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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on G

Genpact Limited's recent performance is driven by strong Q3 earnings, beating expectations with $0.97 per share, and lifting full-year guidance. The company's Advanced Technology Solutions (ATS) segment is driving growth, with revenue growing 17% year-over-year. Institutional investors, such as Creative Planning and Bell Asset Management Ltd, are increasing their stakes in the company. Additionally, Genpact has been upgraded to a Zacks Rank #2 (Buy) and recognized as a Horizon 3 Market Leader in Intelligent Supply Chain Services by HFS Research.

1.c. Company Highlights

2. Genpact's Q3 2025 Earnings: A Strong Beat Across Revenue and EPS

Genpact's Q3 2025 revenue reached $1.291 billion, up 7% year-over-year, exceeding guidance by $21 million. The Advanced Technology Solutions (ATS) segment was a key driver, growing 20% to $311 million and contributing over half of the company's revenue growth. Gross margin was 36.4%, and adjusted operating income margin was 17.7%, both exceeding expectations. Adjusted diluted EPS grew 14% to $0.97, $0.07 above guidance. The strong performance has led to an upward revision in the full-year outlook for revenue and EPS, with expectations of 6.1% to 6.4% revenue growth and $3.61 adjusted diluted EPS, representing double-digit growth.

Publication Date: Nov -09

📋 Highlights
  • Revenue Growth and Guidance Exceeded:: Q3 revenue hit $1.291B (+7% YoY), surpassing guidance by $21M, with ATS contributing 20% growth to $311M.
  • Margin Expansion Outperforms:: Gross margin reached 36.4%, and adjusted operating margin hit 17.7%, both exceeding expectations.
  • EPS Growth and Guidance Beat:: Adjusted diluted EPS rose 14% to $0.97, $0.07 above guidance, with full-year EPS guidance raised to $3.61 (double-digit growth).
  • ATS Growth and Value Accretion:: ATS revenue per headcount is 2x total company, with 70% annuitized/non-FTE revenue driving higher value.
  • Strong Sales Momentum and Shareholder Returns:: Closed 5 large deals ($50M+) and returned $119M to shareholders via buybacks and dividends.

Segment Performance and Growth Drivers

The ATS segment is growing at 2x the rate of the total company, with revenue per headcount greater than 2x of the total company. Around 70% of ATS revenue is annuitized and non-FTE, leading to more value accretion for Genpact. Agentic contract values continue to trend positively, with 30% of awarded contracts coming from new clients. Balkrishan Kalra, CEO, noted that clients are not ready to launch agentic operations mainly due to data sets not being ready or process standardization still needing to happen.

Commercial Models and Future Outlook

Genpact's commercial models are shifting towards non-FTE models, with a focus on subscription ARR-based and value and consumption-based structures. The company plans to disclose more metrics focused on leading indicators in 2026, particularly on GenpactNext-related metrics. Michael Weiner, CFO, reiterated their medium-term targets for 2026 and 2027 of growing at least 7% for those years, respectively.

Valuation and Return Metrics

With a P/E Ratio of 14.01 and an ROE of 22.11%, Genpact's valuation appears reasonable considering its growth prospects. The company's ROIC is 13.1%, indicating efficient capital allocation. The Dividend Yield is 1.49%, and the Free Cash Flow Yield is 8.36%, suggesting a decent return for income investors. Analysts estimate next year's revenue growth at 6.9%, which is slightly higher than the company's current full-year outlook.

3. NewsRoom

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HFS Research Recognizes Genpact as a Horizon 3 Market Leader in its Intelligent Supply Chain Services Assessment

Dec -04

Source: prnewswire.com

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Genpact: Digital Mix Rising, The Valuation Still Hasn't Caught On

Dec -03

Source: seekingalpha.com

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G vs. NOW: Which Stock Should Value Investors Buy Now?

