Genpact Q2 2025 Earnings Report

Genpact EPS Results

• Actual EPS: $0.88
• Consensus EPS: $0.85
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: $0.79

Genpact Revenue Results

• Actual Revenue: $1.25 billion
• Expected Revenue: $1.23 billion
• Beat/Miss: Beat by +$25.24 million
• YoY Revenue Growth: +6.60%

Genpact Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 5:00PM ET

Genpact (NYSE:G) provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.

Genpact Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Revenue reached $1.25 billion, up 7% year-over-year, with gross margin expanding 50 bps, adjusted operating margin up 40 bps, and adjusted EPS of $0.88, 11% higher than last year.
• Positive Sentiment: Advanced Technology Solutions revenue grew 17% year-over-year; the data & AI pipeline has tripled, the AI Gigafactory is live across all verticals, and 270+ GenAI solutions are in production.
• Positive Sentiment: Partner-related revenues rose over 70% year-over-year to represent 10% of total revenue, with top-tier alliances with AWS, Salesforce, and ServiceNow and expanding joint AI offerings.
• Positive Sentiment: Full-year guidance was raised to 4–6% revenue growth (from 2–5%), adjusted operating margin to 17.4% (from 17.3%), and adjusted EPS midpoint to $3.54 (an $0.08 increase).
• Neutral Sentiment: The Genpact Next strategy—built on capabilities, clients, and catalysts—is on track to drive the firm’s evolution into an AI-first leader and achieve medium-term growth targets.

Presentation

[Operator]

Good day, ladies and gentlemen. Welcome to the twenty twenty five Second Quarter Genpact Limited Earnings Conference Call. My name is Lisa, and I will be your conference moderator for today. At this time, all participants are in a listen only mode. We will conduct a question and answer session towards the end of this conference call.

[Operator]

As a reminder, this call is being recorded for replay purposes. The replay of the call will be archived and made available on the IR section of website. I would now like to turn the call over to Krista Liesinger, Investor Head Relations at Genpact. Please proceed.

[Krista Bessinger, Head of Investor Relations at Genpact]

Thank you, Lisa. Good afternoon, everyone, and welcome to Genpact's Q2 twenty twenty five earnings conference call. We hope you've had a chance to read our earnings press release, which was posted on the Investor Relations section of our website, gempac.com. Today, we have with us B. K.

[Krista Bessinger, Head of Investor Relations at Genpact]

Kalra, President and CEO and Mike Wiener, Chief Financial Officer. B. K. Will start with a high level overview of the quarter and then Mike will cover our financial performance in greater detail before we take your questions. Please note that during this call, we will make forward looking statements, including statements about our business outlook, strategies and long term goals.

[Krista Bessinger, Head of Investor Relations at Genpact]

These comments are based on our plans, predictions and expectations as of today, which may change over time. Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors in our 10 ks and 10 Q filings with the SEC. Also during this call, we will discuss certain non GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release. These non GAAP measures are not intended to be a substitute for our GAAP results.

[Krista Bessinger, Head of Investor Relations at Genpact]

And finally, this call in its entirety is being webcast from our Investor Relations website, and a replay and transcript will be available on our website in a few hours. And with that, I'd like to turn it over to BK.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Thank you, Krista. Hello, everyone, and thank you for joining us today. Q2 was another strong quarter for Genpact with revenue reaching $1,250,000,000 up 7% year over year, reflecting broad based outperformance across the business. Gross and adjusted operating income margins were also strong, up fifty and forty basis points year over year, respectively, as we continue to deliver margin expansion while also making significant investments for long term growth. Importantly, adjusted EPS continues to grow faster than revenue, up 11% year over year, including reaching $0.88 above the high end of our guidance range.

[Balkrishan Kalra, CEO, President & Director at Genpact]

At our Investor Day in June, we introduced Genpact Next, a strategy designed to establish Genpact as a global leader in advanced technology solutions, building on strength of our core business services to accelerate revenue growth and expand margins. The Genpact Next Growth Model has three key elements, which we call the three Cs. They are, number one, our capabilities, which include what we go to market with across our advanced technology solutions and core business services number two, our clients, which include who we serve across both the enterprise and mid market and three, our catalysts, which include how we plan to further accelerate growth through investments in partnerships and AI focused talent. We are seeing strong early momentum across each. Let me walk you through the key highlights.

