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Genpact Ltd.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 5 raised, 3 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose 7.3% year-over-year: Net revenues were $1.385 billion, up 7.3% year-over-year and 7.5% on a constant currency basis. The company says Advanced Technology Solutions revenue growth drove the quarter. Source
  • Adjusted diluted EPS up 10.3%: Adjusted diluted EPS was $1.07, up 10.3%. GAAP diluted EPS was $0.89, up 7.2%, and net income was $152 million, up 4.0%. Source
  • Advanced Technology Solutions up 30.3%: Advanced Technology Solutions net revenues were $405 million, up 30.3%, representing 29% of total net revenues in the quarter. Source
  • Gross margin reached 38.0%: Gross profit was $527 million, up 12.1%, with a margin of 38.0%. Cost of revenue was $859 million, up from $822 million a year earlier. Source
  • Quarterly operating cash was $93 million: Cash generated from operations was $93 million in the third quarter. The second-quarter release gave $72 million, against $177 million in the second quarter of 2025. Source
  • Nine-month operating cash fell: Net cash provided by operating activities was $142.0 million for the nine months, down from $526.2 million a year earlier. Accounts receivable increased $405.8 million in the period. Source
  • Receivables climbed to $1.62 billion: Accounts receivable, net, was $1.62 billion at September 30, 2026, against $1.24 billion at December 31, 2025. Source

“Q3 was another clear proof point that our pivot to Agentic Operations is working, as our flywheel continues to accelerate.”

Balkrishan “BK” Kalra, President and CEO, Genpact

Guidance

AreaPeriodFigureAgainst last quarter
Net revenue growth SourceFY2026at least 7% as reported; 6.8% on a constant currency basisKept
Advanced Technology Solutions revenue growth SourceFY2026at least 25% year-over-yearKept
Gross margin SourceFY2026approximately 36.9%, up approximately 90 basis points year-over-yearRaised from approximately 36.5%, up approximately 50 basis points year-over-year
Adjusted income from operations margin SourceFY2026approximately 17.7%, up approximately 25 basis points year-over-yearKept
Adjusted diluted EPS growth SourceFY2026at least 13% year-over-yearRaised from at least 12% year-over-year
Diluted EPS (GAAP) SourceFY2026$3.55Raised from $3.51
Adjusted diluted EPS SourceFY2026$4.14Raised from $4.09
Net income margin (GAAP) SourceFY202611.2%Raised from 11.1%

What changed from last quarter

  • Guidance raised: Full-year gross margin guidance was raised from the second-quarter release. Source
  • Guidance raised: Full-year adjusted diluted EPS growth guidance was raised from the second-quarter release. Source
  • Guidance kept: Full-year revenue growth, Advanced Technology Solutions growth and adjusted operating margin guidance were kept. Source
  • New: Sumita Pandit is named as Chief Financial Officer; the second-quarter release named Michael Weiner in that role. Source

Results and growth drivers

  • Revenue rose 7.3% year-over-year: Net revenues were $1.385 billion, up 7.3% year-over-year and 7.5% on a constant currency basis. The company says Advanced Technology Solutions revenue growth drove the quarter. Source
  • Adjusted diluted EPS up 10.3%: Adjusted diluted EPS was $1.07, up 10.3%. GAAP diluted EPS was $0.89, up 7.2%, and net income was $152 million, up 4.0%. Source
  • Operating income up 10.1%: Income from operations was $211 million, up 10.1%, with a 15.2% margin. Adjusted income from operations was $247 million, up 7.7%. Source

Segments and revenue mix

  • Advanced Technology Solutions up 30.3%: Advanced Technology Solutions net revenues were $405 million, up 30.3%, representing 29% of total net revenues in the quarter. Source
  • Core Business Services flat year-over-year: Core Business Services net revenues were $980 million, flat year-over-year, representing 71% of total net revenues. Source
  • Nine-month segment revenue figures: For the nine months, Advanced Technology Solutions revenue was $1.114 billion against $881 million, and Core Business Services revenue was $2.911 billion against $2.879 billion. Source
  • Second-quarter segment comparison: In the second-quarter release, Advanced Technology Solutions was $363 million, up 24.1%, representing 27% of total net revenues.

“What matters as much as the pace is the quality: we are driving organic growth and winning high-quality revenue.”

Balkrishan “BK” Kalra, President and CEO, Genpact

Margins and cost lines

  • Gross margin reached 38.0%: Gross profit was $527 million, up 12.1%, with a margin of 38.0%. Cost of revenue was $859 million, up from $822 million a year earlier. Source
  • Selling and administrative costs rose: Selling, general and administrative expenses were $312 million, up from $262 million a year earlier. Amortization of acquired intangible assets was $3.3 million, down from $8.3 million. Source
  • Adjusted operating margin at 17.8%: Adjusted income from operations margin was 17.8%, compared with 17.7% a year earlier. Net income margin was 10.9%, compared with 11.3%. Source

Cash flow and balance sheet

  • Quarterly operating cash was $93 million: Cash generated from operations was $93 million in the third quarter. The second-quarter release gave $72 million, against $177 million in the second quarter of 2025. Source
  • Nine-month operating cash fell: Net cash provided by operating activities was $142.0 million for the nine months, down from $526.2 million a year earlier. Accounts receivable increased $405.8 million in the period. Source
  • Receivables climbed to $1.62 billion: Accounts receivable, net, was $1.62 billion at September 30, 2026, against $1.24 billion at December 31, 2025. Source
  • Cash balance declined: Cash and cash equivalents were $499.1 million at September 30, 2026, against $853.8 million at December 31, 2025. Short-term investments of $350 million matured in the period. Source

Share repurchases and dividends

  • Q3 buyback of 870,000 shares: Genpact repurchased about 870,000 shares for about $31 million at an average price of $35.49. The second-quarter buyback was about 1.6 million shares at $32.04. Source
  • Dividends and year-to-date returns: Dividends of about $31 million were returned in the quarter. Year-to-date returns through repurchases and dividends totaled about $246 million. Source
  • Common share count declined: Common shares outstanding were 167,227,005 at September 30, 2026, down from 170,341,479 at December 31, 2025. Source

Strategy and investment

  • Continued investment in Agentic Operations: The company says it continues to invest significantly in Agentic Operations, to strengthen its market position and build a high-quality business with durable growth. Source
  • Building a fundamentally new Genpact: Management says it is building a fundamentally new Genpact in a rapidly expanding market, and says this is increasingly showing up in results. Source
  • Agentic Operations model described: The company describes Agentic Operations as agents running the work while its experts own the outcomes, aimed at faster growth, leaner operations and more cash conversion. Source

Non-GAAP measures and adjustments

  • Adjustments added back to EPS: Adjusted diluted EPS adds back stock-based compensation, amortization of acquired intangibles, acquisition-related expenses and the related tax effects to GAAP diluted EPS. Source
  • Stock-based compensation higher: Stock-based compensation expense was $31.2 million in the quarter, against $22.2 million a year earlier, and is added back in adjusted measures. Source
  • Diluted share count reduced: Diluted weighted average shares were 169.6 million in the quarter, against 176.1 million a year earlier. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.