Genpact(US:G)2026-02-05 21:08Revenue Performance - 2025 net revenues were $5.080 billion, up 6.6% year-over-year, and 6.4% on a constant currency basis[5] - Advanced Technology Solutions net revenues were $1.204 billion, up 17.0% year-over-year, representing 24% of total net revenues[5] - Core Business Services net revenues were $3.876 billion, up 3.7% year-over-year, representing 76% of total net revenues[5] - Data-Tech-AI net revenues were $2.442 billion, up 9.3% year-over-year, representing 48% of total net revenues[5] - Digital Operations net revenues were $2.638 billion, up 4.1% year-over-year, representing 52% of total net revenues[5] - Net revenues for the year ended December 31, 2023, were $4,476,888, representing an increase from $4,767,139 in 2024 and projected to reach $5,079,879 in 2025[19] - Total revenues for Q4 2025 reached $1,319,278, a growth from $1,291,257 in Q3 2025, driven by Advanced Technology Solutions and Core Business Services[41] - Advanced Technology Solutions revenue for Q4 2025 was $322,849, up from $310,986 in Q3 2025, while Core Business Services revenue reached $996,429, an increase from $980,271[41] Profitability Metrics - Diluted EPS was $3.13, up 9.8% year-over-year; adjusted diluted EPS was $3.65, up 11.3% year-over-year[5] - Gross profit was $1.831 billion, up 8.3% year-over-year, with a margin of 36.0%[5] - Net income was $552 million, up 7.6% year-over-year, with a margin of 10.9%[5] - Net income for Q4 2025 was $143,094, representing a 0.8% increase from Q4 2024's $141,915, with a net income margin of 10.8%[30] - Adjusted income from operations for Q4 2025 was $231,657, up from $220,682 in Q4 2024, maintaining an adjusted income from operations margin of 17.6%[31] - Diluted EPS for Q4 2025 increased to $0.82 from $0.79 in Q4 2024, with adjusted diluted EPS rising to $0.97 from $0.91[33] Future Projections - Genpact expects net revenue growth of at least 7% for 2026, with Advanced Technology Solutions projected to grow at least in the high-teens[10] - The company projects a net income margin of 11.0% and an adjusted income from operations margin of 17.7% for the year ending December 31, 2026[34] - Estimated diluted EPS for the year ending December 31, 2026, is projected at $3.48, with adjusted diluted EPS expected to be $4.01[37] - For Q1 2026, the company expects a net income margin of 10.8% and an adjusted income from operations margin of 17.3%[38] - The estimated diluted EPS range for Q1 2026 is projected between $0.79 and $0.80, with adjusted diluted EPS expected to be between $0.92 and $0.93[40] Cash Flow and Investment - Operating cash flow for 2023 was $490,812, expected to rise to $615,424 in 2024 and further to $812,856 in 2025, indicating strong cash generation capabilities[21] - The company reported a net cash used for investing activities of $(78,944) in 2023, with an increase to $(105,959) in 2024 and a significant rise to $(495,495) in 2025, suggesting aggressive investment strategies[21] - The company plans to continue focusing on acquisitions and investments in technology to drive future growth, as indicated by the significant cash outflows for business acquisitions and intangible assets[21] Shareholder Returns - The quarterly dividend for Q1 2026 is set at $0.1875 per common share, a 10% increase from the previous year[7] Operational Costs - Total operating expenses for 2023 were $913,061, expected to rise to $967,145 in 2024 and $1,046,713 in 2025, highlighting increasing operational costs[19] Earnings Per Share Trends - Basic earnings per share for 2023 were $3.46, projected to decrease to $2.88 in 2024, and then increase to $3.18 in 2025[19] - The weighted average number of diluted shares for 2023 was 185,141,843, projected to decrease to 180,436,900 in 2024 and further to 176,646,644 in 2025, reflecting potential share buybacks or reduced issuance[19] Foreign Exchange Impact - The company experienced foreign exchange gains of $4,274 in 2023, with a forecasted decrease to $2,937 in 2024 and an increase to $7,390 in 2025, indicating fluctuations in currency impact on earnings[19]