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ExlService: ExlService Holdings' Strong Q4 and Full Year 2025 Results Driven by Data and AI Led Growth

ExlService Holdings delivered a strong performance in Q4 and full year 2025, with revenue increasing 12.7% year over year to $542.6 million and adjusted EPS growing 15% to $0.50. For the full year, revenue rose 14% to nearly $2.1 billion, and adjusted EPS increased 18% to $1.95. The company's data and AI led revenue grew 21% year over year, now representing 57% of total revenue. Adjusted operating margin for Q4 was 18.8%, and for the full year, it was 19.5%. As Vivek Jettley noted, "We continued our growth momentum in the fourth quarter, with revenue of $542,600,000, up 12.7% year over year on a reported and 12.6% on an organic constant currency basis."

EXLS

USD 28.67

-0.28%

A-Score: 4.9/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Growth: Full-year 2025 revenue reached $2,100,000,000, up 14% YoY, with Q4 revenue at $542,600,000 (+12.7% YoY).
  • Adjusted EPS Growth: Adjusted EPS for 2025 rose 18% YoY to $1.95/share, with Q4 adjusted EPS at $0.50 (+15% YoY).
  • Data & AI Revenue: Data and AI-led services contributed 57% of total revenue, growing 21% YoY, driven by strong demand for AI solutions.
  • 2026 Guidance: Revenue projected at $2,275M–$2,315M (9–11% growth), with adjusted EPS expected at $2.14–$2.19 (10–12% growth).
  • Segment Performance: Healthcare & Life Sciences grew 26% YoY, highest among segments, while International Growth Markets expanded 8% YoY.

Segment Performance

The company's four operating segments performed well, with Insurance growing 7% year over year, Healthcare and Life Sciences growing 26%, Banking, Capital Markets, and Diversified Industries growing 11%, and International Growth Markets growing 8%. The strong growth in Healthcare and Life Sciences was a significant contributor to the overall performance.

Guidance for 2026

ExlService Holdings expects revenue to be in the range of $2.275 billion to $2.315 billion in 2026, representing 9% to 11% constant currency organic growth. Adjusted diluted EPS is expected to be in the range of $2.14 to $2.19, representing a 10% to 12% increase over 2025. The company expects to maintain its adjusted operating margin in 2026, despite the impact of the new Indian labor code.

Valuation Metrics

With a P/E Ratio of 18.39 and an EV/EBITDA of 12.9, the company's valuation appears reasonable given its strong growth prospects. The ROE of 25.5% and ROIC of 17.88% indicate a high level of profitability. The market appears to be pricing in a moderate level of growth, and the company's guidance for 2026 suggests that it is on track to deliver on its expectations.

Growth Drivers

The company's focus on data and AI led services is driving growth, with clients shifting their focus from cost takeout to long-term digital transformation. ExlService Holdings is well-positioned to benefit from this trend, with its integrated approach and domain expertise giving it a competitive advantage. The company's win with a large North American insurance carrier is an example of its ability to deliver complex enterprise transformations using its data and AI capabilities.

ExlService's A-Score