Genpact (G) AI Stock Analysis

• Market Cap: $6.76B
• Dividend Yield: 1.41%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.69
• Revenue Growth: 7.40%
• EPS Growth: -14.45%
• Country: US
• Employees: 145,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.97
• Shares Outstanding: 172,414,430
• 10 Day Avg. Volume: 2,889,079
• 30 Day Avg. Volume: 2,308,703
• PEG Ratio: 1.41
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 11.07
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 8.73
• 1Y Price Target: $49.00
• Price Target Upside: 30.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.95
• Revenue Forecast (FY): $5.42B

• Rating: 73 Outperform
• Price Target: $45.00 ▲(19.87% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial fundamentals (improving leverage, solid profitability and free cash flow) and a constructive earnings outlook with margin and EPS expansion guidance. These strengths are tempered by weak technicals (below key moving averages with negative MACD) despite oversold conditions, while a low P/E and moderate dividend yield provide additional support.

Positive Factors

Strengthened balance sheet / lower leverage

Material reduction in leverage to ~0.23x materially lowers financial risk and increases strategic optionality. A conservative capital structure supports investment in ATS and AI, sustains capital returns, and improves resilience to cyclical slowdowns over the next several quarters.

Consistent, high-quality cash generation

Sustained free cash flow conversion (mid-80s to low-90s percent of net income) underpins durable shareholder returns and reinvestment. Reliable cash generation funds buybacks/dividends, technology investment and deal execution without reliance on new financing over a 2–6 month horizon.

AI/ATS product and go-to-market momentum

Rapid scaling of GenAI solutions, a growing data/AI pipeline and partner-led revenue indicate a structural shift to higher-value, scalable offerings. This should support higher growth and margin mix durability as ATS and AI-driven services become a larger, recurring part of revenue.

Negative Factors

Net-margin step-down

A persistent ~300bp decline in net margin reduces the company's ability to convert operating gains into bottom-line profits. If pressures below the operating line persist, earnings leverage from revenue growth and ATS expansion may be muted over coming quarters.

Large-deal timing and sales-cycle variability

Heavy dependence on large, complex deals adds structural timing and execution risk; delayed conversions can cause lumpy revenue and margin recognition. Over a 2–6 month horizon, this variability can disrupt expected growth pacing and cash flow consistency.

One-time client prepayment supporting cash flow

A $170M client prepayment materially boosted 2025 operating cash flow, masking underlying organic cash conversion. Reliance on timing-sensitive receipts introduces volatility in reported cash flow and limits visibility into sustainable free cash generation.

Genpact Business Overview & Revenue Model

Company Description

Genpact Limited provides business process outsourcing and information technology (IT) services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Banking, Capital Markets and Insurance; Consumer Goods, Retail, Life Sciences and Healthcare; and High Tech, Manufacturing and Services. The company offers CFO advisory services; and environmental, social, and governance (ESG) services, such as data management, carbon accounting, human rights assessment, sustainability diligence, and ESG reporting. It also provides finance and accounting services, which include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing; invoice-to-cash services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services; financial planning and analysis consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls. In addition, the company provides supply chain advisory services, and after-sales services; sourcing and procurement services comprising direct and indirect strategic sourcing, category management, spend analytics, procurement operation, and master data management; and sales and commercial services, including campaign, order, and dispute management, lead generation, pricing, and promotion optimization. Further, it offers IT services, which comprise end-user computing support, infrastructure management, application production support, and database management services; and transformation services that include digital solutions, consulting services, and analytics services and solutions. The company was founded in 1997 and is based in Hamilton, Bermuda.

How the Company Makes Money

Genpact generates revenue through a diversified model that includes multiple streams. Primarily, the company earns money by providing consulting and outsourcing services to clients, which encompasses business process outsourcing (BPO), IT services, and application management. Another significant revenue stream arises from technology solutions that integrate advanced analytics, automation, and digital tools into client operations. Furthermore, Genpact has established strategic partnerships with leading technology providers, enabling it to enhance its service offerings and expand its market reach. These collaborations, along with a strong focus on innovation and client-specific solutions, contribute to the company's overall earnings and growth in the competitive landscape.

