Genpact (G) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenues reached $1.296 billion, up 6.7% year-over-year, led by 24% growth in Advanced Technology Solutions, which now represents 27% of total revenue.

• Net income increased 13.1% to $148 million, with diluted EPS at $0.86 and adjusted diluted EPS up 16.7% to $0.98.

• Gross margin expanded to 36.4%, marking the 12th consecutive quarter of year-over-year improvement.

• Six large deals were signed, with a robust pipeline and record backlog supporting future growth.

• The business is shifting toward high-quality, recurring, and annuitized revenue streams, decoupling growth from headcount.

Financial highlights

• Advanced Technology Solutions revenue: $345 million, up 24.3% year-over-year; Core Business Services: $951 million, up 1.4%.

• Adjusted operating income: $224 million, margin 17.3%; net income margin: 11.4%.

• Cash and cash equivalents: $578 million at quarter end.

• $102 million returned to shareholders via $70 million in share repurchases and $32 million in dividends.

• SG&A expenses increased 12.1% to $270.3 million, reflecting investments in partnerships, sales, and marketing.

Outlook and guidance

• Full-year 2026 net revenue growth projected at least 7%; Advanced Technology Solutions expected to grow at least 20%.

• Q2 2026 net revenues expected between $1.324–$1.336 billion, up 5.5–6.5% year-over-year; ATS to grow at least 20%.

• Full-year gross margin expected to expand by 50 basis points to 36.5%; adjusted operating income margin to increase to 17.7%.

• Adjusted diluted EPS expected to grow over 10% for the year; Q2 guidance: $0.96–$0.97.

• Management expects sufficient liquidity to fund growth, dividends, and share repurchases.