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Genpact stock has had a weak run over the past five years, yet current valuation checks still lean toward the shares looking cheap rather than fully priced. Recent news around Genpact's push into agentic AI products adds a fresh angle for investors trying to judge whether the market is being too cautious or is fairly reflecting the risks. Genpact's share price is down about 22% over the past 5 years, which suggests investor confidence has been muted despite the business repositioning around data and AI led services. The launch of Genpact's agentic AI Record to Report suite and its push to productize more of its intellectual property can support higher quality earnings over time. However, execution risk around this shift in business mix and platform rollout may weigh on how much investors are willing to pay today. Genpact screens as undervalued on most broad checks, with a high value score of 5 that indicates the broader metrics lean cheap rather than stretched. The issue now is whether Genpact's current share price already reflects the weaker long term return so far, or if the stock still offers room for valuation to catch up with its AI focused ambitions. Scan beyond Genpact and compare this AI focused shift with other stocks that screen as potential value opportunities in the 54 high quality undervalued stocks. The P/E ratio is a useful anchor for Genpact because earnings remain a key yardstick for how the market prices its shift toward more AI and product led work. Genpact trades on a P/E of about 10.8x, which is well below the Professional Services industry average of 22.0x and also below the peer group average of 17.7x. That already puts the stock on the lower side of the sector range. The fair P/E ratio from the model is 19.4x, which reflects what investors might typically pay given Genpact's size, margins and risk profile. Against that benchmark, the current 10.8x P/E implies a sizeable gap that indicates the stock may be undervalued on an earnings basis. Despite the recent agentic AI launches and new product leadership hire, the market is still pricing Genpact at a clear discount to both peers and this fair multiple. On a P/E basis, Genpact stock appears undervalued compared with both its industry and the fair multiple implied by the model. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Genpact valuation puzzle leaves off by spelling out what would need to happen to Genpact's growth, margins and earnings for the stock to be worth materially more or less than today's price, and they sit on the company’s Community page. Rather than relying on a single multiple or model output, each narrative lays out the assumptions behind its fair value so you can compare them with the actual results as they are reported. The community is split on how much credit Genpact deserves for its agentic AI push, with one camp seeing clear upside and another flagging tight risk margins. Bull case: 11% undervalued Read the full Bull Case to see why Genpact could be undervalued Bear case: 21% overvalued Read the full Bear Case to see why Genpact could be overvalued Do you think there's more to the story for Genpact? Head over to our Community to see what others are saying! Genpact screens as undervalued on earnings multiples, which suggests the market is still cautious about the shift toward agentic AI and product led revenue. The gap between the current P/E and the fair multiple only closes if investors gain confidence that this mix change can be executed without eroding margins or returns. The key question is whether the discount is compensation for genuine execution risk or simply reflects a slow reassessment of Genpact's AI focused strategy. Your decision depends on how much conviction you have that the new AI products can scale cleanly and support a more resilient earnings profile over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include G. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Innodata Inc. INOD has delivered a strong run over the past six months, with shares gaining 40%. The performance comfortably exceeds the Zacks Engineering - R and D Services industry's 11.1% rise and the S&P 500 Index's 13.1% advance over the same period. INOD’s 6-Month Price Performance Image Source: Zacks Investment Research The rally has been supported by rapid AI-driven growth, expanding margins and a broader customer base. Innodata's record second-quarter 2026 results strengthened that case, with revenues rising 58% year over year to $92.1 million. Adjusted EBITDA jumped 92% to $25.4 million, while adjusted gross margin reached 49%.However, after the sharp share-price gain, Innodata carries a sizable valuation premium. Mixed estimate revisions and customer concentration also warrant attention. Investors therefore need to weigh the company's expanding AI opportunity against the expectations already reflected in INOD shares. Innodata's second-quarter performance showed that its AI strategy continues to translate into financial growth. Revenues of $92.1 million marked the company's 12th consecutive quarter of year-over-year growth and exceeded the Zacks Consensus Estimate by about $5.8 million, or 7%. Adjusted EBITDA of $25.4 million represented 27.5% of revenues. Earnings per share (EPS) reached 41 cents, nearly double the consensus estimate of 21 cents.Importantly, growth is being accompanied by stronger profitability. Adjusted gross margin expanded two percentage points sequentially to 49%, nine percentage points above Innodata's publicly stated 40% target. Management attributed the improvement to a greater mix of high-margin programs, including pretraining work and off-the-shelf datasets for which Innodata retains intellectual property and can monetize the same asset across multiple customers. One of the strongest arguments for further upside is the breadth of Innodata's emerging AI opportunities. Management reiterated its expectation for full-year 2026 revenue growth of at least 40%. More importantly, several large potential engagements with existing and new customers have not been included in that forecast because their scope and timing are not yet finalized.Research and innovation are also opening new markets. Innodata