[Balkrishan Kalra, CEO, President & Director at Genpact]

First, on capabilities. We have two sets of distinct but interconnected offerings, advanced technology solutions and core business services. These offerings amplify each other. Why? Because as you have heard me say before, there is no artificial intelligence without process intelligence.

[Balkrishan Kalra, CEO, President & Director at Genpact]

We are capitalizing on this opportunity by integrating advanced technologies into what Genpact has always been known for exceptional process, industry domain, and last mile expertise. This quarter, advanced technology solutions revenue, which includes data and AI, digital technologies, advisory, and agentic solutions, continue to accelerate, up 17% year over year, driven by strength in data and AI, as we continue to help clients rapidly deploy AI systems into production. Our data and AI pipeline has tripled over the last year, and we are innovating rapidly. The AI Gigafactory is now live across all Genpact verticals with more than 45 clients onboarded year to date and more than 100 experienced data and AI leaders joining us to help our clients rapidly scale AI. We now have more than two seventy GenAI solutions in production environments with clients, either deployed or going live, up more than 3x year over year.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Our solutions are also gaining traction. All four modules of our AgenTik AP suite are now generally available, and we are delivering measurable results with more accurate data capture, greater touchless processing, and significant productivity benefits for clients and for Genpact. The AP Suite is just one example of how our advanced technology solutions are creating more value for clients and generating high value revenue for Genpact. Our advanced technology solutions deliver more than 2x the revenue per headcount compared to the company average, and are growing at more than twice the rate of Genpact's overall revenue. Approximately 70% of advanced technology solutions revenue is amortized, and approximately 70% comes from non FTE commercial terms, making it high quality, sticky, and strategically aligned with our future direction.

[Balkrishan Kalra, CEO, President & Director at Genpact]

And while we are sharing AI driven productivity gains with clients, incremental revenue is coming from expanded scope, increased volumes, and entirely new logos driving net revenue growth. Second, on clients. We are very proud of our enterprise and mid market clients, many of whom shared firsthand at Investor Day how our advanced technology solutions are driving meaningful value. Today, I want to share two additional stories with you that demonstrate how we are leveraging advanced technology solutions across both the enterprise and mid market to build intelligent, agile operations for our clients. The first is a leading global healthcare solutions company, serving patients and providers for more than one hundred twenty five years.

[Balkrishan Kalra, CEO, President & Director at Genpact]

As a strategic partner, Genpact has modernized the company's new product introduction and installed base functions to excel in the rapidly changing environment. We are now integrating GenAI and AgenTeq AI into the company's product life cycle and reducing time to spend on routine engineering work through GenAI based documentation, and leveraging AgenTik AI frameworks to proactively track and manage compliance across a rapidly evolving regulatory landscape. Our AI powered solutions and industry domain expertise are enabling a more agile and innovative approach to launch new products and managing them in the aftermarket, resulting in faster time to market, enhanced compliance, and sustained product quality around the world. The second example is a large property and casualty insurance broker in North America. We are partnering with this firm to modernize its operations using AI and other advanced technologies.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Our partnership will transform their policy lifecycle operation, leveraging intelligent automation, agentic processes, and scalable operating models to drive greater efficiency, scalability, and enhanced experience for their retail partners and carriers. This work speaks to the strength of our leadership in the insurance sector and our focus on empowering high growth, mid market clients with scalable, repeatable, AI led solutions. And finally, on Catalyst, we are further accelerating growth through investments in partnership and AI focused talent. Partnerships represent a significant growth opportunity for Genpact. Partner related revenues grew more than 70% year over year in quarter two, representing 10% of total revenue.

[Balkrishan Kalra, CEO, President & Director at Genpact]

