Genpact Q3 Earnings Call Highlights

Key Points

• Q3 revenue rose 7.3% to $1.385 billion, while adjusted diluted EPS increased 10.3% to $1.07. Advanced Technology Solutions revenue surged 30.3%, offsetting flat Core Business Services revenue, which was affected by work Genpact is exiting.
• Genpact expects agentic solutions bookings to exceed $1 billion in 2026, more than five times 2025’s level, and signed five large deals in Q3. The company cautioned that implementation work means bookings take time to convert into reported revenue.
• For 2026, Genpact forecasts revenue growth of at least 7%, adjusted diluted EPS growth of at least 13%, and a 36.9% gross margin. Gross margin expanded for the 14th consecutive quarter, while quarterly operating cash flow was $93 million amid temporary invoicing and collection delays.

Genpact NYSE: G reported third-quarter revenue growth of 7.3% as demand for its technology and artificial intelligence services accelerated, while the company continued to move away from work it considers outside its strategy.

Revenue rose to $1.385 billion, including a roughly two-percentage-point drag from that transition, Chief Financial Officer Sumita Pandit said on the company’s earnings call. Adjusted diluted earnings per share increased 10.3% from a year earlier to $1.07, while GAAP diluted earnings per share were $0.89.

Genpact expects full-year 2026 revenue growth of at least 7% and said it could deliver similar growth in 2027, even as the company continues to exit some work. President and CEO BK Kalra said the shift is part of a broader effort to build an “Agentic Operations” business that uses AI agents alongside human experts.

Technology Growth Offsets Flat Core Revenue

Advanced Technology Solutions revenue rose 30.3% year over year to $405 million, accelerating from 24.1% growth in the second quarter. The business, which includes data and AI, digital technologies, advisory services and agentic solutions, represented 29% of company revenue.

Core Business Services revenue was flat at $980 million. Pandit said the figure included nearly three percentage points of impact from work the company transitioned away from. The division includes digital operations, decision support and technology services.

Asked how much work was moving from Core Business Services to Advanced Technology Solutions, Kalra said the amount was minimal at present. He said bookings would convert into recurring revenue over time and described growth as broad-based across both businesses.

By industry segment, consumer and healthcare revenue grew 10.7%, financial services rose 7.4%, and high tech and manufacturing increased 4.4%.

Agentic Bookings and Deal Pipeline Grow

Kalra said Genpact expects to exceed $1 billion in agentic solutions bookings in 2026 “by a margin,” more than five times the amount booked in 2025. More than half of cumulative agentic awarded contract value has come from new clients, Pandit said.

Bookings are not the same as reported revenue. Pandit told analysts that agentic deals typically require somewhat longer implementation and foundational work before bookings convert into GAAP revenue. Kalra said the company was still in the early stages of building implementation roadmaps with clients.

Genpact signed five large deals in the quarter, bringing its year-to-date total to 17, more than it signed in all of 2025. Kalra said the large deals represent net-new work, although they may involve existing customers, and that most include proprietary agentic solutions.

Among the client wins Kalra highlighted were Woolworths Group, which selected Genpact to transform finance and people operations across Australia and New Zealand, and Volkswagen Financial Services Portugal, which chose the company to build an agentic trade cycle management platform on Salesforce. Nestlé Group selected Genpact to establish a global capability center in India, he said.

Margins Expand as Cash Collections Lag

Gross margin increased approximately 160 basis points from a year earlier to 36.9%, marking the 14th consecutive quarter of expansion. Pandit said the quarter’s revenue mix helped, but also pointed to operational discipline, pricing and contract terms as factors behind longer-term improvement.

Adjusted operating income rose 7.7% to $247 million, with an adjusted operating margin of 17.7%. Selling, general and administrative expenses were 22.6% of revenue, up roughly two percentage points as the company invested in future opportunities.

Operating cash flow was $93 million for the quarter. Pandit said a recent enterprise resource planning system implementation delayed invoicing and collections, but that the company was on track through October to return to its previous collection pace. She said credit quality remained high and the effects were expected to normalize by early 2027.

Outlook Calls for Continued Investment

For 2026, Genpact expects Advanced Technology Solutions revenue to grow at least 25% and Core Business Services revenue to increase despite the work being exited. The company raised its full-year gross margin outlook to 36.9% and expects adjusted operating margin of 17.7% and adjusted diluted EPS growth of at least 13%.

For the fourth quarter, Genpact forecast approximately 7% revenue growth, including more than three percentage points of impact from work being transitioned away. Pandit said the dollar impact of that transition is currently expected to be modestly larger in 2027 than in 2026.

About Genpact (NYSE:G)

Genpact NYSE: G is a global professional services and business process management company that helps organizations improve operations through digital transformation, data and analytics, artificial intelligence, and industry-specific expertise. The company combines technology with operational services to support clients across core business functions.

Its offerings include finance and accounting, procurement, supply chain management, customer experience, risk and compliance, insurance operations, and banking and capital markets services.

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