Genpact (NYSE:G) Posts Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Genpact beat quarterly expectations: Adjusted EPS was $1.00 versus the $0.97 consensus, while revenue reached $1.34 billion, up 7.1% year over year and slightly above estimates.
• Advanced Technology Solutions drove growth: ATS revenue increased 24.1% to $363 million, prompting Genpact to raise its full-year ATS growth outlook to at least 25% and anticipate more than $1 billion in 2026 Agentic bookings.
• The outlook remains positive but includes a transition cost: Genpact maintained at least 7% 2026 revenue growth guidance and raised adjusted EPS growth expectations to at least 12%, while exiting lower-value services is expected to reduce 2026 revenue growth by nearly two percentage points.

Genpact (NYSE:G - Get Free Report) posted its quarterly earnings data on Thursday. The business services provider reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.97 by $0.03, FiscalAI reports. Genpact had a return on equity of 23.53% and a net margin of 11.04%.The company had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter last year, the company earned $0.88 earnings per share. The firm's quarterly revenue was up 7.1% on a year-over-year basis. Genpact updated its Q3 2026 guidance to 1.040-1.050 EPS and its FY 2026 guidance to 4.088- EPS.

Here are the key takeaways from Genpact's conference call:

• Q2 revenue rose 7.1% to $1.343 billion, while adjusted diluted EPS increased 13.6% to $1.00, outpacing revenue growth. Gross margin expanded for the 13th consecutive quarter to 36.5%.
• Advanced Technology Solutions revenue grew 24.1% year over year to $363 million, reaching 27% of total revenue. Genpact raised its full-year ATS growth outlook to at least 25% and expects more than $1 billion in 2026 Agentic bookings.
• Demand indicators strengthened, with record quarterly bookings, 12 large deals signed in the first half—double last year’s pace—and growing backlog and pipeline. More than half of cumulative Agentic contract value has come from new clients, suggesting expansion into additional markets.
• Genpact is exiting small portions of lower-value content management and commoditized contact-center work that do not fit its Agentic Operations strategy. The transition is expected to reduce 2026 revenue growth by nearly two percentage points, with the impact concentrated in the second half and potentially larger in 2027.
• Despite the strategic transition, management maintained its outlook for at least 7% 2026 revenue growth, raised adjusted diluted EPS growth expectations to at least 12%, and projected continued expansion in gross and adjusted operating margins.

Genpact Price Performance

NYSE G traded down $1.90 on Friday, reaching $34.26. 3,930,685 shares of the company's stock traded hands, compared to its average volume of 2,007,382. The stock has a 50-day simple moving average of $31.23 and a 200 day simple moving average of $35.21. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.69 and a quick ratio of 1.69. Genpact has a 12 month low of $26.85 and a 12 month high of $48.64. The stock has a market cap of $5.81 billion, a PE ratio of 10.17, a P/E/G ratio of 1.02 and a beta of 0.57.

Genpact Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be issued a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Thursday, September 10th. Genpact's dividend payout ratio is presently 23.01%.

Analyst Ratings Changes

Several analysts have weighed in on the company. Needham & Company LLC lowered their price target on Genpact from $50.00 to $45.00 and set a "buy" rating on the stock in a report on Friday. Robert W. Baird cut their price objective on Genpact from $45.00 to $38.00 and set a "neutral" rating for the company in a report on Tuesday, July 7th. Mizuho decreased their price objective on shares of Genpact from $49.00 to $39.00 and set a "neutral" rating on the stock in a research report on Monday, May 11th. Susquehanna raised their target price on shares of Genpact from $33.00 to $37.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Weiss Ratings lowered shares of Genpact from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, June 24th. Two investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $39.33.

Hedge Funds Weigh In On Genpact

A number of large investors have recently bought and sold shares of G. Royal Bank of Canada increased its position in shares of Genpact by 19.7% in the first quarter. Royal Bank of Canada now owns 121,705 shares of the business services provider's stock valued at $6,131,000 after acquiring an additional 20,043 shares during the period. Amundi bought a new stake in shares of Genpact in the first quarter worth about $58,000. Goldman Sachs Group Inc. grew its stake in shares of Genpact by 20.8% in the first quarter. Goldman Sachs Group Inc. now owns 353,074 shares of the business services provider's stock worth $17,788,000 after purchasing an additional 60,887 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Genpact by 12.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 511,627 shares of the business services provider's stock valued at $25,776,000 after purchasing an additional 56,557 shares during the period. Finally, Focus Partners Wealth increased its holdings in Genpact by 10.3% during the 1st quarter. Focus Partners Wealth now owns 5,227 shares of the business services provider's stock valued at $263,000 after purchasing an additional 488 shares during the period. 96.03% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Genpact

Here are the key news stories impacting Genpact this week:

• Positive Sentiment: Strong Q2 earnings and revenue: Genpact reported adjusted earnings of $1.00 per share, ahead of the $0.97 consensus estimate, while revenue reached $1.34 billion versus expectations of $1.33 billion. Revenue increased 7.1% year over year, and earnings rose from $0.88 per share a year earlier. Genpact Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Advanced Technology Solutions accelerated: The division’s revenue grew 24.1% year over year and was identified as the primary driver of quarterly performance, supporting management’s transition toward “Agentic Operations.” Genpact Reports Second Quarter 2026 Results
• Positive Sentiment: Outlook improved: Genpact raised its fiscal 2026 adjusted earnings-growth outlook and provided full-year EPS guidance of approximately $4.09, above the $3.99 analyst consensus. Third-quarter EPS guidance of $1.04–$1.05 also exceeds the $1.03 consensus estimate.
• Positive Sentiment: JPMorgan raised its price target to $45 from $40, while maintaining a Neutral rating, indicating potential upside based on the cited reference price. JPMorgan Genpact Price Target Update
• Neutral Sentiment: Analyst views remain mixed: Susquehanna increased its target to $37 from $33 but retained a Neutral rating, while the broader brokerage consensus remains Hold. Genpact Analyst Ratings
• Negative Sentiment: Needham reduced its price target to $45 from $50, although it maintained a Buy rating. The target cut may be weighing on sentiment despite the company’s stronger results. Needham Genpact Price Target Update

About Genpact

Genpact is a global professional services firm specializing in digitally powered business process management and services. The company partners with clients across industries to design, transform and run key operations, leveraging data analytics, artificial intelligence, automation and domain expertise. Its offerings span finance and accounting, supply chain management, procurement, customer experience, risk and compliance, and other critical business functions.

Founded in 1997 as the business process outsourcing arm of General Electric and originally known as GE Capital International Services, the company rebranded as Genpact in 2005 and completed its initial public offering on the New York Stock Exchange in 2007 under the ticker symbol “G.” Over time, Genpact has expanded beyond traditional outsourcing to focus on digital transformation and innovation, helping organizations accelerate growth and improve operational efficiency.

Headquartered in New York City, Genpact serves clients in more than 30 countries across North America, Latin America, Europe and Asia Pacific.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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