Genpact Financial Statement Overview

Summary

Strong multi-year revenue growth with healthy operating margins and consistently positive free cash flow. Balance sheet is a standout with materially improved leverage and solid ROE. Offsets include a step-down in net margin after 2023 and some volatility in operating cash flow conversion.

Income Statement

Revenue has grown steadily from 2020 to 2025 (about $3.7B to $5.1B), with the latest year showing a strong acceleration in growth. Profitability is healthy and fairly consistent, with gross margins in the mid-30% range and operating margins in the mid-teens. A key weakness is that net margin peaked in 2023 (~14%) and then stepped down to ~11% in 2024–2025, signaling some pressure below the operating line even as scale improves.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity falling from above 1.0x in 2020–2021 to ~0.23x in 2025, indicating a much more conservative capital structure. Equity has grown over time, and returns on equity remain strong (roughly low-20% range in 2024–2025, higher in 2023). The main watch item is that total assets have risen alongside growth, so maintaining these returns will depend on continued margin discipline and efficient deployment of the asset base.

Cash Flow

Cash generation is solid: free cash flow is consistently high relative to net income (roughly mid-80% to low-90% across years), supporting quality of earnings. Free cash flow has expanded strongly in 2024–2025 versus prior years, rebounding from a dip in 2022. The key weakness is variability in cash conversion year-to-year (operating cash flow coverage fluctuates), which suggests working-capital timing or other operating cash flow swings that investors should monitor.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.08B	4.77B	4.48B	4.37B	4.02B
Gross Profit	1.81B	1.69B	1.57B	1.54B	1.43B
EBITDA	874.70M	852.58M	772.52M	652.86M	709.01M
Net Income	552.49M	513.67M	631.25M	353.40M	369.45M
Balance Sheet
Total Assets	5.84B	4.99B	4.81B	4.59B	4.98B
Cash, Cash Equivalents and Short-Term Investments	1.20B	671.61M	583.67M	646.76M	899.46M
Total Debt	1.90B	1.45B	1.50B	1.70B	2.00B
Total Liabilities	3.29B	2.60B	2.56B	2.76B	3.08B
Stockholders Equity	2.55B	2.39B	2.25B	1.83B	1.90B
Cash Flow
Free Cash Flow	734.65M	530.19M	432.04M	389.28M	637.03M
Operating Cash Flow	812.86M	615.42M	490.81M	443.67M	694.28M
Investing Cash Flow	-495.50M	-105.96M	-78.94M	-36.59M	-122.75M
Financing Cash Flow	-106.81M	-424.85M	-483.00M	-571.40M	-332.88M

Genpact Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For G, the sentiment is Negative. The current price of 37.54 is below the 20-day moving average (MA) of 40.27, below the 50-day MA of 44.38, and below the 200-day MA of 43.22, indicating a bearish trend. The MACD of -1.91 indicates Negative momentum. The RSI at 35.25 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for G.

Genpact Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	73 Outperform	$6.76B	12.52	22.37%	1.41%	7.40%	-14.45%
EXLS	72 Outperform	$4.90B	20.60	25.96%	―	14.43%	29.86%
EPAM	68 Neutral	$9.26B	20.67	10.34%	―	14.26%	-15.49%
DXC	62 Neutral	$2.30B	5.74	13.79%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KD	53 Neutral	$2.96B	12.19	21.77%	―	-1.90%	―

Genpact Corporate Events

Genpact Completes $350 Million Senior Notes Offering

On November 18, 2025, Genpact UK Finco plc and Genpact USA, Inc., subsidiaries of Genpact Limited, completed a $350 million public offering of 4.950% Senior Notes due 2030. The notes are guaranteed by Genpact and Genpact Luxembourg and are intended to be used for general corporate purposes, including potentially repaying existing notes due in 2026. This move is part of Genpact’s strategic financial management to optimize its debt structure and support its ongoing operations.

The most recent analyst rating on (G) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Genpact stock, see the G Stock Forecast page.