Core Insights - Genpact Limited reported strong first-quarter 2024 results, exceeding Zacks Consensus Estimates for both earnings and revenues [1] - Quarterly EPS of 84 cents surpassed the consensus estimate by 5% and grew 15.1% year over year, while revenues of $1.21 billion beat the consensus mark by 0.5% and increased 7.4% from the previous year [1] Financial Performance - Data-Tech-AI services revenues, accounting for 48% of total revenues, increased 11.1% year over year to $582 million, surpassing the estimate of $575 million [2] - Digital Operations services revenues of $633 million, representing 52% of total revenues, grew 4.2% year over year, beating the estimate of $632.5 million [2] - Adjusted income from operations totaled $210 million, reflecting a 15% year-over-year growth, with an adjusted operating income margin of 17.3% remaining flat year over year [3] Cash Flow and Capital Management - The company generated $40.4 million in cash from operating activities, with capital expenditure at $22 million [4] - Genpact returned $29.8 million in dividends to shareholders and repurchased shares worth $63 million [4] Future Guidance - For Q2 2025, Genpact expects adjusted EPS in the range of 84 cents to 86 cents, with revenues anticipated between $1.21 billion and $1.23 billion, below the Zacks Consensus Estimate [5] - For the full year 2025, adjusted EPS is projected to be between $3.41 and $3.52, and revenues are expected to be between $4.9 billion and $5 billion, both below the Zacks Consensus Estimates [6]

Core Insights - Genpact reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.73 per share a year ago, representing a 5% earnings surprise [1] - The company achieved revenues of $1.21 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.50% and increasing from $1.13 billion year-over-year [2] - Genpact's stock has increased by approximately 15.7% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86, with projected revenues of $1.25 billion, and for the current fiscal year, the EPS estimate is $3.54 on revenues of $5.07 billion [7] - The estimate revisions trend for Genpact is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Genpact belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported total revenues of $1,215,000,000 for Q1 2025, representing an 8.3% year-over-year increase in constant currency, exceeding guidance expectations [7][20] - Adjusted EPS grew by 16% year-over-year, reaching $0.84, which is above the high end of the guidance range [8][24] - Gross margin expanded by 30 basis points year-over-year to 35.3%, driven by operating leverage and cost discipline [23][24] - Operating cash flow improved to $40,000,000 from a $26,000,000 outflow in the prior year [24] Business Line Data and Key Metrics Changes - Data Tech and AI services accounted for 48% of total revenue, amounting to $582,000,000, reflecting an 11% increase year-over-year [22] - Digital operations revenue was $633,000,000, up 4% year-over-year, representing 52% of total revenue [22] - Revenue from priority accounts grew approximately 6% year-over-year, representing 62% of total revenue, with high-tech and manufacturing leading at 11% growth [23] Market Data and Key Metrics Changes - The pipeline for large deals increased by over 80% year-over-year, indicating strong long-term demand despite current uncertainties [17][42] - The company noted delays in large deals primarily in manufacturing, consumer goods, and high-tech hardware sectors due to supply chain and tariff-related uncertainties [9][40] Company Strategy and Development Direction - The company is focused on execution, innovation, and deepening client relationships, aiming to gain market share and build a stronger business [11][19] - The three plus one execution framework introduced in 2024 emphasizes partnerships, Data Tech AI, simplification, and establishing Genpact as a leader in AI-led transformation [11][12] - The company is taking a conservative approach to guidance, reflecting increased uncertainty in certain industries and a measured outlook for digital operations and Data Tech AI [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and highlighted a strong pipeline, despite acknowledging a changing operating environment [18][19] - The company is not seeing any deal cancellations but is experiencing delays, particularly in large deals that are crucial for revenue growth [38][52] - Management remains optimistic about the demand for their solutions and the potential for productivity gains through AI [41][72] Other Important Information - The company returned $93,000,000 to shareholders in Q1 through share repurchases and dividends [25] - The guidance for full-year net revenue has been adjusted to a range of $4,862,000,000 to $5,005,000,000, reflecting a growth of 2% to 5% [29][30] Q&A Session Summary Question: Growth and revised outlook in digital operations - The reduction in digital operations outlook is primarily due to delays in large deals, which are expected to impact the second half of the year [35][37] Question: Risk of deal cancellations - Management does not foresee any risk of cancellations as discussions are ongoing and deals remain active [42] Question: Pricing pressure on delayed deals - There is no indication of pricing pressure; the delays are purely timing-related [50][52] Question: Impact of existing customer deals on second quarter - The company feels confident about the second quarter, with a conservative outlook reflecting uncertainty rather than weakness in existing customer deals [67] Question: AI-driven productivity savings in deals - The company typically promises productivity improvements of 30% to 45% over the term of large deals, leveraging various AI solutions [71][72]

