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    G
    Earnings call· Mar 2026(Q1 FY26)

    Genpact Q1 FY26 earnings call G

    May 7, 2026 Source

    Executive summary

    Genpact Q1 FY26 — Record Start Driven by Agentic and Advanced Technology Solutions

    Genpact delivered a strong first quarter, driven by accelerating growth in Advanced Technology Solutions and agentic offerings, which are reshaping the company's trajectory. The firm is seeing a convergence of market shifts, differentiated capabilities, and strategic positioning, leading to a decoupling of revenue growth from headcount. Strategic partnerships and a focus on high-quality, annuitized revenue streams are building a more durable business model.

    Highlights

    5

    • Total revenue grew 6.7% year-over-year to $1.296 billion, a record start to the fiscal year.

    • Advanced Technology Solutions (ATS) revenue accelerated to 24% year-over-year, reaching $345 million.

    • Gross margin expanded for the 12th consecutive quarter, up more than 100 basis points to 36.4%.

    • Adjusted diluted EPS grew 16.7% year-over-year to $0.98, significantly faster than revenue.

    • Signed 6 large deals (>$50 million TCV) in the quarter, contributing to a record backlog and pipeline.

    Guidance & targets

    12
    CategoryTargetConfidence
    Full-year 2026 Total Revenue Growth
    at least 7%
    high materiality
    High
    Full-year 2026 Advanced Technology Solutions (ATS) Growth
    at least 20%
    high materiality
    High
    Full-year 2026 Core Business Services (CBS) Growth
    continued growth
    medium materiality
    Medium
    Full-year 2026 Gross Margin
    36.5%
    medium materiality
    High
    Full-year 2026 Adjusted Operating Income Margin
    17.7%
    medium materiality
    High
    Full-year 2026 Adjusted Diluted EPS Growth
    over 10%
    high materiality
    High
    Q2 2026 Total Revenue
    $1.324 billion to $1.336 billion
    high materiality
    High
    Q2 2026 Advanced Technology Solutions (ATS) Growth
    at least 20%
    medium materiality
    High
    Q2 2026 Core Business Services (CBS) Growth
    continued growth
    low materiality
    Medium
    Q2 2026 Gross Margin
    36.4%
    medium materiality
    High
    Q2 2026 Adjusted Operating Income Margin
    17.4%
    medium materiality
    High
    Q2 2026 Adjusted Diluted EPS
    $0.96 to $0.97
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Advanced Technology Solutions
    Accelerated growth, driven by significant strength in data and AI and agentic solutions. All key metrics (revenue per headcount, revenue growth, annuitized revenue, non-FTE models) are tracking ahead of prior reports.
    Percentage of total revenue: 27%Revenue per headcount: >2x total companyRevenue growth: >2x total companyAnnuitized revenue: 70%Non-FTE commercial models: 70%
    		$345 million24%——
    Core Business Services
    Includes digital operations, decision support services, and technology services. Reflects continued client trust and ongoing demand for deep domain and industry experience, with a deliberate focus on driving high-quality long-term growth.
    		$951 million1.4%——
    High Tech and Manufacturing
    Segment revenue growth.
    		—8%——
    Consumer and Healthcare
    Segment revenue growth.
    		—6.1%——
    Financial Services
    Segment revenue growth.
    		—5.4%——

    Operational metrics

    14
    Gross Margin
    36.4%up 110 bps YoY
    Q1 FY26

    Expanded due to disciplined approach to operations and pricing, and increasing contribution from high-value Advanced Technology Solutions revenue.

    SG&A Expense
    20.9%
    Q1 FY26

    SG&A expense as a percentage of revenue.

    Adjusted Operating Income
    $224 million
    Q1 FY26

    Reflects continued self-funding of strategic investments.

    Effective Tax Rate
    23.7%
    Q1 FY26

    Effective tax rate for the quarter.

    Net Income
    $148 million
    Q1 FY26

    Net income for the first quarter.

    Diluted EPS
    $0.86
    Q1 FY26

    Diluted earnings per share.

    Cash Utilized in Operations
    $24 million
    Q1 FY26

    In line with typical first quarter trends.

    Cash and Cash Equivalents
    $578 millionup $16 million YoY
    Q1 FY26

    Ending balance of cash and cash equivalents.

    Capital Returned to Shareholders
    $102 million
    Q1 FY26

    Total capital returned through share repurchases and dividends.

    Large Deals Signed
    6
    Q1 FY26

    Signed 6 large deals, contributing to a strong pipeline and record backlog.

    Non-FTE Revenue
    48%
    Q1 FY26

    Reflects a strategic shift to fixed fee, consumption, and outcome-based models, decoupling revenue from FTEs.

    Partner-Related Revenues Growth
    35%YoY
    Q1 FY26

    Significant growth in revenues derived from strategic partnerships.

    Agentic Solutions Total Contract Value (TCV)
    nearly doubledvs all of 2025
    Q1 FY26

    Rapid acceleration in agentic solutions, with over 50% of cumulative awarded TCV coming from new clients.

