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Genpact Declines 9.4% Since Beating Q1 Earnings & Revenue Estimates
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Key Takeaways
Genpact Q1 revenues rose 6.7% y/y to $1.3B, driven by strong ATS and AI-led offerings.
Genpact expects Q2 2026 revenues of $1.324B-$1.336B. The consensus estimate is pegged at $1.34B.
Genpact signed six large deals. ATS pipeline growth has been significant lately.
Genpact (G - Free Report) reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
The company’s adjusted earnings of 98 cents per share beat the Zacks Consensus Estimate of 93 cents and increased 16.7% year over year.
Revenues of $1.30 billion surpassed the Zacks Consensus Estimate of $1.29 billion and rose 6.7% year over year, driven by strong momentum in Advanced Technology Solutions (ATS), particularly agentic and AI-led offerings.
However, the better-than-expected results failed to impress investors, as the stock has declined 9.4% since the earnings release on May 7 due to weak second-quarter 2026 revenue guidance.
Genpact expects revenues to be between $1.324 billion and $1.336 billion for the second quarter of 2026, suggesting year-over-year growth of 5.5-6.5%. The Zacks Consensus Estimate for the same is $1.34 billion.
Genpact’s Q1 Details
Advanced Technology Solutions' revenues increased 24.3% year over year to $345 million, representing 27% of total net revenues. The company has witnessed significant ATS pipeline growth lately, fueled by demand for data, AI and agentic solutions
Core Business Services revenues increased 1.4% year over year to $951 million and accounted for 73% of total revenues.
Gross profit rose 9.9% year over year to $471.7 million. Gross margin expanded 110 basis points year over year to 36.4%, marking the company’s 12th consecutive quarter of gross margin expansion.
Adjusted income from operations increased 6.6% year over year to $223.7 million. However, the adjusted operating margin remained flat year over year at 17.3% as Genpact continued to invest in growth initiatives.
Selling, general and administrative expenses increased to $270.3 million from $241.1 million reported in the year-ago quarter.
Net income increased 13.1% year over year to $148 million. GAAP earnings per share increased 17.8% year over year to 86 cents.
Genpact Expands Agentic AI Business
Genpact highlighted strong traction in its agentic operations business. Management stated that agentic solutions nearly doubled the total contract value generated in full-year 2025 within a single quarter.
The company signed six large deals in the quarter, each with a total contract value exceeding $50 million. More than 50% of the cumulative awarded contract value came from new clients.
Partner-related revenues increased 35% year over year, representing nearly 13% of total revenues. During the quarter, Genpact deepened its alliance with Google Cloud to develop AI-led finance solutions.
Management also emphasized increasing adoption of outcome-based and non-FTE commercial models as enterprises accelerate AI-led transformation efforts.
Balance Sheet & Cash Flow of Genpact
Genpact exited the quarter with cash and cash equivalents of $578.1 million compared with $853.8 million at 2025-end.
Cash utilized in operations totaled $23.5 million compared with cash generated from operations of $40.4 million in the prior-year quarter.
During the quarter, Genpact repurchased nearly 1.8 million shares for approximately $70 million at an average price of $38.61 per share. The company also paid dividends worth $31.8 million.
Genpact’s Q2 & 2026 Guidance
For the second quarter of 2026, G’s adjusted earnings per share are expected to be in the range of 96-97 cents. The Zacks Consensus Estimate for the same is 97 cents per share.
For 2026, Genpact continues to expect at least 7% revenue growth on a reported basis. The company expects ATS revenues to grow at least 20% while projecting an adjusted operating margin of approximately 17.7% and adjusted earnings per share growth of more than 10%.
ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues outpacing the Zacks Consensus Estimate.
ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.
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Genpact Declines 9.4% Since Beating Q1 Earnings & Revenue Estimates
Key Takeaways
Genpact (G - Free Report) reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
The company’s adjusted earnings of 98 cents per share beat the Zacks Consensus Estimate of 93 cents and increased 16.7% year over year.
Revenues of $1.30 billion surpassed the Zacks Consensus Estimate of $1.29 billion and rose 6.7% year over year, driven by strong momentum in Advanced Technology Solutions (ATS), particularly agentic and AI-led offerings.
However, the better-than-expected results failed to impress investors, as the stock has declined 9.4% since the earnings release on May 7 due to weak second-quarter 2026 revenue guidance.
Genpact Limited Price, Consensus and EPS Surprise
Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote
Genpact expects revenues to be between $1.324 billion and $1.336 billion for the second quarter of 2026, suggesting year-over-year growth of 5.5-6.5%. The Zacks Consensus Estimate for the same is $1.34 billion.
Genpact’s Q1 Details
Advanced Technology Solutions' revenues increased 24.3% year over year to $345 million, representing 27% of total net revenues. The company has witnessed significant ATS pipeline growth lately, fueled by demand for data, AI and agentic solutions
Core Business Services revenues increased 1.4% year over year to $951 million and accounted for 73% of total revenues.
Gross profit rose 9.9% year over year to $471.7 million. Gross margin expanded 110 basis points year over year to 36.4%, marking the company’s 12th consecutive quarter of gross margin expansion.
Adjusted income from operations increased 6.6% year over year to $223.7 million. However, the adjusted operating margin remained flat year over year at 17.3% as Genpact continued to invest in growth initiatives.
Selling, general and administrative expenses increased to $270.3 million from $241.1 million reported in the year-ago quarter.
Net income increased 13.1% year over year to $148 million. GAAP earnings per share increased 17.8% year over year to 86 cents.
Genpact Expands Agentic AI Business
Genpact highlighted strong traction in its agentic operations business. Management stated that agentic solutions nearly doubled the total contract value generated in full-year 2025 within a single quarter.
The company signed six large deals in the quarter, each with a total contract value exceeding $50 million. More than 50% of the cumulative awarded contract value came from new clients.
Partner-related revenues increased 35% year over year, representing nearly 13% of total revenues. During the quarter, Genpact deepened its alliance with Google Cloud to develop AI-led finance solutions.
Management also emphasized increasing adoption of outcome-based and non-FTE commercial models as enterprises accelerate AI-led transformation efforts.
Balance Sheet & Cash Flow of Genpact
Genpact exited the quarter with cash and cash equivalents of $578.1 million compared with $853.8 million at 2025-end.
Cash utilized in operations totaled $23.5 million compared with cash generated from operations of $40.4 million in the prior-year quarter.
During the quarter, Genpact repurchased nearly 1.8 million shares for approximately $70 million at an average price of $38.61 per share. The company also paid dividends worth $31.8 million.
Genpact’s Q2 & 2026 Guidance
For the second quarter of 2026, G’s adjusted earnings per share are expected to be in the range of 96-97 cents. The Zacks Consensus Estimate for the same is 97 cents per share.
For 2026, Genpact continues to expect at least 7% revenue growth on a reported basis. The company expects ATS revenues to grow at least 20% while projecting an adjusted operating margin of approximately 17.7% and adjusted earnings per share growth of more than 10%.
Currently, Genpact carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
Accenture plc (ACN - Free Report) reported impressive second-quarter fiscal 2026 results.
ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues outpacing the Zacks Consensus Estimate.
ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.