Financial Data and Key Metrics Changes - The company reported total revenues of $1,215 million in Q1 2025, an increase of 8.3% year over year in constant currency, exceeding guidance [7][20] - Adjusted EPS grew 16% year over year, reaching $0.84, which is above the high end of the guidance range [8][24] - Gross margin expanded by 30 basis points year over year to 35.3%, driven by operating leverage and cost discipline [23][24] - Operating cash flow improved to $40 million from a $26 million outflow in the prior year [24] Business Line Data and Key Metrics Changes - Data Tech and AI services represented 48% of total revenue, amounting to $582 million, reflecting an 11% increase year over year [22] - Digital operations revenue was $633 million, up 4% year over year, accounting for 52% of total revenue [22] - Revenue from priority accounts grew approximately 6% over the prior year, representing 62% of total revenue [23] Market Data and Key Metrics Changes - The pipeline for large deals is at record levels, up more than 80% year over year, indicating strong long-term demand [16][41] - Win rates for the quarter were 40%, with sole source deals accounting for approximately 54% of total bookings, up from 35% in the prior year [21] Company Strategy and Development Direction - The company is focused on execution and innovation, deepening client relationships, and gaining market share [10][18] - The three plus one execution framework introduced in 2024 emphasizes partnerships, Data Tech AI, simplification, and establishing Genpact as a leader in AI-led transformation [10][11] - The company is taking a conservative approach to guidance due to increased uncertainty in certain industries driven by changes in global trade [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted a softening macro environment but emphasized the strength of execution and the unutilized nature of the business [8][9] - The outlook for the year has been adjusted to reflect delayed decision-making in select end markets, particularly those impacted by global trade dynamics [20][26] - Despite the challenges, management remains confident in the strategy and the strength of the pipeline [17][18] Other Important Information - The company signed two large deals in Q1, with over 80% of associated revenue accounted for as unutilized Data Tech AI revenue [8] - The company is committed to returning at least 50% of cash flow to investors through share repurchases and dividends [30] Q&A Session Summary Question: Growth and revised outlook in digital operations - Management confirmed that the reduction in digital operations is primarily driven by delays in large deals, which are still in active dialogue and have not been canceled [36][40] Question: Pricing pressure on delayed deals - Management stated there is no pricing pressure on the delayed deals, attributing the situation to timing rather than competitive factors [48][50] Question: Types of deals affected by delays - The delayed deals are primarily in supply chain and are significant in nature, with a focus on both cost takeout and productivity improvements [55][56] Question: Outlook for Data Tech AI customer end markets - Management indicated a strong performance in Data Tech AI, with a record pipeline and a conservative approach to shorter cycle retail deals [60][61] Question: Impact of existing customers on second quarter growth - Management expressed confidence in second quarter growth, emphasizing a conservative outlook due to uncertainty rather than weakness in existing customer deals [65][66] Question: AI-driven productivity savings in large deals - Management highlighted that large deals typically promise productivity improvements of 30% to 45% over five to seven years, leveraging various AI solutions [68]

Financial Performance - Net revenues for Q1 2025 were $1.215 billion, representing a year-over-year increase of 7.4% and 8.3% on a constant currency basis[5]. - Data-Tech-AI net revenues reached $582 million, up 11.1% year-over-year, accounting for 48% of total revenue[5]. - Digital Operations net revenues were $633 million, reflecting a 4.2% year-over-year increase, representing 52% of total revenue[5]. - Diluted EPS for Q1 2025 was $0.73, up 14% year-over-year, while adjusted diluted EPS was $0.84, up 16%[5]. - Net income for the three months ended March 31, 2025, increased to $130,853, up from $116,947 in the same period of 2024, representing a growth of 11.5%[16]. - Adjusted income from operations for Q1 2025 was $209,734, compared to $181,879 in Q1 2024, reflecting an increase of 15.3%[25]. - The adjusted income from operations margin improved to 17.3% in Q1 2025, up from 16.1% in Q1 2024[25]. - Diluted EPS rose to $0.73 in Q1 2025, compared to $0.64 in Q1 2024, marking a growth of 14.1%[28]. Cash Flow and Operations - Cash generated from operations was $40 million, a significant increase from $26 million utilized in operations in Q1 2024[5]. - The company reported a net cash used for operating activities of $(25,561) in Q1 2024, which turned into a net cash provided of $40,436 in Q1 2025[16]. - Cash and cash equivalents at the end of Q1 2025 were $561,615, an increase from $478,398 at the end of Q1 2024[16]. - The company experienced a net decrease in cash and cash equivalents of $(98,433) in Q1 2024, compared to $(84,329) in Q1 2025[16]. Future Projections - The company expects Q2 2025 net revenues in the range of $1.210 billion to $1.233 billion, indicating year-over-year growth of approximately 2.8% to 4.8%[7]. - For the full year 2025, net revenues are projected to be between $4.862 billion and $5.005 billion, representing year-over-year growth of approximately 2.0% to 5.0%[7]. - The gross margin for Q2 2025 is expected to be approximately 35.5%[7]. - Adjusted diluted EPS for the full year 2025 is projected to be in the range of $3.41 to $3.52, down from the previous range of $3.52 to $3.59[7]. - The estimated adjusted income from operations margin for the year ending December 31, 2025, is projected to be 17.3%[29]. Shareholder Actions - The company repurchased approximately 1.2 million common shares during the quarter for a total consideration of approximately $63 million at an average price per share of $52.17[5]. - Stock-based compensation expense for Q1 2025 was $20,036, up from $9,181 in Q1 2024[25].

