Exlservice (EXLS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $594.8 million, up 15.6% year-over-year, with adjusted EPS of $0.59, up 22.3%.

• Growth was broad-based across all business segments, driven by strong momentum in data and AI-led services and 17 new client wins.

• Net income for Q2 2026 was $64.5 million, down 2.3% year-over-year, mainly due to higher SG&A and tax expenses.

• The company announced the acquisition of iMerit, a leader in AI model training, for up to $310 million, expected to close July 31, 2026.

• Full-year 2026 revenue and adjusted EPS guidance were raised, reflecting robust performance and the iMerit acquisition.

Financial highlights

• Q2 2026 revenue: $594.8 million, up 15.6% year-over-year; six-month revenue: $1.17 billion, up 14.7%.

• Adjusted operating margin for Q2: 19.7%, up 10 bps year-over-year; adjusted EBITDA: $128.4 million, margin 21.6%.

• Net income for Q2: $64.5 million; adjusted net income: $90.8 million.

• Gross margin for Q2: 38.0%, up from 37.7% year-over-year.

• Cash and cash equivalents as of June 30, 2026: $126.7 million; net debt position: $97 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.39–$2.415 billion (14–16% growth), including $28–$32 million from iMerit.

• Adjusted EPS guidance raised to $2.25–$2.29 (16–18% growth), with a $0.01 dilutive impact from iMerit.

• Organic revenue growth guidance increased to 13–14% from 10–12%.

• Capital expenditures for 2026 expected at $58–$62 million.

• Existing liquidity and credit facilities are sufficient for the next twelve months.