Genpact Stock Rises 4.3% Since Q4 Earnings and Revenue Beat

Core Insights - Genpact Limited reported strong fourth-quarter 2025 results, with earnings of 97 cents per share, exceeding the Zacks Consensus Estimate by 4.3% and reflecting a year-over-year increase of 6.6%. Revenues reached $1.3 billion, slightly surpassing the consensus and growing 5.7% year over year [1][10]. Financial Performance - The stock has appreciated by 4.3% since the earnings release on February 5, driven by better-than-expected results and robust earnings guidance [2]. - For Q1 2026, Genpact anticipates adjusted earnings per share in the range of 92 to 93 cents, above the current Zacks Consensus Estimate of 89 cents [2][10]. - Data-Tech-AI services revenues, accounting for 48% of total revenues, increased by 7.4% year over year to $638.8 million, surpassing the estimate of $636.3 million. Digital Operations services revenues rose 4.1% to $680.5 million, exceeding the estimate of $668.6 million [3][10]. - Adjusted income from operations totaled $232 million, growing 7.5% year over year and beating the estimate of $226.8 million. The adjusted operating income margin was 17.6%, a decline of 10 basis points year over year [4]. Balance Sheet & Cash Flow - At the end of the quarter, Genpact had cash and cash equivalents of $853.8 million, up from $740.8 million at the end of Q3 2025. Long-term debt was $1.2 billion, compared to $827.05 million at the end of the previous quarter [5]. - The company generated $286.7 million in cash from operating activities, with capital expenditures of $17.7 million. It returned $29 million in dividends and repurchased shares worth $100 million [6]. Guidance - For Q1 2026, revenues are expected to be between $1.282 billion and $1.294 billion, indicating year-over-year growth of approximately 5.5% to 6.5% on a reported basis. The midpoint of $1.29 billion aligns with the Zacks Consensus Estimate. Gross margin is projected at approximately 36.3%, with an adjusted income from operations margin of about 17.3% [7]. - For the full year 2026, gross margin is expected to be around 36.5%, and the adjusted income from operations margin is projected to be approximately 17.7% [8].