Genpact 2025 Q2 Earnings Beats Expectations with 8.8% Net Income Growth

Genpact (G) reported its fiscal 2025 Q2 earnings on Aug 8, 2025. The company exceeded expectations, with revenue rising 6.6% year-over-year and net income growing 8.8%. Genpact also raised its full-year revenue guidance to $4.958 billion–$5.053 billion, reflecting improved performance and strong guidance.

Revenue
Genpact’s total revenue for Q2 2025 increased by 6.6% year-over-year to $1.25 billion, up from $1.18 billion in Q2 2024. This growth was primarily driven by a 17% year-over-year increase in Advanced Technology Solutions. The company sustained profitability for 19 consecutive years, demonstrating consistent business performance.

Earnings/Net Income
Genpact's earnings also showed a positive trend, with EPS rising 11.8% year-over-year to $0.76 from $0.68. Net income for Q2 2025 stood at $132.72 million, up from $121.99 million in Q2 2024, representing 8.8% growth. The company's profitability remains robust and continues to deliver strong shareholder returns.

Price Action
Following the earnings release, Genpact's stock price showed mixed performance over different timeframes. It rose 3.52% during the latest trading day and 2.47% for the week, but declined 4.71% month-to-date as of Aug 8, 2025.

Post-Earnings Price Action Review
The strategy of buying Genpact shares after a revenue raise Q/Q and holding for 30 days historically yielded a 56% total shareholder return over the past year. However, over a three-year horizon, the return was only 21%, raising questions about the consistency of this investment approach.

CEO Commentary
Balkrishan “BK” Kalra, President and CEO, highlighted the company's strong Q2 performance, which exceeded the high end of guidance. The growth was attributed to GenpactNext and Advanced Technology Solutions. Kalra emphasized the company's focus on AI-driven transformation and strengthening the “last mile advantage,” positioning Genpact as a preferred partner for clients.

Guidance
Genpact has raised its full-year 2025 revenue guidance to a range of $4.958 billion to $5.053 billion, indicating 4.0% to 6.0% year-over-year growth, up from the previous 2.0% to 5.0%. For Q3 2025, the company expects net revenues between $1.258 billion and $1.270 billion, with adjusted diluted EPS forecasted in the range of $0.89 to $0.90 and an adjusted operating margin of approximately 17.5%.

Additional News
Recent news highlights several key developments and trends in the financial and business sectors. In a notable corporate shift, new regulations have been introduced to support free preschool education, aiming to reduce the financial burden on families. Additionally, the real estate market saw major changes with Beijing’s policy of removing purchase limits for qualifying households outside the Fifth Ring Road, signaling a new direction in housing affordability. Technologically, OpenAI’s launch of GPT-5 marked a major advancement in AI capabilities, while in global politics, Trump’s statements on potential cooperation with Russia in Ukraine stirred significant diplomatic discussions.