ExlService tops Q3 profit estimates and raises 2026 forecast

ExlService Holdings Inc. (EXLS) said in a filing on Oct. 27 that third-quarter revenue rose 19.7% to $634.0 million, and that it raised its full-year forecast. Adjusted diluted earnings per share of 62 cents topped the 57 cents consensus estimate compiled by Finnhub, while revenue was in line with the $627.74 million consensus estimate.

Shares rose 1.3% in after-hours trading as of 5:03 p.m. ET, from a regular-session close of $40.89.

ExlService is a global data and AI company headquartered in New York. It was founded in 1999 and has over 74,000 employees spanning six continents.

The results cover the three months ended Sept. 30, 2026. Here's how the company did:

• Adjusted diluted EPS: 62 cents vs. 48 cents a year earlier, against 57 cents expected, according to Finnhub
• GAAP diluted EPS: 45 cents vs. 36 cents a year earlier
• Revenue: $634.0 million vs. $529.6 million a year earlier, against $627.74 million expected, according to Finnhub

Revenue also rose 6.6% from the second quarter of 2026.

Operating income margin was 14.0%, down from 14.4% a year earlier. Adjusted operating income margin was 19.3%, compared with 19.4%.

Gross margin was 38.0%, compared with 38.5% a year earlier. Net income was $68.8 million, up from $58.2 million.

Segment results

Insurance revenue reached $208.5 million, up from $180.5 million a year earlier.

Healthcare and Life Sciences revenue was $160.4 million, compared with $135.3 million. Banking, Capital Markets and Diversified Industries revenue was $153.5 million, up from $121.0 million, and International Growth Markets revenue was $111.6 million, up from $92.8 million.

Chairman and Chief Executive Officer Rohit Kapoor said, “We entered 2026 with strong momentum that has accelerated through the year.” Data and AI-led revenue, which he said is almost two-thirds of the business, grew 36% on a reported basis and 31% organically.

2026 guidance

The company raised its 2026 revenue forecast to $2.430 billion to $2.440 billion, from the $2.390 billion to $2.415 billion range it gave on July 28.

It also raised its adjusted diluted EPS forecast to $2.34 to $2.36, from $2.25 to $2.29 in July. The revenue range reflects 16% to 17% growth on a reported basis and 15% on an organic constant currency basis.

Chief Financial Officer Maurizio Nicolelli said, “Our strong third quarter performance gives us the confidence to raise our full-year outlook once again.”

iMerit deal and credit facility

The company completed its acquisition of iMerit, establishing a Model Training Solutions practice. It also closed a new $1 billion senior secured credit facility.

Revenue has risen in each of the last three quarters, from $529.6 million in the third quarter of 2025 to $594.8 million in the second quarter of 2026, according to its SEC filings.

The company will host a conference call on Oct. 28 at 10 a.m. ET to discuss the results.