Genpact (G) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue reached $1.215 billion, up 8.3% year-over-year in constant currency (7.4% as reported), with Data-Tech-AI services up 11.1% and Digital Operations up 4.2%.

• Adjusted EPS grew 16% year-over-year to $0.84, exceeding guidance; diluted EPS rose 14% to $0.73.

• Net income increased 12% to $131 million, with a margin of 10.8%.

• Strong performance was driven by execution, innovation, and annuitized data-tech-AI revenue, despite macroeconomic and geopolitical uncertainties.

• Pipeline at an all-time high, but some large deals delayed due to supply chain and tariff uncertainties.

Financial highlights

• Gross margin expanded to 35.3%, up from 35.0% year-over-year.

• Adjusted operating income was $210 million, up 15% year-over-year; AOI margin improved to 17.3%.

• Net income for the quarter was $131 million, with net income margin at 10.8%.

• Operating cash flow improved to $40 million, reversing a prior year outflow.

• $93 million returned to shareholders via $63 million in share repurchases and $30 million in dividends.

Outlook and guidance

• Full-year net revenue expected between $4.862 billion and $5.005 billion, 2%-5% growth.

• Adjusted diluted EPS guidance of $3.41-$3.52, 5.7% growth at midpoint, both lowered from prior guidance.

• Q2 revenue guidance: $1.210-$1.233 billion, 2.8%-4.8% growth; adjusted EPS $0.84-$0.86.

• Management expects sufficient liquidity for operations, growth, dividends, and buybacks for the foreseeable future.

• Macroeconomic and geopolitical uncertainty expected to continue impacting business confidence and sales cycles.