We have achieved top tier partnership status with AWS, Salesforce, and ServiceNow. Our joint solution portfolio is also expanding, further differentiating Genpact and accelerating pipeline growth. Today, we offer joint solutions for financial crimes with AWS Bedrock, order management with Salesforce, sourcing and procurement with ServiceNow, just to name a few. To further advance our capabilities, we are also collaborating with startups like Instabase for intelligent document processing, Zenity for responsible AI adoption, and so on and so forth. We also continue to make significant investments in AI talent, accelerating our pivot to advanced technology solutions with a focus on AI builders, experts who build AI solutions, and AI practitioners, domain experts trained to use AI in flow of work for client processes.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Now turning to guidance. With better than expected results in quarter two, we are raising our full year outlook for revenue, adjusted operating income margin, and EPS. Our expected revenue range is now 4% to 6% on as reported basis, up from 2% to 5% previously. We expect adjusted operating income margin of 17.4%, up from 17.3% previously, and we are raising our outlook for adjusted diluted EPS by $08 to $3.54 at the midpoint of the range. In closing, we are incredibly excited about the future as we reshape Genpact to be an AI first company.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Momentum is building as we leverage advanced technology solutions to strengthen our last mile advantage and position Genpact as a clear partner of choice for AI driven transformation. With that, let me turn the call over to Mike.

[Mike Weiner, CFO at Genpact]

Good afternoon, everyone, and thank you for joining us. Results for the second quarter exceeded our expectations with broad based strength across our businesses. Total revenue grew to $1,254,000,000 up 7% from the prior year, driven by organic growth. Data, Tech and AI represented 48% of total revenue or $599,000,000 and grew at 10% from the prior year, driven by continued strength in data and AI. Digital operations revenue of $655,000,000 was up 4% year over year, driven by strong execution and deal ramps.

[Mike Weiner, CFO at Genpact]

Digital operations accounted for 52% of total revenue. At Investor Day, we introduced two additional revenue metrics to track our progress against our Genpact Next strategy, advanced technology solutions and core business services. Advanced technology solutions revenue of $293,000,000 was up 17% year over year, reflecting strength in data and AI. Core business services revenue of approximately $962,000,000 was up 4%, primarily driven by digital operations. This quarter, Advanced Technology Solutions represented 23% of total revenue.

[Mike Weiner, CFO at Genpact]

We closed four large deals in the second quarter, including one that was pushed out from the first quarter. All the remaining large deals that were pushed out remain active. As a reminder, large deals are $50,000,000 or greater in total contract value. We also continue to expand our footprint both with enterprise and mid market clients. Our pipeline remains strong and balanced across mix of deal sizes with both advanced technology solutions pipeline up nearly 1.5 times year over year.

[Mike Weiner, CFO at Genpact]

Revenue grew across all segments, led by High-tech and Manufacturing at 13%, followed by Financial Services at 6% and Consumer and Healthcare at 1%. Non FTE revenue, which now includes outcome, consumption and fixed fee deals, accounted for 46% of second quarter revenue, in line with the period a year ago. Turning to profitability. We expanded gross margin by 50 basis points year over year, reaching 35.9%, driven by operating leverage. SG and A expenses were 21.2 of revenue.

[Mike Weiner, CFO at Genpact]

Adjusted operating income was $217,000,000 and adjusted operating income margin expanded 40 basis points to 17.3%. Our effective tax rate for the second quarter was 24.9% in line with the prior year. Net income for the quarter was $133,000,000 and diluted EPS was $0.75 Adjusted diluted EPS was $0.88 up 11.4% year over year. Operating cash flow was $177,000,000 down from $2.00 $9,000,000 in the prior year. Additionally, DSOs were ninety one days.

[Mike Weiner, CFO at Genpact]

We ended the second quarter with $663,000,000 in cash and cash equivalents, down from $914,000,000 a year ago. As a reminder, 2Q twenty twenty four included proceeds from our bond issuance, which were used to repay a bond maturity later in the year. We've returned $60,000,000 to shareholders in the second quarter through $30,000,000 in share repurchases and $30,000,000 in dividends. Turning to guidance. With our strong second quarter performance, we are increasing our guidance range.

[Mike Weiner, CFO at Genpact]

For the full year, on an as reported basis, we now expect to deliver net revenue in the range of 4,958,000.000 to $5,053,000,000 or 4% to 6% growth at the midpoint of 5%. Data Tech and AI and digital operations revenue is expected to be approximately 7.4% to 2.9% respectively. Given that estimated range, our adjusted diluted EPS is now expected to be between $3.51 and $3.58 representing 8.1% growth year over year at the midpoint, again projected to grow faster than revenue. To provide additional details on reaching our 5% midpoint of our full year revenue guide, we need to deliver $238,000,000 of growth for the full year, of which roughly 70% has been delivered in the first half. That leaves 30% or $76,000,000 to be delivered in the second half.

