Genpact NYSE: G reported what executives described as a record start to fiscal 2026, with first-quarter revenue rising 6.7% year over year to $1.296 billion as demand accelerated for its Advanced Technology Solutions business, including data and AI, digital technologies, advisory and agentic offerings.
President and CEO BK Kalra said the quarter reflected “a new Genpact” taking shape as the company positions itself around agentic and AI-led operations. He said clients are increasingly choosing the company to reshape and run mission-critical operations, and that demand is visible in bookings, pipeline and inflows.
“Q1 makes the case that 2026 is proving to be that moment, and Genpact is not just watching it unfold, we are shaping it,” Kalra said on the earnings call.
Advanced Technology Solutions growth accelerates
Chief Financial Officer Mike Weiner said Advanced Technology Solutions revenue grew 24% year over year to $345 million in the quarter, driven by strength in data and AI and agentic offerings. The segment now accounts for 27% of total revenue, according to Kalra.
Kalra said the company’s Advanced Technology Solutions pipeline grew more than 30% over the prior 90 days, helped by demand for agentic solutions and data and AI expertise. He also said the company nearly doubled the total contract value of its agentic solutions in the quarter compared with all of 2025.
Weiner said more than 50% of cumulative awarded contract value for agentic solutions came from new clients, which he described as evidence of an expanding total addressable market and growing wallet share. He added that existing clients rotating from traditional to agentic delivery are showing net revenue growth and gross margin expansion above the levels discussed at the company’s investor day in June.
Executives repeatedly emphasized the company’s “2x 2x, 70/70” framework for Advanced Technology Solutions. Kalra said the business delivers more than twice the revenue per headcount and twice the revenue growth of the overall company, with 70% annuitized revenue and 70% from non-FTE commercial models. Weiner said the annuitized portion gives the company “very good ability to predict the business.”
Core business grows as company pushes agentic operations
Core Business Services revenue grew 1.4% year over year to $951 million in the first quarter. The segment includes digital operations, decision support services and technology services. Kalra described Core Business Services as a key part of Genpact’s growth model, saying the company’s process intelligence and ability to codify domain knowledge help clients apply artificial intelligence at scale.
Kalra said the company is moving clients from digital operations to “agentic operations,” a model in which agents autonomously execute tasks in reimagined processes while human experts validate exceptions, train models and reinforce learning within Genpact’s responsible AI framework.
During the question-and-answer session, Kalra said revenue growth is beginning to decouple from headcount growth. He said agentic revenues have “zero bearing on headcount” because they are IP-based, annuitized recurring revenues with minimum volume commitments, though employees are still deployed to support the work.
Large deals, partnerships and client examples
Genpact signed six large deals in the first quarter. Weiner said large deals are defined as contracts with total contract value of $50 million or more. He said the company has a strong pipeline of additional large deals and a record backlog.
Kalra pointed to two new global client examples. In Europe, he said Genpact entered a strategic partnership with a global insurance and financial services company to support its transformation into global verticals. The work includes running and optimizing mission-critical operations while embedding agentic finance IP solutions, including accounts payable and record-to-report, along with other AI-led offerings.
Kalra also cited Bendigo Bank, one of Australia’s leading banks, which entered a strategic multi-year partnership with Genpact to drive productivity and stronger risk and control outcomes across core operations. He said Bendigo Bank selected Genpact for its Australian banking operations expertise, AI and agentic case studies, and risk-balanced approach in regulated environments.
Partner-related revenue grew 35% year over year and now represents nearly 13% of total revenue, according to Kalra. He highlighted a newly announced strategic alliance with Google to create agentic and AI-led solutions for the office of the CFO. Kalra said the partnership combines Genpact’s process intelligence with Google Cloud’s AI infrastructure.
Kalra also discussed work with Cardinal Health, saying Genpact collaborated with Google Cloud on AI-led innovation in finance and supply chain transformation. He said agentic solutions in credit memo processing are increasing touchless processing, reducing cycle times and improving cash flows.
Margins expand and EPS rises faster than revenue
Weiner said gross margin expanded approximately 110 basis points year over year to 36.4%, marking the 12th consecutive quarter of gross margin expansion, according to Kalra. Weiner attributed the improvement to disciplined operations and pricing, along with a greater contribution from high-value Advanced Technology Solutions revenue.
Adjusted operating income was $224 million, and adjusted operating income margin was 17.3%. SG&A expense was 20.9% of revenue. Net income was $148 million, diluted EPS was $0.86 and adjusted diluted EPS rose 16.7% year over year to $0.98.
Genpact used $24 million of cash in operations during the quarter, which Weiner said was in line with typical first-quarter trends. The company ended the quarter with $578 million in cash and cash equivalents, up $16 million from a year earlier. It returned $102 million to shareholders, including $70 million of share repurchases and $32 million of dividends.
By segment, High Tech and Manufacturing grew 8%, Consumer and Healthcare grew 6.1%, and Financial Services grew 5.4%.
Company reiterates 2026 revenue outlook
For full-year 2026, Genpact continues to expect at least 7% revenue growth on an as-reported basis. Weiner said the company now expects Advanced Technology Solutions to grow at least 20%, citing momentum in agentic offerings, partnerships and demand for data and AI. Core Business Services is also expected to continue growing.
The company continues to expect full-year gross margin to expand by 50 basis points to 36.5%, with adjusted operating income margin increasing 25 basis points to 17.7%. Weiner said adjusted diluted EPS is expected to grow more than 10%, again faster than revenue.
For the second quarter, Genpact expects revenue of $1.324 billion to $1.336 billion, representing 6% growth at the midpoint on an as-reported basis. The company expects Advanced Technology Solutions to grow at least 20% year over year, gross margin of 36.4%, adjusted operating income margin of 17.4%, and adjusted diluted EPS of $0.96 to $0.97.
In response to analyst questions about client spending and macro conditions, Kalra said demand remains strong across Advanced Technology Solutions and Core Business Services, as well as across new and existing clients, segments and geographies. Asked about broader industry commentary around delayed decision-making, Kalra said Genpact’s pipeline and inflows suggest the company is “separating from the pack.”
About Genpact NYSE: G
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.
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