Exlservice (EXLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $570.4 million, up 13.8% year-over-year, with adjusted EPS of $0.58, up 20.2% year-over-year, and GAAP diluted EPS of $0.43, up 5.7% year-over-year.

• Net income for Q1 2026 was $67.1 million, up 0.8% from Q1 2025.

• Data and AI-led revenues grew 27.1%–28% year-over-year and now represent about 60% of total revenue.

• Added 16 new clients and received multiple industry recognitions for AI and technology leadership.

• Gross margin improved to 38.9% from 38.6% year-over-year.

Financial highlights

• Adjusted operating margin was 20.5%, up 40 basis points year-over-year; adjusted EBITDA margin was 22.4%.

• Net income (GAAP) for Q1 2026 was $67.1 million; adjusted net income was $90.7 million.

• Operating income rose 17.1% to $91.8 million, with total operating expenses up 13.4%.

• Cash and investments totaled $266 million; cash and equivalents at March 31, 2026 were $145.4 million.

• $13 million in capital expenditures and $136 million spent on share repurchases in Q1.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.3–$2.33 billion (10–12% growth); adjusted EPS guidance increased to $2.18–$2.23 (12–14% growth).

• Capital expenditures expected to be $50–$55 million; effective tax rate projected at 21–22%.

• Guidance remains prudent, factoring in macroeconomic and geopolitical uncertainties.

• Existing liquidity and cash flow expected to be sufficient for the next 12 months, supporting growth, acquisitions, and share repurchases.