ExlService Holdings Inc. (EXLS) reported fourth‑quarter 2025 results that beat consensus estimates. Revenue reached $542.6 million, up 12.7% year‑over‑year from $481.4 million in Q4 2024 and 2.5% from $529.6 million in Q3 2025. Non‑GAAP adjusted diluted earnings per share were $0.50, surpassing the $0.47 consensus by $0.03 (6.4%).
Operating margin held steady at 14.4% versus 14.4% in the same quarter last year, while adjusted operating margin remained at 18.8%, reflecting disciplined cost management and a favorable shift toward higher‑margin AI‑enabled services.
Revenue growth was driven by a 20.7% year‑over‑year increase in data and AI‑led services, the company’s core growth engine. The Insurance, Healthcare and Life Sciences, and Banking and Capital Markets segments each reported double‑digit growth, while International Growth Markets contributed a modest 5% rise.
Management raised its 2026 full‑year guidance to revenue of $2.275 billion to $2.315 billion and adjusted EPS of $2.14 to $2.19, representing roughly 10% growth over 2025. The guidance midpoint of $2.295 billion and $2.165 EPS is slightly below analyst consensus, reflecting a cautious outlook amid competitive pressures and macro uncertainty.
CEO Rohit Kapoor said the company was pleased with the quarter, noting the 12.7% revenue growth and 15% increase in adjusted EPS. He highlighted the company’s “sustained double‑digit growth” and the “resonance of our AI expertise with the market.” CFO Maurizio Nicolelli added that the firm finished 2024 with a robust balance sheet and strong free cash flow.
Investors responded positively to the earnings beat and the announcement of a $500 million share repurchase program, but the modestly conservative 2026 guidance tempered enthusiasm, signaling management’s focus on maintaining profitability while navigating a competitive landscape.
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