Total Revenue

+16% (from $414.1M to $481.4M)

Strong growth across all segments driven by an expanding client base and increased volumes, building on previous period momentum. This continued multi-segment expansion boosted overall revenue performance. " "

Insurance

+16.6% (from $139.1M to $162M)

Expansion of business from new and existing clients drove the Insurance segment, continuing the upward trend from prior periods with strong client engagements and enhanced market demand. " "

Healthcare

+21.6% (from $25.9M to $31.5M)

Significant growth in clinical services and increased client relationships fueled this segment’s performance, building on the momentum observed in previous periods and reflecting higher service volumes. " "

Emerging Business

+19.3% (from $67.1M to $80.1M)

Enhanced expansion of client relationships and possible positive currency effects drove the Emerging Business segment, consistent with trends from prior quarters where business expansion was a key driver. " "

Analytics

+14% (from $182M to $207.8M)

Moderate but steady growth due to increased volumes in annuity and project-based engagements, echoing past performance improvements despite relatively lower growth when compared to other segments. " "

United States Revenue

+14.5% (from $347.82M to $397.75M)

Robust performance across segments in the U.S. market, driven by expanding business from both new and existing clients, mirroring previous period gains and diversified revenue sources. "

United Kingdom Revenue

+21.7% (from $45.95M to $55.93M)

Growth driven by business expansion and favorable currency appreciation (strengthening the U.K. pound against the U.S. dollar), helping to boost revenue figures compared to the previous period. "

Rest of World Revenue

+36% (from $20.32M to $27.65M)

Exceptional growth resulting from significant expansion of business and positive currency fluctuations, which further amplified revenue increases compared to the prior period. "

Net Income

+26% (from $40.28M to $50.67M)

Increased profitability resulting from higher overall revenues and improved operational efficiency, with a stronger income from operations providing a more favorable bottom line relative to the previous period. " "

Income from Operations

+31% (from $54.27M to $71.24M)

Marked improvement driven by higher revenues and improved gross margins, despite offsetting increases in SG&A and depreciation expenses, continuing the pattern of operational efficiency gains observed earlier. " "

Diluted EPS

Increased from 0.24 to 0.31 EPS

Enhanced earnings per share reflecting better net income and solid operational performance, supported by revenue growth and effective cost management that echoed improvements from prior periods. " "

Revenue

FY 2025

no prior guidance

$2.025 billion to $2.06 billion "

no prior guidance

Adjusted EPS

FY 2025

no prior guidance

$1.83 to $1.89 "

no prior guidance

Foreign Exchange Gain

FY 2025

no prior guidance

$1 million "

no prior guidance

Net Interest Expense

FY 2025

no prior guidance

$1 million "

no prior guidance

Effective Tax Rate

FY 2025

no prior guidance

22% to 23% "

no prior guidance

Capital Expenditures

FY 2025

no prior guidance

$50 million to $55 million "

no prior guidance

AI and Data Modernization Initiatives

Across Q1 through Q3, EXL consistently emphasized its data‐and‐AI strategy with detailed discussions of domain‐specific models, proprietary solutions, strategic acquisitions (e.g. ITI Data), and partnerships (NVIDIA, Databricks) that underpinned revenue growth (e.g. Q1 " " , Q2 " " , Q3 " " ).

In Q4, EXL reinforced this emphasis by highlighting that AI and data drive 53% of revenue, expanding its portfolio with platforms like EXLerate.AI, deepening client implementations, and aligning reporting metrics to track data and AI contributions (Q4 " " " " ).

Consistent strategic emphasis with deeper integration and expanded client applications, underscoring AI and data modernization as a core future growth driver.

Digital Operations Growth

Q1–Q3 discussions showed steady, strong double-digit revenue growth from digital operations, citing robust performance in key segments (Q1 " " , Q2 " " , Q3 " " ).

Q4 continued this trend with even stronger performance – $273.7 million in revenue, 18.1% year-over-year growth, and explicit comments on digital operations as a tailwind (Q4 " " ).

Sustained and slightly accelerated growth with consistently positive client demand and robust performance across periods.

