Genpact (G) Investor Day 2025 summary

Strategic transformation and growth model

• Pivoting to an AI-first, data-led innovation company, leveraging 25+ years of process and domain expertise to lead in advanced technology solutions.

• Genpact Next strategy integrates advanced technologies, especially AI, with core business services to deliver scalable, targeted client outcomes and deepen client trust.

• Evolving from the '3+1' framework to GenpactNext, focusing on data, technology, AI, and agentic solutions.

• Building a fundamentally new organization with a unique culture emphasizing client centricity, agility, and a learning mindset.

• Targeting large and growing market opportunities, with agentic solutions and domain-specific AI models expected to exceed 50% enterprise adoption by 2030.

Financial performance and guidance

• Revenue grew at a 6% CAGR from 2022-2024, with 2024 net revenue at $4.77B and gross margin improving to 35.5%.

• Advanced technology solutions now account for 21% of revenue, growing at 2x the rate of core business services.

• GenAI solutions in the market increased from 13 in Q1 2024 to 215 by Q1 2025, with GenAI revenue up 9x YoY.

• Medium-term targets (2026-2027): total revenue growth of at least 7% annually, advanced technology solutions at 15%+, core business services at 4-5%, and double-digit adjusted diluted EPS growth.

• Free cash flow grew from $389M in 2022 to $530M in 2024, with $992M returned to shareholders over three years.

Business developments and client impact

• Significant investments in product development, sales, and partnerships, including the acquisition of Exponential Data and over $150M in organic investments projected for 2025.

• AI Gigafactory launched in January 2025, now serving 45 clients, accelerates AI deployment and delivers up to 40% faster implementation and 50% lower cost of ownership.

• Agentic AI solutions, such as the AP Suite, are driving 3% net revenue growth and 300 basis points gross margin improvement for transitioned accounts.

• Commercial models are shifting to non-FTE, outcome-based, and transaction-based structures, with 70% of advanced technology solutions revenue now annuitized and non-FTE.

• Client Zero initiative applying Advanced Technology Solutions internally, delivering $19M in cost savings in 2024 and $20M expected in 2025.