Core Insights - Genpact will host an Investor Day on June 26, 2025, in New York City, focusing on its advancements in Data, AI, and domain-driven solutions [1][2] Group 1: Event Details - The event will be led by Balkrishan "BK" Kalra, Genpact's President and CEO, along with the senior leadership team [2] - A live webcast will be available on the Genpact Investor Relations website, with a replay provided after the event [3] Group 2: Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries [4] - The company aims to create lasting value for clients, serving leading enterprises including those in the Fortune Global 500 [4]

Core Insights - Genpact Limited reported strong fourth-quarter 2024 results, exceeding Zacks Consensus Estimates for both earnings and revenue [1][5] - The stock has appreciated by 11% since the results announcement on February 6, reflecting positive market sentiment towards the company's performance and guidance [2] Financial Performance - For Q1 2025, Genpact anticipates adjusted EPS between $0.79 and $0.80, surpassing the Zacks Consensus Estimate of $0.77 [3] - Expected revenues for Q1 2025 are projected to be between $1.202 billion and $1.213 billion, aligning with the current consensus estimate [3] - For the full year 2025, adjusted EPS is forecasted to be in the range of $3.52 to $3.59, with the midpoint exceeding the current consensus of $3.49 [4] - Revenue expectations for 2025 are between $5.029 billion and $5.125 billion, with the midpoint also higher than the consensus estimate of $5.07 billion [4] Revenue Breakdown - Quarterly EPS was reported at $0.91, which is 5.8% above consensus and represents an 11% year-over-year growth [5] - Total revenues reached $1.25 billion, beating the consensus by 1.7% and increasing 8.9% year-over-year [5] - Data-Tech-AI services revenues, accounting for 48% of total revenues, grew 12% year-over-year to $595 million, exceeding estimates [6] - Digital Operations services revenues, making up 52% of total revenues, increased 6.4% year-over-year to $654 million, also surpassing estimates [6] Operational Metrics - Adjusted income from operations was $221 million, reflecting a 9% year-over-year increase, with an operating income margin of 17.7% remaining stable [7] - The company ended the quarter with cash and cash equivalents of $648.2 million, down from $1 billion in the previous quarter [7] - Long-term debt remained flat at $1.2 billion compared to the prior quarter [7] Cash Flow and Shareholder Returns - Genpact generated $203 million in cash from operating activities, with capital expenditures of $19.7 million [8] - The company returned $26.7 million in dividends to shareholders and repurchased shares worth $85 million [8] Guidance - For Q1 2025, gross margin and adjusted income from operating margin are expected to be around 35% and 16.5%, respectively [9] - For the full year 2025, gross margin and adjusted income from operating margin are anticipated to be around 36% and 17.3%, respectively [9]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank and Style Scores Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower Zacks Ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [11] Company Spotlight: Genpact - Genpact, based in Hamilton, Bermuda, specializes in managing business processes globally, leveraging technology and analytical capabilities [12] - Currently rated 3 (Hold) with a VGM Score of A, Genpact has a Momentum Style Score of A and has seen a 22.9% increase in shares over the past four weeks [13] - Recent upward revisions in earnings estimates for fiscal 2025 and a Zacks Consensus Estimate increase to $3.49 per share, along with a 6.5% average earnings surprise, position Genpact as a noteworthy investment opportunity [13]

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - Stocks are rated with an alphabetic system from A to F based on their value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming [3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3][4] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historic earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, using factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [6] Group 3 - The Zacks Rank utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [10][11] Group 4 - Genpact, based in Hamilton, Bermuda, manages business processes globally, combining process expertise and technology to offer diverse services [12] - Genpact holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating potential for growth [12] - The company has a Growth Style Score of A, with a forecasted year-over-year earnings growth of 5.2% for the current fiscal year, and an upward revision in earnings estimates [13]

