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Genpact Q3 2025 Earnings Call Highlights Growth and Innovation

Genpact Q3 2025 Earnings Call Highlights Growth and Innovation

Genpact ((G)) has held its Q3 earnings call. Read on for the main highlights of the call.

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Genpact’s recent earnings call highlighted a robust performance in the third quarter of 2025, marked by significant revenue growth, margin expansion, and advancements in technology solutions. The company expressed confidence in its continued momentum by raising its full-year guidance. Despite facing some challenges in decision support services and a reduced cash position, the overall sentiment from the call was positive.

Strong Revenue Growth

Genpact reported a 7% year-over-year increase in revenue for Q3 2025, reaching $1.291 billion, which exceeded the high end of their guidance by $21 million. This growth underscores the company’s successful strategies and market positioning.

Advanced Technology Solutions Surge

The Advanced Technology Solutions segment saw a remarkable 20% year-over-year revenue growth, reflecting the success of Genpact’s GenpactNext strategy. This segment now represents a significant portion of the company’s total revenue, emphasizing its importance in Genpact’s overall growth.

Margin Expansion

Genpact achieved a gross margin of 36.4% and an adjusted operating income margin of 17.7%, both surpassing expectations. This margin expansion highlights the company’s operational efficiency and effective cost management.

EPS Growth

The adjusted diluted EPS grew by 14% year-over-year, reaching $0.97, which was $0.07 above the high end of guidance. This growth in earnings per share indicates strong profitability and financial health.

AI and Innovation Leadership

Genpact demonstrated its leadership in AI and innovation by hosting its second annual AI Day, where it announced major products like AI Maestro and expanded its agentic solutions. This focus on AI positions Genpact as a forward-thinking leader in technology.

Strong Cash Flow and Shareholder Returns

The company generated $308 million in operating cash flow and returned $119 million to shareholders through share repurchases and dividends, showcasing its commitment to delivering value to its investors.

Guidance Increase

Genpact raised its full-year revenue growth guidance to a range of 6.1% to 6.4%, with an EPS guidance increase to $3.61 at the midpoint. This upward revision reflects the company’s strong performance and optimistic outlook for the future.

Softness in Decision Support Services

While Genpact experienced growth in its core business services, this was partially offset by softness in decision support services. The company is actively addressing these challenges to ensure sustained growth.

Cash Position

Genpact’s cash and cash equivalents decreased to $741 million from $1 billion a year ago, primarily due to bond repayment. Despite this decrease, the company’s financial position remains strong.

Forward-Looking Guidance

During the earnings call, Genpact’s management provided updated guidance, reflecting their strong performance and increased expectations. The company raised its revenue growth outlook and adjusted diluted EPS, highlighting the continued momentum in Advanced Technology Solutions and Core Business Services. Strategic investments in GenpactNext are expected to drive further improvements in financial performance.

In summary, Genpact’s earnings call conveyed a positive outlook, with strong revenue growth and advancements in technology solutions driving success. The company’s increased guidance and strategic focus on innovation and AI underscore its confidence in maintaining momentum. Despite some challenges, Genpact’s financial health and commitment to shareholder returns remain robust.

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