has established an early position in agentic reinforcement learning and is working on long-horizon agent personalization and reinforcement-learning environments for computer-use tasks. It is also expanding model evaluation and benchmarking capabilities.Beyond frontier AI models, Innodata is pursuing enterprise, cybersecurity, federal and physical AI opportunities. During second-quarter 2026, the company ran successful egocentric data-collection pilots with robotics companies and began scoping enterprise-scale multimodal programs, including a roughly 2-million-hour egocentric data opportunity. These initiatives could widen the addressable market beyond Innodata's current core programs. Customer diversification represents another encouraging development. Innodata's largest customer accounted for 37% of second-quarter revenues, down sharply from 56% in the first quarter. Meanwhile, a Big Tech customer announced in the prior quarter increased its contribution to 34% from 17%. Innodata also added a new customer described as one of the fastest-scaling frontier AI labs.The shift is important because Innodata's rapid growth has historically depended heavily on a small group of large technology customers. A broader mix of customers and programs should make growth more durable if the trend continues.The balance sheet also provides flexibility. Innodata ended the second quarter with $250.4 million in cash and short-term investments. Excluding customer prepayments, the amount was approximately $134 million, up $37 million sequentially, while the company had no debt outstanding at quarter-end. Despite the strong operating picture, INOD's valuation leaves less room for disappointment. The stock trades at 43.22X forward 12-month earnings, well above the Zacks Engineering - R and D Services industry's 27.25X. Such a premium implies that investors are already pricing in substantial earnings growth. INOD Stock’s Valuation (P/E F12M) Image Source: Zacks Investment Research Estimate revisions also send a mixed signal. Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has climbed to $1.18 per share from 99 cents, indicating growing confidence in near-term execution. However, the 2027 estimate has declined to $1.67 from $1.78. The current estimates still imply earnings growth of 28.3% in 2026 and 41.7% in 2027, while the consensus mark for revenue projections suggests growth of 42.1% and 28.1%, respectively. INOD EPS Estimate Revision Trend Image Source: Zacks Investment Research Margins may also fluctuate. Management acknowledged that Innodata could accept large projects carrying lower gross margins if their cash-flow economics are attractive. Therefore, the 49% adjusted gross margin achieved in second-quarter 2026 should not necessarily be viewed as a new quarterly floor. Management expects revenue quality to improve over time, but quarter-to-quarter margins will depend on program mix.Customer concentration remains another risk despite the recent improvement. The top two customers together represented 71% of second-quarter revenues. Moreover, project-based work can create uneven quarterly trends, and management acknowledged that sequential revenue declines in individual quarters remain possible. Innodata's rally looks particularly strong against Genpact Limited G, Accenture plc ACN and TaskUs, Inc. TASK. Over the past six months, Innodata has gained 40%, while Genpact has lost 8%, Accenture has plunged 20.4% and TaskUs has dipped 27.5%. Genpact and Accenture compete with Innodata across enterprise AI, data engineering and AI transformation services, while TaskUs has greater overlap in AI data services, model training, annotation and human-in-the-loop work.The valuation gap, however, is substantial. Innodata trades at 43.22X forward earnings compared with 8X for Genpact, 12.2X for Accenture and 4.89X for TaskUs. Innodata's faster growth helps explain part of the premium, but Genpact, Accenture and TaskUs offer investors much lower earnings multiples. As a result, Innodata must sustain strong revenue growth and margin execution to justify its premium over Genpact, Accenture and TaskUs. Innodata's record second-quarter results offer strong support for the six-month rally. Revenues and adjusted EBITDA growth remain robust, margins have expanded, customer diversification is improving and management's 40%-plus 2026 growth outlook excludes several potentially large opportunities. Agentic AI, model evaluation, cybersecurity, robotics and enterprise AI could provide additional growth avenues.Still, the stock's 43.22X forward P/E represents a meaningful premium to the industry and its three discussed peers. Mixed 2027 estimate revisions, continued customer concentration and potential quarterly swings in revenue and margins add reasons for caution.With INOD currently carrying a Zacks Rank #3 (Hold), existing investors may prefer to stay invested and watch whether new AI programs convert into revenue and support further estimate increases. The long-term growth story remains attractive, but after a 40% six-month rally, the current valuation argues against aggressively chasing the stock at this point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Innodata Inc (INOD) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Genpact Limited (G) : Free Stock Analysis Report TaskUs, Inc. (TASK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Genpact stock has fallen about 29.7% over the past five years, yet its valuation checks now lean cheap enough that investors are asking whether the market has become too pessimistic about the company. The roughly 29.7% share price decline over five years signals that long term holders have seen capital fall even as the business story has continued to evolve. Recent optimism around Genpact's push into advanced technology and AI focused services can support higher earnings expectations, while any slowdown in execution or client spending may limit how much investors are willing to pay for that growth. Genpact screens as undervalued on most of Simply Wall St's checks, with the broader toolkit indicating the stock looks cheap on 5 of 6 valuation measures. The issue now is whether Genpact's current share price already reflects these risks and