Genpact Limited

Q1 2026 revenue was $1.296 billion, up 6.7% year over year. Gross margin was 36.4%, up approximately 110 basis points year over year, and adjusted diluted EPS was $0.98, up 16.7%; reported diluted EPS was $0.86. Adjusted operating income was $224 million with a 17.3% margin, while net income was $148 million. For cash, operations used $24 million and the company ended with $578 million in cash and cash equivalents. Full-year guidance calls for at least 7% revenue growth, Advanced Technology Solutions growth of at least 20%, gross margin of 36.5%, adjusted operating margin of 17.7%, and adjusted diluted EPS growth of over 10%. For Q2, Genpact expects revenue of $1.324 billion to $1.336 billion, gross margin of 36.4%, adjusted operating margin of 17.4%, and adjusted diluted EPS of $0.96 to $0.97.

BK Kalra framed the quarter as a “record start” and said Genpact is in the early innings of a fundamental reshaping of the company’s trajectory. He emphasized a structural shift toward agentic and AI-led operations, saying the company is winning more multiyear, annuitized work and that revenue is becoming higher quality and more durable. His tone was highly optimistic and confident, repeatedly saying the new Genpact is already taking shape and that momentum is showing up in pipeline, bookings and client conversations.

Mike Weiner focused on the financial proof points behind the strategy: total revenue up 6.7% to $1.296 billion, ATS up 24% to $345 million, gross margin up about 110 basis points to 36.4%, and adjusted diluted EPS up 16.7% to $0.98. He highlighted adjusted operating income of $224 million, a 17.3% margin, SG&A at 20.9% of revenue, a 23.7% tax rate, and cash usage of $24 million in operations with $578 million in cash and equivalents. He also said the company returned $102 million to shareholders in Q1 through $70 million of buybacks and $32 million of dividends, while reiterating that full-year margins and EPS should continue to improve.

Analysts pressed management on client spending trends, the shift from Core Business Services to Advanced Technology Solutions, visibility in ATS, and whether the strong ATS growth was being helped by partner relationships. BK said demand remains very strong across cohorts, geographies and client types, and that Genpact believes it is “separating from the pack” with record pipeline and inflows. On ATS visibility, BK and Mike emphasized that about 70% of ATS is annuitized, that partner solutions are only part of the mix, and that data/AI and agentic are gaining traction too.