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Genpact reported Q2 FY2026 revenue of $1.3 billion, up 7.10% from a year earlier and 0.95% above the consensus. Adjusted earnings per share were $1.00, above the consensus estimate of $0.97; diluted earnings per share rose to $0.86 from $0.75 a year earlier.
In its filing, Genpact attributed growth in Advanced Technology Solutions to demand across digital technology, data and AI, agentic and advisory services. The company said Core Business Services revenue also grew, primarily because of its technology services component.
Gross margin rose to 36.5% from 35.9%, which Genpact attributed primarily to lower headcount and a foreign exchange benefit, partly offset by higher costs associated with resold partner technology. Operating margin increased to 14.4% from 14.3%; the filing said higher gross margin was partly offset by higher selling, general and administrative expenses.
Genpact reported free cash flow of $53.7 million, down from $152.8 million a year earlier. For the first half, the filing attributed lower operating cash flow primarily to higher receivables, reduced customer advances and higher income tax and employee-related payments.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.3 billion | $1.3 billion | 7.10% |
| Diluted EPS | $0.86 | $0.75 | 14.7% |
| Gross margin | 36.5% | 35.9% | 0.6 percentage points |
| Operating margin | 14.4% | 14.3% | 0.1 percentage points |
| Free cash flow | $53.7 million | $152.8 million | −64.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.00 | $0.97 | Beat by 3.09% |
| Revenue | $1.3 billion | $1.3 billion | Beat by 0.95% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Genpact said economic uncertainty had affected its business and could continue to do so. The company said extended periods of slower sales cycles could materially affect its business, financial position, results and cash flows.
Guidance
Genpact expects Q3 FY2026 revenue of $1.4 billion and adjusted diluted earnings per share of $1.04 to $1.05. For FY2026, the company expects reported revenue growth of at least 7.00% and an adjusted operating margin of approximately 17.7%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS growth, non-GAAP | FY2026 | $0.12 | — | New |
| Operating margin, non-GAAP | FY2026 | 17.7% | — | New |
| Gross margin | FY2026 | 36.5% | — | New |
| Revenue, Core Business Services | FY2026 | Genpact expects Core Business Services revenue growth to continue year-over-year in FY2026. | — | — |
| Revenue growth, Advanced Technology Solutions | FY2026 | 25.0% | — | New |
| EPS, non-GAAP | Q3 FY2026 | $1.04–$1.05 | — | New |
| Operating margin, non-GAAP | Q3 FY2026 | 17.8% | — | New |
| Gross margin | Q3 FY2026 | 36.6% | — | New |
| Revenue, Core Business Services | Q3 FY2026 | Genpact expects Core Business Services revenue to be flat to slightly down year-over-year in Q3 FY2026. | — | — |
| Revenue growth, Advanced Technology Solutions | Q3 FY2026 | 25.0% | — | New |
| Revenue | Q3 FY2026 | $1.4 billion–$1.4 billion | — | New |