ExlService (NASDAQ:EXLS) Updates FY 2026 Earnings Guidance

Key Points

• FY2026 guidance: ExlService set EPS guidance of 2.180–2.230, above the consensus of 2.10, and issued revenue guidance of $2.3 billion, which is in line with expectations.
• Share buyback: The board approved a $125 million repurchase program to buy back up to 2.7% of shares, a move typically interpreted as management signaling the shares may be undervalued.
• Analyst/stock context: Analysts maintain a "Moderate Buy" consensus with a $43.60 price target despite recent cuts; the stock traded near $30.64 (market cap ~$4.79B, PE ~19.9) at mid-day trading.

ExlService (NASDAQ:EXLS - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 2.180-2.230 for the period, compared to the consensus earnings per share estimate of 2.100. The company issued revenue guidance of $2.3 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion.

Wall Street Analyst Weigh In

Several research firms recently issued reports on EXLS. Wall Street Zen raised shares of ExlService from a "hold" rating to a "buy" rating in a research note on Saturday, February 7th. Stifel Nicolaus decreased their price target on shares of ExlService from $54.00 to $46.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Weiss Ratings cut shares of ExlService from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday. Robert W. Baird set a $35.00 price target on shares of ExlService in a report on Wednesday, February 25th. Finally, TD Cowen decreased their price target on shares of ExlService from $51.00 to $45.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, ExlService presently has an average rating of "Moderate Buy" and a consensus price target of $43.60.

ExlService Stock Performance

EXLS stock traded up $0.26 during mid-day trading on Tuesday, reaching $30.64. 2,677,728 shares of the stock traded hands, compared to its average volume of 2,113,655. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 0.32. ExlService has a 52 week low of $26.94 and a 52 week high of $48.79. The business has a 50-day moving average of $30.69 and a two-hundred day moving average of $36.65. The firm has a market capitalization of $4.79 billion, a PE ratio of 19.90, a P/E/G ratio of 1.37 and a beta of 0.89.

ExlService (NASDAQ:EXLS - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The business services provider reported $0.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.53 by $0.05. The company had revenue of $570.35 million during the quarter, compared to analysts' expectations of $557.89 million. ExlService had a net margin of 12.02% and a return on equity of 26.66%. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. As a group, equities analysts predict that ExlService will post 1.76 EPS for the current fiscal year.

ExlService declared that its Board of Directors has approved a share buyback plan on Tuesday, March 17th that authorizes the company to buyback $125.00 million in shares. This buyback authorization authorizes the business services provider to reacquire up to 2.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Insider Activity at ExlService

In other news, EVP Ajay Ayyappan sold 2,275 shares of the company's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $30.32, for a total transaction of $68,978.00. Following the completion of the transaction, the executive vice president owned 53,768 shares of the company's stock, valued at approximately $1,630,245.76. This represents a 4.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 4.04% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio boosted its stake in ExlService by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 54,274 shares of the business services provider's stock valued at $2,390,000 after acquiring an additional 318 shares during the last quarter. Private Advisor Group LLC boosted its stake in ExlService by 6.3% in the third quarter. Private Advisor Group LLC now owns 6,038 shares of the business services provider's stock valued at $266,000 after acquiring an additional 358 shares during the last quarter. UMB Bank n.a. boosted its stake in ExlService by 22.3% in the fourth quarter. UMB Bank n.a. now owns 2,647 shares of the business services provider's stock valued at $112,000 after acquiring an additional 482 shares during the last quarter. Transamerica Financial Advisors LLC boosted its stake in ExlService by 285.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 678 shares of the business services provider's stock valued at $29,000 after acquiring an additional 502 shares during the last quarter. Finally, MML Investors Services LLC boosted its stake in ExlService by 4.5% in the second quarter. MML Investors Services LLC now owns 14,126 shares of the business services provider's stock valued at $619,000 after acquiring an additional 614 shares during the last quarter. Institutional investors and hedge funds own 92.92% of the company's stock.

About ExlService

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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