opportunities or still leaves room for upside in the valuation. Find out why Genpact's -19.3% return over the last year is lagging behind its peers. The P/E multiple fits Genpact well because earnings are a key focus for how investors judge service businesses like this. Right now Genpact trades on a P/E of about 9.9x, which is well below the Professional Services industry average of roughly 22.2x and also below the peer group average of about 17.0x. That places the stock at a clear discount to many other earnings producing companies in its space. The fair P/E for Genpact, based on its size, business mix and risk profile, is estimated at about 19.4x. That is almost double the current multiple, which suggests the stock may be undervalued on this earnings based approach. Despite the reported Q2 2026 results and revised earnings guidance, the P/E still prices Genpact at a clear discount to both the fair ratio and sector benchmarks. On the P/E multiple, Genpact stock appears undervalued compared with both its tailored fair ratio and the wider Professional Services industry. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Genpact pick up where the valuation puzzle leaves off and explain what growth, margin and earnings paths would need to occur for Genpact's stock to be worth materially more or less than today’s price. Rather than relying on a single multiple or model output, each narrative sets out the assumptions behind its view of fair value so you can compare those to Genpact's actual results on the Community page as they are reported. The community is split on Genpact, with one camp focused on AI led upside and another more cautious about how much of that is already in the price. Bull case: 13% undervalued Read the full Bull Case to see why Genpact could be undervalued Bear case: 11% overvalued Read the full Bear Case to see why Genpact could be overvalued Do you think there's more to the story for Genpact? Head over to our Community to see what others are saying! For Genpact, the valuation story today leans on a market multiple that screens as undervalued relative to its own fair P/E and to sector peers. That discount reflects both the potential of its AI and technology push and the risk that execution or client demand might not fully support a higher earnings multiple. The key question for investors is whether Genpact can convert its AI initiatives into reliable, profitable contracts that the market is willing to pay more for. The answer to that will likely decide whether the current discount is an opportunity or a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include G. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In the past week, Genpact Limited reported second-quarter 2026 results showing higher sales of US$1,343.44 million and increased net income of US$145.74 million, alongside updated guidance calling for third-quarter net revenues of up to US$1.382 billion and full-year diluted EPS of US$3.51. The company also continued its long-running share repurchase program, buying back 1,600,000 shares for US$50 million in the quarter and bringing total buybacks since 2015 to 74,439,890 shares for US$2.51 billion, underlining its emphasis on returning capital to shareholders as it scales higher-value Advanced Technology Solutions. With Genpact highlighting rapid growth in Advanced Technology Solutions and reaffirmed full-year guidance, we’ll examine how this reshapes its investment narrative. Find 52 companies with promising cash flow potential yet trading below their fair value. To own Genpact, you need to believe its pivot toward higher value Advanced Technology Solutions can offset slowing legacy BPO work and support resilient margins. The latest quarter’s higher sales and earnings, plus reiterated full year guidance, support that thesis in the near term, while the biggest risk remains execution on large, annuitized AI and agentic deals in a still cautious demand backdrop. Overall, this week’s news does not materially alter that risk reward balance. Among the recent announcements, the continued buyback stands out alongside Q2 earnings. Repurchasing 1,600,000 shares for US$50 million, bringing total buybacks since 2015 to over US$2.50 billion, matters in the context of a stock that has lagged broader indices and an investment case that leans on consistent earnings, cash generation, and capital returns while Genpact scales its Advanced Technology Solutions portfolio. Yet despite solid guidance, investors should also be aware that if large AI and agentic contracts convert more slowly than expected, then... Read the full narrative on Genpact (it's free!) Genpact's narrative projects $6.4 billion revenue and $745.2 million earnings by 2029. This requires 7.3% yearly revenue growth and about a $175.6 million earnings increase from $569.6 million today. Uncover how Genpact's forecasts yield a $39.27 fair value, a 15% upside to its current price. Some of the most optimistic analysts were assuming Genpact could lift earnings to about US$800 million by 2029, but if AI and agentic adoption slows or partner driven revenue disappoints, that much rosier path may look very different from what you personally expect. Explore 5 other fair value estimates on Genpact - why the stock might be worth over 3x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Genpact research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Genpact research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Genpact's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: AI is about to change healthcare. These 43 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include G. