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    G
    Earnings call· Jun 2026(Q2 FY26)

    Genpact Q2 FY26 earnings call G

    Aug 6, 2026 Source

    Executive summary

    Genpact Q2 FY26 — Strong ATS Growth and Agentic Operations Momentum

    Genpact delivered a strong second quarter, driven by accelerating growth in Advanced Technology Solutions and significant momentum in its Agentic Operations strategy. The company is intentionally disrupting its business model, divesting from non-strategic work to focus on higher-value, more durable revenue streams. This pivot is yielding strong bookings and margin expansion, positioning Genpact for continued double-digit EPS growth despite near-term revenue headwinds from the transition.

    Highlights

    5

    • Total revenue grew 7.1% year-over-year to $1.343 billion.

    • Advanced Technology Solutions (ATS) revenue grew 24.1% year-over-year to $363 million, now 27% of total revenue.

    • Adjusted diluted EPS grew 13.6% year-over-year to $1 per share.

    • Gross margin expanded for the 13th consecutive quarter to 36.5%, up 60 basis points year-over-year.

    • Record quarterly bookings, with 6 large deals signed (vs. 3 last year) and nearly 40% from ATS.

    Concerns

    2

    • Transition away from non-aligned work will have nearly 2 points of impact to total revenue growth for FY26, concentrated in H2.

    • Core Business Services (CBS) revenue expected to be flat to slightly down in Q3 FY26 due to a 3-point impact from non-aligned work transition.

    Guidance & targets

    13
    CategoryTargetConfidence
    Full-year 2026 Total Revenue Growth
    at least 7%
    high materiality
    High
    Full-year 2026 Advanced Technology Solutions Revenue Growth
    at least 25%
    high materiality
    High
    Full-year 2026 Core Business Services Revenue Growth
    grow
    medium materiality
    Medium
    Full-year 2026 Gross Margin Expansion
    50 basis points
    high materiality
    High
    Full-year 2026 Adjusted Operating Income Margin Expansion
    approximately 25 basis points
    high materiality
    High
    Full-year 2026 Adjusted Diluted EPS Growth
    at least 12%
    high materiality
    High
    Q3 FY26 Total Revenue
    $1.369 billion and $1.382 billion
    high materiality
    High
    Q3 FY26 Advanced Technology Solutions Revenue Growth
    at least 25%
    high materiality
    High
    Q3 FY26 Core Business Services Revenue Growth
    flat to slightly down
    medium materiality
    Medium
    Q3 FY26 Gross Margin
    36.6%
    medium materiality
    High
    Q3 FY26 Adjusted Operating Income Margin
    17.8%
    medium materiality
    High
    Q3 FY26 Adjusted Diluted EPS
    $1.04 to $1.05
    high materiality
    High
    Agentic Solutions Total Contract Value Bookings
    over $1 billion
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Consumer & Healthcare
    		—9.5%——
    High Tech & Manufacturing
    		—7.6%——
    Financial Services
    		—3.3%——

    Operational metrics

    22
    Total Revenue
    $1.343 billion7.1% year-over-year
    Q2 FY26
    Advanced Technology Solutions Revenue
    $363 million24.1% year-over-year
    Q2 FY26

    Includes Data & AI, Digital Technologies, Advisory and Agentic.

    Core Business Services Revenue
    $980 million1.9% year-over-year
    Q2 FY26

    Includes Digital Operations, Decision Support Services and Technology Services.

    Gross Margin
    36.5%up 60 basis points year-over-year
    Q2 FY26

    Reflects continued operating and pricing discipline as well as revenue contribution from high-value ATS.

    SG&A Expense
    21.9%
    Q2 FY26
    Adjusted Operating Income
    $234 million7.5% year-over-year
    Q2 FY26
    Adjusted Operating Income Margin
    17.4%
    Q2 FY26

    Self-funding strategic investments.

    Effective Tax Rate
    23.7%
    Q2 FY26
    Net Income
    $146 million
    Q2 FY26
    Adjusted Diluted EPS
    $1.0013.6% year-over-year
    Q2 FY26

    Grew significantly faster than revenue.