[Mike Weiner, CFO at Genpact]

Moving on, our expectations for full year gross margin remain at 36%, a 50 basis point increase year over year. Expectations for adjusted operating income margin are now 17.4%, a 30 basis point increase from the prior year. Operating cash flow is expected to be approximately $610,000,000 On capital allocation, we continue to aim to return at least 50% of cash flow to investors through a combination of share repurchases and dividends, while maintaining the flexibility for strategic investments. As a reminder, the Exponential acquisition, which closed in June, is now included in our guide and is not expected to have a material impact in 2025 results. Turning to third quarter.

[Mike Weiner, CFO at Genpact]

On an as reported basis, we expect to deliver net revenue between $1,258,000,000 and $1,270,000,000 or 3.9% to 4.9% growth, representing 4.4% at the midpoint. This translates into Data Tech and AI and digital operations revenue of approximately 6.72.3%, respectively. We are now anticipating a margin of 36% and adjusted operating income margin of 17.5%. We expect diluted EPS of $0.89 to $0.90 for the third quarter. More details on constant currency growth rates can be found in our earnings press release and fact sheet posted to our Investor Relations website.

[Mike Weiner, CFO at Genpact]

In closing, we're excited about the future, remain committed to growing adjusted diluted EPS faster than revenue, expanding margins while self funding investments for growth and maintaining a strong track record of returning cash to shareholders. With that said, I'll turn the call over to Krista now.

[Krista Bessinger, Head of Investor Relations at Genpact]

Great. Thank you, Mike. Operator, we're ready to go ahead and take questions. Thank you.

[Operator]

Okay. Thank you. If you would like to ask a question, please press 11 on your telephone. You will then hear an automated message advising your hand is raised. If you would like to remove yourself from the queue, please press 11 again.

[Operator]

We also ask that you wait for your name and company to be announced before you proceed with your question. One moment while we compile the Q and A roster. Thank you so much. And the first question that I have today is coming from the line of Brian Brigham of TD Cowen. Your line is open.

[Bryan Bergin, Managing Director at TD Cowen]

Hey guys, good afternoon. Thank you for taking the questions here. I guess the first one I have is just as it relates to pace and conversion and new bookings, you had noted a deal was signed ahead of the Investor Day. Just any further traction you've seen there as far as pipeline conversion goes and whether any prior tariff related delays are fine?

[Balkrishan Kalra, CEO, President & Director at Genpact]

Maybe I'll start, Mike. Feel free to add. Thanks, Brian. Look, overall, inflow and conversion and pipeline continue to be in a very healthy state, Brian. Really pleased with the execution and innovation and investments that we are doing to fuel innovation.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Specifically on the deals that we spoke about in quarter one, As Mike said in his prepared remarks, we already closed one of them, and we closed many of the large deals or few of the large deals in second quarter. And both the large deal or overall pipeline continues to be in a pretty healthy state. Mike?

[Mike Weiner, CFO at Genpact]

Yes. The only thing I'd like to add is that we closed one of those deals in the first quarter, as BK talked about, and we had three other large deals in a different cohort that weren't delayed that closed in the second quarter. We're still in active dialogue with those deals and we expect them to come to fruition within the year.

[Bryan Bergin, Managing Director at TD Cowen]

Okay, good. Second question on Gen AI, just anything latest you can share about that net impact of Gen AI from traditional contracting on your base business? And if you've got any incremental details on the range of outcomes that you may have across engagements?

[Balkrishan Kalra, CEO, President & Director at Genpact]

Yeah. I think as, Brian, you may have noticed during our Investor Day, we shared a little bit of a detailed illustration of how a lot of this GenAI and AgenTeq implementations are shaping up our franchise. And it pretty much stays in the similar range, and it was a demonstration of how AI is a clear tailwind. And we continue to see that progress reasonably well. And I think how be it if I look at the pipeline, be it from a data and AI standpoint or Gen AI standpoint, that pipeline is actually as proportion from advanced technology solution continues to be actually at a very, very healthy stage.

[Balkrishan Kalra, CEO, President & Director at Genpact]

And really thrilled as to how we are shaping the curve of the business, especially with our investments in this innovation.

[Mike Weiner, CFO at Genpact]

Yeah, if I could just top on to that. So when we think about it, we laid out, we gave an illustrative example that BK alluded to earlier that we had in our Investor Day. But the way to kind of think about it is, we are sharing the AI productivity gains with our clients. That's to be expected. But we are seeing incremental revenue coming from a number of sources, including expanded scope, increased volumes or both, as well as new logos.

