Genpact (G) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenues reached $1.296 billion, up 6.7% year-over-year, led by 24% growth in Advanced Technology Solutions, now 27% of total revenue.

• Net income rose 13.1% to $148 million, with diluted EPS at $0.86 and adjusted diluted EPS up 16.7% to $0.98.

• Gross margin expanded to 36.4%, marking the 12th consecutive quarter of year-over-year improvement.

• Six large deals were signed, and the business is shifting toward high-quality, recurring revenue streams.

• Strategic partnerships and notable client wins, including a new Google alliance and major contracts in Europe and Australia, enhanced the company’s leadership in agentic and AI-led solutions.

Financial highlights

• Advanced Technology Solutions revenue: $345 million, up 24.3% year-over-year; Core Business Services: $951 million, up 1.4%.

• Adjusted operating income: $224 million, margin of 17.3%; net income: $148 million, net margin 11.4%.

• Gross profit: $472 million, up 9.9% year-over-year.

• $24 million cash used in operations; $578 million in cash and equivalents at quarter end.

• $102 million returned to shareholders via $70 million in share repurchases and $32 million in dividends.

Outlook and guidance

• Full-year 2026 net revenue growth projected at least 7%; Advanced Technology Solutions expected to grow at least 20%.

• Q2 2026 net revenues expected between $1.324–$1.336 billion, up 5.5–6.5% year-over-year.

• Full-year gross margin expected to expand by 50 basis points to 36.5%; adjusted operating income margin to increase to 17.7%.

• Adjusted diluted EPS expected to grow over 10% for the year; Q2 guidance: $0.96–$0.97.

• Management expects sufficient liquidity to fund growth, dividends, and share repurchases.