Genpact (NYSE: G) posts strong Q1 2026 with 24% ATS revenue growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Genpact Limited reported solid first quarter 2026 results with net revenues of $1.296 billion, up 6.7% year-over-year. Advanced Technology Solutions revenue grew 24.3% to $345 million, reaching 27% of total net revenues, while Core Business Services rose 1.4% to $951 million.
Gross profit increased to $472 million with a margin of 36.4%, marking the 12th consecutive quarter of year-over-year gross margin expansion. Net income was $148 million, up 13.1%, and diluted EPS was $0.86, up 17.8%. Adjusted diluted EPS was $0.98, up 16.7%.
Operating cash flow was a use of $24 million compared to $40 million generated in the prior-year quarter, and the company repurchased about 1.8 million shares for roughly $70 million. For Q2 2026, Genpact guides net revenues of $1.324–$1.336 billion and adjusted diluted EPS of $0.96–$0.97. For full-year 2026, it expects net revenue growth of at least 7% and adjusted diluted EPS growth of more than 10%.
Positive
- Advanced Technology Solutions driving growth: Q1 2026 Advanced Technology Solutions net revenues grew 24.3% year-over-year to $345 million and now represent 27% of total net revenues, signaling a successful shift toward higher-value technology offerings.
- Strong earnings and margin performance: Net income rose 13.1% to $148 million and diluted EPS increased 17.8% to $0.86, while gross margin reached 36.4%, marking the 12th consecutive quarter of year-over-year gross margin expansion.
- Raised full-year 2026 profitability outlook: The company expects at least 7% reported net revenue growth and more than 10% adjusted diluted EPS growth for 2026, with an adjusted income from operations margin outlook of approximately 17.7%.
Negative
- None.
Insights
Genpact posts strong Q1 growth, mixes toward higher-value tech and raises 2026 expectations.
Genpact delivered Q1 2026 net revenues of $1.296 billion, up 6.7%, with Advanced Technology Solutions growing 24.3% to $345 million and reaching 27% of revenue. Core Business Services grew modestly at 1.4% to $951 million, showing a clear mix shift toward advanced technology offerings.
Profitability trends were favorable. Gross margin reached 36.4%, marking the 12th consecutive quarter of year-over-year expansion. Net income increased to $148 million, up 13.1%, while diluted EPS rose 17.8% to $0.86. On a non-GAAP basis, adjusted income from operations was $223.7 million with a 17.3% margin, and adjusted diluted EPS rose 16.7% to $0.98.
Cash metrics were softer: operating activities used $23.5 million versus $40.4 million provided a year earlier, while financing cash outflows of $204.3 million reflected dividends, debt repayment, an $77.5 million earn-out payment and $70.0 million of share repurchases. For Q2 2026, the company guides net revenues of $1.324–$1.336 billion and adjusted EPS of $0.96–$0.97; for full-year 2026, it targets at least 7% net revenue growth and more than 10% adjusted EPS growth.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenues Q1 2026: $1.296 billion
Advanced Technology Solutions revenue: $345 million
Net income Q1 2026: $147.992 million
+5 more
8 metrics
Net revenues Q1 2026
$1.296 billion
Three months ended March 31, 2026; up 6.7% year-over-year
Advanced Technology Solutions revenue
$345 million
Q1 2026; up 24.3% year-over-year; 27% of net revenues
Net income Q1 2026
$147.992 million
Three months ended March 31, 2026; up 13.1% year-over-year
Diluted EPS Q1 2026
$0.86 per share
Three months ended March 31, 2026; up 17.8% year-over-year
Adjusted diluted EPS Q1 2026
$0.98 per share
Three months ended March 31, 2026; up 16.7% year-over-year
Operating cash flow Q1 2026
-$23.5 million
Net cash used for operating activities in Q1 2026 vs $40.4M provided in Q1 2025
Q2 2026 revenue outlook
$1.324–$1.336 billion
Guidance; implies 5.5%–6.5% year-over-year growth as reported
Full-year 2026 adjusted EPS outlook
More than 10% growth
Guidance for adjusted diluted earnings per share vs prior year
Key Terms
Advanced Technology Solutions, Core Business Services, adjusted income from operations margin, constant currency basis, +2 more
6 terms
Advanced Technology Solutions financial
"Advanced Technology Solutions net revenues were $345 million, up 24.3% year-over-year"
Core Business Services financial
"Core Business Services net revenues were $951 million, up 1.4% year-over-year"
adjusted income from operations margin financial
"Adjusted income from operations was $224 million, up 6.6% year-over-year, with a corresponding margin of 17.3%."
constant currency basis financial
"Net revenues were $1.296 billion, up 6.7% year-over-year, and 5.6% on a constant currency basis."
