Genpact raises 2026 forecast as Q3 profit rises 10%
Q3 adjusted EPS of $1.07 was in line with the $1.06 consensus estimate, and revenue of $1.385 billion was below the $1.4 billion estimate. The company raised its 2026 adjusted EPS growth forecast to at least 13%.
Key takeaways
- Genpact (G) reported third-quarter net revenue of $1.385 billion, up 7.3% from a year earlier, and adjusted diluted EPS of $1.07, up 10.3%. It raised its 2026 gross margin outlook to approximately 36.9% and its adjusted diluted EPS growth forecast to at least 13%.
Genpact (G) reported third-quarter net revenue of $1.385 billion, up 7.3% from a year earlier, and raised two of its full-year 2026 forecasts.
Shares were little changed at 9:43 a.m. ET, from a $41.10 close.
Adjusted diluted earnings per share were $1.07, in line with the $1.06 consensus estimate. Revenue was below the $1.4 billion consensus estimate.
Here's how the company did:
- Net revenues: $1.385 billion vs. $1.291 billion a year earlier
- Adjusted diluted EPS: $1.07 vs. $0.97 a year earlier, $1.06 expected
- Diluted EPS: $0.89 vs. $0.83 a year earlier
- Net income: $151.7 million vs. $145.8 million a year earlier
- Gross profit: $526.7 million vs. $469.7 million a year earlier
Advanced Technology Solutions net revenue rose 30.3% to $405.1 million in the quarter. Core Business Services was flat at $980.3 million, and made up 71% of total net revenues.
Gross profit was $526.7 million, with a margin of 38.0%. Net income was $151.7 million, up 4.0% from a year earlier, with a margin of 10.9%.
Income from operations rose 10.1% to $211.0 million. Adjusted income from operations was $246.5 million, up 7.7% from a year earlier, with a margin of 17.8%.
Selling, general and administrative expenses rose to $312.5 million from $262.1 million a year earlier. Amortization of acquired intangible assets fell to $3.3 million from $8.3 million.
Cash generated from operations was $93 million in the quarter.
2026 outlook
The company now expects adjusted diluted EPS growth of at least 13% for 2026, up from at least 12% in its August forecast.
Gross margin is now forecast at about 36.9%, up about 90 basis points year-over-year, compared with the about 36.5% it forecast in August.
The company's forecast for net revenue growth of at least 7% as reported, and for an adjusted income from operations margin of about 17.7%, is unchanged. It still expects Advanced Technology Solutions revenue to grow at least 25% year-over-year.
Capital returns
Genpact repurchased about 870,000 common shares in the quarter for about $31 million, at an average price of $35.49 per share. It also paid about $31 million in dividends.
Year to date, the company has returned about $246 million to shareholders through share repurchases and dividends.
"We continue to invest significantly in Agentic Operations, strengthening our market position and building a high-quality business with durable growth," said Chief Financial Officer Sumita Pandit.