Financial Data and Key Metrics Changes - Revenue in Q4 reached $1.25 billion, up 9% year over year [7] - Operating cash flow grew 25%, and adjusted diluted EPS grew 10% year over year [10][32] - Annual revenue grew 6.5% to $4.77 billion, with adjusted diluted EPS at $3.28, a 10% increase [33][37] Business Line Data and Key Metrics Changes - Data, tech, and AI revenue reached $595 million, a 12% increase, contributing 48% of total quarterly revenue [28] - Digital operations revenue grew 6% to $654 million, representing 52% of total revenue [29] - Revenue from priority accounts grew approximately 9% year over year, contributing to 64% of fourth-quarter revenue [30] Market Data and Key Metrics Changes - Consumer and healthcare revenue increased 11%, high-tech and manufacturing increased 9%, and financial services increased 6% [30] - Annual revenue from outcome and consumption-based deals comprised 20% of total revenue for the year [35] Company Strategy and Development Direction - The company is focusing on innovation, particularly in AI and data technology, with the launch of the AI value studio and the Genpact GigaFactory [11][13] - Partnerships in 2024 saw a 50% year-over-year increase, indicating a strategic shift towards collaboration with technology partners [15] - The company aims to expand its footprint in the startup ecosystem, focusing on next-generation AI orchestration [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum entering 2025, setting full-year revenue guidance at 6.5% growth [23] - The company anticipates gross margin and adjusted operating income margins of 36% and 17.3% respectively, with EPS growth of 9% [24] - Management highlighted the importance of moving beyond generic AI to domain-specific intelligence tailored to industry needs [11] Other Important Information - The company ended 2024 with $648 million in cash and cash equivalents, up from $584 million in the previous year [38] - A total of $361 million was returned to shareholders in 2024 through share repurchases and dividends [39] Q&A Session Summary Question: Guidance on Data Tech AI and digital operations - Management indicated that approximately 75% of the business is annuitized, providing good visibility, while the remaining 25% is less predictable [48] Question: Increase in contract sizes related to Gen AI solutions - Management noted that implementing Gen AI solutions has led to follow-on conversations and contracts, enhancing the total addressable market [52] Question: Hiring pace associated with new solutions - Management stated that while there won't be massive shifts quarter over quarter, there is a need for more data technology skills and retraining of current staff [58] Question: Balance between horizontal and domain-specific solutions - Management confirmed a combination of both horizontal and vertical domain-specific solutions is being pursued [61] Question: Content moderation and AI's role - Management clarified that content moderation represents less than 10% of revenue and does not foresee significant threats from policy changes [66] Question: Talent acquisition for technical skills - Management emphasized the need for technical talent in data technology and AI, highlighting the importance of domain expertise [90] Question: M&A strategy - Management stated that M&A opportunities are evaluated through a disciplined approach to enhance capabilities when organic growth is insufficient [94] Question: Generative AI funding sources - Management observed that spending on generative AI solutions has largely been a shift of dollars rather than new incremental spending [100]

Group 1 - Genpact reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.82 per share a year ago, representing an earnings surprise of 5.81% [1] - The company posted revenues of $1.25 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.70%, and an increase from $1.15 billion year-over-year [2] - Genpact has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 15% since the beginning of the year, significantly outperforming the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $1.2 billion, and for the current fiscal year, it is $3.45 on revenues of $5.06 billion [7] Group 3 - The Outsourcing industry, to which Genpact belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Genpact is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Genpact (G) Q4 2024 Earnings Call February 06, 2025 05:00 PM ET Company Participants Krista Bessinger - SVP, Investor RelationsBalkrishan Kalra - CEO, President & DirectorMichael Weiner - Senior VP & CFOPuneet Jain - Associate - Equity ResearchBryan Bergin - Managing DirectorBradley Clark - Vice President Conference Call Participants Maggie Nolan - Research Analyst - Technology, Media & CommunicationsSean Kennedy - Payments & IT Services Equity Research AnalystSurinder Thind - Senior VP & Equity Analyst Ope ...