Dec -01

Source: zacks.com

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Bell Asset Management Ltd Raises Stake in Genpact Limited $G

Nov -27

Source: defenseworld.net

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Creative Planning Purchases 3,724 Shares of Genpact Limited $G

Nov -27

Source: defenseworld.net

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3 Reasons Why Growth Investors Shouldn't Overlook Genpact (G)

Nov -25

Source: zacks.com

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Genpact (G) Upgraded to Buy: Here's What You Should Know

Nov -20

Source: zacks.com

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Aviva PLC Buys Shares of 12,469 Genpact Limited $G

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.48%)

6. Segments

High Tech and Manufacturing

Expected Growth: 4.5%

Genpact's High Tech and Manufacturing segment growth of 4.5% is driven by increasing demand for digital transformation, IoT, and Industry 4.0 solutions. Additionally, the company's expertise in operational excellence, supply chain optimization, and data analytics is fueling growth in this segment.

Consumer and Healthcare

Expected Growth: 4.2%

Genpact's 4.2% growth in Consumer and Healthcare segments is driven by increasing demand for digital transformation, cost optimization, and regulatory compliance. The company's expertise in analytics, automation, and process optimization has enabled clients to improve customer experience, reduce costs, and enhance operational efficiency. Additionally, the growing need for healthcare providers to adopt digital technologies and comply with regulations has fueled growth in this segment.

Financial Services

Expected Growth: 4.8%

Genpact's 4.8% growth in Financial Services is driven by increasing demand for digital transformation, regulatory compliance, and cost optimization. The company's expertise in risk management, mortgage services, and capital markets is also contributing to growth. Additionally, Genpact's investments in AI, automation, and analytics are enhancing operational efficiency and driving innovation for clients.

7. Detailed Products

Digital Transformation

Genpact's digital transformation services help clients navigate the complexities of digital adoption, leveraging technologies like AI, automation, and cloud to drive business outcomes.

Intelligent Operations

Genpact's intelligent operations services use AI, analytics, and automation to drive efficiency, reduce costs, and improve customer experience across various industries.

Customer Experience

Genpact's customer experience services help clients design and deliver personalized, omnichannel experiences that drive loyalty and revenue growth.

Risk and Compliance

Genpact's risk and compliance services help clients navigate complex regulatory requirements, mitigate risk, and ensure compliance across various industries.

Procurement and Supply Chain

Genpact's procurement and supply chain services help clients optimize procurement processes, reduce costs, and improve supply chain resilience.

8. Genpact Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Genpact Limited operates in the business process outsourcing industry, where there are limited substitutes for its services. However, the company faces competition from other BPO providers, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Genpact Limited's customers have significant bargaining power due to their large size and global presence. This gives them the ability to negotiate prices and terms, which could negatively impact the company's revenue and profitability.

Bargaining Power Of Suppliers

Genpact Limited has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over its suppliers.

Threat Of New Entrants

The business process outsourcing industry has high barriers to entry, including significant capital requirements and the need for specialized skills and expertise. This makes it difficult for new entrants to compete with established players like Genpact Limited.

Intensity Of Rivalry

The business process outsourcing industry is highly competitive, with many players competing for market share. Genpact Limited faces intense competition from other BPO providers, which could lead to pricing pressure and reduced profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.13%
Debt Cost 3.95%
Equity Weight 62.87%
Equity Cost 9.34%
WACC 7.34%
Leverage 59.07%

11. Quality Control: Genpact Limited passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Genpact

A-Score: 6.0/10

Value: 5.9

Growth: 6.1

Quality: 6.8

Yield: 3.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Leidos

A-Score: 5.7/10

Value: 4.3

Growth: 6.7

Quality: 5.9

Yield: 2.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Jack Henry

A-Score: 5.0/10

Value: 2.7

Growth: 5.7

Quality: 7.4

Yield: 3.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
CGI

A-Score: 4.9/10

Value: 5.3

Growth: 5.9

Quality: 6.6

Yield: 0.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
CACI

A-Score: 4.5/10

Value: 3.7

Growth: 6.4

Quality: 5.1

Yield: 0.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
ASGN

A-Score: 4.1/10

Value: 7.6

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.37$

Current Price

46.37$

Potential

-0.00%

Expected Cash-Flows