Exlservice Holdings (EXLS)
NASDAQ:EXLS
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Exlservice Holdings
(NASDAQ:EXLS)
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Rating:73Outperform
Price Target:
$34.00
▲(6.72% Upside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by strong underlying financial performance (healthy and improving margins, strong ROE) and an upbeat earnings update with raised full-year guidance led by Data & AI momentum. These positives are tempered by weak longer-term technical positioning (well below 100/200-day averages) and some caution from cash-flow growth volatility and ongoing investment/macro risks.
Positive Factors
Data & AI revenue mix
A majority and rapidly growing share of revenue tied to Data & AI (60%, +28% YoY) signals a structural shift from labor‑intensive BPO toward higher‑value, scalable analytics services. This improves margin potential, productization opportunities and long‑term client stickiness across verticals.
Negative Factors
Free cash flow volatility
Although absolute FCF is sizeable, recent sharp negative FCF growth and working‑capital swings suggest cash conversion can vary materially. This volatility complicates consistent capital allocation, could force timing variability in buybacks or investments, and raises execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Data & AI revenue mix
A majority and rapidly growing share of revenue tied to Data & AI (60%, +28% YoY) signals a structural shift from labor‑intensive BPO toward higher‑value, scalable analytics services. This improves margin potential, productization opportunities and long‑term client stickiness across verticals.
Read all positive factors
Exlservice Holdings (EXLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.75B
Dividend YieldN/A
Average Volume (3M)2.12M
Price to Earnings (P/E)17.7
Beta (1Y)0.72
Revenue Growth13.56%
EPS Growth27.82%
CountryUS
Employees59,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.58
Shares Outstanding156,383,710
10 Day Avg. Volume2,302,549
30 Day Avg. Volume2,120,335
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)7.49
Price to Sales (P/S)3.27
P/FCF Ratio22.92
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.34
Enterprise Value/Gross Profit6.09
Enterprise Value/Ebitda11.61
Forecast
1Y Price Target
$41.00Price Target Upside28.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.18
Revenue Forecast (FY)$2.31B
Exlservice Holdings Business Overview & Revenue Model
Company Description
ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. It operates through Insurance, Healthcare, Analytics, and Emerging Business segments. The company provid...
How the Company Makes Money
EXL makes money by selling services and solutions to enterprise clients under multi-month or multi-year contracts, generating revenue primarily from professional services delivered by its workforce and from technology-enabled offerings. A major re...
Exlservice Holdings Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational and financial momentum driven by the rapid growth of the data and AI-led business (28% growth; now 60% of revenue), notable revenue and EPS beats (Q1 revenue +13.8% and adjusted EPS +20.2%), and an upward revision to full-year revenue and EPS guidance. Management also highlighted robust vertical performance, strong partnerships, a large recurring revenue base, and a healthy pipeline. Offsetting these positives are deliberate category migration effects (digital ops down 2%), higher SG&A and stated increased investments that temper full-year margin expectations, talent hiring constraints, and macro/geopolitical uncertainty. On balance, the highlights meaningfully outweigh the lowlights, reflecting a confident but prudent outlook as the company scales its AI-led offerings.Positive Updates
Top-line growth and sequential momentum
Q1 revenue of $570.4M, up 13.8% year-over-year (13.4% constant currency) and up 5.1% sequentially (constant currency), demonstrating strong quarter-to-quarter momentum.
Negative Updates
Planned decline in reported digital operations
Reported digital operations revenue (after migration of AI-embedded work into data & AI-led category) was down 2% year-over-year; management expects continued deliberate migration which can depress digital ops growth rates.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line growth and sequential momentum
Q1 revenue of $570.4M, up 13.8% year-over-year (13.4% constant currency) and up 5.1% sequentially (constant currency), demonstrating strong quarter-to-quarter momentum.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance to revenue of $2.30–$2.33 billion (implying ~10%–12% year‑over‑year constant‑currency organic growth) and increased adjusted diluted EPS to $2.18–$2.23 (≈12%–14% YoY), with the midpoint $20 million higher than prior guidance (which included a ~$2M FX headwind); they expect a modest FX benefit of ~$2–3M, net interest expense of ~$6–8M, a full‑year effective tax rate of 21%–22%, capital expenditures of $50–55M, and plan adjusted operating margins in the mid‑teens to ~19% range (Q1 adjusted operating margin was 20.5%); Q1 results that underpin the raise were revenue of $570.4M (up 13.8% reported / 13.4% cc) and adjusted EPS of $0.58 (up 20.2%).Exlservice Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16B | 2.09B | 1.84B | 1.63B | 1.41B | 1.12B |
| Gross Profit | 829.84M | 801.08M | 691.01M | 607.77M | 515.45M | 431.36M |
| EBITDA | 435.19M | 391.75M | 357.59M | 321.59M | 276.24M | 229.58M |
| Net Income | 251.54M | 251.02M | 198.30M | 184.56M | 142.97M | 114.76M |
Balance Sheet | ||||||
| Total Assets | 1.68B | 1.70B | 1.62B | 1.44B | 1.35B | 1.28B |
| Cash, Cash Equivalents and Short-Term Investments | 253.76M | 328.37M | 350.55M | 294.90M | 302.59M | 320.05M |
| Total Debt | 106.09M | 403.62M | 366.61M | 271.76M | 313.65M | 347.38M |
| Total Liabilities | 897.58M | 789.53M | 688.54M | 552.53M | 587.94M | 589.75M |
| Stockholders Equity | 778.80M | 912.71M | 929.86M | 889.44M | 758.18M | 693.16M |
Cash Flow | ||||||
| Free Cash Flow | 296.60M | 298.12M | 222.26M | 158.40M | 121.31M | 147.14M |
| Operating Cash Flow | 349.19M | 350.72M | 268.52M | 211.20M | 166.14M | 184.39M |
| Investing Cash Flow | 17.03M | -49.26M | -119.10M | -12.00M | -96.55M | -114.27M |
| Financing Cash Flow | -360.77M | -312.76M | -119.10M | -181.45M | -81.72M | -146.88M |
Exlservice Holdings Technical Analysis
Neutral
31.86
Price Trends
30.64
Positive
35.89
Negative
39.08
Negative
Market Momentum
-0.06
Negative
58.56
Neutral
91.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXLS, the sentiment is Neutral. The current price of 31.86 is above the 20-day moving average (MA) of 30.58, above the 50-day MA of 30.64, and below the 200-day MA of 39.08, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 91.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXLS.
Exlservice Holdings Risk Analysis
Exlservice Holdings disclosed 34 risk factors in its most recent earnings report. Exlservice Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exlservice Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.75B | 17.71 | 25.50% | ― | 13.56% | 27.82% | |
73 Outperform | $5.74B | 14.72 | 21.81% | 1.41% | 6.60% | 10.28% | |
68 Neutral | $6.14B | 30.32 | 10.27% | ― | 15.42% | -14.70% | |
64 Neutral | $11.09B | 23.00 | 13.15% | ― | 9.58% | 14.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $1.50B | 23.28 | -37.51% | 3.38% | 3.81% | -636.38% |
* Technology Sector Average
EXLS
Exlservice Holdings
30.64
-14.34
-31.88%
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CNXC
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Exlservice Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackPrivate Placements and Financing
ExlService Launches $125 Million Accelerated Share Repurchase
Positive
Mar 18, 2026
On March 16, 2026, ExlService Holdings, Inc. entered into a $125 million fixed-dollar accelerated share repurchase transaction with Morgan Stanley Co. LLC as part of its larger $500 million share repurchase authorization approved in February 2026...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.