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Genpact Reports Second Quarter 2025 Results
Net Revenues of $1.254 billion, Up 6.6% (6.2% constant currency)1
Data-Tech-AI Net Revenues of $599 million, Up 9.7% (9.5% constant currency)1
Digital Operations Net Revenues of $655 million, Up 4.0% (3.4% constant currency)1
Advanced Technology Solutions Net Revenues2 of $293 million, Up 17.3%
Core Business Services Net Revenues2 of $962 million, Up 3.8%
Diluted EPS of $0.75, Up 11.9%; Adjusted Diluted EPS3 of $0.88, Up 11.4%

NEW YORK, August 7, 2025 — Genpact Limited (NYSE: G), a global advanced technology services and solutions company, today announced financial results for the second quarter ended June 30, 2025.

“We delivered another strong quarter, with results above the high end of our guidance range, reflecting healthy growth driven by GenpactNext. Second quarter revenue increased 7% year-over-year, driven by accelerating growth in Advanced Technology Solutions, up 17%. For the full year, we are increasing guidance, with 5% revenue growth now expected at the midpoint of the range and adjusted diluted EPS again growing faster than revenue,” said Balkrishan “BK” Kalra, Genpact's President and CEO. “Looking ahead, our simple yet powerful strategy – to integrate Advanced Technology Solutions and strengthen our last mile advantage – positions Genpact as a clear partner of choice for AI-driven transformation, accelerating growth for our clients and ourselves.”

Key Financial Highlights – Second Quarter 2025
•Net revenues were $1.254 billion, up 6.6% year-over-year, and up 6.2% on a constant currency basis.1
◦Data-Tech-AI net revenues were $599 million, up 9.7% year-over-year, and up 9.5% on a constant currency basis,1 representing 48% of total net revenues.
◦Digital Operations net revenues were $655 million, up 4.0% year-over-year, and up 3.4% on a constant currency basis,1 representing 52% of total net revenues.
◦Advanced Technology Solutions net revenues2 were $293 million, up 17.3% year-over-year, representing 23% of total net revenues.
◦Core Business Services net revenues2 were $962 million, up 3.8% year-over-year, representing 77% of total net revenues.
•Gross profit was $450 million, up 8.1% year-over-year, with a corresponding margin of 35.9%.
•Net income was $133 million, up 8.8% year-over-year, with a corresponding margin of 10.6%.
•Income from operations was $179 million, up 5.4% year-over-year, with a corresponding margin of 14.3%.
1 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period.
2Advanced Technology Solutions net revenues include revenues from solutions and services focused on data and AI, digital technology, advisory and agentic solutions. Core Business Services net revenues include revenues from decision support services and technology services as well as Digital Operations.
3 Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release.


•Adjusted income from operations was $217 million, up 9.5% year-over-year, with a corresponding margin of 17.3%.4
•Diluted earnings per share was $0.75, up 11.9% year-over-year.
•Adjusted diluted earnings per share3 was $0.88, up 11.4% year-over-year.
•Cash generated from operations was $177 million, down from $209 million in the second quarter of 2024.
•Genpact repurchased approximately 700,000 common shares during the quarter for total consideration of approximately $30 million at an average price per share of $43.40.

Outlook
Genpact's outlook for the third quarter of 2025 is as follows:
•Net revenues in the range of $1.258 billion to $1.270 billion, representing year-over-year growth of approximately 3.9% to 4.9% as reported, or 3.1% to 4.1% on a constant currency basis.1
◦Data-Tech-AI net revenues growth of approximately 6.7% year-over-year at the midpoint of the range, or 6.2% year-over-year on a constant currency basis.1
◦Digital Operations net revenues growth of approximately 2.3% year-over-year at the midpoint of the range, or 1.3% year-over-year on a constant currency basis.1
•Gross margin of approximately 36.0%.
•Adjusted income from operations margin5 of approximately 17.5%.
•Adjusted diluted EPS6 in the range of $0.89 to $0.90.

