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Here's Why You Should Retain Genpact Stock in Your Portfolio Now

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Key Takeaways

  • G earns sustainability honors from TIME and launches agentic AI-powered AP Suite with Microsoft Azure.
  • The acquisition of XponentL enhances Genpact's AI, data and life science capabilities.
  • The Q2 2025 dividend rose 11% to $0.17 per share, and the buyback program expanded by $500M.

Genpact (G - Free Report) has had an impressive run over the past year. Its shares have rallied 41.3%, outperforming the 7.4% rise of the Computers - IT Services industry and the 11.7% growth of the Zacks S&P 500 composite.

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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 its quality and sustainability of growth.

The Zacks Consensus Estimate for this Zack Rank #3 (Hold) company's 2025 earnings is pegged at $3.5 per share, indicating 5.8% growth from the year-ago level. For 2026, the bottom line is pegged at $3.9 per share, hinting at an 8.9% year-over-year increase. The company has an expected long-term (three to five years) earnings per share growth rate of 8.6%.

Factors That Augur Well for G

Genpact's commitment to sustainability is commendable, earning it a spot on TIME and Statista’s 2025 list of the World’s Most Sustainable Companies. By actively reducing its carbon footprint, conserving resources and leveraging advanced technologies, Genpact drives both environmental impact and strong financial performance. Its empowered workforce plays a key role in delivering purpose-driven solutions that help clients achieve their own sustainability goals. This recognition adds to a series of honors, including being named one of the World’s Most Ethical Companies by Ethisphere and one of Forbes’ World’s Best Employers.

Genpact's robust tech-savvy initiatives are boosting the company's prospects, as demonstrated by the launch of its agentic AI-powered AP Suite. This innovative solution transforms traditional accounts payable operations through autonomous, goal-oriented AI agents that streamline invoice processing, enhance cash flow and improve supplier relationships.

By combining Genpact’s deep domain expertise with Microsoft’s Azure AI stack, the AP Suite delivers measurable benefits, including greater touchless processing, reduced manual errors and up to a 90% early discount capture. The suite’s intelligent modules, AP Capture, Advance, Trace and Assist, redefine AP efficiency, making finance a strategic function rather than a cost center. This launch positions Genpact at the forefront of enterprise AI adoption, showcasing its ability to scale advanced automation in dynamic business environments while reinforcing trust, security and continuous learning.

Moreover, Genpact’s acquisition of XponentL Data marks a strategic leap in its AI-first transformation journey, significantly strengthening its data and AI capabilities. This move aligns with Genpact’s focus on delivering end-to-end AI solutions by adding XponentL’s domain-driven data strategy, engineering expertise, and strong partnerships with platforms like Databricks, AWS and Microsoft. By integrating XponentL’s talent and IP, Genpact gains the tools to accelerate AI implementation across industries, especially in life sciences and healthcare.

The acquisition also reinforces Genpact’s Service-as-Agentic-Solutions and AI Gigafactory initiatives, allowing the company to offer faster, scalable and more intelligent solutions to its global clients. With a shared vision to unlock the full value of data, this union positions Genpact to lead in operationalizing AI at scale, turning innovation into measurable business outcomes. It's a smart move that reflects Genpact’s ambition to remain ahead in the rapidly evolving AI and data ecosystem.

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 second quarter of 2025, Genpact's board declared a quarterly cash dividend of $0.17 per share, an 11% increase, which was paid on June 30, 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 in the first quarter of 2025.

Genpact: Key Risks to Watch

Genpact is grappling with challenges regarding escalated operating expenses, largely due to significant labor costs. In the fourth quarter of 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 Green Dot ((GDOT - Free Report) and AppLovin ((APP - Free Report) . 

Green Dot sports a Zacks Rank of #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

GDOT has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 5.6%. 

AppLovin currently sports a Zacks Rank of 1. 

APP has an encouraging earnings surprise history, outpacing the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.9%. 


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