Genpact Q3 2026 Earnings: Advanced Technology Growth Drives Revenue

Genpact (NYSE: G) reported Q3 2026 net revenue of $1.385 billion, up 7.3% year over year, while diluted EPS increased 7.2% to $0.89 from $0.83. Advanced Technology Solutions generated nearly all of the revenue increase as Core Business Services remained flat, while gross margin expanded to 38.0%. The results cover the quarter ended September 30, 2026, and were released on November 5, 2026.

Core Financial Results

Revenue growth was 7.5% on a constant-currency basis, slightly above reported growth of 7.3%. Gross profit grew faster than revenue, producing approximately 160 basis points of gross-margin expansion, while operating income increased 10.1%.

Net income grew more slowly at 4.0%, but a lower diluted share count helped diluted EPS rise 7.2%. Adjusted diluted EPS, which excludes items including stock-based compensation and acquired-intangible amortization, increased 10.3%.

Adjusted operating income and adjusted diluted EPS are non-GAAP measures. Adjusted operating income excludes stock-based compensation, acquired-intangible amortization and certain other items.

Business and Segment Performance

Advanced Technology Solutions was the clear growth engine. Its revenue increased by approximately $94.1 million, almost equal to Genpact’s total company revenue increase of approximately $94.1 million. Core Business Services, still 71% of total revenue, was essentially unchanged.

The segment mix continued shifting toward technology services as Advanced Technology Solutions expanded substantially faster than the company overall. Management linked this momentum to Genpact’s pivot toward Agentic Operations and characterized the growth as organic and higher quality, although the release did not provide a more detailed product-level breakdown.

Profitability, Cash Flow, and Balance Sheet

Margin Expansion Was Partly Absorbed by Higher Operating Expenses

Gross profit increased by $57.1 million, supported by the higher gross margin. However, selling, general and administrative expenses rose approximately 19.2% to $312.5 million, considerably faster than revenue, and absorbed much of the additional gross profit.

Stock-based compensation also increased to $31.2 million from $22.2 million. Lower acquired-intangible amortization and an improvement in other operating income and expenses helped GAAP operating margin rise to 15.2% from 14.8%.

Net income margin nevertheless declined to 10.9% from 11.3%, partly reflecting an increase in net interest expense to $16.5 million from $12.8 million. The diluted weighted-average share count fell approximately 3.7%, allowing EPS growth to outpace net income growth.

Receivables Weighed on Year-to-Date Cash Conversion

Genpact generated $93 million of operating cash flow during the quarter. For the first nine months of 2026, however, operating cash flow fell to $142.0 million from $526.2 million despite net income rising to $445.4 million.

The cash-flow statement shows that accounts receivable absorbed $405.8 million of cash during the first nine months, compared with $80.3 million a year earlier. Prepaid expenses and other operating assets absorbed another $149.9 million, versus $71.1 million in the prior-year period. Accounts receivable consequently reached $1.622 billion at September 30, up from $1.241 billion at the end of 2025.

Cash and cash equivalents stood at $499.1 million, down from $853.8 million at year-end. Year-to-date financing outflows included $369.9 million of debt repayment, $151.0 million of share repurchases, $94.8 million of dividends and $77.5 million of earn-out consideration. During Q3 alone, Genpact spent approximately $31 million repurchasing 870,000 shares and another $31 million on dividends.

Full-Year 2026 Guidance

Genpact raised its full-year gross-margin outlook and adjusted diluted EPS growth guidance following the quarter. The release did not provide the previous numerical ranges, so the size of those increases cannot be determined.

The outlook assumes Advanced Technology Solutions remains the principal growth engine while Core Business Services returns to year-over-year growth. It also calls for full-year gross-margin expansion despite continued investment in Agentic Operations.

Management’s View

CEO Balkrishan “BK” Kalra said the quarter provided further evidence that Genpact’s Agentic Operations strategy is gaining traction. He emphasized organic growth and what management considers higher-quality revenue rather than growth driven only by currency or acquisitions.

CFO Sumita Pandit pointed to revenue growth, gross-margin expansion and 10.3% adjusted EPS growth as the basis for raising the full-year margin and adjusted EPS outlook. She also said Genpact plans to continue investing significantly in Agentic Operations to strengthen its position in the market.

Recent Insider Transactions

The supplied six-month aggregate reports one insider purchase totaling 76,713 shares and five sales totaling 66,158 shares, resulting in net purchases of 10,555 shares. The latest 10 disclosed transactions consist of five sales and five stock awards; these records should not be interpreted by themselves as management’s view of the company’s valuation or outlook.

Risks Investors Need to Watch

• Dependence on technology-led growth: Advanced Technology Solutions produced nearly all of the quarterly revenue increase. A slowdown in that segment would be difficult to offset while Core Business Services remains flat.
• Cash conversion and collections: The large increase in accounts receivable contributed to a substantial decline in year-to-date operating cash flow. Genpact also identifies its recent enterprise resource planning implementation as a potential influence on invoicing, collections and cash flow.
• Operating expense growth: SG&A and stock-based compensation increased faster than revenue. Continued expense growth at those rates could limit the benefit of gross-margin expansion.
• Execution against the full-year outlook: The guidance depends on at least 25% growth in Advanced Technology Solutions and renewed growth in Core Business Services while the company continues investing in Agentic Operations.

Summary

Genpact’s Q3 2026 growth was driven almost entirely by Advanced Technology Solutions, while Core Business Services remained flat. Gross and operating margins improved, supporting higher EPS and raised full-year margin and adjusted EPS guidance, but weaker year-to-date cash conversion and rising receivables temper the operating progress. The main points to monitor are whether technology growth remains above 25%, whether the core segment returns to growth and whether improved collections translate earnings into stronger cash flow.