Genpact Limited Q2 FY2025 earnings call

• Q2 was a strong quarter with revenue growth, gross margin up 50 basis points, adjusted operating income margin up 40 basis points, and adjusted EPS up 11% year-over-year.
• Introduced GenpactNext strategy with 3Cs: capabilities (Advanced Technology Solutions and Core Business Services), clients (enterprise and mid-market), and catalysts (partnerships, AI talent).
• ATS revenue grew 17% year-over-year, with data and AI pipeline tripling, AI Gigafactory live, over 270 gen AI solutions in production.
• Closed 4 large deals in Q2, pipeline remains strong. Partnerships grew over 70% year-over-year, achieving top-tier status with AWS, Salesforce, etc.
• Invested in AI-focused talent to accelerate growth.

Total revenue for Q2 2025 was $1.25 billion, up 7% year-over-year. Advanced Technology Solutions (ATS) revenue was $293 million, up 17% year-over-year, representing 23% of total revenue. Core Business Services revenue was approximately $962 million, up 4%. Data-Tech-AI represented 48% of total revenue ($599 million), growing 10% year-over-year. Digital operations revenue was $655 million, up 4%, accounting for 52% of total revenue.

• Raised full-year revenue guidance to 4%-6% (previously 2%-5%). Adjusted operating income margin expected at 17.4% (up from 17.3%). Adjusted diluted EPS midpoint raised to $3.54 (up $0.08).
• Q3 revenue expected $1.258 billion-$1.27 billion (3.9%-4.9% growth), adjusted operating income margin 17.5%, diluted EPS $0.89-$0.90.
• Full-year operating cash flow expected $610 million, continuing to return at least 50% of cash flow to investors.

• Actual results could differ materially due to risks in 10-K and 10-Q filings, including market uncertainties, client adoption of AI, and competitive pressures.

Q: Traction of new bookings and pipeline conversion.

A: Overall, inflow, conversion, and pipeline are healthy. One large deal closed in Q2, others remain active.

Q: Impact of gen AI on base business.

A: AI is a tailwind, with incremental revenue from expanded scope, increased volumes, and new logos.

Q: ATS pipeline conversion and vertical demand.

A: ATS pipeline growing faster, High Tech and Manufacturing up 13%, Financial Services up 6%, Consumer Healthcare up 1%.

Q: Sequential trends and midterm growth.

A: Midpoint guide achievable, ATS growing >15%, Core Business 4%-5%.

Q: AI adoption by verticals and pricing.

A: AI adoption broad-based, Financial Services faster; no irrational pricing, focus on value.