A month has gone by since the last earnings report for Genpact (G) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Genpact due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, estim ...

In addition to being a Databricks partner, XponentL adds robust training and capabilities across numerous leading data platforms, including Amazon Web Services (AWS) and Microsoft. The company also brings proven industry- and process-specific solutions that accelerate time to business value. "We believe the future belongs to companies that deploy AI at speed and scale - on a bedrock of data expertise," said Balkrishan 'BK' Kalra, President and Chief Executive Officer, Genpact. "At Genpact, we have been stea ...

Group 1 - Genpact Limited (NYSE: G) presents a strong Buy case due to its significant growth potential driven by its focus on data, technology, and AI [1] - The company is positioned as a major growth story both currently and in the long term, emphasizing its Data-Tech-AI strategy [1] - The analyst has a background in financial modeling, valuation, and data analysis, which supports the evaluation of Genpact's fundamentals and growth potential [1] Group 2 - The analyst expresses a commitment to providing value to readers and investors interested in long-term investing, particularly in technology, infrastructure, and internet services sectors [1]

Financial Performance - Net revenues increased from $1,131,237 in Q1 2024 to $1,214,926 in Q1 2025, representing a growth of approximately 7.4%[12] - Gross profit rose from $396,478 in Q1 2024 to $428,994 in Q1 2025, an increase of about 8.2%[12] - Net income for Q1 2025 was $130,853, up from $116,947 in Q1 2024, reflecting a growth of approximately 11.9%[12] - Earnings per diluted share increased from $0.64 in Q1 2024 to $0.73 in Q1 2025, a rise of about 14.1%[12] - Comprehensive income for Q1 2025 was $159,990, compared to $112,303 in Q1 2024, indicating a growth of about 42.3%[15] - Net income for the three months ended March 31, 2025, was $130,853, an increase of 11.5% from $116,947 in the same period of 2024[23] - Basic earnings per common share increased to $0.75 for the three months ended March 31, 2025, up from $0.65 in the same period of 2024[193] Assets and Liabilities - Total assets decreased from $4,987,153 as of December 31, 2024, to $4,894,958 as of March 31, 2025, a decline of approximately 1.8%[9] - Total liabilities decreased from $2,597,542 as of December 31, 2024, to $2,441,897 as of March 31, 2025, a reduction of about 6.0%[9] - Shareholders' equity increased from $2,389,611 as of December 31, 2024, to $2,453,061 as of March 31, 2025, an increase of approximately 2.7%[9] - As of March 31, 2025, the total long-term debt of the company is $1,215,262, a slight decrease from $1,221,440 as of December 31, 2024[137] - The outstanding amount under the Company's term loan was $469,546 as of March 31, 2025, down from $476,089 as of December 31, 2024[128] Cash Flow and Investments - Net cash provided by operating activities increased significantly to $40,436 in 2025, compared to a cash outflow of $(25,561) in 2024[23] - The company reported a net cash used for investing activities of $779 in 2025, a substantial improvement from $(24,672) in 2024[23] - Net cash used for financing activities increased to $(125,544) in 2025, compared to $(48,200) in 2024, indicating higher financing outflows[23] - Cash and cash equivalents at the end of the period rose to $561,615 in 2025, up from $478,398 in 2024[23] Credit and Allowance for Losses - The allowance for credit losses decreased to $7,294 in 2025 from $10,897 in 2024, reflecting improved credit quality[23] - For the three months ended March 31, 2025, the allowance for credit losses increased to $19,747, with net accounts receivable dropping to $1,192,094[79] - The company recorded additions to the allowance for credit losses of $7,582 for the year ended December 31, 2024, and $8,742 for the three months ended March 31, 2025[79] Stock-Based Compensation and Dividends - Stock-based compensation expense increased significantly to $20,036 in 2025, compared to $9,181 in 2024[23] - The company paid $29,784 in dividends in 2025, up from $27,492 in 2024, indicating a commitment to returning value to shareholders[23] - The Company granted 816,936 restricted share units (RSUs) during the three months ended March 31, 2025, with a weighted average grant date fair value of $49.61[165] - The total remaining unrecognized stock-based compensation cost related to RSUs as of March 31, 2025, was $63,728, to be recognized over a weighted average remaining requisite vesting period of 2.1 years[167] Segment Performance - For the three months ended March 31, 2024, the total net revenues were $1,131,237,000, with a year-over-year increase in Financial Services, Consumer and Healthcare, and High Tech and Manufacturing segments[201] - The adjusted income from operations (AOI) for the Financial Services segment was $47,003,000, while Consumer and Healthcare and High Tech and Manufacturing segments reported AOIs of $66,796,000 and $69,046,000 respectively[201] - For the three months ended March 31, 2025, total net revenues increased to $1,214,926,000, reflecting growth across all segments compared to the previous year[204] - The AOI for the Financial Services segment rose to $58,192,000, with Consumer and Healthcare and High Tech and Manufacturing segments reporting AOIs of $70,324,000 and $80,115,000 respectively[204] Compliance and Regulatory Changes - The Company maintained compliance with financial covenants, including a net debt to EBITDA leverage ratio of less than 3x and an interest coverage ratio of more than 3x as of March 31, 2025[127] - The Company adopted ASU No. 2023-07 for segment reporting, enhancing the transparency of segment-related financial information[199] - The company is assessing the impact of ASU No. 2023-09 on its disclosures, which enhances income tax disclosures and is effective for fiscal years beginning after December 15, 2024[75] Operational Presence - The company has over 145,000 employees serving clients in key industry verticals from more than 35 countries, indicating a strong operational presence[26]