A "constant currency basis" is a way companies compare financial results by removing the effects of changing exchange rates between different currencies. It helps show how the business is really performing, without the confusion caused by currency value swings, much like adjusting for inflation to see true growth.
stock-based compensation expense financial
"Genpact's management also uses financial statements that exclude stock-based compensation expense."
Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.
Adjusted diluted EPS financial
"Adjusted diluted earnings per share1 was $0.98, up 16.7% year-over-year."
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.
Earnings Snapshot
Net revenues: $1.296 billion · Guidance included
Quarter ended March 31, 2026
Net revenues
$1.296 billion
+6.7% year-over-year
Net income
$147.992 million
+13.1% year-over-year
Diluted EPS
$0.86
+17.8% year-over-year
Adjusted diluted EPS
$0.98
+16.7% year-over-year
Advanced Technology Solutions revenue
$345.229 million
+24.3% year-over-year
Guidance
For Q2 2026, Genpact expects net revenues of $1.324–$1.336 billion, gross margin of ~36.4%, adjusted income from operations margin of ~17.4%, and adjusted diluted EPS of $0.96–$0.97. For full-year 2026, it targets at least 7% net revenue growth, gross margin of ~36.5%, adjusted income from operations margin of ~17.7%, and adjusted diluted EPS growth of more than 10%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2026
(Exact name of registrant as specified in its charter)
| | ||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (441 ) 298-3300
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition.
On May 7, 2026, Genpact Limited (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2026. The Company is furnishing this Form 8-K pursuant to Item 2.02, “Results of Operations and Financial Condition.” A copy of the press release, attached hereto as Exhibit 99.1, is incorporated herein by reference.
The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
The Company is making reference to non-GAAP financial information in the press release and on the conference call. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is contained in the attached press release.
Item 9.01.Financial Statements and Exhibits.
(d)Exhibits:
| Exhibit 99.1 | Press release dated May 7, 2026 | |||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GENPACT LIMITED | ||||||||||||||
| Date: May 7, 2026 | By: | /s/ Michael Weiner | ||||||||||||
| Name: | Michael Weiner | |||||||||||||
| Title: | Senior Vice President, Chief Financial Officer | |||||||||||||
Exhibit 99.1
Genpact Reports First Quarter 2026 Results
Advanced Technology Solutions net revenue growth accelerates to 24% year-over-year, now representing 27% of total net revenues
NEW YORK, May 7, 2026 — 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 first quarter ended March 31, 2026.
“The first quarter was a record start to the year, with Advanced Technology Solutions net revenue growth accelerating to 24%, now representing 27% of total net revenues. We are leading the shift to Agentic Operations and winning,” said Balkrishan “BK” Kalra, President and CEO, Genpact. “Clients choose Genpact because agentic transformation only succeeds when it's grounded in real-world expertise. It's our decades of last-mile domain and process knowledge, codified and embedded into every agentic solution, that turns ambition into outcomes. A new Genpact is taking shape, and our results speak for themselves.”
“We delivered another strong quarter — with net revenues up 6.7%, diluted earnings per share up 17.8% and adjusted diluted earnings per share1 increasing 16.7% year-over-year. Q1’26 marks our 12th consecutive quarter of gross margin expansion year-over-year, clearly demonstrating that our operational discipline and deliberate pivot to high-value advanced technology revenue are compounding into durable, structural gains,” said Michael Weiner, Chief Financial Officer, Genpact. “With our significant momentum and growing demand, we are in a strong position for the remainder of the year.”
