Why Did Genpact Plunge 10.19% Despite Strong Q1 Earnings?

On May 8, 2025, Genpact's shares experienced a significant drop of 10.19% in pre-market trading, marking a notable decline despite the company's strong first-quarter performance.

Genpact reported a solid financial performance for the first quarter of 2025, with net revenues of $1.215 billion, a 7.4% increase year-over-year. The company's diluted earnings per share (EPS) stood at $0.73, exceeding analyst estimates of $0.68. The adjusted diluted EPS was $0.84, reflecting a 16% increase year-over-year. This strong performance was driven by robust growth in key segments, including the Data-Tech-AI segment, which reported net revenues of $582 million, up 11.1% year-over-year, and the Digital Operations segment, which contributed $633 million, up 4.2% year-over-year.

Despite the positive financial results, Genpact's shares plummeted due to weak guidance for the full year 2025. The company revised its revenue growth expectations downward, reflecting challenges in the current operating environment. This revision has raised concerns among investors about the company's future performance, leading to the significant drop in share price.

Genpact's strategic focus on accelerating innovation and deepening client relationships positions it well for continued growth. However, the market's reaction to the revised outlook highlights the importance of meeting or exceeding investor expectations in a competitive business process management industry.