Core Insights - Genpact has been recognized as a Leader in the 2025 ISG Provider Lens for ServiceNow Ecosystem Partners in the United States, highlighting its innovative approach to deploying ServiceNow solutions for business transformation and efficiency [1][2] - The ISG report emphasizes Genpact's expertise in AI-powered solutions, particularly in the areas of Innovation and Consulting and Implementation Services, showcasing its ability to drive impact across various industries [2][4] Group 1 - Genpact's consultative approach focuses on non-IT functions such as source-to-pay and healthcare operations, demonstrating its leadership in digital transformation [4] - The company's AI solutions have proven effective, cutting procurement cycles by 50% within eight weeks by automating data extraction and reducing manual tracking [7] - Genpact's generative AI solutions address complex multi-workflow needs across diverse industries, including procurement, lending, and insurance claims [7] Group 2 - The ISG Provider Lens research study evaluates software vendors and service providers in the U.S. market, positioning them based on a multi-phased research and analysis process [5] - Genpact aims to deliver lasting value for enterprises globally through its deep business knowledge and operational excellence, leveraging data, technology, and AI [6]

Core Insights - Genpact Limited reported strong first-quarter 2024 results, exceeding Zacks Consensus Estimates for both earnings and revenues [1] - Quarterly EPS of 84 cents surpassed the consensus estimate by 5% and grew 15.1% year over year, while revenues of $1.21 billion beat the consensus mark by 0.5% and increased 7.4% from the previous year [1] Financial Performance - Data-Tech-AI services revenues, accounting for 48% of total revenues, increased 11.1% year over year to $582 million, surpassing the estimate of $575 million [2] - Digital Operations services revenues of $633 million, representing 52% of total revenues, grew 4.2% year over year, beating the estimate of $632.5 million [2] - Adjusted income from operations totaled $210 million, reflecting a 15% year-over-year growth, with an adjusted operating income margin of 17.3% remaining flat year over year [3] Cash Flow and Capital Management - The company generated $40.4 million in cash from operating activities, with capital expenditure at $22 million [4] - Genpact returned $29.8 million in dividends to shareholders and repurchased shares worth $63 million [4] Future Guidance - For Q2 2025, Genpact expects adjusted EPS in the range of 84 cents to 86 cents, with revenues anticipated between $1.21 billion and $1.23 billion, below the Zacks Consensus Estimate [5] - For the full year 2025, adjusted EPS is projected to be between $3.41 and $3.52, and revenues are expected to be between $4.9 billion and $5 billion, both below the Zacks Consensus Estimates [6]