[Mike Weiner, CFO at Genpact]

That on top of our ability to do it and enhance our margins makes it very accretive for Genpact both top and bottom line.

[Bryan Bergin, Managing Director at TD Cowen]

Okay, very good. Thank you.

[Mike Weiner, CFO at Genpact]

Thanks.

[Operator]

Thank you. One moment for the next question. The next question is coming from the line of Surinder Thind of Jefferies. Your line is open.

[Surinder Thind, Equity Research Analyst at Jefferies Financial Group]

You. B. K, can you maybe just talk about a bit more about the advanced technology solutions, the pipeline there, maybe how quickly that converts, and just kind of the length of projects so we have a better understanding of that segment reporting, given it's one of the newer pieces of data that you're providing.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Yeah. Thanks, Surinder. Look, overall, it's a revenue disaggregation, just specifically on advanced technology solution. I just defined, the pipeline is actually growing at a much healthier pace overall through across various components of advanced technology solution. Conversion is a tad faster.

[Balkrishan Kalra, CEO, President & Director at Genpact]

And as I mentioned, including at the Investor Day or in my prepared remarks today, it is greater than two x revenue by headcount and is growing certainly north of two x of the overall company average. And on your specific question on the length of the contract, 70% of all of advanced technology solutions approximately is amortized and also non FTE.

[Surinder Thind, Equity Research Analyst at Jefferies Financial Group]

Got it. That's helpful. And then just kind of following up, when I think about the growth rates from a segment perspective, it looks like you had nice growth across each of the verticals. Any additional color that you can provide there? Obviously, it seems like we've seen a pickup, you know, in professional services.

[Surinder Thind, Equity Research Analyst at Jefferies Financial Group]

Just any color on how we should think about the demand environment there at the segment level.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Look, overall, again, pleased with the execution and total growth being 7% year over year on pretty decent comps. High-tech and manufacturing, and it is high-tech and manufacturing, we don't split it out, grew 13%, as Mike mentioned in his prepared remarks. Financial services, 6%. And yes, consumer healthcare was 1%, but some concentration of macro sensitive customers specifically. If I look at the pipeline, pipeline across cohorts, be it cohorts of the deal or cohorts of verticals, cohort of geos, continues to be in a pretty strong and pretty healthy stage.

[Balkrishan Kalra, CEO, President & Director at Genpact]

And I'm really pleased with the strong execution that the team is demonstrating along with our clients.

[Mike Weiner, CFO at Genpact]

Yeah, so the only thing I'd like to add to that is that we delivered 7% growth for the quarter, right? And we are seeing, we're beginning to see the benefits of the strategic investments we've made that we've self funded in the business. That's really reflecting in really our revenue disaggregations, particularly that we're quite pleased with the 17% in advanced technology solutions, which PK talked about in the previous question. 70% new ties is something we're really proud of.

[Surinder Thind, Equity Research Analyst at Jefferies Financial Group]

Thank you.

[Operator]

Thank you. One moment for the next question. And the next question is coming from the line of Jacob Hatteray of Baird. Your line is open.

[Jacob Haggarty, Equity Research Analyst at Baird]

Yes. Hey, guys, and congrats on a good quarter. I just had a question quick on sequential trends. So at the midpoint of your Q3 guide, it implies below sequential trends, which would then mean that Q4 would have to be sort of above what's normal for you to hit the top end of your guide. Is that something that's possible if you hit the midpoint?

[Jacob Haggarty, Equity Research Analyst at Baird]

Or are you guys going to have to kind of lower the top end there? What are your thoughts on that?

[Mike Weiner, CFO at Genpact]

Yeah. So it's Mike. So again, we feel really good about our guide in terms of the range. Again, the way I'd like you to think about it so at 5%, which is the midpoint of it, first of we haven't changed our approach on how we guide. Nothing to really change on a sequential basis.

[Mike Weiner, CFO at Genpact]

So again, using just simple math, at 5% growth at the midpoint, we need to deliver about $238,000,000 for the year, as I talked about. 70% of that has already been behind us. So if you then can extrapolate that the other 30% is about $76,000,000 And again, we feel good about being able to achieve that certainly at the midpoint of the range. And we'll ultimately see about execution client involvement that potentially could push us above that number.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Yeah, and we continue to be prudent about how we guide and how we deliver.