Genpact's updated outlook for the full year 2025 is as follows:
•Net revenues in the range of $4.958 billion to $5.053 billion, representing year-over-year growth of approximately 4.0% to 6.0% as reported, or 3.7% to 5.7% on a constant currency basis,1 up from the prior guidance of approximately 2.0% to 5.0%, as reported.
◦Data-Tech-AI net revenues growth of approximately 7.4% year-over-year as reported, or 7.2% year-over-year on a constant currency basis,1 up from the previous midpoint of 5.1%, as reported.
◦Digital Operations net revenues growth of approximately 2.9% year-over-year as reported, or 2.5% year-over-year on a constant currency basis,1 up from the previous midpoint of 1.9%, as reported.
•Gross margin of approximately 36.0%, no change from the prior guidance.
•Adjusted income from operations margin5 of approximately 17.4%, up from the prior guidance of 17.3%.
•Adjusted diluted EPS6 in the range of $3.51 to $3.58, up from the prior range of $3.41 to $3.52.

Second Quarter 2025 Earnings Call

Genpact's management will host a conference call on August 7, 2025, at 5:00PM ET to discuss the company's performance for the second quarter ended June 30, 2025. Participants are encouraged to register here to receive a dial-in number and unique PIN for seamless access. It is recommended to join 10 minutes before the call starts, although registration and dial-in will be available at any time. A live webcast will be available on the Genpact Investor Relations website. For those unable to attend the live call, an archived replay and transcript will be available on the website shortly after the call.
4Adjusted income from operations and adjusted income from operations margin are non-GAAP measures. Reconciliations of each of GAAP income from operations and GAAP net income to adjusted income from operations and GAAP income from operations margin and GAAP net income margin to adjusted income from operations margin are attached to this release.
5Adjusted income from operations margin is a non-GAAP measure. A reconciliation of the outlook for each of GAAP net income margin and GAAP income from operations margin to adjusted income from operations margin is attached to this release.
6Adjusted diluted earnings per share is a non-GAAP measure. A reconciliation of the outlook for GAAP diluted earnings per share to adjusted diluted earnings per share is attached to this release.



About Genpact
Genpact (NYSE: G) is an advanced technology services and solutions company that delivers lasting value for leading enterprises globally. Through our deep business knowledge, operational excellence, and cutting-edge solutions – we help companies across industries get ahead and stay ahead. Powered by curiosity, courage, and innovation, our teams implement data, technology, and AI to create tomorrow, today.

Safe Harbor
This press release contains certain statements concerning our future growth prospects, including our outlook for 2025, financial results and other forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks, uncertainties, and other factors include but are not limited to macroeconomic uncertainty, U.S. and global trade and tariff policies and general economic conditions, any deterioration in the global economic environment and its impact on our clients, our ability to develop and successfully execute our business strategies, technological innovation, including AI technology and future uses of agentic AI, generative AI and large language models, and our ability to invest in new technologies and adapt to industry developments at sufficient speed and scale, our ability to effectively price our services and maintain pricing and employee utilization rates, general inflationary pressures and our ability to share increased costs with our clients, wage increases in locations in which we have operations, our ability to attract and retain skilled professionals, our ability to protect our and our clients' data from security incidents or cyberattacks, the economic and other impacts of geopolitical conflicts and any related sanctions and other measures that have been or may be implemented or imposed in response thereto, as well as any potential expansion or escalation of existing conflicts or economic disruption beyond their current scope, a slowdown in the economies and sectors in which our clients operate, a slowdown in the sectors in which we operate, the risks and uncertainties arising from our past and future acquisitions or divestitures, our ability to convert bookings to revenues, our ability to manage growth, factors which may impact our cost advantage, changes in tax rates and tax legislation and other laws and regulations, our ability to effectively execute our tax planning strategies, claims and lawsuits, including by clients, employees or other third parties, risks and uncertainties regarding fluctuations in our earnings, foreign currency fluctuations, political, economic or business conditions in countries in which we operate, as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management's current analysis of future events and should not be relied upon as representing management's expectations or beliefs as of any date subsequent to the time they are made. Genpact undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.
Contacts
 
Investors  Tyra Whelton
   +1 (908) 418-2995
  
tyra.whelton@genpact.com
Media
Judith Schunke
 +44 (0) 7887 661155
  
judith.schunke@genpact.com


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)


As of December 31, 2024
As of June 30, 2025
Assets
Current assets
Cash and cash equivalents$648,246$663,260
Short-term investments23,359— 
Accounts receivable, net of allowance for credit losses of $12,094
and $26,830 as of December 31, 2024 and June 30, 2025,
respectively
1,198,6061,266,653
Prepaid expenses and other current assets209,893205,116
Total current assets$2,080,104$2,135,029