Key Financial Highlights – First Quarter 2026
•Net revenues were $1.296 billion, up 6.7% year-over-year, and 5.6% on a constant currency basis.2
◦Advanced Technology Solutions net revenues were $345 million, up 24.3% year-over-year, representing 27% of total net revenues.
◦Core Business Services net revenues were $951 million, up 1.4% year-over-year, representing 73% of total net revenues.
•Gross profit was $472 million, up 9.9% year-over-year, with a corresponding margin of 36.4%.
•Net income was $148 million, up 13.1% year-over-year, with a corresponding margin of 11.4%.
•Income from operations was $199 million, up 8.1% year-over-year, with a corresponding margin of 15.3%.
•Adjusted income from operations was $224 million, up 6.6% year-over-year, with a corresponding margin of 17.3%.3
•Diluted earnings per share was $0.86, up 17.8% year-over-year.
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.
•Adjusted diluted earnings per share1 was $0.98, up 16.7% year-over-year.
•Cash utilized in operations was $24 million, compared to $40 million generated from operations in the first quarter of 2025.
•Genpact repurchased approximately 1.8 million common shares during the quarter for total consideration of approximately $70 million at an average price per share of $38.61.
Outlook
Genpact's outlook for the second quarter of 2026 is as follows:
•Net revenues in the range of $1.324 billion to $1.336 billion, representing year-over-year growth of approximately 5.5% to 6.5% as reported, or 5.4% to 6.4% 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.
•Gross margin of approximately 36.4%.
•Adjusted income from operations margin4 of approximately 17.4%.
•Adjusted diluted earnings per share5 in the range of $0.96 to $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, or 6.8% 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.
•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.
4Adjusted 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.
5Adjusted 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.
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, 2025 | 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 $22,097 and $22,708 as of December 31, 2025 and March 31, 2026, respectively | 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 $10,659 and $12,435 as of December 31, 2025 and March 31, 2026, respectively | 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, $0.01 par value, 250,000,000 authorized, none issued | $ | — | $ | — | ||||||||||
Common shares, $0.01 par value, 500,000,000 authorized, 170,341,479 and 169,504,186 issued and outstanding as of December 31, 2025 and March 31, 2026, respectively | 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 share | ||||||||||||||
| 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 assets and other assets | (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
(In thousands)
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
(In thousands)
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
(Per share data)
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 | ||||||||||
6 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
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
Operations Margin7
| 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
(Per share data)
| 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 | ||||||
7 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
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
Operations Margin8
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
(Per share data)
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 | ||||||||||
8 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
Net Revenues from Advanced Technology Solutions and Core Business Services9
(In thousands)
| 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 | ||||||||||
9 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.
FAQ
How did Genpact (G) perform financially in Q1 2026?
Genpact reported Q1 2026 net revenues of $1.296 billion, up 6.7% year-over-year, and net income of $148 million, up 13.1%. Diluted EPS rose to $0.86, a 17.8% increase, while adjusted diluted EPS reached $0.98, up 16.7%.
What drove Genpact’s revenue growth in Q1 2026?
Growth was led by Advanced Technology Solutions, where net revenues increased 24.3% to $345 million, representing 27% of total net revenues. Core Business Services grew 1.4% to $951 million, accounting for the remaining 73% of net revenues.
How profitable was Genpact (G) in Q1 2026?
Genpact’s Q1 2026 gross profit was $472 million with a 36.4% margin, its 12th straight quarter of margin expansion. Adjusted income from operations was $223.7 million, yielding an adjusted operating margin of 17.3%, matching the prior-year percentage.
What is Genpact’s outlook for Q2 2026?
For Q2 2026, Genpact expects net revenues between $1.324 billion and $1.336 billion, implying 5.5%–6.5% year-over-year growth. It also guides to an adjusted income from operations margin of about 17.4% and adjusted diluted EPS of $0.96–$0.97.
What guidance did Genpact provide for full-year 2026?
Genpact anticipates at least 7% reported net revenue growth for 2026, or 6.8% on a constant currency basis. It forecasts a gross margin near 36.5%, adjusted income from operations margin around 17.7%, and adjusted diluted EPS growth of more than 10%.