Core Viewpoint - Genpact (G) has experienced a significant downtrend, with a stock decline of 20.8% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - Genpact's current RSI reading is 17.07, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in earnings estimates for Genpact, with a 0.1% rise in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7]. - Genpact holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a likely turnaround in the near term [8].

Financial Data and Key Metrics Changes - Genpact reported revenues of $5.08 billion for 2025, reflecting a 6.6% year-over-year increase [4][25] - Adjusted diluted EPS increased by 11% to $3.65, marking the fifth consecutive year of growth faster than revenue [26] - Gross margin expanded by 60 basis points to 36%, while adjusted operating income margin improved by 40 basis points to 17.5% [26][24] Business Line Data and Key Metrics Changes - Advanced Technology Solutions revenue grew by 17% to $1.2 billion, now representing 24% of total revenue [4][25] - Core Business Services revenue increased by 3.7% to $3.876 billion [26] - Data-Tech-AI revenue rose by 9.3% to $2.442 billion, while Digital Operations revenue grew by 4.1% to $2.638 billion [25] Market Data and Key Metrics Changes - High Tech and Manufacturing sector grew by 9.9%, Financial Services by 5%, and Consumer and Healthcare by 1.5% [22] - Non-FTE revenue, reflecting a strategic shift, accounted for 48% of fourth-quarter revenue [22] Company Strategy and Development Direction - Genpact is focusing on scaling data, AI, and domain-driven agentic solutions to transform client operations [4][6] - The company is pioneering a new operating model called Agentic Operations, which integrates AI with human expertise [9][10] - The strategy includes expanding partnerships and investing in AI talent, with over 7,000 AI builders and nearly 20,000 AI practitioners [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand and a robust pipeline entering 2026, expecting at least 7% revenue growth [28][29] - The company anticipates continued margin expansion and double-digit adjusted EPS growth [29][31] - Management highlighted the importance of integrating AI into business processes to drive measurable financial outcomes for clients [9][10] Other Important Information - Genpact returned $401 million to shareholders through share repurchases and dividends in 2025 [27] - The company has a significant backlog and is well-positioned to capitalize on the growing demand for Advanced Technology Solutions [28] Q&A Session Summary Question: Changes in contracting conversations due to market pressures - Management noted that the excitement in Silicon Valley is accelerating their pivot and driving outcomes for clients faster, viewing it as a tailwind [35] Question: Factors driving confidence in ATS growth - Management indicated increased conversations and invitations to participate in larger deals, with over a third of bookings coming from Advanced Technology Solutions [40][41] Question: Adoption patterns of new clients for AP Suite - Management highlighted that many new clients are mid-market and existing clients expanding their use of finance technology, significantly enhancing the total addressable market [48] Question: Improvements in sales cycle or ramp times - Management acknowledged that large deals have varying timelines but expressed confidence in the record levels of pipeline across cohorts [49] Question: Drivers of margin expansion - Management attributed margin expansion to the shift towards Advanced Technology Solutions and disciplined operational efficiencies [57][58] Question: Client expectations regarding efficiencies - Management confirmed that while client aspirations are high, they are successfully offsetting costs and creating higher value solutions [70] Question: Decision-makers for agentic solutions within client organizations - Management stated that both business managers and CIOs are integral in driving the adoption of agentic AI solutions [79]

