ExlService (NASDAQ:EXLS) Issues Quarterly Earnings Results

Key Points

• ExlService beat expectations with quarterly EPS of $0.58 (consensus $0.53) and revenue of $570.35M, and updated FY2026 guidance to $2.18–$2.23 EPS.
• The Board authorized a $125 million share repurchase (about 2.7% of shares), a move that typically signals management views the stock as undervalued.
• Analysts hold a consensus "Moderate Buy" with an average price target of $43.60, versus the recent share price near $30.64, indicating potential upside.

ExlService (NASDAQ:EXLS - Get Free Report) issued its quarterly earnings data on Tuesday. The business services provider reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.05, FiscalAI reports. ExlService had a return on equity of 26.66% and a net margin of 12.02%.The company had revenue of $570.35 million for the quarter, compared to analysts' expectations of $557.89 million. ExlService updated its FY 2026 guidance to 2.180-2.230 EPS.

ExlService Trading Up 0.9%

Shares of NASDAQ EXLS traded up $0.26 during trading hours on Tuesday, reaching $30.64. The stock had a trading volume of 2,671,635 shares, compared to its average volume of 2,102,911. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 0.32. The firm has a market cap of $4.79 billion, a price-to-earnings ratio of 19.90, a P/E/G ratio of 1.37 and a beta of 0.89. The business's fifty day moving average price is $30.69 and its two-hundred day moving average price is $36.65. ExlService has a 52-week low of $26.94 and a 52-week high of $48.79.

ExlService announced that its Board of Directors has initiated a share repurchase plan on Tuesday, March 17th that permits the company to repurchase $125.00 million in shares. This repurchase authorization permits the business services provider to buy up to 2.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Wall Street Zen upgraded ExlService from a "hold" rating to a "buy" rating in a research report on Saturday, February 7th. Needham & Company LLC restated a "buy" rating and set a $40.00 target price (down from $55.00) on shares of ExlService in a research report on Wednesday, February 25th. TD Cowen dropped their target price on ExlService from $51.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Stifel Nicolaus dropped their target price on ExlService from $54.00 to $46.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Finally, Weiss Ratings lowered ExlService from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, ExlService presently has a consensus rating of "Moderate Buy" and an average price target of $43.60.

Insider Activity

In related news, EVP Ajay Ayyappan sold 1,197 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $29.79, for a total value of $35,658.63. Following the completion of the sale, the executive vice president owned 53,901 shares in the company, valued at approximately $1,605,710.79. The trade was a 2.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 4.04% of the company's stock.

Institutional Trading of ExlService

A number of large investors have recently modified their holdings of EXLS. AQR Capital Management LLC boosted its holdings in shares of ExlService by 109.7% in the fourth quarter. AQR Capital Management LLC now owns 4,118,625 shares of the business services provider's stock valued at $174,794,000 after purchasing an additional 2,154,652 shares during the period. Amundi bought a new position in ExlService in the third quarter worth approximately $67,862,000. Jane Street Group LLC raised its stake in ExlService by 534.2% in the second quarter. Jane Street Group LLC now owns 1,354,599 shares of the business services provider's stock worth $59,318,000 after buying an additional 1,141,008 shares in the last quarter. Qube Research & Technologies Ltd raised its stake in ExlService by 4,269.6% in the second quarter. Qube Research & Technologies Ltd now owns 882,480 shares of the business services provider's stock worth $38,644,000 after buying an additional 862,284 shares in the last quarter. Finally, Voloridge Investment Management LLC raised its stake in ExlService by 916.1% in the third quarter. Voloridge Investment Management LLC now owns 834,252 shares of the business services provider's stock worth $36,732,000 after buying an additional 752,148 shares in the last quarter. Hedge funds and other institutional investors own 92.92% of the company's stock.

ExlService Company Profile

ExlService Holdings, Inc NASDAQ: EXLS is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk.

Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge.

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