Exlservice Holdings (EXLS)
NASDAQ:EXLS
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Exlservice Holdings
(NASDAQ:EXLS)
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Rating:72Outperform
Price Target:
$34.00
▲(10.53% Upside)
Action:ReiteratedDate:03/19/26
Overall score is driven primarily by strong financial performance (profitability, cash generation, and reduced leverage) and a solid earnings outlook supported by Data & AI growth and deal momentum. These positives are tempered by a clearly bearish technical trend and a valuation that is only moderate with no dividend support.
Positive Factors
Deleveraged balance sheet
A materially lower debt-to-equity ratio meaningfully improves financial flexibility and reduces interest and refinancing risk. Over the next 2–6 months this supports capacity for organic investment, targeted M&A or disciplined buybacks without jeopardizing liquidity or credit standing.
Negative Factors
Talent constraints in Data & AI
Persistent hiring and skills shortfalls can cap the company’s ability to scale higher‑margin Data & AI engagements. Over several months this may slow revenue realization from pipeline, increase subcontracting or wage inflation, and compress margins as EXL competes for scarce technical talent.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged balance sheet
A materially lower debt-to-equity ratio meaningfully improves financial flexibility and reduces interest and refinancing risk. Over the next 2–6 months this supports capacity for organic investment, targeted M&A or disciplined buybacks without jeopardizing liquidity or credit standing.
Read all positive factors
Exlservice Holdings (EXLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.83B
Dividend YieldN/A
Average Volume (3M)2.15M
Price to Earnings (P/E)27.2
Beta (1Y)0.74
Revenue Growth14.43%
EPS Growth29.86%
CountryUS
Employees59,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding156,383,710
10 Day Avg. Volume1,680,196
30 Day Avg. Volume2,152,210
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/Revenue2.46
Enterprise Value/Gross Profit6.42
Enterprise Value/Ebitda11.87
Forecast
1Y Price Target
$41.00Price Target Upside33.29% 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:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlights strong, sustained revenue and EPS growth, robust momentum in data- and AI-led services (now 57% of revenue), meaningful client wins, solid partner recognition, and a constructive outlook for 2026. Offsetting items include higher SG&A, flat near-term operating margin, talent constraints that could cap near-term data & AI capacity, the Indian labor-code impact on liabilities and EPS, modest operating cash flow relative to large buybacks, and increasing competition. Management conveyed confidence in pipeline and strategy while acknowledging these execution and cost considerations.Positive Updates
Full-Year Revenue and EPS Growth
Revenue for fiscal 2025 was $2.09B, up ~13.6% year-over-year; adjusted EPS grew 18% to $1.95, reflecting sustained double-digit growth and strong margin conversion.
Negative Updates
SG&A and Margin Pressure from Investments
SG&A as a percentage of revenue increased 130 basis points year-over-year to 21.2% driven by investments in sales and marketing; adjusted operating margin was flat in Q4 at 18.8% and only +10 bps for the full year (19.5%), indicating limited near-term margin expansion despite revenue growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and EPS Growth
Revenue for fiscal 2025 was $2.09B, up ~13.6% year-over-year; adjusted EPS grew 18% to $1.95, reflecting sustained double-digit growth and strong margin conversion.
Read all positive updates
Company Guidance
Management guided 2026 revenue of $2.275–2.315 billion (approximately 9%–11% organic constant‑currency growth) and adjusted diluted EPS of $2.14–2.19 (about 10%–12% y/y growth), which incorporates an approximately 100‑basis‑point headwind from the new India Labor Code (roughly a $0.02–$0.03 EPS dilution); they expect adjusted operating margin to remain roughly flat (Q4 at 18.8%, FY25 at 19.5%), a full‑year effective tax rate of 21%–22%, capital expenditures of $50–55 million, an FX gain of about $2 million, net interest expense of about $1 million, and they announced a $500 million common stock repurchase authorization effective February 28, 2026 (two‑year program).Exlservice Holdings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.09B | 1.84B | 1.63B | 1.41B | 1.12B |
| Gross Profit | 801.08M | 691.01M | 607.77M | 515.45M | 431.36M |
| EBITDA | 391.75M | 357.59M | 321.59M | 276.24M | 229.58M |
| Net Income | 251.02M | 198.30M | 184.56M | 142.97M | 114.76M |
Balance Sheet | |||||
| Total Assets | 1.70B | 1.62B | 1.44B | 1.35B | 1.28B |
| Cash, Cash Equivalents and Short-Term Investments | 328.37M | 350.55M | 294.90M | 302.59M | 320.05M |
| Total Debt | 403.62M | 366.61M | 271.76M | 313.65M | 347.38M |
| Total Liabilities | 789.53M | 688.54M | 552.53M | 587.94M | 589.75M |
| Stockholders Equity | 912.71M | 929.86M | 889.44M | 758.18M | 693.16M |
Cash Flow | |||||
| Free Cash Flow | 298.12M | 222.26M | 158.40M | 121.31M | 147.14M |
| Operating Cash Flow | 350.72M | 268.52M | 211.20M | 166.14M | 184.39M |
| Investing Cash Flow | -49.26M | -119.10M | -12.00M | -96.55M | -114.27M |
| Financing Cash Flow | -312.76M | -119.10M | -181.45M | -81.72M | -146.88M |
Exlservice Holdings Technical Analysis
Neutral
30.76
Price Trends
32.08
Negative
36.66
Negative
39.68
Negative
Market Momentum
-0.42
Negative
48.00
Neutral
70.14
Neutral
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 30.76 is above the 20-day moving average (MA) of 30.54, below the 50-day MA of 32.08, and below the 200-day MA of 39.68, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 70.14 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.57B | 23.70 | 13.16% | ― | 12.61% | 11.85% | |
73 Outperform | $6.36B | 14.72 | 21.81% | 1.41% | 7.40% | -14.45% | |
72 Outperform | $4.83B | 27.23 | 25.50% | ― | 14.43% | 29.86% | |
68 Neutral | $7.27B | 30.32 | 10.27% | ― | 14.26% | -15.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $1.69B | 23.28 | -37.51% | 3.38% | 3.40% | 53.13% |
* Technology Sector Average
EXLS
Exlservice Holdings
30.76
-11.09
-26.50%
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G
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CNXC
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27.69
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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.