Financial Data and Key Metrics Changes - Genpact reported total revenues of $5.08 billion for 2025, representing a 6.6% year-over-year increase [4][25] - Adjusted diluted EPS increased by 11.3% to $3.65, marking the fifth consecutive year of growth faster than revenue [26] - Gross margin expanded by 60 basis points to 36% and adjusted operating income margin improved by 40 basis points to 17.5% [26][24] Business Line Data and Key Metrics Changes - Advanced Technology Solutions revenue grew by 17% to $1.2 billion, now accounting for 24% of total revenue [4][25] - Core Business Services revenue increased by 3.7% to $3.876 billion [25] - Data Tech and AI revenue rose by 9.3% to $2.442 billion, while Digital Operations revenue increased by 4.1% to $2.638 billion [25] Market Data and Key Metrics Changes - High tech and manufacturing sectors grew by 9.9%, financial services by 5%, and consumer and healthcare by 1.5% [22] - Non-FTE revenue, reflecting a strategic shift, represented 48% of fourth-quarter revenue [22] Company Strategy and Development Direction - Genpact is focusing on scaling data, AI, and agentic solutions to transform client operations [4][6] - The company is pioneering a new operating model called Agentic Operations, which integrates AI with human expertise [8][9] - The strategy emphasizes partnerships with tech giants like AWS and Microsoft to enhance AI-led transformations [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand and a robust pipeline entering 2026, expecting at least 7% revenue growth [17][28] - The company anticipates continued margin expansion and double-digit adjusted EPS growth [29][30] - Management highlighted the importance of integrating AI into business processes to drive efficiency and effectiveness [10][70] Other Important Information - Genpact ended the fourth quarter with $854 million in cash and cash equivalents, up $207 million from the previous year [25] - The company returned $401 million to shareholders through share repurchases and dividends [27] Q&A Session Summary Question: Changes in contracting conversations due to market pressures - Management noted that the company is excited about the ongoing tech shifts, which are seen as a tailwind for growth and client engagement [35][36] Question: Factors driving confidence in Advanced Technology Solutions growth - Management highlighted increased client engagement and a significant portion of new bookings coming from new clients [41][42] Question: Patterns in client adoption of AP Suite - Management indicated that the adoption is expanding the total addressable market, with new clients and existing clients utilizing finance tech [48] Question: Improvements in sales cycle or ramp times - Management acknowledged that large deals have varying timelines but expressed confidence in the strong pipeline and record levels of large deals [49][51] Question: Drivers of margin expansion - Management attributed margin expansion to a shift towards Advanced Technology Solutions and disciplined operational efficiencies [57][59] Question: Client expectations regarding efficiencies - Management confirmed that while client expectations are high, the company is successfully navigating these demands and maintaining gross margin expansion [70][71] Question: Decision-makers for agentic solutions within client organizations - Management stated that both business managers and CIOs are integral in driving the adoption of agentic AI solutions [79]

Financial Data and Key Metrics Changes - Genpact reported total revenues of $5.08 billion for 2025, representing a 6.6% year-over-year increase [4][24] - Adjusted diluted EPS increased by 11% to $3.65, marking the fifth consecutive year of growth faster than revenue [4][24] - Gross margin expanded by 60 basis points to 36%, while adjusted operating income margin improved by 40 basis points to 17.5% [4][24] Business Line Data and Key Metrics Changes - Advanced Technology Solutions revenue grew by 17% to $1.2 billion, now accounting for 24% of total revenue [4][24] - Core Business Services revenue increased by 3.7% to $3.876 billion [24] - Data Tech and AI revenue rose by 9.3% to $2.442 billion, while Digital Operations revenue increased by 4.1% to $2.638 billion [23][24] Market Data and Key Metrics Changes - High tech and manufacturing sectors grew by 9.9%, financial services by 5%, and consumer and healthcare by 1.5% [20] - Non-FTE revenue, reflecting a strategic shift, represented 48% of fourth-quarter revenue [20] Company Strategy and Development Direction - The company is focusing on scaling data, AI, and domain-driven agentic solutions to transform client operations [4][5] - Genpact's strategy, termed "Agentic Operations," aims to redefine how knowledge work is executed through a collaborative model between AI agents and human experts [7][8] - The company plans to continue investing in advanced technology solutions, expecting revenue growth of at least 7% for 2026, with advanced technology solutions projected to grow in the high teens [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand and robust pipeline entering 2026, with a record backlog [5][25] - The company anticipates another year of double-digit adjusted EPS growth while returning a significant portion of operating cash flows to shareholders [15][25] - Management highlighted the importance of AI and agentic investments in driving measurable financial outcomes for clients [8][15] Other Important Information - The company closed over $200 million in agentic contracts in 2025, with more than 40% of awarded contract value coming from new clients [18] - Genpact's partner-related revenue grew nearly 50% year-over-year, indicating strong collaboration with major tech firms [14] Q&A Session Summary Question: Changes in contracting conversations due to market pressures - Management noted that the company is excited about the tech shifts in Silicon Valley, which are seen as a tailwind for Genpact, enhancing relevance in client conversations [33] Question: Factors driving confidence in ATS growth - Management indicated that increased client engagement and a healthy pipeline are driving confidence in ATS growth, with a notable increase in agentic contracts [38][40] Question: Patterns in new client adoption of AP Suite - Management highlighted that new clients are expanding the total addressable market, with many existing clients beginning to use finance tech [46] Question: Improvements in sales cycle or ramp times - Management acknowledged that while large deals can vary in pace, the pipeline is at record levels, indicating strong future growth potential [48][50] Question: Drivers of margin expansion - Management attributed margin expansion to a shift towards Advanced Technology Solutions and disciplined operational efficiencies [55][58] Question: Client expectations regarding efficiencies - Management confirmed that while client expectations for productivity are high, the company is successfully navigating these demands, as reflected in gross margin improvements [68] Question: Decision-makers for agentic solutions within client organizations - Management stated that both business managers and CIOs are integral in driving the adoption of agentic AI solutions [78]

