Executive Summary

Q1 2025 beat on both revenue and EPS: net revenues $1.215B (+7.4% as-reported; +8.3% cc) and adjusted EPS $0.84 (+16% YoY); gross margin expanded to 35.3% and AOI margin to 17.3% . Versus S&P Global consensus, revenue beat by ~$6.5M (~0.5%) and EPS beat by ~$0.05 (~6%) in Q1 2025 (see Estimates Context)*.
Data-Tech-AI (DTAI) momentum continued: revenue $582M (+11.1% YoY) to 48% of mix; Digital Operations (DO) $633M (+4.2% YoY) to 52% .
Full‑year 2025 guide lowered on deal timing/slower cycle times in tariff/supply-chain exposed end markets: FY revenue to $4.862–$5.005B (prior $5.029–$5.125B) and adjusted EPS to $3.41–$3.52 (prior $3.52–$3.59); margin outlook unchanged (GM ~36%, AOI 17.3%) .
Management flagged several very large, multi‑year DO‑weighted deals slipping from late Q1/early Q2; no cancellations or pricing pressure, and pipeline at record highs; Q2 guide: revenue $1.210–$1.233B, adjusted EPS $0.84–$0.86 .

What Went Well and What Went Wrong

What Went Well
- DTAI growth and mix: $582M (+11.1% YoY), now 48% of revenue, outpacing DO and helping adjusted EPS grow 2x revenue (+16% vs +7.4%) .
- Margin discipline: gross margin +30 bps YoY to 35.3%; AOI margin +120 bps YoY to 17.3% .
- Partner ecosystem and AI traction: “Partner‑related revenue is off to a very strong start in 2025, up 80% YoY… reaching 10% of total revenues in Q1”; “more than 215 GenAI solutions in production… GenAI revenues nearly doubling from Q4” .
What Went Wrong
- Guide cut on macro/trade uncertainty: FY25 revenue growth cut to ~2–5% (from ~5.5–7.5%) and adj. EPS to $3.41–$3.52 (from $3.52–$3.59) as several very large DO‑weighted deals in manufacturing/CPG/high‑tech hardware were delayed .
- DO growth exposure to timing: management noted early‑year delays disproportionately impact in‑year DO revenue; caution also added to DTAI despite continued strength .
- Revenue visibility tightening: increased prudence around shorter‑cycle/discretionary deals and broader uncertainty in tariff‑affected end markets .

Financial Results

Consolidated results by quarter

Metric	Q3 2024	Q4 2024	Q1 2025
Net Revenues ($USD Billions)	$1.211	$1.249	$1.215
YoY Revenue Growth (%)	+7%	+8.9%	+7.4% (as‑reported); +8.3% cc
Gross Margin (%)	35.6%	35.7%	35.3%
Income from Operations ($M)	$181.7	$190.2	$183.7
Income from Operations Margin (%)	15.0%	15.2%	15.1%
Adjusted Income from Operations ($M)	$213.0	$221.0	$209.7
Adjusted Income from Operations Margin (%)	17.6%	17.7%	17.3%
Diluted EPS ($)	$0.74	$0.79	$0.73
Adjusted Diluted EPS ($)	$0.85	$0.91	$0.84
Cash from Operations ($M)	$228	$203	$40

Segment revenue and mix

Segment	Q3 2024 ($M)	YoY %	Q4 2024 ($M)	YoY %	Q1 2025 ($M)	YoY %
Data‑Tech‑AI	$569	+9%	$595	+11.9%	$582	+11.1%
Digital Operations	$642	+5%	$654	+6.4%	$633	+4.2%
Mix (% of total)	47% / 53%	—	48% / 52%	—	48% / 52%	—

Select KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Win rate (%)	—	50% FY context	40%
Sole‑sourced bookings (%)	—	42% FY context	54% (quarter)
New logos (count)	—	+101 FY context	+18 (quarter)
Outcome/consumption‑based revenue (%)	21%	21%	22%
DSO (days)	—	86 (FY end)	88
Partner‑related revenue (% of total)	—	high‑single‑digits (FY exit)	~10%
GenAI solutions in production (count)	145+ (Q4 commentary)	—	215+

Estimates vs actual (S&P Global)

Metric (Q1 2025)	Consensus	Actual	Surprise
Revenue ($USD)	$1,208,421,400*	$1,214,926,000*	+$6,504,600 (~+0.5%)*
Primary EPS ($)	$0.7938*	$0.84*	+$0.0462 (~+5.8%)*

Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance (Feb 6, 2025)	Current Guidance (May 7, 2025)	Change
Net Revenues ($B)	FY 2025	$5.029–$5.125 (≈+5.5% to +7.5% as‑reported; +6.2% to +8.2% cc)	$4.862–$5.005 (≈+2.0% to +5.0% as‑reported; +1.9% to +4.9% cc)	Lowered
DTAI revenue growth (midpoint)	FY 2025	~+6.2% as‑reported; ~+6.4% cc	~+5.1% as‑reported/cc	Lowered
DO revenue growth (midpoint)	FY 2025	~+6.8% as‑reported; ~+7.9% cc	~+2.0% as‑reported; ~+1.9% cc	Lowered
Gross Margin (%)	FY 2025	~36.0%	~36.0%	Maintained
Adjusted Operating Income Margin (%)	FY 2025	~17.3%	~17.3%	Maintained
Adjusted Diluted EPS ($)	FY 2025	$3.52–$3.59	$3.41–$3.52	Lowered
Net Revenues ($B)	Q2 2025	—	$1.210–$1.233	New intra‑year guide
Gross Margin (%)	Q2 2025	—	~35.5%	New intra‑year guide
Adjusted Operating Income Margin (%)	Q2 2025	—	~17.3%	New intra‑year guide
Adjusted Diluted EPS ($)	Q2 2025	—	$0.84–$0.86	New intra‑year guide

