Genpact (G) Investor Day 2025 summary

Strategic transformation and growth model

• Pivoting to an AI-first, data-led innovation company, launching Genpact Next and evolving from the 3+1 framework to focus on advanced technology, data, AI, and agentic solutions.

• Building a fundamentally new organization with a unique culture emphasizing client centricity, agility, and a learning mindset, serving over 25% of the Fortune 500 and expanding into mid-market and new logos.

• Targeting large and growing market opportunities, with agentic solutions and domain-specific AI models expected to exceed 50% enterprise adoption by 2030.

• Strategic investments in product development, sales, partnerships, and AI talent to accelerate growth, with hiring prioritized for Advanced Technology Solutions.

• Strong partnership ecosystem with AWS, Salesforce, ServiceNow, and others, co-developing solutions and accelerating pipeline.

Financial performance and guidance

• Achieved 6% revenue CAGR from 2022–2024, with 2024 net revenue at $4.77B, gross margin improving to 35.5%, and acceleration to 6.5% in 2024 and 7% in Q1 2025.

• Advanced Technology Solutions now represent 21% of total net revenue, growing at 2x the rate of core business services, with 15% YoY growth in Q4 2024 and 16% in Q1 2025.

• Medium-term targets (2026–2027): at least 7% total net revenue growth, 4–5% for core business, at least 15% for Advanced Technology Solutions, ongoing margin improvement, and double-digit adjusted EPS growth.

• Free cash flow grew from $389M in 2022 to $530M in 2024, with $992M returned to shareholders over three years.

• Investments of $150M+ planned in 2025 for data, AI, partnerships, and sales, self-funded through gross margin expansion.

Business model evolution and client impact

• Transitioning commercial models from FTE-based to non-FTE, outcome, and consumption-based contracts, with 70% of Advanced Technology Solutions revenue now non-FTE and annuitized.

• Agentic Solutions drive net revenue growth and margin expansion, with 3% revenue uplift and 300 basis points gross margin improvement in transitioned accounts.

• AI Gigafactory launched in January 2025, onboarding 45 clients and over 100 new data and AI leaders, delivering up to 40% faster implementation and 50% cost reduction.

• Client Zero initiative applies Advanced Technology Solutions internally, delivering $19M in cost savings in 2024 and $20M expected in 2025.

• Capital allocation strategy includes returning ~50% of cash flow to shareholders, increasing dividends, and maintaining flexibility for M&A in advanced data and AI capabilities.