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Genpact (G)
NYSE:G

Genpact (G) AI Stock Analysis

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G

Genpact

(NYSE:G)

Rating:76Outperform
Price Target:
$51.00
▲(11.06%Upside)
Genpact's strong financial performance and strategic focus on Data-Tech-AI underpin its robust overall score. While technical indicators suggest caution, the company's effective management and strategic initiatives, including leadership enhancements and a strong pipeline, provide a solid foundation for future growth despite current market uncertainties.
Positive Factors
Financial Performance
Management stated that 2Q is trending above guidance and introduced MT (FY26 & FY27) targets that exceeded previous estimates.
Growth Strategy
The main focus was around its growing Advanced Technology Solutions segment, which it classifies as a combination of data and agentic AI solutions.
Negative Factors
Revenue Growth
Genpact lowered FY25 revenues from 6.2%-8.2% y/y CC growth to 2%-5% y/y CC growth.
Revenue Guidance
Genpact is meaningfully lowering its revenue growth guidance for FY25 primarily due to macroeconomic headwinds that resulted in a few very large deal delays.

Genpact (G) vs. SPDR S&P 500 ETF (SPY)

Genpact Business Overview & Revenue Model

Company DescriptionGenpact is a global professional services firm that drives digital-led innovation and digitally-enabled intelligent operations for organizations across various industries. Headquartered in New York, Genpact leverages its expertise in digital transformation, analytics, and customer experience to help businesses streamline their operations and improve efficiency. The company serves clients in sectors such as banking and financial services, insurance, healthcare, life sciences, consumer goods, and manufacturing.
How the Company Makes MoneyGenpact generates revenue primarily through long-term contractual agreements with its clients to provide business process outsourcing (BPO) and information technology (IT) services. The company offers a range of services including finance and accounting, procurement and supply chain management, risk management, and customer service. Additionally, Genpact's revenue streams are bolstered by its consulting and analytics services, which help clients optimize their digital transformations and operational efficiencies. Significant partnerships with technology providers and industry-specific expertise enable Genpact to expand its service offerings and deepen client engagements, contributing to its overall earnings.

Genpact Key Performance Indicators (KPIs)

Any
Any
Number of Clients Greater Than $25m Revenue
Number of Clients Greater Than $25m Revenue
Indicates the number of major clients contributing significantly to revenue, highlighting reliance on large accounts and potential risks if any major client is lost.
Chart InsightsGenpact has consistently increased its number of high-revenue clients, reaching 46 by early 2025, reflecting strong client acquisition and retention strategies. The recent earnings call highlights a strategic shift towards Data-Tech-AI, which is driving revenue growth despite macroeconomic challenges. However, delays in large deals, particularly in manufacturing and consumer goods, pose risks to future growth. The company's robust pipeline and focus on innovative solutions suggest potential for continued expansion, although cautious guidance reflects current uncertainties.
Data provided by:Main Street Data

Genpact Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -6.95%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
Genpact reported strong financial performance in Q1 2025, with significant revenue and EPS growth driven by strength in Data-Tech-AI and partner-related revenues. However, the company faces challenges with delayed large deals primarily in manufacturing and consumer goods sectors, leading to a conservative revision of full-year guidance. Despite these challenges, the strong pipeline and continued client engagement signal a positive long-term outlook.
Q1-2025 Updates
Positive Updates
Record Revenue and EPS Growth
Genpact delivered $1.215 billion in total revenues for Q1, up 8.3% year-over-year in constant currency, above the high-end of guidance. Adjusted EPS grew 16% year-over-year to $0.84.
Strong Performance in Data-Tech-AI
Data-Tech-AI revenue increased by 12% year-over-year in constant currency. Genpact now has over 215 Gen AI solutions in production, with revenues nearly doubling from Q4.
Improved Operating Metrics
Gross margin expanded by 30 basis points to 35.3%, and adjusted operating income margin expanded by 120 basis points to 17.3%.
Partner-Related Revenue Surge
Partner-related revenue increased by 80% year-over-year and more than 10% quarter-over-quarter, representing 10% of total revenues.
Strong Pipeline and Client Engagement
Pipeline is at an all-time high, with large deals up more than 80% year-over-year, showcasing strong long-term demand.
Negative Updates
Delays in Large Deals
Several large deals with higher concentration in Digital Operations were delayed due to supply chain and tariff-related uncertainty, impacting future revenue timing.
Conservative Guidance Revision
Due to increased uncertainty, Genpact lowered its expectations for Digital Operations and Data-Tech-AI for the full year, despite strong early-year momentum.
Challenges in Manufacturing and Consumer Goods Segments
Delayed deals were notably in manufacturing, consumer goods, and high-tech hardware sectors, which are sensitive to global trade dynamics.
Company Guidance
During the 2025 first-quarter earnings call, Genpact Limited reported strong financial performance, with total revenues of $1.215 billion, an 8.3% year-over-year increase in constant currency, surpassing the high-end of their guidance range. The gross margin and adjusted operating income margin also exceeded expectations, and adjusted EPS rose by 16% to $0.84, which was $0.04 above the upper range of their guidance. Despite challenges posed by a softening macro environment, Genpact highlighted their strategic pivot towards Data-Tech-AI, noting that over 80% of the revenue from two large deals signed in Q1 was annuitized Data-Tech-AI revenue. The company decided to take a conservative approach by widening their guidance range and lowering total revenue projections due to delays in closing several large deals within the Digital Operations segment, which were pushed out due to supply chain and tariff-related uncertainties. Nevertheless, Genpact's pipeline was at an all-time high, up more than 80% year-over-year, signaling strong long-term demand. The firm maintained their gross and adjusted operating income margin guidance, emphasizing disciplined cost management while continuing to prioritize investments for sustained growth.