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior‑2)	Q4 2024 (Prior‑1)	Q1 2025 (Current)	Trend
AI/Technology initiatives	AI Day; DTAI +9% YoY; accelerating bookings	Launch “Agentic” AP solution; AI Value Studio; AI Gigafactory; DTAI +12% YoY	215+ GenAI solutions; GenAI revenue nearly doubled QoQ; partner revenue 10% of total	Strengthening
Supply chain / tariffs / macro	Limited macro headwinds called out	Macro assumed similar to 2024 for initial FY25 guide	Deal delays in tariff‑exposed end markets (manufacturing/CPG/high‑tech hardware)	Deteriorating
Partner ecosystem	—	Partner revenue up 50% YoY to high‑single‑digits mix	Up 80% YoY; ~10% of revenue in Q1	Improving
Pricing / competitive intensity	—	—	No pricing pressure on large delayed deals	Stable
Margin outlook	—	FY25 GM 36%, AOI 17.3%	FY25 margins reaffirmed despite guide cut	Resilient
Content moderation exposure	—	<10% of revenue; watching policy changes, no specific risk flagged	—	Neutral

Relevant Q1‑period press releases underpinning themes: “AI Gigafactory” (Jan 28, 2025) ; “Service‑as‑Agentic‑Solutions” (Feb 5, 2025) .

Management Commentary

“We entered 2025 with strong momentum… Revenue in the first quarter grew 8% year‑over‑year… Adjusted EPS grew 16%.” — BK Kalra, President & CEO .
“We signed 2 large deals in Q1 with more than 90% of associated revenue accounted for as annuitized Data‑Tech‑AI revenue… A few additional very large deals … were pushed out … due to supply chain and tariff‑related uncertainty.” — BK Kalra .
“We delivered 16% adjusted EPS growth… sixth consecutive quarter with adjusted EPS increasing at a faster pace than revenue… Sole‑source deals ~54% of bookings; 18 new logos.” — CFO Mike Weiner .
“Just to be clear, we are not seeing any deal cancellations… or pricing pressure… The delay has impacted future quarter revenue timing with the impact more visible in digital operations.” — CFO Mike Weiner .

Q&A Highlights

Large deal delays: Several very large (>$50M), 5–7 year DO‑weighted deals in manufacturing/CPG/high‑tech hardware were delayed by macro/trade uncertainty; no cancellations; many sole‑sourced .
Pricing/margin dynamics: No pricing pressure on delayed deals; absence of new low‑margin ramps near‑term supports gross margin; Q1 outperformance carries forward .
FY25 phasing: To hit mid‑point +3.5% FY growth, $84M delivered in Q1, $45M targeted in Q2, implying ~$37M growth needed in 2H — viewed as conservative .
AI productivity in large deals: Holistic solutions (Lean/ML/GenAI/Agentic) target 30–45% productivity over 5–7 years; revenue models share productivity gains but expand scope/volumes .
DTAI outlook: Record pipeline; prudence applied to shorter‑cycle discretionary pieces, while large transformational DTAI deals performed well in Q1 .

Estimates Context

Q1 2025: Revenue $1,214.9M vs S&P Global consensus $1,208.4M; Primary EPS $0.84 vs consensus $0.7938 — both beats*.
Implication: Consensus models likely to trim FY25 revenue/EPS after the guide cut despite Q1 beats; margin resilience (GM/AOI unchanged) could cushion EPS revisions, but DO growth trajectories may be reset lower near term .
Values retrieved from S&P Global.

Key Takeaways for Investors

Quality beat but cautious reset: Strong Q1 execution (EPS/margins) offset by macro‑driven deal timing leading to lower FY revenue/EPS guides; margins held intact .
Mix tailwind from DTAI: Faster DTAI growth (48% mix) supports margins and EPS > revenue growth cadence; continued AI deployment (215+ solutions) underpins medium‑term thesis .
Pipeline and conversion: Record pipeline and rising sole‑source mix (54%) suggest delayed megadeals are more timing than demand; monitor closure cadence into 2H .
DO sensitivity to early‑year timing: DO bears greater in‑year revenue impact from early‑year delays; near‑term growth likely below prior plan, but margin profile benefits from fewer low‑margin ramps .
2Q setup: Guide implies modest sequential step‑down in growth vs Q1 but continued EPS growth; key catalyst is large‑deal signings and any mid‑year macro relief .
Watch Investor Day (June) for medium‑term targets and AI monetization updates, including partner channel scale and agentic solution roadmap .

Sources: Q1 2025 8‑K/press release (financials, guidance, reconciliations) ; Q1 2025 earnings call (strategy, pipeline, Q&A) ; Q4 2024 and Q3 2024 8‑Ks (trend) ; Q1‑period AI press releases .

Genpact LTD (G)·Q1 2025 Earnings Summary