G · Genpact Limited

Genpact's first quarter 2026 results reflect accelerating momentum in its Advanced Technology Solutions (ATS) segment, which grew 24.3% year-over-year to $345 million, now representing 27% of total net revenues. This growth drove overall net revenue expansion of 6.7% to $1.296 billion, with constant currency growth of 5.6%. Gross margin improved to 36.4%, marking the 12th consecutive quarter of year-over-year expansion, underscoring operational discipline and the shift toward higher-value advanced technology revenue. Income from operations rose 8.1% to $199 million, while net income increased 13.1% to $148 million. Diluted EPS grew 17.8% to $0.86, and adjusted diluted EPS rose 16.7% to $0.98. Management highlighted that the company is 'leading the shift to Agentic Operations' and that client demand is strong. For the second quarter of 2026, Genpact expects net revenues between $1.324 billion and $1.336 billion (5.5%-6.5% growth), with ATS revenue growing at least 20%. Full-year guidance calls for net revenue growth of at least 7% (6.8% constant currency), gross margin of approximately 36.5%, adjusted operating margin of 17.7%, and adjusted EPS growth of more than 10%. The company also repurchased 1.8 million shares for $70 million during the quarter. Cash used in operations was $24 million, compared to $40 million generated in the prior year quarter, reflecting working capital investments. Overall, the results demonstrate successful execution of the strategic pivot to advanced technology solutions, with sustained margin expansion and robust guidance.