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Exlservice Holdings (EXLS) Q3 2026 Earnings Report
EXLS Q3 2026 EPS Results
- Actual EPS
- $0.62
- Consensus EPS
- $0.56
- Beat/Miss
- Beat by +$0.06
- One Year Ago EPS
- $0.48
EXLS Q3 2026 Revenue Results
- Actual Revenue
- $633.96M
- Expected Revenue
- $615.51M
- Beat/Miss
- Beat by +$18.45M
- YoY Revenue Growth
- +19.71%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
EXLS Upcoming Earnings
Exlservice Holdings's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
EXLS Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by nearly 20% reported revenue growth, 28.5% adjusted EPS growth, broad-based segment performance, accelerating Data and AI-led revenue, stronger pipeline activity, strategic iMerit and agentic AI expansion, and raised full-year guidance. The main challenges were a 1.7% decline in Digital Operations, modest quarterly margin pressure, an unclear near-term margin profile for AI-embedded work, some healthcare growth moderation, and early-stage integration and revenue variability at iMerit. Highlights significantly outweighed the lowlights.
Company Guidance
EXL now expects 2026 revenue to be in the range of $2.43 billion-$2.44 billion, representing 16%-17% growth on a reported basis and 15% on an organic constant currency basis, up from its prior guidance of $2.39 billion-$2.415 billion; at the midpoint, the revised range is $32 million higher than previous guidance. It now expects adjusted EPS of $2.34-$2.36, representing approximately 20%-21% year-over-year growth, up from its previous guidance of $2.25-$2.29. The outlook assumes foreign exchange gains of approximately $5 million, net interest expense of approximately $13 million-$15 million, a full year effective tax rate in the range of 21%-21.5%, and capital expenditures in the range of $58 million-$62 million; margins are guided to be fairly flat on a year-over-year basis.
- Strong Third-Quarter Revenue and EPS GrowthThird-quarter revenue was $634 million, up 19.7% year-over-year on a reported basis and 17% on an organic constant currency basis, while adjusted EPS was $0.62, up 28.5% year-over-year. Sequential revenue growth was 6.6% reported and 4.1% organic constant currency.
- Broad-Based Organic Growth Across SegmentsOrganic growth accelerated to 17%, with every segment growing more than 15%. Insurance grew 16% year-over-year, Health & Life Sciences grew 19%, International Growth Markets grew 21%, and Banking, Capital Markets, and Diversified Industries grew 27%.
- Data and AI-Led Business AccelerationData and AI-led revenue grew 36% on a reported basis and 31% organically in the third quarter, representing almost two-thirds of total revenue. For the first nine months, Data and AI-led services grew 31.7% on a constant currency basis and accounted for 62% of revenue.
- Total Operations Continued to GrowTotal Operations, which includes Digital Operations and Data and AI-led operations, grew 12% year-over-year. The company said operations relationships provide domain context, data access, and workflow knowledge that support the identification and deployment of new AI use cases.
- Insurance Momentum ImprovedInsurance revenue grew 15.5% year-over-year to $208.5 million and increased 5.4% sequentially. Growth was driven by continued expansion in existing clients and higher volumes, while the company said insurance growth accelerated for the third straight quarter.
- Health and Life Sciences Growth Remained StrongHealth & Life Sciences revenue was $160.4 million, up 18.6% year-over-year and 17.2% organically. Growth was driven by higher volumes in payment services and expansion of existing client relationships across other lines of business.
- International Growth Markets AcceleratedInternational Growth Markets revenue was $111.6 million, up 21.1% year-over-year on a reported basis and 20% organically, with sequential growth of 6.3%. Growth was driven by higher volumes from existing clients across insurance, banking, capital markets, and diversified industries, as well as new client wins.
- Banking and Diversified Industries Delivered High GrowthBanking, Capital Markets, and Diversified Industries revenue was $153.5 million, up 27% year-over-year on a reported basis and 16.8% organically. Growth was driven by new client wins, expansion of existing relationships, and incremental revenue from the iMerit acquisition.
- Pipeline and Deal Momentum StrengthenedPipeline creation grew double digits as clients expanded relationships with EXL and committed to larger integrated deals. Management said new pipeline is growing at a faster pace, client decision-making cycle time is coming down, and deal velocity is improving.
- Agentic AI Adoption and Product ExpansionThe company said agentic AI is starting to go mainstream and strengthened its offerings across finance, life and annuities, and payment integrity. Notable launches included the Agentic Suite for finance, enhancements to LifePRO Agentic Suite, and Payment Integrity with AI for healthcare payers.