Revenue Performance - 2025 net revenues were $5.080 billion, up 6.6% year-over-year, and 6.4% on a constant currency basis[5] - Advanced Technology Solutions net revenues were $1.204 billion, up 17.0% year-over-year, representing 24% of total net revenues[5] - Core Business Services net revenues were $3.876 billion, up 3.7% year-over-year, representing 76% of total net revenues[5] - Data-Tech-AI net revenues were $2.442 billion, up 9.3% year-over-year, representing 48% of total net revenues[5] - Digital Operations net revenues were $2.638 billion, up 4.1% year-over-year, representing 52% of total net revenues[5] - Net revenues for the year ended December 31, 2023, were $4,476,888, representing an increase from $4,767,139 in 2024 and projected to reach $5,079,879 in 2025[19] - Total revenues for Q4 2025 reached $1,319,278, a growth from $1,291,257 in Q3 2025, driven by Advanced Technology Solutions and Core Business Services[41] - Advanced Technology Solutions revenue for Q4 2025 was $322,849, up from $310,986 in Q3 2025, while Core Business Services revenue reached $996,429, an increase from $980,271[41] Profitability Metrics - Diluted EPS was $3.13, up 9.8% year-over-year; adjusted diluted EPS was $3.65, up 11.3% year-over-year[5] - Gross profit was $1.831 billion, up 8.3% year-over-year, with a margin of 36.0%[5] - Net income was $552 million, up 7.6% year-over-year, with a margin of 10.9%[5] - Net income for Q4 2025 was $143,094, representing a 0.8% increase from Q4 2024's $141,915, with a net income margin of 10.8%[30] - Adjusted income from operations for Q4 2025 was $231,657, up from $220,682 in Q4 2024, maintaining an adjusted income from operations margin of 17.6%[31] - Diluted EPS for Q4 2025 increased to $0.82 from $0.79 in Q4 2024, with adjusted diluted EPS rising to $0.97 from $0.91[33] Future Projections - Genpact expects net revenue growth of at least 7% for 2026, with Advanced Technology Solutions projected to grow at least in the high-teens[10] - The company projects a net income margin of 11.0% and an adjusted income from operations margin of 17.7% for the year ending December 31, 2026[34] - Estimated diluted EPS for the year ending December 31, 2026, is projected at $3.48, with adjusted diluted EPS expected to be $4.01[37] - For Q1 2026, the company expects a net income margin of 10.8% and an adjusted income from operations margin of 17.3%[38] - The estimated diluted EPS range for Q1 2026 is projected between $0.79 and $0.80, with adjusted diluted EPS expected to be between $0.92 and $0.93[40] Cash Flow and Investment - Operating cash flow for 2023 was $490,812, expected to rise to $615,424 in 2024 and further to $812,856 in 2025, indicating strong cash generation capabilities[21] - The company reported a net cash used for investing activities of $(78,944) in 2023, with an increase to $(105,959) in 2024 and a significant rise to $(495,495) in 2025, suggesting aggressive investment strategies[21] - The company plans to continue focusing on acquisitions and investments in technology to drive future growth, as indicated by the significant cash outflows for business acquisitions and intangible assets[21] Shareholder Returns - The quarterly dividend for Q1 2026 is set at $0.1875 per common share, a 10% increase from the previous year[7] Operational Costs - Total operating expenses for 2023 were $913,061, expected to rise to $967,145 in 2024 and $1,046,713 in 2025, highlighting increasing operational costs[19] Earnings Per Share Trends - Basic earnings per share for 2023 were $3.46, projected to decrease to $2.88 in 2024, and then increase to $3.18 in 2025[19] - The weighted average number of diluted shares for 2023 was 185,141,843, projected to decrease to 180,436,900 in 2024 and further to 176,646,644 in 2025, reflecting potential share buybacks or reduced issuance[19] Foreign Exchange Impact - The company experienced foreign exchange gains of $4,274 in 2023, with a forecasted decrease to $2,937 in 2024 and an increase to $7,390 in 2025, indicating fluctuations in currency impact on earnings[19]

