Genpact Raises 2026 Adjusted EPS Growth Outlook to at Least 13%

How much did Genpact raise its 2026 financial targets?

Genpact now expects at least 13% year-over-year growth in adjusted diluted EPS, gross margin of approximately 36.9% (up roughly 90 basis points year over year), and adjusted operating-income margin of approximately 17.7%; its revenue-growth outlook remains at least 7%, including at least 25% growth in Advanced Technology Solutions.

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What drove Genpact's improved financial outlook?

Third-quarter 2026 revenue increased 7.3% to $1.385 billion, with Advanced Technology Solutions revenue growing 30.3% to $405 million, representing 29% of total revenue, while Core Business Services revenue remained flat at $980 million; reported gross margin reached 38.0%.

How could Genpact's Agentic Operations strategy support future earnings?

Management expects 2026 agentic-solutions bookings to exceed $1 billion, more than five times the 2025 level, reflecting growing demand for technology-led enterprise services. The strategy aims to build longer-term recurring revenue that is less dependent on employee headcount, although bookings must convert into delivered services and recognized revenue to contribute to earnings.

Could the improved outlook support Genpact stock?

Genpact trades on the NYSE under ticker G, and higher adjusted EPS and margin guidance could strengthen its earnings outlook if delivered. However, the 13% growth target uses non-GAAP adjusted diluted EPS, which excludes items including stock-based compensation, acquired-intangible amortization and acquisition-related expenses, so investors should distinguish adjusted earnings growth from GAAP performance.

What could offset Genpact's improved earnings outlook?

Work being discontinued because it does not fit the Agentic Operations strategy reduced Q3 revenue growth by approximately two percentage points, and management expects more than three percentage points of impact in Q4, with the dollar impact potentially modestly larger in 2027 than in 2026. Separately, Q3 operating cash flow was $93 million following ERP-related invoicing and collection delays, although management said collections had returned to their pre-implementation pace through October.

What should investors watch in Genpact's next results?

Management expects Q4 Advanced Technology Solutions growth to remain similar to Q3, Core Business Services revenue to decline slightly, and both gross and adjusted operating margins to expand again. The key test is whether technology-led growth can offset the planned reduction in legacy business while sustaining double-digit adjusted EPS growth.