Genpact Limited reported its fourth‑quarter 2025 results on February 5, 2026, showing net revenue of $1.32 billion, up 5.6% year‑over‑year. Adjusted diluted earnings per share rose to $0.97, beating consensus estimates by $0.04 (or 4.3%) and reflecting disciplined cost control and a favorable mix shift toward higher‑margin Advanced Technology Solutions (ATS) contracts. ATS revenue for the quarter was $323 million, up 15% from $272 million a year earlier, while Core Business Services generated $996 million, a 2.9% increase. Gross margin expanded to 36.6% and adjusted operating margin reached 17.6%, both higher than the 36.0% and 17.5% margins reported for the full year, underscoring the impact of the ATS‑driven mix and operational leverage.
The full‑year 2025 results showed net revenue of $5.08 billion, a 6.6% increase from $4.78 billion in 2024. Adjusted diluted EPS for the year was $3.13, up 9.8% from $2.86. ATS revenue totaled $1.204 billion, up 17% from $1.02 billion, while Core Business Services grew 3.7% to $3.876 billion. Gross margin for the year was 36.0% and adjusted operating margin was 17.5%, both reflecting the higher‑margin mix and improved cost efficiency that have become hallmarks of Genpact’s transition to outcome‑based technology solutions.
Management raised its 2026 outlook, projecting revenue growth of at least 7% and adjusted diluted EPS growth of roughly 10%. The guidance represents a notable increase from the prior range of 6.1%–6.4% revenue growth and 7%–8% EPS growth, signaling confidence in sustained demand for Genpact’s AI‑driven services and a continued shift toward higher‑margin engagements.
The board approved a quarterly cash dividend of $0.1875 per share for the first quarter of 2026, a 10% increase from the previous year, and authorized a $500 million share‑repurchase program, reinforcing the company’s commitment to returning value to shareholders.
CEO Balkrishan “BK” Kalra highlighted the company’s “AI‑led transformation” and noted that ATS grew 17% year‑over‑year, “accelerating innovation and scaling data, AI, and domain‑driven agentic solutions.” CFO Michael Weiner added that adjusted diluted EPS increased 6.6% to $0.97, “faster than revenue growth for yet another quarter,” underscoring the effectiveness of Genpact’s cost‑control and pricing‑power initiatives.
The results reinforce Genpact’s strategic pivot from headcount‑based services to outcome‑based technology solutions. The ATS segment, now generating 24% of total revenue, delivers higher margins and benefits from pricing power and operational leverage. While core services continue to grow modestly, the higher‑margin mix and AI focus position Genpact to capture expanding digital‑transformation demand. Management cautioned that macro‑economic uncertainty could temper near‑term growth, but the company remains confident in its ability to sustain profitability through disciplined cost management and continued investment in AI capabilities.
The mixed market reaction—an EPS beat offset by a more conservative Q1 2026 revenue outlook—reflects investors’ focus on the company’s forward guidance. The guidance signals that Genpact expects to maintain its growth trajectory while managing potential headwinds, a view that aligns with the company’s broader strategy to deepen its AI and agentic service offerings.
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