Core Insights - Genpact reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.73 per share a year ago, representing a 5% earnings surprise [1] - The company achieved revenues of $1.21 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.50% and increasing from $1.13 billion year-over-year [2] - Genpact's stock has increased by approximately 15.7% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86, with projected revenues of $1.25 billion, and for the current fiscal year, the EPS estimate is $3.54 on revenues of $5.07 billion [7] - The estimate revisions trend for Genpact is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Genpact belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported total revenues of $1,215,000,000 for Q1 2025, representing an 8.3% year-over-year increase in constant currency, exceeding guidance expectations [7][20] - Adjusted EPS grew by 16% year-over-year, reaching $0.84, which is above the high end of the guidance range [8][24] - Gross margin expanded by 30 basis points year-over-year to 35.3%, driven by operating leverage and cost discipline [23][24] - Operating cash flow improved to $40,000,000 from a $26,000,000 outflow in the prior year [24] Business Line Data and Key Metrics Changes - Data Tech and AI services accounted for 48% of total revenue, amounting to $582,000,000, reflecting an 11% increase year-over-year [22] - Digital operations revenue was $633,000,000, up 4% year-over-year, representing 52% of total revenue [22] - Revenue from priority accounts grew approximately 6% year-over-year, representing 62% of total revenue, with high-tech and manufacturing leading at 11% growth [23] Market Data and Key Metrics Changes - The pipeline for large deals increased by over 80% year-over-year, indicating strong long-term demand despite current uncertainties [17][42] - The company noted delays in large deals primarily in manufacturing, consumer goods, and high-tech hardware sectors due to supply chain and tariff-related uncertainties [9][40] Company Strategy and Development Direction - The company is focused on execution, innovation, and deepening client relationships, aiming to gain market share and build a stronger business [11][19] - The three plus one execution framework introduced in 2024 emphasizes partnerships, Data Tech AI, simplification, and establishing Genpact as a leader in AI-led transformation [11][12] - The company is taking a conservative approach to guidance, reflecting increased uncertainty in certain industries and a measured outlook for digital operations and Data Tech AI [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and highlighted a strong pipeline, despite acknowledging a changing operating environment [18][19] - The company is not seeing any deal cancellations but is experiencing delays, particularly in large deals that are crucial for revenue growth [38][52] - Management remains optimistic about the demand for their solutions and the potential for productivity gains through AI [41][72] Other Important Information - The company returned $93,000,000 to shareholders in Q1 through share repurchases and dividends [25] - The guidance for full-year net revenue has been adjusted to a range of $4,862,000,000 to $5,005,000,000, reflecting a growth of 2% to 5% [29][30] Q&A Session Summary Question: Growth and revised outlook in digital operations - The reduction in digital operations outlook is primarily due to delays in large deals, which are expected to impact the second half of the year [35][37] Question: Risk of deal cancellations - Management does not foresee any risk of cancellations as discussions are ongoing and deals remain active [42] Question: Pricing pressure on delayed deals - There is no indication of pricing pressure; the delays are purely timing-related [50][52] Question: Impact of existing customer deals on second quarter - The company feels confident about the second quarter, with a conservative outlook reflecting uncertainty rather than weakness in existing customer deals [67] Question: AI-driven productivity savings in deals - The company typically promises productivity improvements of 30% to 45% over the term of large deals, leveraging various AI solutions [71][72]