[Jacob Haggarty, Equity Research Analyst at Baird]

Gotcha. And then just a quick follow-up. So appreciate the disclosures on advanced tech solutions and core business services. Just looking back at 2024, that really advanced tech solutions started to really accelerate, in q three. And since then, core business services has been decelerating.

[Jacob Haggarty, Equity Research Analyst at Baird]

Is that a trend that you expect to continue? I know we start to hit tougher comps in the back half for Advanced Tech Solutions. Like, how how are you viewing the interaction between those two growth rates?

[Mike Weiner, CFO at Genpact]

Yeah, so I'll kick this off, BK, and then maybe we'll hand it over to you for some additional high level comments about it. So if we harken back to our Investor Day, which had about six weeks ago, we gave out our targets for the midpoint. But the way to kind of think about it, we're thinking about our ATS business growing at least 15%, and our core businesses growing at 4% to 5%. And some of that is really driven by the rotation out of core business services as we pivot into advanced technology solutions. And again, you're correct to assume it's correct to point out the acceleration we had late last year and throughout this year in advanced technology solutions.

[Mike Weiner, CFO at Genpact]

And that really pinpoints back to the investments we've made in that revenue category. And we're looking at hypercharging that on a go forward basis. And that's really what's reflected in our guide for this year and for our medium term guide.

[Balkrishan Kalra, CEO, President & Director at Genpact]

And there'll be some variability in comps and numbers that might come through, and I won't overread into that. But fundamentally, really pleased with all of our investments that we are making in advanced technology solution, how it's ramping up. But I will also center the argument a little bit on total revenue growth that we continue to deliver at amongst the top top end profile of in our sector.

[Jacob Haggarty, Equity Research Analyst at Baird]

Gotcha. Thanks, guys.

[Operator]

Thank you. One moment for the next question. And the next question will be coming from the line of Sean Kennedy of Mizuho. Please go ahead.

[Sean Kennedy, Payments & IT Services Equity Research Analyst at Mizuho Financial Group]

Hi. Nice results. Thanks for taking my question. So so, you know, how should we think about the, you know, the net new versus existing existing accounts mix for Agenic Solutions currently, and how can that mix change over time?

[Balkrishan Kalra, CEO, President & Director at Genpact]

Look, I think point number one, Sean, I would say really pleased with the book of business and the clients that we have, be it in enterprise or mid market. And we are continuing to take these innovative solutions to all of these clients, and all of these clients are adopting at different pace depending upon where they are in their journeys. And what we are seeing is clearly all of these solutions taken up by new logos as well, a little bit more actively, so really pleased as to how be it the AgenTeq or data and AI solutions, are in our pipeline fueled by both existing clients as well as newer ones.

[Sean Kennedy, Payments & IT Services Equity Research Analyst at Mizuho Financial Group]

Great, thank you. And then also, could you share, like, how client conversations progressing last few months, you know, from early April on tariffs to today? Like, was was it a brief pause followed by, you know, a quick reengagement, or are clients still generally more cautious?

[Balkrishan Kalra, CEO, President & Director at Genpact]

Overall, look, client conversations continue to be more centered around data and AI, and how all of this can actually generate ROI for all the investments they are making. You know, we all talk about technical debt, and, you know, some of my conversation is always about the process debt and the frame that I always say that, hey, there ain't any benefit of artificial intelligence if there is not process intelligence behind it, and I think a lot of that differentiation is coming to life.

[Mike Weiner, CFO at Genpact]

Yeah, if I can just add on to that for a quick second. So a lot of our customer conversations remain really healthy for us. That's something we're super proud of. And it's reflected in our guide. The macro remains somewhat muted.

[Mike Weiner, CFO at Genpact]

It has clarified a little from the paralysis that we've seen in the early part of the year. We've remained somewhat cautious and prudent with how we think about it on a perspective basis. But our guide really is how to think about it from reflecting it particularly that in advanced technology solutions as we're seeing enhanced demand for that.

[Sean Kennedy, Payments & IT Services Equity Research Analyst at Mizuho Financial Group]

Great, thank you. Appreciate all the color. Congrats again. Thank you.