Robust Client Pipeline and Deal Wins

In Q1, Q2, and Q3, EXL highlighted a robust sales pipeline with increasing large deal sizes and healthy win rates, supported by strong new client wins and a growing backlog of strategic engagements (Q1 " " , Q2 " " , Q3 " " " ).

Q4 maintained the narrative of a strong demand environment with broad client interest in AI and digital transformations, expanding the total addressable market and engagement sizes (Q4 " " ).

Consistent and expanding emphasis on robust client pipeline and deal wins that underpin future revenue opportunities, with continued upward momentum.

Operating Model Transformation and Integration Risks

There was no mention of operating model transformation or related integration risks in Q1, Q2, or Q3.

In Q4, EXL introduced a detailed discussion on its operating model transformation – restructuring into industry market units, integrating the mature analytics business, and outlining measures to mitigate integration risks with stable client-facing roles (Q4 " " " " " ).

Newly emerged focus aimed at enhancing client engagement and integrated deals, with proactive risk mitigation strategies now being communicated.

Margin Pressure and Investment Challenges

Across Q1–Q3, EXL discussed margin pressures driven by increased SG&A spending and investments in AI and digital solutions—with short-term volatility but strategic investments to drive future profitability (Q1 " " " , Q2 " " , Q3 " " " ).

In Q4, the narrative continues: improved gross margins (up 30 basis points) and higher operating margins are reported even as significant investments in AI and R&D persist, reflecting careful management of short-term pressures for long-term growth (Q4 " " ).

Ongoing balancing act where consistent investment challenges and margin pressures persist but are managed with improved execution and promising long-term margin trends.

Gen AI Opportunities and Investment Delays

In Q1 through Q3, EXL emphasized the strategic promise of Gen AI through proprietary models and enhanced client engagements, while also noting delays in client decision-making and protracted proof-of-concept phases (Q1 " " " " , Q2 " " " , Q3 " " " ).

Q4 shifted the focus more toward broad Gen AI deployment across multiple industries and operational use cases (like Code Harbor and agentic AI), with no explicit mention of new investment delays, suggesting progress in overcoming earlier timing challenges (Q4 " " " ).

Sustained strategic emphasis on Gen AI; while earlier periods noted delays tied to adoption, Q4’s discussion implies that investments are yielding stronger outcomes with reduced emphasis on delays.

Client Infrastructure and Adoption Challenges

In Q1, challenges were discussed in the context of ensuring high accuracy for Gen AI solutions (65–70% initially, targeting 90–95% through fine-tuning) to drive adoption (Q1 " ). There was little explicit mention in Q2 and Q3.

Q4 provided an expanded discussion on client infrastructure challenges – addressing cloud migration, legacy system modernization via tools like Code Harbor, and integration of data assets to ensure successful AI adoption (Q4 " " ).

Increased emphasis in Q4—from a brief mention in earlier periods to a detailed focus on infrastructure and integration as critical enablers for client adoption.

Weak Marketing Analytics Performance

Q1–Q3 consistently identified weak performance in the marketing analytics segment as a drag on overall growth, with sequential declines and challenges due to macro factors like higher interest rates and inflation (Q1 " " " " " , Q2 " , Q3 " " ).

In Q4, no specific mention of marketing analytics performance appears, suggesting that it may have been de-emphasized or its issues are no longer top of mind compared to other strategic priorities.

Topic de-emphasized—once a consistent area of concern, it no longer features prominently, possibly due to strategic shifts or improved performance in other areas.

Delayed EPS Benefits from Share Repurchase Programs

In Q2, discussions noted that the benefits of the share repurchase program would be delayed, with repurchases affecting EPS next year rather than in the current year (Q2 " ). Q1 and Q3 had no notable discussion on this topic.

Q4 did not mention share repurchase-related EPS benefits at all, indicating that this topic is no longer a focus in the current period’s narrative.

No longer mentioned—the delayed EPS benefits topic has dropped from recent discussions, suggesting a shift in capital allocation focus or a resolution of earlier concerns.