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Exlservice Holdings
(NASDAQ:EXLS)
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Rating:76Outperform
Price Target:
$48.00
▲(28.17% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid underlying financial quality (profitability and ROE) and supportive technical trend indicators. Raised guidance and strong Data & AI-led momentum from the latest earnings call add confidence, while the overall score is tempered by TTM deceleration, operating-margin compression, softer recent cash-flow momentum, and a moderate valuation with no dividend yield data.
Positive Factors
Data and AI momentum
Rapid growth in Data and AI-led revenue, combined with its majority share of total revenue, shows EXL is shifting toward higher-value services with expanding strategic relevance. This mix transition can support durable client relationships, stronger differentiation, and broader long-term demand.
Negative Factors
Operating-margin pressure
The decline in operating margin suggests that recent growth is requiring more spending and is generating less operating leverage than before. Continued investment in sales, support, compensation, and AI capabilities could keep profitability under pressure if revenue growth does not sufficiently outpace the expanded cost base.
Read all positive and negative factors
Positive Factors
Negative Factors
Data and AI momentum
Rapid growth in Data and AI-led revenue, combined with its majority share of total revenue, shows EXL is shifting toward higher-value services with expanding strategic relevance. This mix transition can support durable client relationships, stronger differentiation, and broader long-term demand.
Read all positive factors
Exlservice Holdings (EXLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.41B
Dividend YieldN/A
Average Volume (3M)2.12M
Price to Earnings (P/E)26.6
Beta (1Y)0.65
Revenue Growth13.63%
EPS Growth9.52%
CountryUS
Employees65,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.59
Shares Outstanding151,612,500
10 Day Avg. Volume2,217,653
30 Day Avg. Volume2,117,827
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)7.49
Price to Sales (P/S)3.27
P/FCF Ratio22.92
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit4.81
Enterprise Value/Ebitda9.40
Forecast
1Y Price Target
$44.43Price Target Upside18.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.29
Revenue Forecast (FY)$2.41B
Exlservice Holdings Business Overview & Revenue Model
Company Description
ExlService Holdings, Inc. functions as a global provider of data analytics, digital operational solutions, and comprehensive services, operating across the United States and internationally. The company organizes its operations into distinct segme...
How the Company Makes Money
EXL makes money primarily by delivering services to enterprise clients under contractual arrangements that are typically priced on a recurring basis (e.g., ongoing managed services) and/or as project-based engagements (e.g., consulting, implementa...
Exlservice Holdings Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call emphasizes strong top-line and EPS growth, accelerating data-and-AI-led revenue (30% y/y), broad-based segment performance, strategic moves (iMerit acquisition) and strengthened full-year guidance. Offsetting items include margin pressure from increased investments, quarterly gross margin variability, integration risk from the acquisition, and macro/ execution uncertainties that led management to adopt a prudent H2 posture. On balance the positives (revenue/earnings upside, AI differentiation, raised guidance) materially outweigh the near-term lowlights tied to investments and integration risk.Positive Updates
Revenue Growth and Quarterly Results
Q2 revenue of $594.8M–$595M, up ~15.6%-16% year-over-year (15.9% constant currency) and sequential constant-currency growth of 4.4%.
Negative Updates
Margin Pressure and Planned Incremental Investment
SG&A increased by ~170 basis points to 20.9% of revenue due to higher front-end sales/support investments; management expects increased investments in H2 and lower adjusted operating margin in H2 versus H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Quarterly Results
Q2 revenue of $594.8M–$595M, up ~15.6%-16% year-over-year (15.9% constant currency) and sequential constant-currency growth of 4.4%.
