Genpact (G) Shares Plunge 1.58% as Earnings Guidance Dampens Growth Optimism Amid Strategic AI Shift Uncertainties

Genpact (G) shares fell to their lowest level since June 2025 on September 20, marking a 1.02% intraday decline and a 1.58% drop over two days. The stock’s recent weakness reflects a combination of earnings-related concerns, mixed institutional activity, and strategic uncertainties in its AI-driven transformation.

Weak guidance for Q2 and FY2025 earnings and revenue, despite a Q1 beat, fueled investor skepticism. Management revised its full-year revenue outlook downward to $4.862–$5.005 billion, citing macroeconomic headwinds and shifting client spending patterns. Analysts highlighted the reduced guidance as a key trigger for the selloff, even as the company emphasized resilience in its Data-Tech-AI segment.

Institutional investors displayed divergent views. Gradient Investments and Westfield Capital added to their stakes in late August and mid-September, while entities like Franklin Resources and Vanguard trimmed positions earlier in the quarter. Short interest surged in early August, though it stabilized by month-end as strategic AI initiatives and partnerships, including collaborations with Microsoft, drew attention to Genpact’s long-term potential.

The company’s rebranding as an “Advanced Technology Company” in September underscored its pivot toward agentic AI and digital solutions. Recent awards, such as recognition for financial crime compliance and workforce innovation, reinforced its credibility. However, mixed analyst ratings and peer underperformance against firms like Automatic Data Processing highlighted lingering uncertainties about near-term growth.

Corporate actions, including a $63 million share repurchase in Q1, signaled management’s confidence in undervaluation. Yet, the CEO’s share sale in mid-August briefly dented sentiment. While Genpact’s strategic investments in AI and automation position it as a digital leader, macroeconomic risks and cautious institutional sentiment remain critical near-term challenges.