Core Insights - Genpact is undergoing a self-disruption to define the future of Agentic Operations, aiming to enhance growth and value for clients and the company itself [1] Company Overview - Genpact (NYSE: G) is a technology solutions company focused on agentic and advanced technologies, utilizing process intelligence and artificial intelligence to deliver measurable outcomes [1] - The company has a strong partner ecosystem and decades of client trust, providing innovative solutions that transform business operations [1] Leadership Appointments - Vijay Vijayasankar has been appointed as the Head of Corporate Development, responsible for accelerating Genpact's start-up partnership ecosystem and expanding the solutions portfolio [3] - Wayne Busch joins as the Head of NextGen Enterprises, tasked with building relationships with mid-market companies that are market disruptors [3] - Sydney Brie Schaub has been appointed as the Chief Legal Officer, leading the legal teams and driving an AI-first transformation within the function [3]

Core Insights - Genpact has been recognized as a Horizon 3 Market Leader in the HFS Horizons: Intelligent Supply Chain Services, 2025 assessment, highlighting its AI-driven supply chain innovation and measurable financial impact [1][2] - The company effectively combines its as-a-service operating model with advanced AI technologies, positioning itself as a leader in delivering tangible supply chain value [2][6] Company Overview - Genpact is described as an agentic and advanced technology solutions company that leverages process intelligence and artificial intelligence to deliver measurable outcomes [4] - The company has a strong partner ecosystem and decades of client trust, focusing on innovative solutions that transform business operations [4] Supply Chain Solutions - Genpact's supply chain solutions include planning-as-a-service, control-tower-as-a-service, and order management-as-a-service, which are part of its well-established outcomes-focused model [6] - The company utilizes a large pool of tech-trained talent across various platforms, enabling seamless execution and innovation in supply chain operations [6] Financial Impact Examples - A global food and beverage leader saved $99 million (€85 million) through an integrated planning hub [7] - A major packaged and frozen foods company achieved over $50 million in savings by modernizing its end-to-end planning [7] - A life sciences company improved customer experience by 10%-20% after transforming its order management [7] - A food and beverage company experienced a 25%-35% reduction in cost-per-order by enhancing truck utilization [7]

Core Viewpoint - Genpact is transitioning from a traditional BPO company to a digital compounding model, indicating a significant shift in its business strategy and operational focus [1]. Company Summary - The stock price of Genpact was approximately $40.9 at the time of the previous analysis, suggesting a potential for growth as the company evolves [1]. - The company has a market capitalization of around USD 2.5 billion, reflecting its size and position in the IT sector [1]. Industry Context - The shift towards a digital compounding model aligns with broader industry trends where companies are increasingly adopting digital solutions to enhance operational efficiency and drive growth [1].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Genpact (G) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable [4] - Genpact has a historical EPS growth rate of 11.7%, with projected EPS growth of 9.8% this year, surpassing the industry average of 9.2% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks [6] - Genpact's S/TA ratio is 0.97, indicating it generates $0.97 in sales for every dollar in assets, which is higher than the industry average of 0.93 [6] Group 4: Sales Growth - Sales growth is another critical factor, with Genpact expected to achieve a sales growth of 6% this year, compared to the industry average of 5.3% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are significant, with positive revisions correlating with stock price movements [8] - Genpact's current-year earnings estimates have increased by 2.7% over the past month, indicating a positive trend [8] Group 6: Overall Assessment - Genpact has earned a Growth Score of B and a Zacks Rank 2 due to its favorable metrics and positive earnings estimate revisions, making it a solid choice for growth investors [9][10]

Core Viewpoint - Genpact (G) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Outlook for Genpact - The upgrade reflects an improvement in Genpact's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, Genpact is expected to earn $3.60 per share, with a 2.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - Genpact's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Genpact has been awarded the Salesforce Partner Innovation Award in the Consumer Goods category for its work with Advantage Solutions, showcasing its capabilities in agentic enterprise transformation within the Salesforce ecosystem [1][2]. Company Overview - Genpact is an agentic and advanced technology solutions company that leverages process intelligence and artificial intelligence to deliver measurable outcomes [5][6]. - The company focuses on innovative solutions that transform business operations, supported by a strong partner ecosystem and decades of client trust [5]. Partnership and Innovation - The collaboration with Advantage Solutions involved developing a multi-platform solution powered by Salesforce, aimed at automating the order management process [3][4]. - Genpact's solutions have improved supply chain efficiency and visibility for Advantage Solutions, enhancing service delivery and decision-making [3][4]. Client Impact - Advantage Solutions, which serves 4,000 consumer packaged goods clients, sought a holistic platform to manage over eight million back-office transactions, including contracts and orders [2]. - The new order management platform utilizes data and AI to optimize complex supply chains, improving processes from forecasting to delivery tracking [4]. Recognition and Future Directions - The Salesforce 2025 Partner Innovation Awards highlight partners like Genpact that drive enterprise transformations through innovative solutions [4]. - Genpact's approach exemplifies how leveraging the Salesforce ecosystem can help clients navigate significant business challenges [4].