Genpact Financial Statement Overview

Summary
Genpact exhibits strong financial health across all verticals. The income statement highlights consistent revenue growth and solid profit margins, while the balance sheet reflects low leverage and strong equity. Cash flow metrics are positive, showcasing effective cash management and operational efficiency. The company is well-positioned financially to support future growth and withstand potential market challenges.
Income Statement
85
Very Positive
Genpact shows a strong financial performance with consistent revenue growth. The TTM revenue grew by 1.75% compared to the previous year-end, and EBIT margin is at 14.89%, reflecting efficient operations. Net profit margin remains healthy at 10.88%, indicating good profitability. However, the EBITDA margin slightly decreased to 17.21%, which suggests some pressure on operational efficiencies.
Balance Sheet
78
Positive
The balance sheet is stable with a moderate debt-to-equity ratio of 0.10, indicating low financial leverage. The equity ratio of 50.13% suggests a strong equity position relative to total assets. ROE is at 21.50%, demonstrating effective use of equity to generate profits. Improvements in liabilities and equity position are noted, contributing to a solid financial standing.
Cash Flow
82
Very Positive
Genpact's cash flow is robust, with a free cash flow growth rate of 12.77% in the TTM period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.29, indicating high-quality earnings. Free cash flow to net income is 1.14, highlighting efficient cash conversion from profits. Overall, cash flow management is strong, supporting operational and strategic initiatives.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.25B4.77B4.48B4.37B4.02B3.71B
Gross Profit1.49B1.69B1.57B1.54B1.43B1.29B
EBITDA634.03M843.57M769.77M639.50M684.98M612.14M
Net Income343.32M513.67M631.25M353.40M369.45M308.28M
Balance Sheet
Total Assets4.74B4.99B4.81B4.59B4.98B4.87B
Cash, Cash Equivalents and Short-Term Investments478.40M671.61M583.67M646.76M899.46M680.44M
Total Debt1.54B1.45B1.50B1.67B1.97B1.94B
Total Liabilities2.44B2.60B2.56B2.76B3.08B3.04B
Stockholders Equity2.30B2.39B2.25B1.83B1.90B1.83B
Cash Flow
Free Cash Flow381.33M530.19M432.04M389.28M637.03M503.94M
Operating Cash Flow444.57M615.42M490.81M443.67M694.28M584.31M
Investing Cash Flow-122.77M-105.96M-78.94M-36.59M-122.75M-266.40M
Financing Cash Flow-559.65M-424.85M-483.00M-571.40M-332.88M-92.01M

Genpact Technical Analysis

Technical Analysis Sentiment
Positive
Last Price45.92
Price Trends
50DMA
44.40
Positive
100DMA
47.40
Negative
200DMA
44.93
Positive
Market Momentum
MACD
0.16
Negative
RSI
63.25
Neutral
STOCH
94.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For G, the sentiment is Positive. The current price of 45.92 is above the 20-day moving average (MA) of 43.10, above the 50-day MA of 44.40, and above the 200-day MA of 44.93, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 94.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for G.

Genpact Risk Analysis

Genpact disclosed 43 risk factors in its most recent earnings report. Genpact 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

Genpact Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DLDLB
78
Outperform
$7.26B28.5910.28%1.75%4.03%34.45%
GG
76
Outperform
$8.03B15.6322.21%1.48%7.31%-15.86%
WNWNS
76
Outperform
$3.03B16.8321.21%-0.64%30.96%
74
Outperform
$10.75B23.0813.48%14.16%22.25%
74
Outperform
$10.75B23.0813.48%14.16%22.25%
72
Outperform
$7.37B34.1923.81%14.18%21.49%
71
Outperform
$10.36B25.5611.57%4.72%-3.06%
49
Neutral
C$2.97B2.15-83.78%2.54%12.97%-24.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
G
Genpact
45.92
15.06
48.80%
CACI
Caci International
489.02
61.71
14.44%
CACI
Caci International
489.02
61.71
14.44%
DLB
Dolby Laboratories
75.56
-2.68
-3.43%
EPAM
Epam Systems
182.83
-3.30
-1.77%
EXLS
Exlservice Holdings
45.27
13.36
41.87%
WNS
WNS
65.38
11.46
21.25%

Genpact Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Genpact Appoints John Hinshaw to Board of Directors
Positive
Jul 1, 2025

On July 1, 2025, Genpact Limited announced the appointment of John Hinshaw to its Board of Directors. Mr. Hinshaw brings extensive experience from his previous roles, including Group Chief Operating Officer at HSBC Bank and various executive positions at Hewlett-Packard, Boeing, and Verizon Communications. This strategic appointment is expected to enhance Genpact’s leadership team and potentially influence its operational strategies and market positioning.

The most recent analyst rating on (G) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Genpact stock, see the G Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Genpact Holds Annual Shareholder Meeting in New York
Neutral
May 28, 2025

On May 22, 2025, Genpact Limited held its annual general meeting of shareholders in New York, where three proposals were voted on. The shareholders elected the nominees to the Board of Directors, approved the executive compensation on a non-binding basis, and appointed KPMG Assurance and Consulting Services LLP as the company’s auditor.

The most recent analyst rating on (G) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Genpact stock, see the G Stock Forecast page.

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.Date of analysis: Jul 02, 2025