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Genpact Limited? Here are five stocks we like better. Genpact’s Q2 revenue rose 7.1% to $1.343 billion, led by Advanced Technology Solutions revenue growth of more than 24% to $363 million. The company reported record quarterly bookings, six large deals and strong momentum in agentic offerings. Genpact is moving away from lower-priority, commoditized services to focus on its Agentic Operations strategy. The portfolio 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. Profitability improved, with gross margin expanding 60 basis points to 36.5% and adjusted EPS rising 13.6% to $1.00. Management reaffirmed at least 7% full-year 2026 revenue growth, raised its Advanced Technology Solutions growth outlook to at least 25%, and expects adjusted EPS growth of at least 12%. A Sweet Beat and a Wearables Rally Came With Reasons to Pause Genpact (NYSE:G) reported second-quarter revenue growth of 7.1% as demand for its Advanced Technology Solutions accelerated, while the company outlined plans to move away from a small set of lower-priority service offerings that do not fit its Agentic Operations strategy. Revenue for the quarter totaled $1.343 billion. Advanced Technology Solutions, which includes data and AI, digital technologies, advisory and agentic offerings, generated $363 million of revenue, up more than 24% from a year earlier. Core Business Services revenue rose 1.9% to $980 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Humanoid Robot ETFs to Ride a Speculative Trend President and CEO BK Kalra said the company is positioning itself around “Agentic Operations,” describing a model in which domain experts and AI agents work through redesigned processes to execute enterprise transactions with governance, auditability and human oversight. “There is no artificial intelligence without process intelligence,” Kalra said, arguing that enterprises need foundational work involving data harmonization and process intelligence before they can scale AI investments effectively. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High MarketBeat Week in Review – 07/27- 07/31 Genpact said Advanced Technology Solutions accounted for 27% of total revenue in the second quarter and nearly 40% of quarterly bookings. The company reported its largest-ever quarterly bookings result and signed six large deals, defined as contracts with total contract value of $50 million or more. That brought its year-to-date large-deal total to 12, double the number signed in the first half of the prior year. Kalra said the company expects to book more than $1 billion in agentic total contract value during 2026, about five times its 2025 level. More than half of cumulative awarded contract value in agentic offerings has come from new clients, according to management. → No Hangover: Revisiting Microsoft One Week After Earnings The company said existing clients that shifted from traditional delivery models to agentic delivery have produced more than 3% net revenue growth and over 300 basis points of gross-margin expansion. Genpact cited recent launches including its Transaction Monitoring Analyst, part of the Genpact Banking Analyst Suite, and its Deductions Recovery offering for consumer-goods companies. The company also pointed to engagements with Lumen to agentify accounts-payable operations and with Mondelēz International to build an enterprise-wide agentic operating model across source-to-pay processes. Management said it is reviewing portions of Core Business Services that do not align with its agentic strategy. The company is transitioning certain work back to clients and redeploying investments away from areas such as portions of content management and commoditized contact-center services. Kalra characterized these activities as a very small part of Genpact’s business and said they are generally more one-off, less differentiated contracts with commercial structures tied to hourly work. The transition is expected to reduce full-year 2026 total revenue growth by nearly two percentage points, with the impact concentrated in the second half. CFO Mike Weiner said the work transitions are expected to occur over the next four to six quarters. Genpact currently expects the dollar impact to be slightly larger in 2027, though management expects continued growth in businesses aligned with its strategy to provide an offset. Despite the transition, Genpact said it still expects Core Business Services revenue to grow for the full year. For the third quarter, however, the company expects Core Business Services revenue to be flat to slightly down, including about three points of impact from the portfolio transition. Gross margin expanded for the 13th consecutive quarter, rising about 60 basis points year over year to 36.5%. Adjusted operating income increased 7.5% to $234 million, while adjusted operating margin was 17.4%. Net income was $146 million, and diluted earnings per share were $0.86. Adjusted diluted EPS rose 13.6% year over year to $1.00, outpacing revenue growth. Genpact generated $72 million in cash from operations and ended the quarter with $517 million in cash and cash equivalents. Weiner said cash flow was affected by collection timing and prepayments made in 2025. The company returned $82 million to shareholders during the quarter, including $50 million in share repurchases and $32 million in dividends. Non-FTE revenue surpassed 50% of total revenue for the first time, reflecting the company’s emphasis on fixed-fee, consumption-based and outcome-based commercial models. Management said these models are intended to create more recurring revenue that is less tied to headcount. Genpact reaffirmed that it has line of sight to at least 7% as-reported revenue growth for 2026, despite the expected impact from the portfolio transition. The company increased its expectation for Advanced Technology Solutions revenue growth to at least 25% for the full year. Full-year gross margin is expected to expand 50 basis points to 36.5%. Adjusted operating margin is expected to rise about 25 basis points to 17.7%. Adjusted diluted EPS is expected to grow at least 12%. Third-quarter revenue is projected between $1.369 billion and $1.382 billion, representing 6.5% growth at the midpoint. Third-quarter gross margin is expected to be 36.6%, with adjusted operating margin of 17.8%. Third-quarter adjusted diluted EPS is expected between $1.04 and $1.05. Management said it expects Advanced Technology Solutions growth to accelerate in the second half as its backlog, pipeline and agentic bookings begin contributing more meaningfully to revenue. 