[Operator]

Thank you. One moment for the next question. And the next question will be coming from the line of Prunad Jain of JPMorgan Chase. Your line is open.

[Puneet Jain, Associate - Equity Research at JP Morgan]

Hey, thanks for taking my question and good quarter, guys. My question is around like AI, like, there any processes or verticals regions where AI adoption is higher than others? And do clients typically go with their existing vendors when they're trying to bring AI in their business processes? Or are they okay, like looking at new vendors, like a vendor who can bring more AI solutions than their current providers. Yeah.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Thanks, Puneet. Overall, I would say, maybe I'll address your second question first. What we see, as I was mentioning earlier, a very strong demand from all of our existing clients as well as newer clients, and I think the last mile expertise, be it of end to end process ownership, deep domain, or operational data operating at scale, is shining through, especially when we are investing in technology at that last mile and shining the differentiation further. And clearly, we see an uptick there, and that's what you see in our Advanced Technology Solutions results, and I think even as we progress within this quarter. And then our investments in partnerships is further accelerating that.

[Balkrishan Kalra, CEO, President & Director at Genpact]

More on your question one, I think, look, I would say it is across sectors. Clearly, services, by how they experiment at much faster pace, but we are seeing even manufacturing, high-tech, or even consumer companies are really not behind. Maybe from a geography standpoint, US continues to lead more. Australia is ahead too, so is Europe. I think it's more broad based, I would say.

[Puneet Jain, Associate - Equity Research at JP Morgan]

Got it. No. And thanks for that. And can you also comment on pricing environment, whether AI is accelerating some of the pricing pressure or if you are seeing any instances of any of your pursuing deals and being irrational in pricing at all?

[Balkrishan Kalra, CEO, President & Director at Genpact]

So I won't say, Mike, you you look at pricing also far more closely. I don't see any irrational pricing behavior at all, Puneet. And clients are actually getting more focused on value, not just also cost. And clearly, we are shifting the needle on non FTE models as well, and we spoke about advanced technology solution, nearly 70% non FTE and more consumption based structures are So I think we don't see any irrational pricing behavior, Mike.

[Mike Weiner, CFO at Genpact]

No. We haven't seen any irrational pricing behavior. The one thing that I would continue to point out that you just alluded to is the delivery from FTE legacy models is now shifting at a faster pace to non FTE or outcome based models or any flavor of that pricing, which I think is really healthy for us and also healthy for the industry as all.

[Puneet Jain, Associate - Equity Research at JP Morgan]

Okay, thank you.

[Operator]

Thank you. And our next question will be coming from the line of Bradley Clark of BMO Capital Markets. Your line is open.

[Bradley Clark, VP - Equity Research at BMO Capital Markets]

Hi. Thanks for taking my question. I wanna ask about the midterm target of 7% growth and sort of how it relates to the year 2026, given your guide for the second half does imply some further deceleration. And I just want to understand about what you guys are seeing on the pipeline or in the large deal booking that you closed in the quarter that help give you confidence in that acceleration from sort of where the second half is laid out here to that 7% growth target that you laid out in Investor Day? What could help go by to get the numbers back up? Thank you.

[Mike Weiner, CFO at Genpact]

Yeah. So again, at Investor Day, we highlighted at least 7% growth for the midterm, which is 2627%, right? We continue to build momentum in our business. The pipeline remains very healthy in conversion rates that BK alluded to. We'll provide some bookings information at the end of the year.

[Mike Weiner, CFO at Genpact]

But if you're really double clicking on what will the impact be of potentially these this cohort of delayed large deals really has no effect on our view either for this year or for the next year. We continue to execute extremely well in the existing deals that we have as well as where our pipeline lies.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Yes, maybe two comments to add. We stay continue to stay prudent about our guide and don't want numbers to run ahead of us. And we remain confident of our medium term targets that we laid out at Investor Day. And if you look at last x number of quarters, we continue to perform at the top end of our services sector.

[Bradley Clark, VP - Equity Research at BMO Capital Markets]

Excellent. Appreciate the color.

[Operator]

Thank you. And this does one moment, please. I have another question that will be coming from the line of Maggie Nolan of William Blair. Your line is open.

