Genpact 2025 Q1 Earnings Strong Performance as Net Income Grows 11.9%
Daily EarningsThursday, May 8, 2025 6:41 am ET
58min readGenpact(G) reported its fiscal 2025 Q1 earnings on May 07th, 2025. exceeded expectations with a robust 11.9% growth in net income, showcasing its strong operational performance. However, the company issued a cautious full-year guidance adjustment, downgrading its revenue growth projections. This reduction reflects the evolving market conditions and the company's strategic recalibration. The revised guidance suggests a more modest growth outlook compared to previous expectations, indicating potential challenges in the upcoming quarters.
Revenue
The total revenue of Genpact increased by 7.4% to $1.21 billion in 2025 Q1, up from $1.13 billion in 2024 Q1.
Earnings/Net Income
Genpact's EPS rose 15.4% to $0.75 in 2025 Q1 from $0.65 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $130.85 million in 2025 Q1, marking 11.9% growth from $116.95 million in 2024 Q1. The Company has sustained profitability for 19 years over the corresponding fiscal quarter, reflecting stable business performance. The earnings report indicates positive financial health for the company with consistent EPS growth.
Price Action
The stock price of Genpact has edged down 0.02% during the latest trading day, has edged down 1.41% during the most recent full trading week, and has climbed 5.27% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Genpact (G) shares after a revenue drop Q/Q and holding for 30 days yielded a 56% total shareholder return over the past year. However, over the longer term, the 3-year return was only 21%, raising questions about the strategy's consistency. The recent year's superior return suggests that the market may be valuing Genpact more favorably after its revenue dip, possibly due to improved investor sentiment or a reevaluation of the company's prospects. Despite the short-term gains, the volatility in returns indicates potential uncertainty in the company's growth trajectory, highlighting the need for cautious investment strategies going forward.
CEO Commentary
"We entered 2025 with strong momentum. Revenue in the first quarter grew 8% year-over-year with Data-Tech-AI revenue up 12%, on a constant currency basis, driving adjusted EPS growth of 16%. Our deep process and domain expertise remains a key competitive advantage as we partner with clients to optimize costs and accelerate transformation using AI and other advanced technologies," said Balkrishan "BK" Kalra, President & CEO of Genpact. "Although the operating environment has changed since the beginning of the year, the strength of our business model and resilience of our strategy remain clear, positioning us to accelerate growth in the future."
Guidance
Genpact expects net revenues for Q2 2025 to be in the range of $1.210 billion to $1.233 billion, reflecting year-over-year growth of approximately 2.8% to 4.8%. For the full year 2025, net revenues are projected to be between $4.862 billion and $5.005 billion, indicating growth of about 2.0% to 5.0%. Data-Tech-AI net revenues are anticipated to grow by approximately 5.1% year-over-year, while Digital Operations net revenues are expected to increase by about 2.0%. Adjusted diluted EPS is expected in the range of $3.41 to $3.52.
Additional News
Bayesian Capital Management LP has recently purchased a new stake in Genpact, reflecting investor interest in the company amidst its strategic shifts. Furthermore, Genpact shares experienced a significant plunge of 12.7% following the release of weak guidance for the upcoming quarters, despite strong Q1 earnings. This has sparked discussions on market reactions and investor sentiment. Additionally, Genpact repurchased approximately 1.2 million shares for $63 million during Q1 2025, demonstrating its commitment to returning capital to shareholders.
Revenue
The total revenue of Genpact increased by 7.4% to $1.21 billion in 2025 Q1, up from $1.13 billion in 2024 Q1.
Earnings/Net Income
Genpact's EPS rose 15.4% to $0.75 in 2025 Q1 from $0.65 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $130.85 million in 2025 Q1, marking 11.9% growth from $116.95 million in 2024 Q1. The Company has sustained profitability for 19 years over the corresponding fiscal quarter, reflecting stable business performance. The earnings report indicates positive financial health for the company with consistent EPS growth.
Price Action
The stock price of Genpact has edged down 0.02% during the latest trading day, has edged down 1.41% during the most recent full trading week, and has climbed 5.27% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Genpact (G) shares after a revenue drop Q/Q and holding for 30 days yielded a 56% total shareholder return over the past year. However, over the longer term, the 3-year return was only 21%, raising questions about the strategy's consistency. The recent year's superior return suggests that the market may be valuing Genpact more favorably after its revenue dip, possibly due to improved investor sentiment or a reevaluation of the company's prospects. Despite the short-term gains, the volatility in returns indicates potential uncertainty in the company's growth trajectory, highlighting the need for cautious investment strategies going forward.
CEO Commentary
"We entered 2025 with strong momentum. Revenue in the first quarter grew 8% year-over-year with Data-Tech-AI revenue up 12%, on a constant currency basis, driving adjusted EPS growth of 16%. Our deep process and domain expertise remains a key competitive advantage as we partner with clients to optimize costs and accelerate transformation using AI and other advanced technologies," said Balkrishan "BK" Kalra, President & CEO of Genpact. "Although the operating environment has changed since the beginning of the year, the strength of our business model and resilience of our strategy remain clear, positioning us to accelerate growth in the future."
Guidance
Genpact expects net revenues for Q2 2025 to be in the range of $1.210 billion to $1.233 billion, reflecting year-over-year growth of approximately 2.8% to 4.8%. For the full year 2025, net revenues are projected to be between $4.862 billion and $5.005 billion, indicating growth of about 2.0% to 5.0%. Data-Tech-AI net revenues are anticipated to grow by approximately 5.1% year-over-year, while Digital Operations net revenues are expected to increase by about 2.0%. Adjusted diluted EPS is expected in the range of $3.41 to $3.52.
Additional News
Bayesian Capital Management LP has recently purchased a new stake in Genpact, reflecting investor interest in the company amidst its strategic shifts. Furthermore, Genpact shares experienced a significant plunge of 12.7% following the release of weak guidance for the upcoming quarters, despite strong Q1 earnings. This has sparked discussions on market reactions and investor sentiment. Additionally, Genpact repurchased approximately 1.2 million shares for $63 million during Q1 2025, demonstrating its commitment to returning capital to shareholders.
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