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 [email protected]. The article "Genpact Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $1.343 billion, up 7.1% year over year. Advanced Technology Solutions Revenue: $363 million, up 24.1% year over year. Core Business Services Revenue: $980 million, up 1.9% year over year. Gross Margin: Expanded to 36.5%, up approximately 60 basis points year over year. Adjusted Operating Income: $234 million, up 7.5% year over year; margin of 17.4%. Net Income: $146 million. Adjusted Diluted EPS: $1.00, up 13.6% year over year. Cash Flow from Operations: $72 million in the quarter. Segment Revenue Growth: Consumer and healthcare up 9.5%, high-tech and manufacturing up 7.6%, financial services up 3.3%. Large Deals: Signed six large deals in Q2, bringing year-to-date total to 12, double the prior-year period. Non-FTE Revenue: Surpassed 50% of total revenue for the first time. Warning! GuruFocus has detected 4 Warning Signs with QRHC. Is G fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue grew 7.1% year-over-year to $1.343 billion, with Advanced Technology Solutions revenue up 24.1%. Adjusted diluted EPS increased 13.6% year-over-year, growing faster than revenue. Gross margin expanded for the 13th consecutive quarter to 36.5%, up 60 basis points year-over-year. Record quarterly bookings, with 12 large deals signed year-to-date, double the prior year. Agentic Solutions on track to book over $1 billion in total contract value in 2026, with more than 50% from new clients. Non-FTE revenue surpassed 50% of total revenue for the first time, reflecting a shift to more durable, annuitized models. Advanced Technology Solutions revenue growth expected to accelerate to at least 25% for the full year 2026. Core Business Services revenue growth slowed to 1.9% in Q2, impacted by strategic transition away from non-aligned work. Transition away from non-strategic work expected to have nearly two points of impact on total revenue growth in 2026. Third-quarter core business services revenue expected to be flat to slightly down due to transition headwinds. Cash flow from operations was impacted by timing of collections and prepayments made in 2025. The transition of non-aligned work will continue to impact revenue growth over the next four to six quarters, with a slightly larger dollar impact expected in 2027. Headcount declined, reflecting early signs of revenue-headcount decoupling, which may raise concerns about future capacity. Q: Can you discuss the strategic prioritization and segment dynamics, specifically the two-point headwind in Core Business Services (CBS) this year and a similar headwind next year? Does this change your target growth model versus the Investor Day targets of 4% CBS and 15%+ ATS growth, and can you speak to the sustainability of the strong ATS growth?A: CEO Balkrishan Kalra stated that the company feels exceptionally good about the momentum in both Advanced Tech and core business services, as the flywheel delivers from core to data/AI and into agentic operations. CFO Mike Wiener added that clients don't buy "core" or "ATS" classifications; they come to solve problems. The company still feels good about its long-term guide from the June 2025 Investor Day, and the strategic pivot is shaping the business to be higher growth, more durable, and richer. Q: Can you help us understand where the non-strategic work falls in terms of margins versus other offerings, how it will show up this year versus next, and if this process is complete?A: CEO Balkrishan Kalra explained that the company has seen 13 consecutive quarters of gross margin expansion, and this trajectory is not changing. The non-strategic work is a very small portion of the business that failed three tests: creating durable value, providing strong ROI, and aligning with an expanding TAM. Examples include small parts of content management and commoditized contact centers, which the company is walking away from. Q: As you adopt new pricing models, what happens to pricing and margins for Agentic workflows as token prices increase, and how does that impact your ability to drive margin expansion?A: CEO Balkrishan Kalra stated that Agentic solutions are not bespoke agents but leverage scale and compounding learning. They are annuitized recurring revenues with minimum volume commitments, providing a floor on revenue with upside as clients expand use cases. Structurally, margins should gain from both sides: technology costs decline over time as compute advances, and labor costs decrease as agents handle more workflow. The architecture allows dynamic switching of models without client disruption, and the company has strong token procurement. Q: Regarding the Advanced Technology Solutions segment acceleration, how much is driven by new products versus accelerating demand for existing products, and should we expect the growth rate to continue to accelerate?A: CEO Balkrishan Kalra confirmed that the growth should accelerate, driven by the flywheel effect. The flywheel builds from core strength, process intelligence, and domain expertise, which opens up new workloads and allows the company to own entire transformation parts for clients. CFO Mike Wiener added that very little of the current ATS revenue is agentic-related, but the strong agentic bookings will support future growth, with a target of $1 billion in agentic TCV for 2026. Q: Are you seeing any incremental pressure from customer insourcing trends or crowding out from AI token infrastructure spend, as some peers are experiencing?A: CEO Balkrishan Kalra stated that clients are prioritizing their engineering resources on harder problems core to their company strategy, such as developing new molecules for pharma or new brands for food and beverage companies. For running mission-critical operations like finance, HR, supply chain, and procurement, which are core to Genpact, clients are taking the company's agentic solutions in a significant way. Q: Are these non-strategic contracts typically standalone client relationships or processes served as part of larger clients, and where will the transitioning work go?A: CEO Balkrishan Kalra described the non-strategic work as more one-off contracts that are a "little bit undifferentiated tail," not connected to the transformational work the company does. The commercial model is only tied to a per-hour basis, which the company does not want. It is a very small portion of the book, and the