    Cash and Cash Equivalents
    $517 million
    Q2 FY26

    As of quarter end.

    Capital Returned to Shareholders
    $82 million
    Q2 FY26
    Non-FTE Revenue
    over 50%
    Q2 FY26

    Surpassed 50% for the first time, reflecting shift to fixed fee, consumption, and outcome-based models.

    Large Deals Signed
    6vs 3 in Q2 FY25
    Q2 FY26

    Brings year-to-date large deals to 12, double the prior year.

    Bookings Performance
    largest ever
    Q2 FY26
    Agentic Bookings Growth
    significantlyquarter-over-quarter
    Q2 FY26

    Tracking to deliver over $1 billion in agentic TCV for 2026.

    Agentic Cumulative Awarded Contract Value from New Clients
    more than 50%
    to date

    Proving additional TAM capture.

    Net Revenue Growth for Existing Accounts Rotating to Agentic
    above Investor Day expectations
    Q2 FY26

    Driven by higher volumes and increased scope.

    Gross Margin Expansion for Existing Accounts Rotating to Agentic
    above Investor Day expectations
    Q2 FY26

    Driven by higher volumes and increased scope.

    Revenue per Headcount (ATS vs Total Company)
    more than 2x
    Q2 FY26

    ATS delivers more than 2x the revenue per headcount compared to the total company.

    Partner-Related Revenue Growth
    accelerated
    Q2 FY26

    As the company deepens relationships with partners core to client infrastructures.

    Headcount
    down a couple of percentsequentially
    Q2 FY26

    Reflects disciplined approach to headcount and early signs of revenue decoupling from headcount.

    Industry KPIs

    2
    MetricValueDetails
    Retention ratestrong
    Revenue model mixover 50%%

    Orderbook & backlog

    3
    Agentic Solutions Total Contract Value Bookingsover $1 billionFY26 target

    5x more than 2025

    Represents productized AI offerings with Genpact IP, delivered with multiyear annuitized recurring revenues through a commercial model not tied to headcount.

    Bookings Performancelargest everQ2 FY26

    Nearly 40% of bookings came from Advanced Technology Solutions.

    Large Deals Signed6 dealsQ2 FY26

    vs 3 in Q2 FY25

    Brings year-to-date large deals to 12, double the prior year. Large deals are $50 million or greater in total contract value.

    Product announcements

    2
    ProductTypeDetails
    Genpact Transaction Monitoring Analystlaunch
    Genpact Deductions Recovery solutionlaunch

    Deals & partnerships

    4
    LumenJourney to agentify Accounts Payable operation

    Lumen is a global networking and technology company.

    Mondelez InternationalExpanded relationship to build an enterprise-wide agentic operating model across source-to-pay processes

    Mondelez International is one of the world's largest snacking companies, spanning procurement through accounts payable.

    DatabricksAchieved Brickbuilder specialization for manufacturing, transportation and energy

    ISG recognized Genpact as a Rising Star in their Databricks ecosystem report for AI/ML and managed data optimization.

    ServiceNowRecognized as a leader in the ServiceNow ecosystem partners for 2026 by ISG

    Partnered with ServiceNow for a supply chain transformation for a leading energy equipment manufacturer, transitioning a heavily customized legacy platform to a new domain-specific platform.

    Risks & headwinds

    1
    Transition away from non-aligned workFY26 (concentrated in H2), Q3 FY26, and slightly larger dollar impact in FY27

    nearly 2 points of impact to total revenue growth for FY26; about 3 points of impact to Q3 FY26 Core Business Services revenue growth

    Mitigation: Doubling down on strategic priorities, accelerating ATS growth, and focusing resources on durable value and demand over the long term. This is an intentional disruption to build a higher quality, more durable business.

    What to watch in Q3 FY26

    5

    Core Business Services Revenue Growth

    Q3 FY26
    Current1.9% YoY in Q2 FY26
    Targetflat to slightly down

    Why it matters

    To verify the impact of the transition away from non-aligned work and the underlying health of the core business.