[Maggie Nolan, Research Analyst - Technology, Media & Communications at William Blair & Company, L.L.C]

Hi, this is Maggie Nolan with William Blair. Thanks for taking my question. I I wanted to see your thoughts on, you know, as we continue to see how these trends of AI develop, whether or not you're seeing a little bit of a convergence between what would have traditionally been considered IT services and what have traditionally would have been considered BPO. Just given that AI is more comprehensive, there seems to be an appetite for larger, more comprehensive deal sizes that touch you know, data and process in all of these different areas. Is that something that resonates with you as you think about, you know, a multiyear vision for the company, and how is Genpact responding to that?

[Balkrishan Kalra, CEO, President & Director at Genpact]

Thanks, Maggie. Look, I think I'll first speak to our strategy, Maggie, and strategy of known as last mile experts, be it from a process, domain, contextual data, operational data, and operations scale, and applying investments in technology on this differentiation that has been core to us. And I think that has begun to shine more and more, and like I typically say, 2x, 2x seventy, seventy, I think it's getting shown in nearly now a quarter of our revenue, you know, growing at 2x the rate of the company and the 70% amortized and 70% non FTE models, and 2x the revenue by headcount. Look, I think we do believe that for clients, clients don't think about BPO IT. Clients are looking for who is providing them value, who is underwriting the value, and I think that's where the industry domain, running operations at large scale, knowing the last mile, I think, has begun to shine more. I don't know if that answers your question.

[Maggie Nolan, Research Analyst - Technology, Media & Communications at William Blair & Company, L.L.C]

Yes. That's helpful. Thank you. And then also on kind of a multiyear timeline, you know, obviously, you've you've talked about this a little bit in the past, but can you elaborate on the ability to drive revenue and kind of decouple that to some degree from headcount? And then what type of investments are most important for the headcount that does remain if you perhaps invest a little bit less in headcount to drive the same amount of revenue? Thank you.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Sure. So maybe two parts answer as I think about what you asked. Look, I think, first thing, all this transformation is not happening overnight. It is a multiyear transition and transformation. We are wanting to take all these solutions to our clients, and we got to meet where our clients are and kind of also while we accelerate their pace, but we also need to kind of walk with them and kind of set up the data pipeline, set up the infrastructure, and I think we are in that early phase.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Now I I think so multiyear, as we have said, I think we gave certainly medium term targets of at least seven. And as we think from a workforce standpoint, Maggie, we said that there are only as we progress, there will be only two cohorts of people in Genpact, AI builders or AI practitioners. We set up some near term targets as well we shared at the Investor Day, and really pleased as to how the talent mix and how our talent is really adopting all of these new technologies and new techniques at scale. And I mentioned about our culture as well, and one attribute of the culture is learning attribute that has always been Genpact, and that is really, again, taking shape in a more fundamental way now.

[Maggie Nolan, Research Analyst - Technology, Media & Communications at William Blair & Company, L.L.C]

Thank you very much.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Thanks. Thanks, Maggie.

[Operator]

Thank you. And there are no more questions in the queue. I would like to turn the call back over to management for any closing remarks. Please proceed.

[Balkrishan Kalra, CEO, President & Director at Genpact]

Thank you, Lisa. Look, I want to thank you all for joining us today, and my heartfelt thanks to our incredible employees for all of their hard work. We are very excited about the future of Genpact. As we look ahead, we will continue to leverage advanced technology solutions to strengthen our last mile advantage and position Genpact as a partner of choice for AI driven transformation. I also want to take this opportunity to thank all of our clients for choosing Genpact and all the shareholders for ongoing support.

[Balkrishan Kalra, CEO, President & Director at Genpact]

We look forward to speaking with you again next quarter. Thank you.

[Operator]

Thank you for joining today's conference call. This does conclude today's meeting. You may all disconnect.

Participants

Executives

• Krista Bessinger, Head of Investor Relations
• Balkrishan Kalra, CEO, President & Director
• Mike Weiner, CFO

Analysts

• Bryan Bergin, Managing Director at TD Cowen
• Surinder Thind, Equity Research Analyst at Jefferies Financial Group
• Jacob Haggarty, Equity Research Analyst at Baird
• Sean Kennedy, Payments & IT Services Equity Research Analyst at Mizuho Financial Group
• Puneet Jain, Associate - Equity Research at JP Morgan
• Bradley Clark, VP - Equity Research at BMO Capital Markets
• Maggie Nolan, Research Analyst - Technology, Media & Communications at William Blair & Company, L.L.C