company is shaping the business to be more durable, higher quality, and with higher margins for the long term. Q: Can you share more details on the timeline of the transition away from non-strategic work? When did you engage with clients, and when will the two-point impact kick in?A: CEO Balkrishan Kalra noted that the company is constantly in dialogue with clients and validates strategies with them. CFO Mike Wiener clarified that the work will be transitioned over the next four to six quarters, with a quantified impact of two points for the full year 2026. Q: Employees were down sequentially and year-over-year while revenue grew 7%, showing significant efficiency gains. Can you discuss the dynamics of this, including the attrition tick-up, and whether this is driving margins?A: CEO Balkrishan Kalra stated the company is taking a disciplined approach to headcount and is "just getting started." The team is driving change and reskilling the workforce at scale. The longer-term expectation is for revenue and headcount growth to decouple, and the company is in the early stages of becoming a leaner, highly productive talent base. CFO Mike Wiener added that ATS revenue per headcount is double, which will continue to support the decoupling. Q: What type of work would never leave CBS, and can you provide examples or a percentage of the pie that could never be moved?A: CEO Balkrishan Kalra explained that when onboarding new clients, foundational work is often required first, which falls into the core bucket. This includes data work and process foundational work. The starting point of a client often necessitates some core work, and the company builds solutions to move clients more quickly to advanced tech, but the foundational work is a constant that fills the core bucket. Q: Can you provide more color on the 30% of the ATS book that isn't annuitized or uses FTE models? Why do clients anchor to legacy structures, and will the 70/70 framework become 80/80 or 90/90?A: CEO Balkrishan Kalra stated that directionally, the company is headed to far bigger than the 2x2x70/70 framework. Some projects, like a four-month data strategy advisory, are not annuitized but enable further annuity. The company wants the metrics to look much better than the current numbers, and the answer is yes, they are moving toward a higher percentage. Q: Regarding the revenue headwinds from the strategic shift, is the three-point per quarter headwind the right level for the entirety of the four to six quarters, and For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Genpact Limited G reported better-than-expected second-quarter 2026 results. Adjusted earnings of $1 per share, up 13.6% year over year and above the consensus mark of 97 cents by 3.1%. Net revenues increased 7.1% to $1.34 billion and beat estimates by roughly 1%. Performance was driven by Advanced Technology Solutions, or ATS, which grew 24.1% year over year. Gross margin expanded to 36.5%, while non-FTE revenue surpassed 50% of total revenues for the first time. Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote ATS revenues increased to $363 million from $292.7 million a year ago and represented 27% of total revenues. Growth was broad-based across Data & AI, Digital Technologies, Advisory and Agentic offerings. Management now expects ATS revenues to grow at least 25% in 2026, up from its previous expectation of at least 20%. The company said demand for agentic and AI-led services continues to accelerate as clients seek to automate more complex enterprise workflows. Core Business Services revenues rose 1.9% year over year to $980 million and accounted for 73% of revenues. Genpact continued to see demand across Digital Operations, Decision Support Services and Technology Services. Management expects Core Business Services to grow for the full year despite a deliberate transition away from certain lower-priority work. This portfolio shift is expected to reduce total 2026 revenue growth by nearly 2 percentage points, with the impact concentrated in the second half. Gross profit advanced 8.9% year over year to $490.3 million. Gross margin expanded about 60 basis points to 36.5%, marking the 13th consecutive quarter of year-over-year gross margin improvement. Adjusted income from operations increased 7.5% to $233.6 million, while the adjusted operating margin improved to 17.4% from 17.3%. Selling, general and administrative expenses were $294.1 million compared with $266.4 million in the prior-year quarter. Genpact recorded its largest-ever quarterly bookings and signed six large deals compared with three in the year-ago period. This brought first-half large-deal wins to 12, double the prior-year level. Large deals are defined as contracts worth at least $50 million. The company expects more than $1 billion in Agentic Solutions total contract value during 2026, roughly five times the 2025 level. More than half of cumulative agentic contract value has come from new clients, highlighting the strategy’s ability to expand Genpact’s addressable market. Cash generated from operations was $72 million compared with $177 million a year ago. Management attributed the decline partly to collection timing and prepayments made in 2025. Genpact ended June with $517.4 million in cash and cash equivalents. During the quarter, it returned $82 million to shareholders, consisting of roughly $50 million in share repurchases and $32 million in dividends. For the third quarter, Genpact expects revenues of $1.369-$1.382 billion. The midpoint of $1.376 billion is about 0.3% below the Zacks Consensus Estimate of $1.38 billion. Adjusted earnings are projected at $1.04-$1.05 per share, with the midpoint of $1.045 slightly above the consensus estimate of $1.04. For 2026, Genpact continues to expect reported revenue growth of at least 7%. Using the provided year-ago sales figure of $5.08 billion, this implies revenues of at least $5.44 billion, slightly above the $ 5.43 billion Zacks Consensus Estimate. The company also raised adjusted diluted earnings growth guidance to at least 12%. Its outlook reconciliation indicates adjusted earnings of $4.09 per share, about 1% above the consensus estimate of $4.05. Genpact expects a 36.5% gross margin and a 17.7% adjusted operating margin for the year. G currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Trane Technologies TT reported impressive second-quarter 2026 results. TT’s adjusted earnings of $4.31 per share outpaced the consensus mark by 0.9% and rose 11.1% from the year-ago quarter’s actual. TT’s total revenues of $6.35 billion surpassed the consensus mark by 2.9% and increased 6.4% year over year. Rollins ROL posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter. Verisk VRSK reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter. Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genpact Limited (G) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report Trane Technologies plc (TT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Advanced Technology Solutions net revenue growth, up 24% year-over-year, drives Q2 performance NEW YORK, Aug. 6, 2026 /PRNewswire/ -- Genpact Limited (NYSE: G), the Agentic Operations company, today announced financial results for the second quarter ended June 30, 2026. "Q2 was another strong quarter for Genpact, demonstrating our flywheel is accelerating, and our pivot to Agentic Operations is taking hold faster. Given the tremendous momentum we are seeing, we now expect Advanced Technology Solutions revenue to grow at least 25% for the full year," said Balkrishan "BK" Kalra, President and CEO, Genpact. "We are leading the shift to Agentic Operations, our strategy is working, and we continue to change Genpact in ways that matter for our clients, our people, and our long-term growth." "This quarter reflects both strong client demand and disciplined execution, with revenue growth of 7.1%, another quarter of year-over-year margin expansion, and double-digit EPS growth. Record bookings, increasing backlog, and continued pipeline growth underscore the strength we are seeing across the business," said Michael Weiner, Chief Financial Officer, Genpact. "We are raising our adjusted diluted EPS1 growth guidance to at least 12% for 2026. As we continue to shift toward higher-value Advanced Technology Solutions, we are focused on creating a stronger, more durable, and structurally richer business." Key Financial Highlights – Second Quarter 2026 Net revenues were $1.343 billion, up 7.1% year-over-year, and 6.9% on a constant currency basis.2 Gross profit was $490 million, up 8.9% year-over-year, with a corresponding margin of 36.5%. Net income was $146 million, up 9.8% year-over-year, with a corresponding margin of 10.8%. Income from operations was $193 million, up 7.5% year-over-year, with a corresponding margin of 14.4%. Adjusted income from operations was $234 million, up 7.5% year-over-year, with a corresponding margin of 17.4%.3 Diluted earnings per share was $0.86, up 14.7% year-over-year. Adjusted diluted earnings per share1 was $1.00, up 13.6% year-over-year. Cash generated from operations was $72 million, compared to $177 million generated from operations in the second quarter of 2025. Genpact repurchased approximately 1.6 million common shares during the quarter for total consideration of approximately $50 million at an average price per share of $32.04. Outlook Genpact's outlook for the third quarter of 2026 is as follows: Net revenues in the range of $1.369 billion to $1.382 billion, representing year-over-year growth of approximately 6.0% to 7.0% as reported, or 6.2% to 7.2% on a constant currency basis.2 Gross margin of approximately 36.6%. Adjusted income from operations margin4 of approximately 17.8%. Adjusted diluted earnings per share5 in the range of $1.04 to $1.05. Genpact's outlook for the full year 2026 is as follows: Net revenue growth of at least 7% year-over-year on an as reported basis, or 6.8% on a constant currency basis.2 Gross margin of approximately 36.5%, up approximately 50 basis points year-over-year. Adjusted income from operations margin4 of approximately 17.7%, up approximately 25 basis points year-over-year. Adjusted diluted earnings per share5 growth of at least 12% year-over-year. Second Quarter 2026 Earnings Call Genpact's management will host a conference call on August 6, 2026 at 5:00PM ET to discuss the company's performance for the second quarter ended June 30, 2026. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time. A live webcast, as well as supplemental investor materials, will be available on the Genpact Investor Relations website. An archived replay and transcript will be available on the website shortly after the call. About Genpact Genpact (NYSE: G) is the Agentic Operations company, where applied AI meets context-rich process intelligence. We run and transform mission-critical operations for global enterprises. Genpact's Agentic Operations are grounded in decades of operating core business processes at scale across finance, supply chain, banking, insurance, and more. Our flywheel of advanced technology, trusted data foundations, and deep ecosystem partnerships moves enterprises rapidly from experimentation to scale. AI agents bring speed and precision, human experts bring judgment, and together they deliver outcomes clients can measure. Get to know us at genpact.com and on LinkedIn, X, YouTube, and Facebook. Safe Harbor This press release contains certain statements concerning our future growth prospects, including our outlook for the third quarter of 2026 and full year 2026, financial results and other forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties, and other factors include but are not limited to macroeconomic uncertainty, U.S. and global trade and tariff policies and general economic conditions, any deterioration in the global economic environment and its impact on our clients, our ability to develop and successfully execute our business strategies, our ability to develop and successfully implement technological innovations, including AI technologies such as agentic AI, generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments and client needs at sufficient speed and scale, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients' data from security incidents or cyberattacks, political, economic or business conditions in countries in which we operate, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the geographic regions or sectors in which