    We expect Core Business Services to be flat to slightly down, even after about 3 points of impact from the transition away from work not aligned with our Agentic Operations strategy.

    Q&A highlights

    6

    Given the conscious disruption and 2-point CBS headwind, what is the target growth model for the business, especially for CBS and ATS, compared to the Investor Day targets? Also, what about the sustainability of ATS growth?

    Management reiterated confidence in the long-term growth targets articulated at Investor Day, emphasizing that clients seek solutions, not just specific service classifications. They highlighted the strong demand signals in both ATS and Core Business Services, with record bookings and pipeline. The flywheel effect from core to Advanced Tech, leading to Agentic Operations, is creating strong momentum and durable, richer revenues, supporting continued ATS acceleration.

    “Overall, we feel exceptionally good about how we are ramping the business, not just in Advanced Tech, but also Core Business Services, because this is how the flywheel is delivering, which starts from core and Data & AI advisory, partner solutions and landing and Agentic Operations, which we are building and delivering on a new category.”

    asked by Bryan Bergin · answered by Balkrishan Kalra

    2 min read7 chapters

    Detailed Narrative

    01

    Strategic Pivot to Agentic Operations

    Genpact is undergoing an intentional disruption to become a leader in Agentic Operations, moving from running business operations to running autonomous workflows. This strategy leverages process intelligence with frontier AI models to create durable value and expand the total addressable market. The company is doubling down investments in Advanced Technology Solutions (ATS) where growth is durable and margins are attractive, while transitioning away from commoditized parts of its core business.

    02

    Advanced Technology Solutions (ATS) Acceleration

    ATS revenue grew 24.1% year-over-year to $363 million, now comprising 27% of total revenue. This acceleration is attributed to strong client demand for AI-led innovation and the company's strategic investments paying off. Management expects ATS revenue to grow at least 25% for the full year 2026, underscoring the rapid pace of adoption and the effectiveness of their flywheel strategy.

    03

    Non-Strategic Work Transition

    Genpact is actively transitioning away from certain areas of content management and commoditized contact centers that do not align with its Agentic Operations strategy. This transition is expected to impact total revenue growth by nearly 2 points for FY26, with the impact concentrated in the second half. While the dollar impact is expected to be slightly larger in 2027, it will be offset by continued momentum in strategic areas.

    04

    Record Bookings and Pipeline

    The company achieved its largest ever quarterly bookings, with nearly 40% coming from Advanced Technology Solutions. Six large deals (>$50M TCV) were signed in Q2, bringing the year-to-date total to 12, double the prior year. This strong demand, coupled with a robust pipeline and record backlog, positions Genpact well for the second half of 2026 and provides good visibility into 2027.

    05

    Agentic Solutions Traction

    Genpact is on track to book over $1 billion in Agentic Solutions Total Contract Value (TCV) in 2026, a 5x increase from 2025. More than 50% of this cumulative awarded contract value is from new clients, demonstrating significant TAM expansion. For existing clients rotating to agentic delivery, net revenue growth and gross margin expansion are exceeding prior Investor Day expectations, driven by higher volumes and increased scope.

    06

    Decoupling Revenue from Headcount

    Non-FTE revenue surpassed 50% of total revenue for the first time, reflecting a disciplined focus on shifting to fixed-fee, consumption, and outcome-based models. The company is seeing early signs of revenue growth decoupling from headcount, with ATS revenue per headcount being more than double that of the total company. This shift aims to create a more robust, durable, and higher-margin revenue base.

    07

    Partnership Ecosystem and Industry Recognition

    Partners continue to be an integral part of Genpact's strategy, with partner-related revenue growth accelerating in Q2. The company achieved Databricks Brickbuilder specialization for manufacturing, transportation, and energy, and was recognized as a leader in the ServiceNow ecosystem by ISG. NelsonHall also identified Genpact as a leader in all six F&A transformation NEAT market segments for 2026, including agentic AI.

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