G Q2 Earnings Beat Estimates on ATS Growth, Outlook Raised

Genpact Limited G reported better-than-expected second-quarter 2026 results. Adjusted earnings of $1 per share, up 13.6% year over year and above the consensus mark of 97 cents by 3.1%. Net revenues increased 7.1% to $1.34 billion and beat estimates by roughly 1%.

Performance was driven by Advanced Technology Solutions, or ATS, which grew 24.1% year over year. Gross margin expanded to 36.5%, while non-FTE revenue surpassed 50% of total revenues for the first time.

G’s Advanced Technology Solutions Accelerate

ATS revenues increased to $363 million from $292.7 million a year ago and represented 27% of total revenues. Growth was broad-based across Data & AI, Digital Technologies, Advisory and Agentic offerings.

Management now expects ATS revenues to grow at least 25% in 2026, up from its previous expectation of at least 20%. The company said demand for agentic and AI-led services continues to accelerate as clients seek to automate more complex enterprise workflows.

Genpact’s Core Business Maintains Growth

Core Business Services revenues rose 1.9% year over year to $980 million and accounted for 73% of revenues. Genpact continued to see demand across Digital Operations, Decision Support Services and Technology Services.

Management expects Core Business Services to grow for the full year despite a deliberate transition away from certain lower-priority work. This portfolio shift is expected to reduce total 2026 revenue growth by nearly 2 percentage points, with the impact concentrated in the second half.

G Expands Margins Amid Higher Investments

Gross profit advanced 8.9% year over year to $490.3 million. Gross margin expanded about 60 basis points to 36.5%, marking the 13th consecutive quarter of year-over-year gross margin improvement.

Adjusted income from operations increased 7.5% to $233.6 million, while the adjusted operating margin improved to 17.4% from 17.3%. Selling, general and administrative expenses were $294.1 million compared with $266.4 million in the prior-year quarter.

Genpact’s Agentic Bookings Gain Momentum

Genpact recorded its largest-ever quarterly bookings and signed six large deals compared with three in the year-ago period. This brought first-half large-deal wins to 12, double the prior-year level. Large deals are defined as contracts worth at least $50 million.

The company expects more than $1 billion in Agentic Solutions total contract value during 2026, roughly five times the 2025 level. More than half of cumulative agentic contract value has come from new clients, highlighting the strategy’s ability to expand Genpact’s addressable market.

G’s Cash Flow Reflects Collection Timing

Cash generated from operations was $72 million compared with $177 million a year ago. Management attributed the decline partly to collection timing and prepayments made in 2025.

Genpact ended June with $517.4 million in cash and cash equivalents. During the quarter, it returned $82 million to shareholders, consisting of roughly $50 million in share repurchases and $32 million in dividends.

Genpact Raises 2026 Earnings Outlook

For the third quarter, Genpact expects revenues of $1.369-$1.382 billion. The midpoint of $1.376 billion is about 0.3% below the Zacks Consensus Estimate of $1.38 billion. Adjusted earnings are projected at $1.04-$1.05 per share, with the midpoint of $1.045 slightly above the consensus estimate of $1.04.

For 2026, Genpact continues to expect reported revenue growth of at least 7%. Using the provided year-ago sales figure of $5.08 billion, this implies revenues of at least $5.44 billion, slightly above the $ 5.43 billion Zacks Consensus Estimate. The company also raised adjusted diluted earnings growth guidance to at least 12%. Its outlook reconciliation indicates adjusted earnings of $4.09 per share, about 1% above the consensus estimate of $4.05. Genpact expects a 36.5% gross margin and a 17.7% adjusted operating margin for the year.

G currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Trane Technologies TT reported impressive second-quarter 2026 results. TT’s adjusted earnings of $4.31 per share outpaced the consensus mark by 0.9% and rose 11.1% from the year-ago quarter’s actual. TT’s total revenues of $6.35 billion surpassed the consensus mark by 2.9% and increased 6.4% year over year.

Rollins ROL posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.

Verisk VRSK reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter. Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year.

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