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Business process specialist Genpact has reported solid Q1 2025 results, with net revenues reaching $1.215bn, representing a healthy 7.4% YoY increase (8.3% in constant currency). The firm's strategic pivot towards advanced technologies continues to pay dividends, with Data-Tech-AI revenues growing by 11.1% to $582 million, now accounting for 48% of total revenue.
Profitability metrics were particularly impressive, with adjusted diluted EPS rising 16% to $0.84 and adjusted operating margin expanding to 17.3%. Cash generation also improved significantly, moving from a $26m outflow in Q1 2024 to a $40m inflow.
However, despite this strong quarterly performance, Genpact has notably downgraded its full-year guidance. Annual revenue growth projections have been reduced from 5.5%-7.5% to a more modest 2.0%-5.0%, with adjusted EPS expectations also trimmed.
CEO Balkrishan Kalra acknowledged the changing operating environment since January but remained confident in the company's business model, highlighting its process expertise and AI capabilities as key competitive advantages. This cautionary outlook revision suggests Genpact is witnessing slowing demand, particularly in its traditional Digital Operations segment, which is now forecast to grow just 2.0% for the year, significantly below previous projections.
Posted by: Marc Hardwick at 09:09
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