ExlService Holdings announced it has entered into an accelerated share repurchase agreement (ASR) with Morgan Stanley & Co. LLC to repurchase $125 million of common stock. The ASR is part of a $500 million buyback program authorized February 28 2026 for a two‑year period. The agreement will be funded with available cash and/or borrowing from its credit facility, and the final number of shares will be based on the average volume‑weighted average price (VWAP) less a discount.
The ASR follows a strong Q4 2025 earnings release in which ExlService reported revenue of $542.6 million, up 12.7% year‑over‑year, and full‑year 2025 revenue of $2.09 billion, up 13.6% year‑over‑year. Adjusted diluted EPS for Q4 2025 was $0.50 and for the full year was $1.95. The company’s Data and AI‑led services segment grew 21% year‑over‑year in Q4 2025 and accounted for 57% of total revenue, while the Healthcare and Life Sciences segment grew 26% year‑over‑year.
Management highlighted that the buyback program signals confidence in the company’s valuation and future growth prospects. CEO Rohit Kapoor said the company’s investments in AI and data services are driving growth momentum and creating differentiated outcomes for clients. The ASR allows ExlService to return capital to shareholders while preserving liquidity for future initiatives.
ExlService has guided for 2026 revenue of $2.275 billion to $2.315 billion, a 9–11% increase from the prior year, and adjusted diluted EPS of $2.14 to $2.19, a 10–12% rise. The guidance reflects continued demand for AI‑enabled operational services and the company’s ability to maintain margins, which were flat at 18.8% in Q4 2025.
The announcement was welcomed by investors, with analysts noting the buyback as a sign of confidence in ExlService’s valuation and future growth prospects. The move follows the company’s strong Q4 2025 earnings beat, the robust growth in its Data and AI segment, and the new $500 million buyback program, all of which reinforce confidence in the company’s financial health and strategic direction.
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