Genpact's Q1 2025 Earnings Call: Unpacking Contradictions in Revenue, Client Sentiment, and Growth Drivers

Impact of large deals on revenue, data-tech-AI revenue classification and growth drivers, client sentiment and discretionary spending, deal delays and revenue impact are the key contradictions discussed in Genpact Limited's latest 2025Q1 earnings call



Strong Q1 Financial Performance:
- Genpact Limited reported $1.215 billion in total revenue for Q1 2025, up 8.3% year-over-year in constant currency.
- The growth was driven by exceeding expectations in revenue performance, better than expected gross margin, and strong demand for Data-Tech-AI services.

Impact of Supply Chain and Tariff Uncertainty:
- Several large deals were pushed out in March and April due to supply chain and tariff-related uncertainties, affecting Digital Operations more significantly.
- This resulted in a conservative approach to guidance, with Digital Operations' growth outlook reduced to reflect slower cycle times.

Data-Tech-AI Revenue Growth:
- Genpact's Data-Tech-AI revenue increased by 12% year-over-year on a constant currency basis in Q1 2025.
- This growth was attributed to innovative solutions, partnerships, and the deployment of Gen AI solutions, despite temporary uncertainties in the larger deals.

Agentsic Solutions and AI Gigafactory:
- The use of Genpact's Agentic Solutions and AI Gigafactory resulted in significant productivity gains for clients and attracted new clients seeking to scale AI broadly.
- The deployment of these solutions was a key driver of growth, as Genpact shares AI-driven productivity gains with clients while generating incremental revenue.

Partnership and Client Growth:
- Genpact's partner-related revenue increased by 80% year-over-year and reached 10% of total revenues in Q1 2025.
- This growth was driven by the strength of partnerships and the integration of Gen AI solutions into clients' operations, emphasizing the strategic value of partnerships for revenue generation.