Genpact Limited Q4 FY2025 earnings call

• Delivered strong close to a record year with $5.08 billion revenue, up 6.6% in 2025. ATS revenue grew 17% to $1.2 billion, now 24% of total revenue. • Healthy margin expansion: gross margin expanded 60 basis points, adjusted operating income margin improved 40 basis points. • Built strong foundation for long-term growth with agentic solutions; launched AP Capture, AP Advance, and Assist, closing over $200 million in contract value for AP agentic solutions, with over 40% from new clients. • Advanced Technology Solutions pipeline up 50% year over year; AgenTeq growing rapidly. • Examples of client partnerships: Humana expanded partnership for AI-enabled transformation, Vesco reimagined finance function with Genpact. • Partner-related revenue grew nearly 50% in 2025; invested in AI talent with over 7,000 AI builders and nearly 20,000 AI practitioners.

In 2025, Genpact achieved $5.08 billion in revenue, up 6.6%. Advanced Technology Solutions (ATS) revenue grew 17% to $1.2 billion, accounting for 24% of total revenue. Core Business Services grew 3.7%. In Q4 2025, total revenue was $1.319 billion, with ATS revenue increasing 15% to $323 million and Core Business Services growing 2.9% to $996 million. Data tech and AI revenue was $639 million in Q4, up 7.4%, and digital operations were $681 million, up 4%. Non-FTE revenue represented 48% of Q4 revenue.

• Expect 2026 revenue growth of at least 7%, powered by ATS growth in high teens. • Full-year gross margin expected to expand by 50 basis points to 36.5%, adjusted operating income margin to increase 25 basis points to 17.7%. • Adjusted diluted EPS expected to grow approximately 10%. • First quarter 2026 total revenue expected between $1.282 billion and $1.294 billion, with ATS accelerating to high teens growth, core business services continuing to grow, gross margin to 36.3%, adjusted operating income margin to 17.3%, and adjusted diluted EPS $0.92 to $0.93.

Q: Given material pressure from announcements from Anthropic and others, whether anything has changed in contracting conversations and client behavior?

A: Balkrishan Kalra stated that tech shifts are a tailwind, accelerating Genpact's pivot, with relevance increasing as seen in pipeline and conversations, seeing agentic operations and data/AI uptake accelerate.

Q: On ATS growth, driving confidence and ATS bookings growth and migration from CBS to ATS?

A: Balkrishan Kalra and Michael Weiner mentioned seeing more conversations where Genpact was not originally invited, core business services demand healthy, and AgenTeq ramp-up with $200 million in bookings, including 40% from new clients and incremental revenue/gross margin growth from rotations.

Q: 40% of AP suite TCV from new clients, patterns in adopters and addressable market growth?

A: Michael Weiner and Balkrishan Kalra said it points to expanding total addressable market, including net new and existing clients using finance stack, enhancing Genpact's reach.

Q: Improvements in sales cycle and ramp times in large deals and impact on full-year guidance?

A: Balkrishan Kalra said large deals have varied timelines, but pipeline and large deals at record levels; Michael Weiner mentioned committed revenue in line with historical averages and significant backlog.

Q: Margins, levers for 50 basis points expansion and future trajectory?

A: Balkrishan Kalra and Michael Weiner stated it's from shift to ATS with higher value, non-FTE commercial models supporting margin, and margin expansion net of significant investments, with mix shift and AI advances contributing.

Q: Pricing dynamics and client expectations for efficiencies?

A: Balkrishan Kalra and Michael Weiner said aspirations are high, but Genpact is providing more productivity to clients with costs offsetting faster, seen in gross margin expansion, and leveraging partner ecosystem and repeatable solutions.

Q: Who do new AI-focused clients first turn to?

A: Balkrishan Kalra mentioned Genpact is getting invited to conversations where it was not earlier, with pipeline and momentum showing ATS growth, indicating Genpact is a first call for many.

Q: Decision makers in client organizations for agentic solutions?

A: Balkrishan Kalra said it's a combination of business leaders and CIO/CDIO, with CIOs/CDIOs integral in agentic operations dialogue.

Q: Drivers of last deals closed and nature of work?

A: Balkrishan Kalra said it's from clients seeing Genpact's ability to bring agentic operations into mission-critical operations, opening up more demands and getting invited into GCC conversations.

Q: Long-term durability of projects and services?

A: Balkrishan Kalra stated agentic solutions are building recurring annual revenues, shaping the business differently, with long-term change seen in client adoption of agentic operations in various functions.