Property, plant and equipment, net207,943219,405
Operating lease right-of-use assets182,190194,676
Deferred tax assets269,476244,326
Intangible assets, net26,95077,435
Goodwill1,669,7691,793,903
Contract cost assets200,900207,498
Other assets, net of allowance for credit losses of $7,320 and $7,861 as of
December 31, 2024 and June 30, 2025, respectively
349,821435,408
Total assets$4,987,153$5,307,680
Liabilities and equity
Current liabilities
Short-term borrowing
—85,000
Current portion of long-term debt26,173375,714
Accounts payable36,46943,947
Income taxes payable35,43156,197
Accrued expenses and other current liabilities812,994777,668
Operating leases liability52,67253,913
Total current liabilities$963,739$1,392,439
Long-term debt, less current portion1,195,267833,373
Operating leases liability153,587162,941
Deferred tax liabilities15,90817,013
Other liabilities269,041315,303
Total liabilities$2,597,542$2,721,069
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued—— 
Common shares, $0.01 par value, 500,000,000 authorized, 174,661,943
and 174,264,642 issued and outstanding as of December 31, 2024 and
June 30, 2025, respectively
1,7401,735
Additional paid-in capital1,945,2611,964,966
Retained earnings1,236,6961,347,377
Accumulated other comprehensive income (loss)(794,086)(727,467)
Total equity$2,389,611$2,586,611
Total liabilities and equity$4,987,153$5,307,680


GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)

Three months ended June 30,Six months ended June 30,
2024202520242025
Net revenues$1,176,212 $1,254,418 $2,307,449 $2,469,344 
Cost of revenue759,834 804,350 1,494,593 1,590,282 
Gross profit$416,378 $450,068$812,856$879,062
Operating expenses:
Selling, general and administrative expenses239,642 266,393 474,673 507,477 
Amortization of acquired intangible assets6,558 4,317 13,485 8,637 
Other operating (income) expense, net(73)(44)(5,539)(156)
Income from operations$170,251 $179,402$330,237$363,104
Foreign exchange gains, net
2,454 376 3,291 1,665 
Interest income (expense), net(13,538)(13,485)(23,780)(24,931)
Other income (expense), net3,250 10,445 9,037 12,123 
Income before income tax expense$162,417 $176,738$318,785$351,961
Income tax expense40,427 44,022 79,848 88,392 
Net income$121,990$132,716$238,937$263,569
Earnings per common share
Basic$0.68 $0.76 $1.33 $1.51 
Diluted$0.67 $0.75 $1.32 $1.48 
Weighted average number of common shares used in computing earnings per common share
Basic179,651,702 174,611,241 180,034,120 175,069,775 
Diluted180,912,267 177,052,346 181,424,912 177,743,745 


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Six months ended June 30,
20242025
Operating activities
Net income$238,937 $263,569 
Adjustments to reconcile net income to net cash (used for) provided by operating activities:            
Depreciation and amortization34,542 34,089 
Amortization of debt issuance costs1,037 1,105 
Amortization of acquired intangible assets13,485 8,637 
Allowance for credit losses12,638 18,363 
Unrealized (gain)/loss on revaluation of foreign currency assets/liabilities
(7,214)3,068 
Stock-based compensation expense27,550 41,834 
Deferred tax expense
15,873 9,307 
Others, net173 (89)
Change in operating assets and liabilities:— 
(Increase) in accounts receivable
(54,326)(58,694)
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use assets and other assets(22,823)(69,358)
Increase in accounts payable
997 9,561 
Decrease in accrued expenses, other current liabilities, operating lease liabilities and other liabilities(82,850)(63,608)
Increase in income taxes payable5,694 20,017 
Net cash provided by operating activities
$183,713 $217,801 
Investing activities
Purchase of property, plant and equipment(43,276)(44,201)
Payment for internally generated intangible assets (including intangibles under development)(1,260)(2,987)
Payment for business acquisitions, net of cash acquired— (80,621)
Proceeds from sale of property, plant and equipment116 30 
Proceeds from maturity of short-term investments
— 23,359 
Net cash used for investing activities
$(44,420)$(104,420)
Financing activities
Repayment of finance lease obligations(5,569)(4,487)
Payment of debt issuance and refinancing costs(3,305)— 
Proceeds from long-term debt
400,000 — 
Repayment of long-term debt(19,875)(13,250)
Proceeds from short-term borrowings50,000 85,000 
Repayment of short-term borrowings(60,000)— 
Proceeds from issuance of common shares under stock-based compensation plans9,720 9,345 
Payment for net settlement of stock-based awards(21,142)(30,874)
Dividend paid(54,829)(59,408)
Payment for stock repurchased and retired (including expenses related to stock repurchased)
(92,686)(92,999)
Net cash (used for) provided by financing activities
$202,314 $(106,673)
Net increase in cash and cash equivalents
341,607 6,708 
Effect of exchange rate changes(11,106)8,306 
Cash and cash equivalents at the beginning of the period583,670 648,246 
Cash and cash equivalents at the end of the period$914,171 $663,260 
Supplementary information
Cash paid during the period for interest$30,625 $29,790 
Cash paid during the period for income taxes, net of refund$45,883 $52,192 


Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following non-GAAP financial measures:

•Adjusted income from operations;
•Adjusted income from operations margin;
•Adjusted diluted earnings per share; and
•Revenue growth on a constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Accordingly, these non-GAAP financial measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact's GAAP financial statements to such non-GAAP financial measures should be carefully evaluated.

Given Genpact's acquisitions of varying scale and size, and the difficulty in predicting expenses relating to acquisitions and the amortization of acquired intangibles thereof, since July 2012 Genpact's management has used financial statements that exclude all acquisition-related expenses and amortization of acquired intangibles for its internal management reporting, budgeting and decision-making purposes, including comparing Genpact's operating results to those of its competitors. For the same reasons, since April 2016, Genpact's management has excluded the impairment of acquired intangible assets from the financial statements it uses for internal management purposes. Acquisition-related expenses are excluded in the period in which an acquisition is consummated. Genpact's management also uses financial statements that exclude stock-based compensation expense. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting ASC 718 "Compensation-Stock Compensation," Genpact's management believes that providing non-GAAP financial measures that exclude such expenses allows investors to make additional comparisons between Genpact's operating results and those of other companies.

Additionally, in its calculations of non-GAAP financial measures, Genpact's management has adjusted foreign exchange gains and losses, interest income and expense and income tax expenses from GAAP net income, and other income and expenses from GAAP income from operations, because management believes that the Company's results after taking into account these adjustments more accurately reflect the Company's ongoing operations. In its calculations of adjusted diluted earnings per share, Genpact's management adds back adjusted stock-based compensation expense, amortization and impairment of acquired intangible assets, acquisition-related expenses and the related tax impact of such adjustments from GAAP diluted earnings per share. For the purpose of calculating adjusted diluted earnings per share, the combined current and deferred tax effect is determined by multiplying each pre-tax adjustment by the applicable statutory income tax rate.

Genpact's management provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's true business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period.

Accordingly, Genpact believes that the presentation of adjusted income from operations, adjusted income from operations margin, adjusted diluted earnings per share and revenue growth on a constant currency basis, when read in conjunction with the Company's reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

A limitation of using adjusted income from operations and adjusted income from operations margin versus income from operations, income from operations margin, net income and net income margin calculated in accordance with GAAP is that these non-GAAP financial measures exclude certain recurring costs and certain other charges, namely stock-based compensation expense and amortization and impairment of acquired intangible assets. Management compensates for this limitation by providing specific information on the GAAP amounts excluded from adjusted income from operations and adjusted income from operations margin.



The following tables show the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures for the three and six months ended June 30, 2024 and 2025:
Reconciliation of Net Income/Margin to Adjusted Income from Operations/Margin
(In thousands)

Three months ended June 30,Six months ended June 30,
2024 202520242025
Net income$121,990$132,716$238,937$263,569
Foreign exchange (gains), net
(2,454)(376)(3,291)(1,665)
Interest (income) expense, net13,53813,48523,78024,931
Income tax expense40,42744,02279,84888,392
Stock-based compensation expense18,36921,79827,55041,834
Amortization of acquired intangible assets
6,5444,31513,4698,633
Acquisition-related expenses
—1,310—1,310
Adjusted income from operations$198,414$217,270$380,293$427,004
Net income margin10.4 %10.6 %10.4 %10.7 %
Adjusted income from operations margin16.9 %17.3 %16.5 %17.3 %
    
    
Reconciliation of Income from Operations/Margin to Adjusted Income from Operations/Margin
(In thousands)

Three months ended June 30,Six months ended June 30,
2024 202520242025
Income from operations$170,251$179,402330,237$363,104
Stock-based compensation expense18,36921,79827,55041,834
Amortization of acquired intangible assets
6,5444,31513,4698,633
Other income (expense), net3,25010,4459,03712,123
Acquisition-related expenses
—1,310—1,310
Adjusted income from operations$198,414$217,270$380,293$427,004
Income from operations margin14.5 %14.3 %14.3 %14.7 %
Adjusted income from operations margin16.9 %17.3 %16.5 %17.3 %
    