    Advanced Technology Solutions Pipeline Growth
    >30%
    last 90 days

    Demand for agentic solutions and data and AI expertise continues to meaningfully increase.

    Industry KPIs

    3
    MetricValueDetails
    Retention rate—
    Revenue model mix48%%
    New business bookings growth—

    Orderbook & backlog

    1
    Total Backlogrecord levelsQ1 FY26

    Advanced Technology Solutions is becoming an increasing proportion of bookings, adding to this record backlog.

    Deals & partnerships

    3
    Global leader in insurance and financial services (Europe)Strategic partnership to support transformation into global verticals, running and optimizing mission-critical operations, building future functions, and embedding agentic and AI-driven capabilities.

    Integrating Genpact's agentic finance IT solutions (accounts payable, record to report) and other AI-led offerings. This is a new client.

    Bendigo Bank (Australia)Strategic multiyear partnership to drive greater productivity with stronger risk and control outcomes across core operations, transforming their operating model.multiyear

    Selected Genpact for deep Australian banking operation expertise, proven innovation in AI and agentic case studies, and a risk-balanced mindset. This is a new client.

    GoogleStrategic alliance to create agentic and AI-led solutions for the office of the CFO, deepening an existing relationship.

    Genpact's finance solutions were spotlighted at Google Next, showcasing how they enable finance users to gain actionable insights from revenue and P&L data through natural language conversations in Gemini Enterprise. Already delivering real results for clients like Cardinal Health.

    What to watch in Q2 FY26

    5

    Advanced Technology Solutions Growth

    Q2 FY26
    Current24% YoY
    Targetat least 20% YoY

    Why it matters

    Continued strong growth in ATS is key to Genpact's strategic shift and long-term value creation, as it represents higher-quality, annuitized revenue.

    We expect Advanced Technology Solutions to grow at least 20% year-over-year

    Q&A highlights

    5

    Asked about client decision-making and spending trends from a macro perspective, and the migration level between Core Business Services (CBS) and Advanced Technology Solutions (ATS) as delivery modernizes.

    Management stated that the overall demand environment remains very strong across all segments and geographies, with pipeline and inflows at record levels. They highlighted a 'flywheel effect' where context-rich process intelligence from CBS amplifies ATS, leading to disproportionate growth in advanced technologies and new types of client conversations.

    “overall demand environment across the board, be it -- if I see in cohorts of Advanced Technology or Core Business Services or new clients, existing clients or various segments that we have or geos, it continues to be very strong and continues -- our pipeline and inflows continue to be at record levels.”

    asked by Bryan Bergin · answered by Balkrishan Kalra

    2 min read5 chapters

    Detailed Narrative

    01

    Agentic Operations Momentum and Strategic Shift

    Genpact is experiencing significant momentum in Agentic Operations, nearly doubling the total contract value of agentic solutions from all of 2025 in Q1 alone. This growth is driven by both new and existing clients rotating from traditional to agentic delivery, building a stronger annual recurring revenue base with higher gross margins. The company is positioning itself as a leader in agentic and advanced technology solutions, leveraging decades of process intelligence to deliver scalable autonomy.

    02

    Advanced Technology Solutions (ATS) Performance and Contribution

    Advanced Technology Solutions (ATS), including data and AI, digital technologies, advisory, and agentic, grew 24% year-over-year to $345 million, now accounting for 27% of total revenue. The pipeline for ATS has grown over 30% in the last 90 days. ATS delivers more than 2x the revenue per headcount and 2x the revenue growth of the total company, with 70% annuitized revenue and 70% from non-FTE commercial models, all tracking ahead of prior reports.

    03

    Core Business Services (CBS) and Client Engagement

    Core Business Services (CBS) revenue increased 1.4% in Q1 to $951 million. While growing slower, CBS remains a key element of Genpact's growth model, providing the process intelligence that differentiates its AI offerings. The company is seeing clients rapidly adopt and shape future agentic solutions, allowing for deliberate decisions to scale AI-led offerings and prioritize high-quality, long-term growth.

    04

    Strategic Partnerships and Ecosystem Expansion

    Genpact continues to deepen and expand partner relationships, with partner-related revenues growing 35% year-over-year and now representing nearly 13% of total revenue. A significant strategic alliance was announced with Google to create agentic and AI-led solutions for the office of the CFO, building on existing collaborations that are already delivering results for clients like Cardinal Health.

    05

    Financial Performance and Margin Expansion

    The company delivered strong financial results with total revenue growth of 6.7% to $1.296 billion. Gross margin expanded by approximately 110 basis points to 36.4%, marking the 12th consecutive quarter of expansion. Adjusted operating income margin was 17.3%, and adjusted diluted EPS grew 16.7% to $0.98, outpacing revenue growth. This reflects disciplined operations, pricing, and increasing contribution from high-value ATS revenue.

    AI-generated summary of the company’s earnings call. Not investment advice.