Genpact Q2 Earnings Call Highlights
Genpact (NYSE:G) reported second-quarter revenue growth of 7.1% as demand for its Advanced Technology Solutions accelerated, while the company outlined plans to move away from a small set of lower-priority service offerings that do not fit its Agentic Operations strategy.
Revenue for the quarter totaled $1.343 billion. Advanced Technology Solutions, which includes data and AI, digital technologies, advisory and agentic offerings, generated $363 million of revenue, up more than 24% from a year earlier. Core Business Services revenue rose 1.9% to $980 million.
President and CEO BK Kalra said the company is positioning itself around “Agentic Operations,” describing a model in which domain experts and AI agents work through redesigned processes to execute enterprise transactions with governance, auditability and human oversight.
“There is no artificial intelligence without process intelligence,” Kalra said, arguing that enterprises need foundational work involving data harmonization and process intelligence before they can scale AI investments effectively.
Advanced Technology Growth and Record Bookings
Genpact said Advanced Technology Solutions accounted for 27% of total revenue in the second quarter and nearly 40% of quarterly bookings. The company reported its largest-ever quarterly bookings result and signed six large deals, defined as contracts with total contract value of $50 million or more. That brought its year-to-date large-deal total to 12, double the number signed in the first half of the prior year.
Kalra said the company expects to book more than $1 billion in agentic total contract value during 2026, about five times its 2025 level. More than half of cumulative awarded contract value in agentic offerings has come from new clients, according to management.
The company said existing clients that shifted from traditional delivery models to agentic delivery have produced more than 3% net revenue growth and over 300 basis points of gross-margin expansion.
Genpact cited recent launches including its Transaction Monitoring Analyst, part of the Genpact Banking Analyst Suite, and its Deductions Recovery offering for consumer-goods companies. The company also pointed to engagements with Lumen to agentify accounts-payable operations and with Mondelēz International to build an enterprise-wide agentic operating model across source-to-pay processes.
Portfolio Transition to Affect Revenue Growth
Management said it is reviewing portions of Core Business Services that do not align with its agentic strategy. The company is transitioning certain work back to clients and redeploying investments away from areas such as portions of content management and commoditized contact-center services.
Kalra characterized these activities as a very small part of Genpact’s business and said they are generally more one-off, less differentiated contracts with commercial structures tied to hourly work.
The transition is expected to reduce full-year 2026 total revenue growth by nearly two percentage points, with the impact concentrated in the second half. CFO Mike Weiner said the work transitions are expected to occur over the next four to six quarters. Genpact currently expects the dollar impact to be slightly larger in 2027, though management expects continued growth in businesses aligned with its strategy to provide an offset.
Despite the transition, Genpact said it still expects Core Business Services revenue to grow for the full year. For the third quarter, however, the company expects Core Business Services revenue to be flat to slightly down, including about three points of impact from the portfolio transition.
Margins, Earnings and Cash Flow
Gross margin expanded for the 13th consecutive quarter, rising about 60 basis points year over year to 36.5%. Adjusted operating income increased 7.5% to $234 million, while adjusted operating margin was 17.4%.
Net income was $146 million, and diluted earnings per share were $0.86. Adjusted diluted EPS rose 13.6% year over year to $1.00, outpacing revenue growth.
Genpact generated $72 million in cash from operations and ended the quarter with $517 million in cash and cash equivalents. Weiner said cash flow was affected by collection timing and prepayments made in 2025. The company returned $82 million to shareholders during the quarter, including $50 million in share repurchases and $32 million in dividends.
Non-FTE revenue surpassed 50% of total revenue for the first time, reflecting the company’s emphasis on fixed-fee, consumption-based and outcome-based commercial models. Management said these models are intended to create more recurring revenue that is less tied to headcount.
Updated 2026 and Third-Quarter Outlook
Genpact reaffirmed that it has line of sight to at least 7% as-reported revenue growth for 2026, despite the expected impact from the portfolio transition. The company increased its expectation for Advanced Technology Solutions revenue growth to at least 25% for the full year.
- Full-year gross margin is expected to expand 50 basis points to 36.5%.
- Adjusted operating margin is expected to rise about 25 basis points to 17.7%.
- Adjusted diluted EPS is expected to grow at least 12%.
- Third-quarter revenue is projected between $1.369 billion and $1.382 billion, representing 6.5% growth at the midpoint.
- Third-quarter gross margin is expected to be 36.6%, with adjusted operating margin of 17.8%.
- Third-quarter adjusted diluted EPS is expected between $1.04 and $1.05.
Management said it expects Advanced Technology Solutions growth to accelerate in the second half as its backlog, pipeline and agentic bookings begin contributing more meaningfully to revenue.
About Genpact (NYSE:G)
Genpact is a global professional services firm specializing in digitally powered business process management and services. The company partners with clients across industries to design, transform and run key operations, leveraging data analytics, artificial intelligence, automation and domain expertise. Its offerings span finance and accounting, supply chain management, procurement, customer experience, risk and compliance, and other critical business functions.
Founded in 1997 as the business process outsourcing arm of General Electric and originally known as GE Capital International Services, the company rebranded as Genpact in 2005 and completed its initial public offering on the New York Stock Exchange in 2007 under the ticker symbol “G.” Over time, Genpact has expanded beyond traditional outsourcing to focus on digital transformation and innovation, helping organizations accelerate growth and improve operational efficiency.
Headquartered in New York City, Genpact serves clients in more than 30 countries across North America, Latin America, Europe and Asia Pacific.
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