Read all positive updates
Company Guidance
EXL raised full‑year 2026 guidance to revenue of $2.39B–$2.415B (14%–16% reported growth; 13%–14% organic constant‑currency), which is ~$88M higher at the midpoint than prior guidance and includes $28M–$32M of revenue from the iMerit acquisition for the remaining five months; adjusted diluted EPS was raised to $2.25–$2.29 (~16%–18% y/y, up from $2.18–$2.23) and includes a marginal $0.01 dilutive impact from iMerit. Management expects H2 adjusted operating margin to be lower than H1 (H1 AOPM 20.1%; Q2 AOPM 19.7%) while full‑year margin should be comparable to 2025; other full‑year assumptions include a ~$3M FX gain, net interest expense of $16M–$18M, an effective tax rate of 21%–22%, and capital expenditures of $58M–$62M.Exlservice Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.24B | 2.09B | 1.84B | 1.63B | 1.41B | 1.12B |
| Gross Profit | 861.62M | 801.08M | 691.01M | 607.77M | 515.45M | 431.36M |
| EBITDA | 441.01M | 391.91M | 335.82M | 321.59M | 276.24M | 229.58M |
| Net Income | 250.00M | 251.02M | 198.30M | 184.56M | 142.97M | 114.76M |
Balance Sheet | ||||||
| Total Assets | 1.75B | 1.70B | 1.62B | 1.44B | 1.35B | 1.28B |
| Cash, Cash Equivalents and Short-Term Investments | 283.82M | 328.37M | 350.55M | 294.90M | 302.59M | 320.05M |
| Total Debt | 488.02M | 403.62M | 366.61M | 271.76M | 313.65M | 347.38M |
| Total Liabilities | 881.64M | 789.53M | 688.54M | 552.53M | 587.94M | 589.75M |
| Stockholders Equity | 866.24M | 912.71M | 929.86M | 889.44M | 758.18M | 693.16M |
Cash Flow | ||||||
| Free Cash Flow | 275.04M | 298.12M | 222.26M | 158.40M | 121.31M | 147.14M |
| Operating Cash Flow | 327.71M | 350.72M | 268.52M | 211.20M | 166.14M | 184.39M |
| Investing Cash Flow | -19.16M | -49.26M | -119.10M | -12.00M | -96.55M | -114.27M |
| Financing Cash Flow | -328.97M | -312.76M | -119.10M | -181.45M | -81.72M | -146.88M |
Exlservice Holdings Technical Analysis
Positive
37.45
Price Trends
36.79
Positive
33.09
Positive
32.72
Positive
Market Momentum
1.67
Negative
76.92
Negative
94.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXLS, the sentiment is Positive. The current price of 37.45 is below the 20-day moving average (MA) of 37.65, above the 50-day MA of 36.79, and above the 200-day MA of 32.72, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 76.92 is Negative, neither overbought nor oversold. The STOCH value of 94.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXLS.
Exlservice Holdings Risk Analysis
Exlservice Holdings disclosed 34 risk factors in its most recent earnings report. Exlservice Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exlservice Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $147.39B | 18.26 | 26.77% | 2.65% | 6.47% | 11.19% | |
80 Outperform | $49.35B | 15.56 | 34.59% | 4.24% | -1.35% | 3.37% | |
77 Outperform | $6.83B | 12.01 | 22.91% | 1.79% | 6.89% | 11.22% | |
76 Outperform | $6.41B | 26.60 | 28.49% | ― | 13.63% | 9.52% | |
74 Outperform | $31.77B | 15.14 | 14.94% | 1.84% | 5.64% | -5.39% | |
74 Outperform | $19.78B | 14.89 | 15.94% | 4.11% | 0.38% | -8.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EXLS
Exlservice Holdings
42.30
0.83
2.00%
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INFY
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Exlservice Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
EXL Announces Resignation of Insurance and Healthcare President
Neutral
Sep 2, 2026
On Aug. 31, 2026, EXL announced that Vivek Jetley, president and head of Insurance, Healthcare and Life Sciences, intends to resign effective Oct. 26, 2026 to become chief executive officer of Hexaware Technologies. Jetley, a nearly 20-year vetera...
Business Operations and StrategyPrivate Placements and Financing
ExlService Holdings Expands Credit Capacity With New Facility
Positive
Aug 18, 2026
On Aug. 18, 2026, ExlService Holdings, Inc. closed a new senior secured credit agreement led by PNC Bank that provides up to $1 billion in borrowing capacity, comprising a $600 million revolving credit facility and a $400 million term loan maturin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.