Financial Performance - 2024 net revenues were $4.77 billion, up 6.5% year-over-year, and 6.7% on a constant currency basis[5] - Data-Tech-AI net revenues were $2.23 billion, up 6.9% year-over-year, representing 47% of total revenue[5] - Digital Operations net revenues were $2.53 billion, up 6.1% year-over-year, representing 53% of total revenue[5] - Total net revenues for the year ended December 31, 2023, increased to $4,476,888, representing a growth of 2.4% compared to $4,371,172 in 2022[22] - Net income for the year ended December 31, 2023, was $631,255, a significant increase of 78.5% compared to $353,404 in 2022[22] - Earnings per common share for the year ended December 31, 2023, rose to $3.46, compared to $1.92 in 2022, indicating strong profitability growth[22] - The company expects net income for 2024 to be $513,670, a decrease of 18.6% compared to 2023[24] Earnings and EPS - Adjusted diluted EPS was $3.28, up 10% year-over-year, while diluted EPS was $2.85, down 16% year-over-year[9] - Adjusted diluted EPS for 2025 is expected to be in the range of $3.52 to $3.59[10] - Diluted EPS for Q4 2023 was $1.59, with an adjusted diluted EPS of $0.82, indicating a decrease from the previous year's $3.41 and $2.98[36] - For the year ending December 31, 2025, the estimated diluted EPS is projected to be between $3.04 and $3.11, with an adjusted diluted EPS forecasted between $3.52 and $3.59[40] Operational Efficiency - Cash generated from operations was $615 million, up 25% year-over-year[9] - Operating income for the year ended December 31, 2023, was $630,857, up from $502,151 in 2022, showing operational efficiency[22] - Adjusted income from operations for 2023 was $762,938, with an adjusted income from operations margin of 17.0%[33] - The adjusted income from operations for the year 2024 is expected to increase to $813,936,000, up from $762,938,000 in 2023[34] - Income from operations for Q4 2023 was $162,732,000, with an adjusted income from operations of $202,992,000, reflecting a margin of 14.2% and 17.7% respectively[34] Cash Flow and Liquidity - Total current liabilities decreased from $1,317,932 in 2023 to $963,739 in 2024, indicating improved liquidity[18] - Net cash provided by operating activities for 2023 was $490,812, compared to $443,670 in 2022, reflecting a growth of 10.4%[24] - Cash and cash equivalents increased from $583,670 as of December 31, 2023, to $648,246 as of December 31, 2024, enhancing the company's cash position[18] - Cash paid for interest in 2023 was $47,989, down from $51,147 in 2022, a decrease of 6.5%[24] Future Projections - For 2025, net revenues are projected to be in the range of $5.029 billion to $5.125 billion, representing year-over-year growth of approximately 5.5% to 7.5%[10] - Gross margin for 2025 is projected to be approximately 36.0%[10] - The company expects an adjusted income from operations margin of 17.3% for the year ending December 31, 2025, with a net income margin of 10.7%[37] - The company anticipates a net income margin of 10.1% for the quarter ending March 31, 2025[41] - The adjusted income from operations margin for the quarter ending March 31, 2025, is expected to be 16.5%[42] Dividends and Investments - The company declared a quarterly cash dividend of $0.17 per common share, an 11% increase[7] - The company plans to invest $55,421 in property, plant, and equipment in 2024, up from $50,614 in 2023[24] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20] Stock-Based Compensation - Stock-based compensation expense for 2023 was $88,576, an increase from $77,373 in 2022[24] - The company reported stock-based compensation expenses of $24,726,000 for Q4 2023, which is projected to decrease to $19,107,000 in Q4 2024[34] - The estimated stock-based compensation expense for the year ending December 31, 2025, is projected at 1.6% of total income[38] Exchange Rate Impact - The effect of exchange rate changes resulted in a gain of $8,033 in 2023, compared to a loss of $88,368 in 2022[24]

Moves beyond generic AI models to domain-specific autonomous agent-led delivery   NEW YORK, Feb. 5, 2025 /PRNewswire/ -- Genpact (NYSE: G), a global advanced technology services and solutions company, today announced the launch of its Agentic Solutions as part of its pivot to reimagining delivery. Genpact's Service-as-Agentic-Solutions will accelerate innovation for enterprises by fundamentally changing the way services are delivered, enabling business operations to evolve from traditional, linear models to ...

Core Insights - Genpact has been recognized as a Horizon 3 Market Leader in the HFS Horizons: Generative Enterprise Services 2025 report, highlighting its ability to deliver value to enterprise clients adopting AI and advanced technologies [1][4] - The report emphasizes the importance of Agentic AI, Services-as-Software, and AI-driven ecosystems, which align with Genpact's strategy to drive innovation and outcomes for clients [2][4] Company Highlights - Genpact's AI Factory, recently announced as the Genpact AI Gigafactory, is designed to help enterprises rapidly scale AI solutions from pilot to full-scale production, showcasing its strong value proposition [3][4] - The company is positioned as a trusted leader in generative enterprise services, consistently delivering transformative outcomes through advanced AI capabilities and deep industry expertise [4] Market Evaluation - The HFS Horizons report evaluated 40 service providers based on their value propositions, execution, innovation, go-to-market strategies, and market impact, with Genpact standing out in these areas [4]