- Strategic Google Cloud EngagementWorking with Google, EXL won an engagement with a leading U.K. bank to rebuild its analytics environment on Google Cloud and migrate it from SAS to a cloud-native architecture using the agentic EXLdata.ai solution. The company said the win was supported by its domain depth, agentic approach, Google partnership, and investments in its partnership channel.
- iMerit Added Revenue and Full AI-Stack CapabilitiesiMerit contributed $15.3 million of revenue during the two months since its acquisition closed at the end of July, with notable growth across high tech and healthcare and continued momentum with frontier AI labs. Management said the acquisition gives EXL capabilities across data, model training and testing, agentic systems, workflow operations, and agentic assurance.
- iMerit Scholars Platform Expanded Expert NetworkThe iMerit Scholars platform brings together more than 30,000 vetted domain experts across 118 countries to fine-tune, evaluate, and validate AI models. The platform integrates recruiting, matching, management, and global payments into one system.
- Payment Integrity Opportunity Remained AttractiveManagement described Payment Integrity as a leadership-position business driven by the combination of AI, data, operational expertise, and healthcare context. The company said work is shifting from post-payment reviews toward pre-payment activity covering 100% of claims, while rising AI-enabled fraud and expansion from healthcare into insurance are creating additional opportunities.
- Improved Operating Leverage and Tax RateSG&A expenses were 21% of revenue, down 30 basis points year-over-year due to operating leverage. The effective tax rate was 20.4%, down 170 basis points year-over-year, primarily due to higher profitability in lower-tax jurisdictions.
- Nine-Month Financial Performance Was StrongRevenue for the first nine months was $1.8 billion, up 16.5% year-over-year on a reported basis and 15.5% organically. All segments delivered double-digit growth, adjusted operating margin was 19.8%, up 10 basis points year-over-year, and adjusted EPS was $1.79, up 23.7%.
- Raised Full-Year 2026 GuidanceEXL raised its 2026 revenue outlook to $2.43 billion-$2.44 billion, representing 16%-17% reported growth and 15% organic constant currency growth, compared with prior guidance of $2.39 billion-$2.415 billion. Adjusted diluted EPS guidance increased to $2.34-$2.36, representing approximately 20%-21% year-over-year growth, versus prior guidance of $2.25-$2.29.
- Strong Balance Sheet and Shareholder ReturnsThe company expanded borrowing capacity to $1 billion through a $400 million term loan and a $600 million revolving credit facility due August 2031. As of September 30, EXL had $333 million in cash and short-term investments and $513 million in term loan and revolver debt, resulting in net debt of $180 million. Year-to-date operating cash flow was $209 million, and the company returned $205 million to shareholders through repurchases of approximately 6.6 million shares.
- Recurring Revenue and New-Account VisibilityManagement said approximately 75% of the business is recurring or annuity-based and described visibility into next year as strong. The company also said it added 30 new logos during the year and was pleased with the quality of recently signed accounts.
- Leadership Continuity PlanFollowing Vivek Jetley's departure to become a CEO elsewhere, Bhupender Singh expanded his responsibilities to include Insurance, Raghav Jaggi assumed leadership of U.S. Insurance, and Nikhil Dhingra became head of Health & Life Sciences. Management cited the executives' tenure and experience as providing continuity for clients, employees, and shareholders.
EXLS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 25, 2027 | 2026 (Q4) | 0.58- | 0.5 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 0.560.62 | 0.48 | 29.17% (+0.14) | |
| Jul 28, 2026 | 2026 (Q2) | 0.550.59 | 0.49 | 20.41% (+0.10) | |
| Apr 28, 2026 | 2026 (Q1) | 0.540.58 | 0.48 | 20.83% (+0.10) | |
| Feb 24, 2026 | 2025 (Q4) | 0.470.50 | 0.44 | 13.64% (+0.06) | |
| Oct 28, 2025 | 2025 (Q3) | 0.470.48 | 0.44 | 9.09% (+0.04) | |
| Jul 29, 2025 | 2025 (Q2) | 0.450.49 | 0.4 | 22.50% (+0.09) | |
| Apr 29, 2025 | 2025 (Q1) | 0.440.48 | 0.38 | 26.32% (+0.10) | |
| Feb 25, 2025 | 2024 (Q4) | 0.410.44 | 0.35 | 25.71% (+0.09) | |
| Oct 29, 2024 | 2024 (Q3) | 0.410.44 | 0.37 | 18.92% (+0.07) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
