Business transformation services company Genpact (NYSE:G) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 5.6% year on year to $1.32 billion. On the other hand, next quarter’s revenue guidance of $1.29 billion was less impressive, coming in 0.5% below analysts’ estimates. Its non-GAAP profit of $0.97 per share was 3.8% above analysts’ consensus estimates.
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Genpact (G) Q4 CY2025 Highlights:
- Revenue: $1.32 billion vs analyst estimates of $1.31 billion (5.6% year-on-year growth, 0.8% beat)
- Adjusted EPS: $0.97 vs analyst estimates of $0.93 (3.8% beat)
- Adjusted EBITDA: $257.7 million vs analyst estimates of $247.4 million (19.5% margin, 4.2% beat)
- Revenue Guidance for Q1 CY2026 is $1.29 billion at the midpoint, below analyst estimates of $1.30 billion
- Adjusted EPS guidance for Q1 CY2026 is $0.93 at the midpoint, above analyst estimates of $0.92
- Operating Margin: 14.8%, in line with the same quarter last year
- Constant Currency Revenue rose 5% year on year (8.7% in the same quarter last year)
- Market Capitalization: $6.5 billion
StockStory’s Take
Genpact delivered a Q4 performance that exceeded Wall Street's expectations, prompting a positive market reaction. Management credited revenue growth to strong demand for advanced technology solutions, particularly in artificial intelligence (AI) and agentic operations, which focus on combining domain-specific AI agents with human expertise. CEO Balkrishan Kalra highlighted the company’s rapid adoption of its AP agentic suite and expanding partnerships with technology providers as key contributors to the quarter’s success, stating, “We are fundamentally reshaping how businesses operate, and we are doing so at speed.”
Looking ahead, Genpact's forward guidance is shaped by expectations for continued momentum in advanced technology solutions and the growing adoption of agentic operations across its client base. Management anticipates further margin expansion and double-digit non-GAAP profit growth, driven by investments in AI talent and product development. CFO Michael Weiner emphasized the company’s focus on higher-value, recurring revenue streams, noting, “Our rapid acceleration in AgenTeq reflects the strong foundation and client trust we have built over the years, as well as our leadership in advancing AI-led transformation.”
Key Insights from Management’s Remarks
Management attributed the quarter’s progress to accelerated demand for AI-driven solutions, successful client transitions to agentic models, and a steady pipeline of large deals.
- Advanced Technology Solutions momentum: The company’s advanced technology solutions segment, which includes AI and digital transformation services, experienced rapid growth and now constitutes a significant portion of new client bookings and revenue streams.
- Agentic operations adoption: Genpact’s AP agentic suite saw broad uptake, with over 40% of awarded contract value coming from new clients, and existing clients reporting higher revenue and gross margins following the transition from traditional models.
- Large deal activity: Sixteen large deals were closed in the full year, and the pipeline for advanced technology solutions remains robust, indicating sustained client trust and high engagement for transformation projects.
- Strategic partnerships expansion: Revenue from partnerships with technology firms like AWS and Microsoft grew nearly 50%, enabling Genpact to embed domain-specific AI solutions within partner platforms and expand its market reach.
- AI talent investment: The company continued to grow its base of AI builders and practitioners, with over 7,000 AI specialists now supporting product innovation and delivery, reinforcing Genpact’s ability to meet complex client needs.
Drivers of Future Performance
Genpact’s outlook centers on accelerating demand for AI-enabled transformation, a shift toward recurring revenue models, and ongoing operational efficiency gains.
- AI and agentic solutions scale: Management expects high-teens growth in advanced technology solutions, driven by increased client adoption of agentic operations and domain-specific AI products. These solutions are designed to deliver measurable business outcomes and foster recurring revenue streams.
- Margin expansion through mix shift: The company anticipates further margin improvement as advanced technology solutions, which offer higher value and profitability, comprise a larger share of overall revenue. Operational discipline and automation are also expected to contribute to efficiency.
- Investment in product and partnerships: Significant investments in product development, talent, and technology partnerships are planned, with the aim of capturing a larger share of clients’ transformation budgets and reinforcing Genpact’s position as a strategic partner in enterprise AI adoption.
Catalysts in Upcoming Quarters
In the coming quarters, our team will closely monitor (1) the pace of client adoption of advanced technology and agentic solutions, (2) the company’s ability to secure and deliver large-scale transformation deals, and (3) the impact of ongoing investments in AI talent and partnerships on both revenue mix and margin expansion. Additionally, the execution of Genpact’s product roadmap and successful integration of AI with domain expertise will be critical benchmarks.
Genpact currently trades at $38.50, up from $37.70 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).
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