Genpact (G)·Q4 2025 Earnings Summary
Genpact Q4 2025: Beats on Both Lines, AI Business Up 17%, But Stock Drops on Tariff Fears
February 5, 2026 · by Fintool AI Agent
Genpact delivered a clean beat in Q4 2025, surpassing Street expectations on both revenue and earnings as its AI and agentic solutions business continued to accelerate. The IT services company posted $1.32B in revenue (+5.6% YoY) and adjusted EPS of $0.97 (+6.6% YoY), beating consensus by 4.2% and 8.0%, respectively . Despite the strong results, shares fell 2.8% as management flagged macro uncertainty around U.S. tariff policies in the forward-looking commentary .
Did Genpact Beat Earnings?
Yes — Genpact beat on both revenue and EPS for the eighth consecutive quarter.
*Consensus estimates retrieved from S&P Global.
The beat was broad-based, with strength across both Advanced Technology Solutions (+15% YoY in Q4) and Core Business Services (+2.9% YoY) .
Full Year 2025 Highlights:
What's Driving the Growth?
The headline story is Advanced Technology Solutions, which grew 17% YoY for the full year to $1.2B, now representing 24% of total revenue . This segment houses Genpact's highest-growth offerings: data and AI, digital technology, advisory, and agentic solutions.
CEO Balkrishan "BK" Kalra emphasized the momentum:
"Customers are realizing we can do what others can't. We bring technology and process into the same room, connecting deep functional and industry understanding, proprietary data, AI, and agentic systems to truly integrate AI and transform their businesses."
Revenue by Segment (FY 2025):
Ask Fintool AI AgentAgentic AI Momentum: The Numbers Behind the Hype
The standout story from Q4 is Genpact's rapid scaling of agentic AI solutions. Management disclosed several impressive metrics:
Agentic Solutions Performance:
CEO BK Kalra noted the agentic suite is growing faster than any offering in company history:
"Agentic has grown more rapidly than any other offering in Genpact's history. Our agentic solutions are clearly resonating, demonstrated by traction with new clients, as well as higher volumes and increased scope with our existing accounts."
Client Case Studies:
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Wesco — Fortune 500 B2B distributor transformed their entire AP and procurement organization onto a unified platform with pre-trained agents. Touchless invoice processing improved from 40% to 65% on 3 million invoices .
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Humana — Long-standing finance client expanded partnership to AI-enabled transformation across revenue cycle management, procurement, and F&A, creating a pathway for agentic operations .
What Did Management Guide?
Genpact issued robust FY 2026 guidance that exceeded Street expectations:
FY 2026 Outlook:
Q1 2026 Outlook:
Management expects Advanced Technology Solutions to grow at least high-teens in 2026, maintaining the acceleration seen in 2025 .
CFO Mike Weiner noted committed revenue is in line with historical averages at ~75%, backed by record backlog levels . The quality of ATS revenue is particularly compelling — roughly 70% annuitized and 70% from non-FTE models, with 2x revenue per headcount vs. company average .
What Changed From Last Quarter?
Improvements:
- Gross margin expanded to 36.6% in Q4 (vs. 35.7% in Q4 2024), driven by operating leverage and mix shift toward higher-margin AI solutions
- Advanced Technology Solutions accelerated to 15% YoY growth in Q4 (vs. 14% in Q3)
- Cash position strengthened to $854M (vs. $648M at year-end 2024)
- Won 16 large deals in FY 2025; more large deals awarded entering 2026 than at any prior fiscal year start
- New bookings exceeded $5.5B, with ATS now accounting for more than a third of total bookings
Caution Flags:
- Management added extensive tariff and trade policy language to risk disclosures
- Share repurchases slowed — 2.0M shares in Q4 vs. 6.0M for full year, suggesting cash preservation
- Decision Support Services saw softness as management "continues to work through go-to-market approach"
How Did the Stock React?
Genpact shares fell 2.8% on the day of the earnings release, closing at $37.70 despite the beat. The stock was already under pressure heading into the print, down 10.4% in the prior trading session amid broader market weakness tied to tariff concerns.
The disconnect between strong fundamentals and weak stock performance appears driven by macro headwinds, not company-specific issues.
Capital Allocation Update
Genpact announced a 10% dividend increase, raising the quarterly dividend to $0.1875 per share ($0.75 annualized) from $0.17 per share previously .
FY 2025 Capital Returns:
- Share repurchases: $283M (6.0M shares at avg. $46.16)
- Dividends paid: $118M
- Total returned: ~$401M
Cash from operations was $813M for FY 2025, including $170M in client prepayments. Excluding prepayments, operating cash flow was $643M (+4.5% YoY) .
Ask Fintool AI AgentRisks and Concerns
Management flagged several risks in the Safe Harbor statement that warrant monitoring:
- Tariff and Trade Policy Uncertainty: New language specifically calling out "U.S. and global trade and tariff policies" as a key risk factor
- AI Technology Risk: Ability to innovate with AI, generative AI, and agentic AI "at sufficient speed and scale"
- Wage Inflation: Pressure in operating geographies (primarily India)
- Geopolitical Conflicts: Ongoing uncertainty from global conflicts and sanctions
Key Takeaways
- Clean beat on both lines — Revenue +4.2% above consensus, EPS +8.0% above
- AI momentum continues — Advanced Technology Solutions up 17% for the year, expected to grow high-teens in 2026
- Margin expansion — Gross margin at 36.6%, with guided improvement to 36.5%+ in FY26
- Solid guidance — At least 7% revenue growth, 10% EPS growth for FY26
- Stock weakness macro-driven — Tariff fears overshadowed fundamental strength
Ask Fintool AI AgentQ&A Highlights
On AI Competition (Brian Bergin, TD Cowen): Asked whether announcements from Anthropic and others pose risks to Genpact's model, BK Kalra pushed back firmly:
"We are incredibly excited with what's happening in Silicon Valley because it is accelerating our pivot, helping us drive outcomes for our clients faster... I see this as two main AI focus areas — research AI and task-oriented AI. What you are probably referring to is more research AI. Where we come in is more task-oriented AI, where we execute specific tasks within a process, bringing AI into the entire system of work. We are only seeing our pivot accelerate."
On Pricing Pressure (David Koning, Baird): Asked if clients are demanding faster efficiency gains, management explained their P×Q model is working:
"Yes, we are giving in more productivity to our clients, but our costs are offsetting at a much faster pace — that's what you see in gross margin. For top line, we are getting more scope — that's what we reported in Agentic. Our revenue growth is much higher than what we reported in June. Consumption structures are taking hold, giving us more leverage."
On Who's Driving Agentic Adoption (Puneet Jain, J.P. Morgan): Management noted deals are increasingly joint between business and IT:
"It is always a combination of both. When we were just talking about running mission-critical operations, the business voice is much bigger. But fundamentally now, as you need to intersect and weave in all of these agents into their complex system roadmap, clearly their CIO or CDIO, they are an integral part of the equation."
On Durability of Demand (Bradley Clark, BMO): Asked about the long-term tail of agentic projects, BK emphasized recurring revenue:
"Each of these solutions are building recurring annual revenues for Genpact... More and more of our clients, especially mega deals, have begun to see that the benefit of agentic operations — running finance, supply chain, mid-offices, claims, underwriting, banking operations — is how we bring in agents with human expertise in a responsible AI framework. We really see this as a long-term change that is building a long-term business for us."