Core Insights - Genpact Limited reported strong third-quarter 2025 results, with both earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 15.3% stock rally since the earnings release on November 6 [1] Financial Performance - For Q3 2025, Genpact's EPS was $0.97, surpassing estimates by 7.8% and reflecting a 14% year-over-year growth [4][10] - Revenues reached $1.29 billion, beating the consensus mark by 2.1% and increasing 6.6% from the previous year [4][10] - Adjusted income from operations was $228.9 million, a 7.5% year-over-year increase, with an operating income margin of 17.7% [6] Revenue Breakdown - Data-Tech-AI services revenues, accounting for 48.2% of total revenues, grew 9.3% year-over-year to $622.4 million, exceeding estimates [5] - Digital Operations services revenues, making up 51.8% of total revenues, rose 4.3% year-over-year to $668.9 million, also beating estimates [5] Guidance - For Q4 2025, adjusted EPS is expected to be between $0.93 and $0.94, with the full-year adjusted EPS forecast raised to $3.60-$3.61 [2] - Revenue guidance for 2025 has been lifted to a range of $5.059 billion to $5.071 billion, indicating a year-over-year growth of approximately 6.1-6.4% [3] - Q4 2025 revenue is anticipated between $1.298 billion and $1.311 billion, reflecting a year-over-year growth of approximately 4.0% to 5.0% [8] Cash Flow and Shareholder Returns - The company generated $308 million in cash from operating activities, with capital expenditures of $19.22 million [7] - Genpact returned $29.29 million in dividends and repurchased shares worth $90 million [7] Market Position - Genpact currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook in the market [9]

Core Insights - Genpact has been awarded the Celonis® Game Changer Partner of the Year for 2025, highlighting its success in delivering value through process intelligence, AI, and automation [1][2]. Company Achievements - The partnership with Celonis enables global enterprises to transition from insight to action more rapidly, combining process intelligence, data, and AI to reshape business operations [3]. - Genpact's 'Client Zero' approach involves using Celonis internally to enhance its own operations, demonstrating strong executive alignment and commitment to innovation [3]. Client Success Stories - A global consumer packaged goods (CPG) company utilized the Genpact Transportation Costs & Performance app, analyzing approximately 700,000 annual shipments across 200 carriers, leading to expected savings of up to USD 6 million and a 15% improvement in on-time delivery [6]. - A global life sciences and laboratory technology leader improved accounts receivable performance and accelerated cash conversion by applying Celonis Process Intelligence alongside Genpact's analytics and automation expertise [6]. - A global beauty manufacturer enhanced processing cycle times and finance operations performance across its global business units through the deployment of Celonis with Genpact [6].