Core Insights - The research by Genpact reveals significant uncertainty regarding AI adoption in the insurance industry, highlighting the need for insurers to convert customer skepticism into confidence and preference [1][2][3] Consumer Sentiment - A majority of US adult respondents (55%) feel neutral about their insurance companies using AI, while 25% view it negatively [2] - Customer acceptance of AI increases when it provides tangible benefits, such as faster claims processing (46% support), customized quotes, and improved customer service [2][3] Generational Differences - Younger generations, particularly Millennials and Gen Z, show a stronger preference for insurers using AI compared to Baby Boomers and Gen X, with 32% favoring AI for policy quote generation and 28% for claims processing [4] Trust and Expectations - Only 50% of respondents currently trust their insurer to provide accurate, tailored quotes, and 48% have faced challenges with the claims process [5] - There is a strong expectation for 24/7 live customer support (59%), but only 10% are comfortable relying solely on AI-powered chatbots [6] AI Integration Strategy - Insurers must align AI strategies with business goals and customer expectations to enhance customer experience [7] - Genpact emphasizes the importance of maintaining a human touch in AI interactions to build customer confidence and improve service [6][7] Research Methodology - The study was conducted by Dynata in December 2024, surveying 1,000 US adults aged 25 and older regarding their perceptions of AI in the insurance industry [10]

Core Insights - Genpact has been recognized as a Leader in NelsonHall's 2025 NEAT evaluation for P&C Operations: Analytics & AI, showcasing its advanced technology leadership in driving innovation and efficiency in the property and casualty insurance sector [1][4]. Group 1: Recognition and Evaluation - Genpact is named a Leader in all six evaluation categories of NelsonHall's NEAT assessment, which includes overall, underwriting, customer service/administration, claims administration, operations analytics, and AI/GenAI [2][3][4]. - The NEAT assessment evaluates vendors based on their ability to deliver immediate impact and future-ready solutions, reflecting Genpact's commitment to innovation and measurable impact across the P&C insurance value chain [4]. Group 2: AI and Technology Integration - Genpact's AI-first approach provides actionable insights that enhance efficiency and create long-term value for clients by embedding AI, data, and technology into underwriting, claims management, and operations [5][6]. - The company supports over 160 insurers globally, offering end-to-end solutions such as underwriting modernization and AI-powered claims management, bolstered by strategic investments in AI and partnerships with industry leaders [5][6]. Group 3: Key Offerings - Key offerings for P&C insurers include the Genpact Underwriting Manager, Genpact Claims Manager, Genpact AI Adjuster Assist, and Catastrophe Claims Management, which automate and streamline various processes within the insurance value chain [9].

Genpact (G) stock has gained 52% in a year, outperforming the industry's 3.3% fall and the 8.4% increase of the Zacks S&P 500 composite.G reported impressive fourth-quarter 2024 results. Quarterly EPS of 91 cents surpassed the consensus estimate by 5.8% and grew 11% year over year. Revenues of $1.25 billion beat the consensus mark by 1.7% and increased 8.9% from the year-ago quarter.How is Genpact Faring?The company’s dominance in the Business Process Outsourcing services market is due to its expertise in b ...

NEW YORK, April 10, 2025 /PRNewswire/ -- Genpact (NYSE: G) will report its financial results for the first quarter ended March 31, 2025, after the close of the U.S. financial markets on Wednesday, May 7, 2025. Following the release, Genpact's management team will host a conference call at 5:00 p.m. ET to discuss the company's performance.Participants are encouraged to register in advance to receive a dial-in number and unique PIN for seamless access. While early log-in is recommended, registration and acces ...

Investors looking for stocks in the Computers - IT Services sector might want to consider either Genpact (G) or ServiceNow (NOW) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Sty ...