Maggie Nolan

Maggie Nolan asked about the adoption patterns for Genpact's AP Suite, noting that 40% of its Total Contract Value (TCV) came from new clients, and whether these clients differ from Genpact's traditional base. She also inquired about the addressable market growth for these new solutions.

Answer

CEO Balkrishan Kalra explained that the AP Suite's rapid adoption significantly expands Genpact's total addressable market, attracting both net new enterprise and mid-market clients, as well as existing clients who are now utilizing Genpact for finance services. Regarding sales cycles and large deals, Mr. Kalra mentioned that while large deals have varied paces, the pipeline across all cohorts, including large deals, is at record levels. CFO Michael Weiner affirmed confidence in the 7% full-year guidance, citing committed revenue in line with historical averages and a significant backlog from strong bookings in prior years.

Maggie Nolan asked about the 40% Total Contract Value (TCV) for the AP Suite coming from new clients, inquiring about patterns in adoption, if these clients differ from typical Genpact or BPO clients, and how Genpact is thinking about addressable market growth as these solutions roll out.

Answer

Balkrishan Kalra, CEO of Genpact, stated that this trend clearly points to a significantly expanding total addressable market. He noted that new clients include net new clients to Genpact, as well as existing clients who were not previously using Genpact for finance services, indicating a combination of enterprise, mid-market, and existing client engagement. Maggie Nolan then asked about any improvements in sales cycle or ramp times, particularly for large deals, in the last 90 days, and what is contemplated in the full-year guidance regarding these variables, specifically mentioning strong large deals in January. Balkrishan Kalra responded that large deals have varied paces, especially when integrating technology, process, and data, and do not typically move in 90-day increments. He expressed enthusiasm for the record-level pipeline across all client cohorts. Michael Weiner, SVP and CFO, added that the 7% full-year guidance is confident, based on probability-weighted deals, committed revenue in line with historical averages (~75%), and a significant backlog at record levels from 2025, 2023, and 2024 bookings.

Maggie Nolan inquired about the mix of commercial consulting growth, specifically between project-based, longer-duration, or platform-led work, and how this impacts revenue visibility for 2026. She also asked about end-market performance in financial services and TMT, and early insights into 2026 client budgets.

Answer

Shiv Iyer, President, stated that growth is seen across the board, including transaction/project-based implementation, enterprise platforms, application engineering, and data/AI. He noted a healthy mix of longer-term and implementation-driven projects, with improving fixed-price contracts. Mr. Iyer indicated steady to moderately positive demand, with sequential improvement in financial services outside of big banks, and an uptick in TMT and software/services due to data center build-outs. Theodore Hanson, CEO, highlighted sequential improvements in 4 of 5 industries and year-over-year growth in 3 of 5, expressing cautious optimism but noting the need for inflection in the big bank sector.

Maggie Nolan, a Research Analyst at William Blair, inquired about the nature, drivers, and expected duration of outsized projects from enterprise customers, and also asked about the professional services project delays from retail clients, specifically if they are push-outs and their potential widespread impact on the services business.

Answer

Mark Marron, CEO and President, explained that while mid-market customers showed the biggest growth, a few large enterprise customers had significant Q3 projects, which are not expected to fully replicate in Q4, influencing guidance. Regarding professional services, he noted that delays from a few retail and consumer clients are expected to materialize in fiscal 2027, attributing the decline to tough prior-year comparisons (due to the Bailiwick acquisition) and staffing adjustments, while managed services continue to grow.

Maggie Nolan asked for clarification on professional services project delays from retail customers, specifically if these are push-outs to future fiscal years and the nature and potential widespread impact of these delays.

Answer

CEO and President Mark Marron confirmed that the project delays from retail and consumer customers are expected to materialize in fiscal 2027, not indicating a long-term concern. He noted that the decline in professional services was also due to a tough comparison from the Bailiwick acquisition last year and a slight reduction in staffing, while managed services continued to grow.