Financial Performance - Total net revenues for the three months ended September 30, 2025, increased to $1,291,257, representing a growth of 6.6% compared to $1,210,949 for the same period in 2024[11] - Gross profit for the nine months ended September 30, 2025, rose to $1,348,718, up from $1,244,294 in 2024, reflecting a year-over-year increase of 8.4%[11] - Net income for the three months ended September 30, 2025, was $145,831, a 9.8% increase from $132,818 in the same quarter of 2024[11] - Net income for the nine months ended September 30, 2025, was $409,400, an increase from $371,755 for the same period in 2024, representing a growth of approximately 10.4%[27] - The company reported a diluted earnings per share of $0.83 for the three months ended September 30, 2025, compared to $0.74 for the same period in 2024, indicating a growth of 12.2%[11] Assets and Liabilities - The company’s total assets grew from $4,987,153 as of December 31, 2024, to $5,364,152 as of September 30, 2025, marking an increase of 7.5%[8] - Current liabilities increased significantly from $963,739 as of December 31, 2024, to $1,461,641 as of September 30, 2025, representing a rise of 51.9%[8] - The company’s total equity increased from $2,389,611 as of December 31, 2024, to $2,544,530 as of September 30, 2025, marking an increase of 6.5%[8] - As of September 30, 2025, total equity amounted to $2,544,530, a decrease from $2,586,611 as of July 1, 2025, reflecting a comprehensive loss of $(95,007) and dividends paid of $(29,293)[21] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $526,161, up from $412,177 in 2024, indicating a growth of about 27.7%[27] - Cash and cash equivalents increased from $648,246 as of December 31, 2024, to $740,763 as of September 30, 2025, reflecting a growth of 14.2%[8] - Cash and cash equivalents at the end of the period were $740,763, down from $1,022,647 at the beginning of the period, reflecting a decrease of approximately 27.6%[27] Share Repurchase and Equity Changes - The company repurchased and retired 3,919,239 shares, resulting in a reduction of retained earnings by $(182,905) and total equity by $(182,944)[24] - The Company repurchased 4,720,308 and 3,919,239 common shares during the nine months ended September 30, 2024 and 2025, respectively[203] - The weighted average price per share for repurchases was $35.50 in 2024 and $46.68 in 2025, totaling $167,562 million and $182,944 million in cash, respectively[203] - Retained earnings were reduced by direct costs related to share repurchases of $294 million in 2024 and $978 million in 2025[204] - As of September 30, 2025, $464,061 million remained available for share repurchases under the existing program[205] - The Board of Directors has authorized repurchases of up to $2,750,000 million under the share repurchase program, including $500,000 million approved in Q1 2025[202] Expenses and Costs - Operating expenses for the nine months ended September 30, 2025, were $769,582, up from $717,988 in 2024, representing a year-over-year increase of 7.2%[11] - Stock-based compensation expense increased to $64,055 for the nine months ended September 30, 2025, compared to $47,276 for the same period in 2024, reflecting a rise of approximately 35.4%[27] - The net defined benefit plan costs for the nine months ended September 30, 2025, amounted to $15,798, compared to $15,032 for the same period in 2024[161] - The Company contributed a total of $38,861 to defined contribution plans during the three months ended September 30, 2025, compared to $34,722 for the same period in 2024[164] Intangible Assets and Amortization - Intangible assets are amortized over their estimated useful lives, with customer-related assets ranging from 1 to 9 years and technology-related assets from 2 to 10 years[51] - Amortization expenses for intangible assets acquired as part of business combinations for the three months ended September 30, 2025, were $8,285, compared to $6,495 for the same period in 2024[138] - The Company recorded $51,400 in customer-related intangibles and $6,000 in marketing-related intangibles from the acquisition, with a weighted average amortization period of five years[98] Credit Losses and Allowances - The company reported an increase in allowance for credit losses to $18,208 for the nine months ended September 30, 2025, compared to $12,395 in 2024, representing a rise of approximately 46.7%[27] - An allowance for credit losses is recognized for all debt instruments, with credit losses for accounts receivable estimated based on historical experience and forward-looking factors[76] - The Company recorded a charge for credit losses on deferred billings of $974 for the nine months ended September 30, 2025[102] Debt and Financing - The Company has a total outstanding long-term debt of $1,202,917 as of September 30, 2025, down from $1,221,440 as of December 31, 2024[155] - The term loan outstanding as of September 30, 2025, net of debt amortization expense, is $456,460, with quarterly payments of $6,625 required until maturity on December 13, 2027[147] - The Company issued $400,000 aggregate principal amount of 6.000% senior notes in June 2024, with an outstanding amount of $396,773 as of September 30, 2025, payable on June 4, 2029[151] - The Company utilized $1,257 of its $650,000 revolving credit facility as of September 30, 2025, with a commitment fee of 0.20% on the unutilized amount[143] Fair Value and Derivatives - As of September 30, 2025, the total fair value of financial assets increased to $87,036,000, with derivative instruments valued at $13,757,000 and deferred compensation plan assets at $73,279,000[107] - The total liabilities as of September 30, 2025, amounted to $246,232,000, with derivative instruments valued at $96,069,000 and deferred compensation plan liability at $72,663,000[107] - The fair value of deferred compensation plan assets increased from $60,991,000 in September 2024 to $73,279,000 in September 2025, reflecting a growth of approximately 20%[110] - The fair value of deferred compensation plan liabilities also increased from $60,354,000 in September 2024 to $72,663,000 in September 2025, indicating a rise of about 20%[113] Stock Options and Compensation Plans - The number of outstanding stock options decreased from 5,347,556 to 5,108,036 between January 1, 2025 and September 30, 2025[179] - The total remaining unrecognized stock-based compensation cost for options expected to vest as of September 30, 2025 was $2,060 thousand, to be recognized over 0.9 years[180] - The number of restricted share units (RSUs) outstanding increased from 2,134,269 to 2,264,642 between January 1, 2025 and September 30, 2025[183] - The total remaining unrecognized stock-based compensation cost related to RSUs as of September 30, 2025 was $56,833 thousand, to be recognized over 2.0 years[185] - The number of performance units (PUs) outstanding decreased from 3,257,804 to 2,686,881 between January 1, 2025 and September 30, 2025[192] - The total remaining unrecognized stock-based compensation cost related to PUs as of September 30, 2025 was $62,212 thousand, to be recognized over 1.9 years[196] - The compensation expense for the Employee Stock Purchase Plan (ESPP) for the three months ended September 30, 2024 and 2025 was $210 million and $227 million, respectively[201] - For the nine months ended September 30, 2024 and 2025, the compensation expense for the ESPP was $895 million and $720 million, respectively[201]

Core Insights - Genpact reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, and showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of +7.78% [1] - The company achieved revenues of $1.29 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.10% and up from $1.21 billion year-over-year [2] - Genpact has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Genpact's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $1.28 billion, and for the current fiscal year, it is $3.55 on revenues of $5.01 billion [7] Industry Context - The Computers - IT Services industry, to which Genpact belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]