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Here's Why You Should Retain Genpact Stock in Your Portfolio Now
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Genpact (G - Free Report) has had an impressive run over the past year. Its shares have rallied 51.3%, outperforming the 3.4% fall of the Computers - IT Services industry and the 8.8% growth of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
G has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get the true sense of the quality and sustainability of its growth.
The Zacks Consensus Estimate for this Zack Rank #3 (Hold) company's 2025 earnings is pegged at $3.5 per share, indicating 7.6% growth from the year-ago level. For 2026, the bottom line is pegged at $3.9 per share, hinting at a 9.9% year-over-year increase. The company has an expected long-term (three to five years) earnings per share growth rate of 9.2%.
Factors that Augur Well
Genpact's commitment to sustainability is commendable as it earns the "Sustainable Corporate of the Year" award for the third consecutive year. This is evident through its innovative solutions like water recycling, solar energy and electric vehicles to reduce the environmental impact.
Moreover, tech-savvy initiatives place Genpact at the forefront of sustainability, integrating AI, IoT-based tools and ESG reporting systems to drive progress. Beyond environmental efforts, the company emphasizes social sustainability with initiatives focused on employee well-being and creating opportunities in smaller cities.
In response to the increasing demand for AI-driven transformation in business operations, Genpact has launched Service-as-Agentic-Solutions, shifting from generic AI to domain-specific, autonomous agent-led solutions. With products like Genpact AP Capture, which enhances accounts payable through AI-driven invoice extraction, the company is driving operational efficiency.
The company also prioritizes responsible AI, integrating human oversight to ensure transparency and compliance. Coupled with the AI Gigafactory, Genpact is positioning itself as a leader in helping businesses scale AI with precision and trust.
Genpact's partnership with BJ's Wholesale Club is further boosting its prospects by enhancing agility, driving innovation and supporting its growth strategy. Through expertise in finance, accounting, procurement, HR and merchandising, the company is helping BJ's optimize operations and implement technology investments. With ServiceNow as the core platform for managing workflows, the collaboration focuses on automation and operational improvements, positioning BJ's for long-term success and increased productivity.
The company’s robust liquidity adds to another tailwind as it has a brief history of strong liquidity. Genpact’s current ratio (measure of liquidity) at the end of 2021, 2022, 2023 was pegged at 1.47, 1.61 and 1.44, respectively. The company ended 2024 with a current ratio of 2.16.
Genpact’s commitment to its shareholders is evident through its growing dividend payouts. The company paid $91.8 million in 2022, $100 million in 2023 and $108.5 million in 2024. For the first quarter of 2025, Genpact's board has declared a quarterly cash dividend of $0.17 per share, an 11% increase, payable on March 26, 2025. This raises the annual dividend to $0.68 per share, up from $0.61 in 2024. Additionally, the board approved a $500 million increase to its share repurchase program.
Risks Faced by Genpact
Genpact is grappling with challenges regarding escalated operating expenses, largely due to significant labor costs. In fourth-quarter 2024, operating expenses increased 4.4% year over year. At the end of 2024, operating expenses increased 5.1% year over year, highlighting ongoing pressure in controlling costs despite efforts to reduce them.
MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in three of the trailing four quarters and missed once. The average surprise is 13.3%.
APP has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in each of the trailing four quarters. The average surprise is 23.5%.
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Here's Why You Should Retain Genpact Stock in Your Portfolio Now
Genpact (G - Free Report) has had an impressive run over the past year. Its shares have rallied 51.3%, outperforming the 3.4% fall of the Computers - IT Services industry and the 8.8% growth of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
G has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get the true sense of the quality and sustainability of its growth.
The Zacks Consensus Estimate for this Zack Rank #3 (Hold) company's 2025 earnings is pegged at $3.5 per share, indicating 7.6% growth from the year-ago level. For 2026, the bottom line is pegged at $3.9 per share, hinting at a 9.9% year-over-year increase. The company has an expected long-term (three to five years) earnings per share growth rate of 9.2%.
Factors that Augur Well
Genpact's commitment to sustainability is commendable as it earns the "Sustainable Corporate of the Year" award for the third consecutive year. This is evident through its innovative solutions like water recycling, solar energy and electric vehicles to reduce the environmental impact.
Moreover, tech-savvy initiatives place Genpact at the forefront of sustainability, integrating AI, IoT-based tools and ESG reporting systems to drive progress. Beyond environmental efforts, the company emphasizes social sustainability with initiatives focused on employee well-being and creating opportunities in smaller cities.
In response to the increasing demand for AI-driven transformation in business operations, Genpact has launched Service-as-Agentic-Solutions, shifting from generic AI to domain-specific, autonomous agent-led solutions. With products like Genpact AP Capture, which enhances accounts payable through AI-driven invoice extraction, the company is driving operational efficiency.
The company also prioritizes responsible AI, integrating human oversight to ensure transparency and compliance. Coupled with the AI Gigafactory, Genpact is positioning itself as a leader in helping businesses scale AI with precision and trust.
Genpact's partnership with BJ's Wholesale Club is further boosting its prospects by enhancing agility, driving innovation and supporting its growth strategy. Through expertise in finance, accounting, procurement, HR and merchandising, the company is helping BJ's optimize operations and implement technology investments. With ServiceNow as the core platform for managing workflows, the collaboration focuses on automation and operational improvements, positioning BJ's for long-term success and increased productivity.
The company’s robust liquidity adds to another tailwind as it has a brief history of strong liquidity. Genpact’s current ratio (measure of liquidity) at the end of 2021, 2022, 2023 was pegged at 1.47, 1.61 and 1.44, respectively. The company ended 2024 with a current ratio of 2.16.
Genpact’s commitment to its shareholders is evident through its growing dividend payouts. The company paid $91.8 million in 2022, $100 million in 2023 and $108.5 million in 2024. For the first quarter of 2025, Genpact's board has declared a quarterly cash dividend of $0.17 per share, an 11% increase, payable on March 26, 2025. This raises the annual dividend to $0.68 per share, up from $0.61 in 2024. Additionally, the board approved a $500 million increase to its share repurchase program.
Risks Faced by Genpact
Genpact is grappling with challenges regarding escalated operating expenses, largely due to significant labor costs. In fourth-quarter 2024, operating expenses increased 4.4% year over year. At the end of 2024, operating expenses increased 5.1% year over year, highlighting ongoing pressure in controlling costs despite efforts to reduce them.
Stocks to Consider
Some better-ranked stocks from the broader Zacks Business Services sector are Maximus (MMS - Free Report) and AppLovin (APP - Free Report) .
Maximus carries a Zacks Rank #2 (Buy) at present.
MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in three of the trailing four quarters and missed once. The average surprise is 13.3%.
AppLovin currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in each of the trailing four quarters. The average surprise is 23.5%.