and EPS growth (G)?

Genpact expects full-year 2026 net revenue growth of at least 7% and adjusted diluted EPS growth of approximately 10%. According to the company, Advanced Technology Solutions is expected to grow at least high-teens.

How much cash did Genpact (G) generate from operations in 2025 and what impacted it?

Genpact generated $813 million cash from operations in 2025, which included $170 million in client prepayments. According to the company, cash from operations net of those prepayments was $643 million.

What were Genpact's fourth-quarter 2025 EPS figures and share repurchases (G)?

Genpact reported fourth-quarter 2025 diluted EPS of $0.82 and adjusted diluted EPS of $0.97. According to the company, it repurchased about 2.0 million shares for approximately $100 million during the quarter.