Genpact’s third quarter results were well received by the market, underpinned by strong performance in its Advanced Technology Solutions segment and consistent execution of its GenpactNext strategy. Management cited accelerating adoption of AI-driven offerings and successful expansion with both new and existing clients as key growth drivers. CEO Balkrishan Kalra highlighted the increasing contribution of high-margin advanced technology contracts, noting, “Growth in Advanced Technology Solutions continues to accelerate…reflecting strong momentum as we successfully execute on GenpactNext.” The company also reported improvements in gross margin and revenue per head count, especially within the technology segment.
Is now the time to buy G? Find out in our full research report (it’s free for active Edge members).
Genpact (G) Q3 CY2025 Highlights:
- Revenue: $1.29 billion vs analyst estimates of $1.27 billion (6.6% year-on-year growth, 2% beat)
- Adjusted EPS: $0.97 vs analyst estimates of $0.90 (8% beat)
- Adjusted EBITDA: $255.1 million vs analyst estimates of $235.7 million (19.8% margin, 8.2% beat)
- Revenue Guidance for Q4 CY2025 is $1.30 billion at the midpoint, above analyst estimates of $1.29 billion
- Management raised its full-year Adjusted EPS guidance to $3.61 at the midpoint, a 1.7% increase
- Operating Margin: 14.8%, in line with the same quarter last year
- Constant Currency Revenue rose 6% year on year (7% in the same quarter last year)
- Market Capitalization: $7.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Genpact’s Q3 Earnings Call
- Bryan Bergin (TD Cowen) asked about large deal momentum and pipeline strength. CEO Balkrishan Kalra confirmed strong demand signals across client segments and noted continued booking of large, strategic deals, though some deals are taking longer to close as clients integrate AI benefits.
- Margaret Nolan (William Blair) inquired about client readiness for agentic operations and the pace of adoption. Kalra explained that adoption depends on clients’ data and process maturity, and Genpact meets clients where they are while encouraging a gradual shift to advanced solutions.
- Surinder Thind (Jefferies) questioned why a significant portion of new agentic contracts are from new clients rather than existing ones. Kalra responded that while existing clients are adopting these solutions, new clients are also driving growth, expanding the addressable market.
- Puneet Jain (JPMorgan) asked about the structure of contracts for AI-driven solutions. Kalra described a shift to value-based and subscription models for agentic offerings, with CFO Michael Weiner adding that these represent the company’s IP and drive recurring revenue.
- Puneet Jain (JPMorgan) followed up on revenue disclosure from agentic solutions. Weiner indicated that leading indicator metrics, such as non-FTE revenue and ATS growth, would be the focus for future reporting.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace of adoption and revenue contribution from new AI and agentic solutions, (2) progress in transitioning contracts to subscription and outcome-based models, and (3) continued expansion of strategic partnerships and large deal wins. The company’s ability to upskill talent and deliver measurable ROI for clients will also be key indicators of sustained momentum.
Genpact currently trades at $44.82, up from $38.37 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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