Core Insights - Genpact reported net revenues of $5.080 billion for the full year 2025, reflecting a year-over-year increase of 6.6% and 6.4% on a constant currency basis [1] - The company experienced significant growth in Advanced Technology Solutions, with net revenues rising 17.0% year-over-year to $1.204 billion [1] - Diluted EPS for 2025 was $3.13, an increase of 9.8%, while adjusted diluted EPS rose 11.3% to $3.65 [1] Financial Highlights - Full Year 2025 - Digital Operations net revenues reached $2.638 billion, up 4.1% year-over-year, accounting for 52% of total net revenues [1] - Data-Tech-AI net revenues were $2.442 billion, up 9.3% year-over-year, representing 48% of total net revenues [1] - Core Business Services net revenues totaled $3.876 billion, up 3.7% year-over-year, making up 76% of total net revenues [1] - Advanced Technology Solutions contributed 24% to total net revenues with $1.204 billion [1] Financial Highlights - Fourth Quarter 2025 - Net revenues for Q4 2025 were $1.319 billion, a 5.6% increase year-over-year [1] - Digital Operations net revenues were $681 million, up 4.0% year-over-year, representing 52% of total net revenues [1] - Data-Tech-AI net revenues for Q4 were $639 million, up 7.4% year-over-year, accounting for 48% of total net revenues [1] - Core Business Services net revenues were $996 million, up 2.9% year-over-year, representing 76% of total net revenues [1] - Advanced Technology Solutions net revenues were $323 million, up 15.0% year-over-year, contributing 24% to total net revenues [1] Capital Allocation - The Board of Directors declared a quarterly cash dividend of $0.1875 per common share for Q1 2026, marking a 10% increase from the previous year [1] - The planned annual dividend for 2026 is $0.75 per common share, up from $0.68 in 2025 [1] Outlook - For the full year 2026, Genpact anticipates net revenue growth of at least 7% on an as-reported basis or 6.8% on a constant currency basis [1] - Growth is expected to continue in Core Business Services, while Advanced Technology Solutions is projected to grow at least in the high teens [1] - For Q1 2026, net revenues are expected to be between $1.282 billion and $1.294 billion, reflecting year-over-year growth of approximately 5.5% to 6.5% [1]

Core Viewpoint - Genpact (G) has experienced a significant downtrend, with a 19.1% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - Genpact's current RSI reading is 18.15, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound towards the previous equilibrium of supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding an increase in earnings estimates for Genpact, with a 0.1% rise in the consensus EPS estimate over the last 30 days, which often correlates with near-term price appreciation [7]. - Genpact holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Viewpoint - Genpact (G) has experienced a significant decline of 17.7% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - Genpact's current RSI reading is 19.26, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for Genpact have been raised, resulting in a 0.1% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - Genpact holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Insights - Genpact has achieved an 'A' rating from CDP in the Climate Action category, positioning the company among global leaders in environmental transparency and climate performance [1][2][3] Company Achievements - Only 4% of nearly 20,000 companies scored by CDP received an 'A' rating, highlighting the rigor and distinction of Genpact's recognition [3] - Genpact's strengths in climate action include strong oversight and accountability, proactive climate risk management, and alignment of environmental considerations with core business strategy [4] Commitment to Sustainability - The 'A' rating reflects Genpact's commitment to integrity, measurable environmental impact, and transparent climate reporting [4] - Sustainability is embedded in Genpact's business operations, underscoring the collaboration of global teams in advancing climate ambitions [4]

Core Viewpoint - Investors are evaluating Genpact (G) and Epam (EPAM) to determine which stock is more attractive for value investing [1] Valuation Metrics - Both Genpact and Epam currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - Genpact has a forward P/E ratio of 11.71, while Epam has a forward P/E of 17.39 [5] - Genpact's PEG ratio is 1.22, compared to Epam's PEG ratio of 2.13, suggesting Genpact may be undervalued relative to its growth expectations [5] - Genpact has a P/B ratio of 3.14, while Epam's P/B ratio is 3.26, further indicating Genpact's relative valuation strength [6] - Based on these valuation metrics, Genpact earns a Value grade of A, while Epam receives a Value grade of C, positioning Genpact as the superior value option [6]