we or our clients operate, the risks and uncertainties arising from our past and future acquisitions or divestitures, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation, tax audits, investigations and tax proceedings, changes in the interpretation or enforcement of tax laws and other laws and regulations, our ability to effectively execute our tax planning strategies, highly competitive markets and any inability to compete effectively, claims and lawsuits, including by clients, employees or other third parties, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management's current analysis of future events and should not be relied upon as representing management's expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact. Our results for the quarter ended June 30, 2026 are also not necessarily indicative of our operating results for any future periods. Contacts Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. GAAP ("GAAP"), this press release includes the following non-GAAP financial measures: Adjusted income from operations; Adjusted income from operations margin; Adjusted net income; Adjusted diluted earnings per share; and Revenue growth on a constant currency basis. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Accordingly, these non-GAAP financial measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact's GAAP financial statements to such non-GAAP financial measures should be carefully evaluated. Given Genpact's acquisitions of varying scale and size, and the difficulty in predicting expenses relating to acquisitions and the amortization of acquired intangibles thereof, since July 2012 Genpact's management has used financial statements that exclude all acquisition-related expenses and amortization of acquired intangibles for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact's operating results to those of its competitors. For the same reasons, since April 2016, Genpact's management has excluded the impairment of acquired intangible assets from the financial statements it uses for internal management purposes. Acquisition-related expenses are excluded in the period in which an acquisition is consummated. Genpact's management also uses financial statements that exclude stock-based compensation expense. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when applying ASC 718 "Compensation-Stock Compensation," Genpact's management believes that providing non-GAAP financial measures that exclude such expenses allows investors to make additional comparisons between Genpact's operating results and those of other companies. Additionally, in its calculations of non-GAAP financial measures, Genpact's management has adjusted foreign exchange gains and losses, interest income and expense and income tax expenses from GAAP net income, and other income and expenses from GAAP income from operations, because management believes that the Company's results after taking into account these adjustments more accurately reflect the Company's ongoing operations. In its calculations of adjusted diluted earnings per share, Genpact's management adds back stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses and the related tax impact of such adjustments from GAAP diluted earnings per share. For the purpose of calculating adjusted diluted earnings per share, the combined current and deferred tax effect is determined by multiplying each pre-tax adjustment by the applicable statutory income tax rate. Genpact's management provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's true business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period. Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted net income, adjusted diluted earnings per share and revenue growth on a constant currency basis, when read in conjunction with the Company's reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations. A limitation of using adjusted income from operations, adjusted income from operations margin and adjusted net income versus income from operations, income from operations margin, net income and net income margin calculated in accordance with GAAP is that these non-GAAP financial measures exclude certain recurring costs and certain other charges, namely stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gains)/ loses, net, interest (income) expense, net and income tax expense. Management compensates for this limitation by providing specific information on the GAAP amounts excluded from these non-GAAP financial measures. The following tables show the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures for the three and six months ended June 30, 2026 and 2025: The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the year ending December 31, 2026: The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending September 30, 2026: View original content to download multimedia:https://www.prnewswire.com/news-releases/genpact-reports-second-quarter-2026-results-302845242.html

Genpact (G) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.09%. A quarter ago, it was expected that this business process management services provider would post earnings of $0.93 per share when it actually produced earnings of $0.98, delivering a surprise of +5.38%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Genpact, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.34 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $1.25 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Genpact shares have lost about 24.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Genpact has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Genpact was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.04 on $1.38 billion in revenues for the coming quarter and $4.05 on $5.43 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Evolv Technologies Holdings, Inc. (EVLV), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +76%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Evolv Technologies Holdings, Inc.'s revenues are expected to be $40.94 million, up 25.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genpact Limited (G) : Free Stock Analysis Report Evolv Technologies Holdings, Inc. (EVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research