Reconciliation of Diluted EPS to Adjusted Diluted EPS7
(Per share data) 

Three months ended June 30,
Six months ended June 30,
2024 202520242025
Diluted EPS$0.67$0.75$1.32$1.48
Stock-based compensation expense0.100.120.150.24
Amortization of acquired intangible assets
0.040.020.070.05
Acquisition related expenses
—0.01—0.01
Tax impact on stock-based compensation expense(0.02)(0.02)(0.01)(0.04)
Tax impact on amortization of acquired intangible assets
(0.01)(0.01)(0.02)(0.01)
Adjusted diluted EPS$0.79$0.88$1.51$1.72


7 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.


The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the year ending December 31, 2025:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin8

Year ending December 31, 2025
Net income margin10.6%
Estimated interest (income) expense, net1.0%
Estimated income tax expense3.5%
Foreign exchange (gains), net
—%
Estimated stock-based compensation expense1.8%
Estimated amortization of acquired intangible assets
0.5%
Acquisition-related expenses
—%
Adjusted income from operations margin17.4%


Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin8

Year ending December 31, 2025
Income from operations margin14.7%
Estimated stock-based compensation expense1.8%
Estimated amortization of acquired intangible assets
0.5%
Estimated other income (expense), net0.4%
Adjusted income from operations margin17.4%

Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS8
(Per share data)

Year ending December 31, 2025
LowerUpper
Diluted EPS$2.98 $3.05 
Estimated stock-based compensation expense
0.52
0.52
Estimated amortization of acquired intangible assets
0.14
0.14
Estimated acquisition expense
0.010.01
Estimated tax impact on stock-based compensation expense(0.09)(0.09)
Estimated tax impact on amortization of acquired intangible assets
(0.04)(0.04)
Adjusted diluted EPS$3.51 $3.58 





8 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.


The following tables show the reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures for the quarter ending September 30, 2025:

Reconciliation of Outlook for Net Income Margin to Adjusted Income from Operations Margin9

Quarter ending September 30, 2025
Net income margin10.4%
Estimated interest (income) expense, net1.0%
Estimated income tax expense3.4%
Estimated stock-based compensation expense2.0%
Estimated amortization of acquired intangible assets
0.6%
Adjusted income from operations margin17.5%


Reconciliation of Outlook for Income from Operations Margin to Adjusted Income from
Operations Margin9

Quarter ending September 30, 2025
Income from operations margin14.3%
Estimated stock-based compensation expense2.0%
Estimated amortization of acquired intangible assets
0.6%
Estimated other income (expense), net0.5%
Adjusted income from operations margin17.5%
Reconciliation of Outlook for Diluted EPS to Adjusted Diluted EPS9
(Per share data)

Quarter ending September 30, 2025
LowerUpper
Diluted EPS$0.74 $0.75 
Estimated stock-based compensation expense
0.14
0.14
Estimated amortization of acquired intangible assets
0.05
0.05
Estimated tax impact on stock-based compensation expense(0.03)(0.03)
Estimated tax impact on amortization of acquired intangible assets
(0.01)(0.01)
Adjusted diluted EPS$0.89 $0.90 
9 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.



Net Revenues from Advanced Technology Solutions and Core Business Services10
(In thousands)

Three months ended
March 31, 2023June 30, 2023September 30, 2023December 31, 2023
Advanced Technology Solutions
$236,102 $257,161 $248,124 $243,326 
Core Business Services
$853,217 $848,363 $887,668 $902,927 
Total$1,089,319 $1,105,524 $1,135,792 $1,146,253 

Three months ended
March 31, 2024June 30, 2024September 30, 2024December 31, 2024
Advanced Technology Solutions
$239,849 $249,461 $259,184 $280,639 
Core Business Services
$891,388 $926,750 $951,766 $968,102 
Total$1,131,237 $1,176,212 $1,210,949 $1,248,741 

Three months ended
March 31, 2025June 30, 2025
Advanced Technology Solutions
$277,627 $292,655 
Core Business Services
$937,299 $961,763 
Total$1,214,926 $1,254,418 
10 Due to rounding, the numbers presented in this table may not add up precisely to the totals provided.