Financial Data and Key Metrics Changes - The company reported total revenues of $1,215 million in Q1 2025, an increase of 8.3% year over year in constant currency, exceeding guidance [7][20] - Adjusted EPS grew 16% year over year, reaching $0.84, which is above the high end of the guidance range [8][24] - Gross margin expanded by 30 basis points year over year to 35.3%, driven by operating leverage and cost discipline [23][24] - Operating cash flow improved to $40 million from a $26 million outflow in the prior year [24] Business Line Data and Key Metrics Changes - Data Tech and AI services represented 48% of total revenue, amounting to $582 million, reflecting an 11% increase year over year [22] - Digital operations revenue was $633 million, up 4% year over year, accounting for 52% of total revenue [22] - Revenue from priority accounts grew approximately 6% over the prior year, representing 62% of total revenue [23] Market Data and Key Metrics Changes - The pipeline for large deals is at record levels, up more than 80% year over year, indicating strong long-term demand [16][41] - Win rates for the quarter were 40%, with sole source deals accounting for approximately 54% of total bookings, up from 35% in the prior year [21] Company Strategy and Development Direction - The company is focused on execution and innovation, deepening client relationships, and gaining market share [10][18] - The three plus one execution framework introduced in 2024 emphasizes partnerships, Data Tech AI, simplification, and establishing Genpact as a leader in AI-led transformation [10][11] - The company is taking a conservative approach to guidance due to increased uncertainty in certain industries driven by changes in global trade [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted a softening macro environment but emphasized the strength of execution and the unutilized nature of the business [8][9] - The outlook for the year has been adjusted to reflect delayed decision-making in select end markets, particularly those impacted by global trade dynamics [20][26] - Despite the challenges, management remains confident in the strategy and the strength of the pipeline [17][18] Other Important Information - The company signed two large deals in Q1, with over 80% of associated revenue accounted for as unutilized Data Tech AI revenue [8] - The company is committed to returning at least 50% of cash flow to investors through share repurchases and dividends [30] Q&A Session Summary Question: Growth and revised outlook in digital operations - Management confirmed that the reduction in digital operations is primarily driven by delays in large deals, which are still in active dialogue and have not been canceled [36][40] Question: Pricing pressure on delayed deals - Management stated there is no pricing pressure on the delayed deals, attributing the situation to timing rather than competitive factors [48][50] Question: Types of deals affected by delays - The delayed deals are primarily in supply chain and are significant in nature, with a focus on both cost takeout and productivity improvements [55][56] Question: Outlook for Data Tech AI customer end markets - Management indicated a strong performance in Data Tech AI, with a record pipeline and a conservative approach to shorter cycle retail deals [60][61] Question: Impact of existing customers on second quarter growth - Management expressed confidence in second quarter growth, emphasizing a conservative outlook due to uncertainty rather than weakness in existing customer deals [65][66] Question: AI-driven productivity savings in large deals - Management highlighted that large deals typically promise productivity improvements of 30% to 45% over five to seven years, leveraging various AI solutions [68]

Financial Performance - Net revenues for Q1 2025 were $1.215 billion, representing a year-over-year increase of 7.4% and 8.3% on a constant currency basis[5]. - Data-Tech-AI net revenues reached $582 million, up 11.1% year-over-year, accounting for 48% of total revenue[5]. - Digital Operations net revenues were $633 million, reflecting a 4.2% year-over-year increase, representing 52% of total revenue[5]. - Diluted EPS for Q1 2025 was $0.73, up 14% year-over-year, while adjusted diluted EPS was $0.84, up 16%[5]. - Net income for the three months ended March 31, 2025, increased to $130,853, up from $116,947 in the same period of 2024, representing a growth of 11.5%[16]. - Adjusted income from operations for Q1 2025 was $209,734, compared to $181,879 in Q1 2024, reflecting an increase of 15.3%[25]. - The adjusted income from operations margin improved to 17.3% in Q1 2025, up from 16.1% in Q1 2024[25]. - Diluted EPS rose to $0.73 in Q1 2025, compared to $0.64 in Q1 2024, marking a growth of 14.1%[28]. Cash Flow and Operations - Cash generated from operations was $40 million, a significant increase from $26 million utilized in operations in Q1 2024[5]. - The company reported a net cash used for operating activities of $(25,561) in Q1 2024, which turned into a net cash provided of $40,436 in Q1 2025[16]. - Cash and cash equivalents at the end of Q1 2025 were $561,615, an increase from $478,398 at the end of Q1 2024[16]. - The company experienced a net decrease in cash and cash equivalents of $(98,433) in Q1 2024, compared to $(84,329) in Q1 2025[16]. Future Projections - The company expects Q2 2025 net revenues in the range of $1.210 billion to $1.233 billion, indicating year-over-year growth of approximately 2.8% to 4.8%[7]. - For the full year 2025, net revenues are projected to be between $4.862 billion and $5.005 billion, representing year-over-year growth of approximately 2.0% to 5.0%[7]. - The gross margin for Q2 2025 is expected to be approximately 35.5%[7]. - Adjusted diluted EPS for the full year 2025 is projected to be in the range of $3.41 to $3.52, down from the previous range of $3.52 to $3.59[7]. - The estimated adjusted income from operations margin for the year ending December 31, 2025, is projected to be 17.3%[29]. Shareholder Actions - The company repurchased approximately 1.2 million common shares during the quarter for a total consideration of approximately $63 million at an average price per share of $52.17[5]. - Stock-based compensation expense for Q1 2025 was $20,036, up from $9,181 in Q1 2024[25].