Genpact (G -1.14%), a global professional services company known for its expertise in digital transformation and process management, reported Q2 FY2025 earnings on August 7, 2025. The headline was a clear beat on both GAAP revenue and adjusted (non-GAAP) earnings per share (EPS). GAAP revenue reached $1.25 billion, surpassing analyst estimates of $1.23 billion, and Adjusted diluted EPS (non-GAAP) was $0.88, $0.03 above consensus. Performance was marked by robust expansion in technology-driven offerings and positive profit trends, though GAAP operating cash flow fell short of the prior year. The overall assessment is that the quarter represented progress on strategic initiatives, underpinning confidence as the company raised its full-year outlook.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted Diluted EPS (Non-GAAP) | $0.88 | $0.85 | $0.79 | 11.4 % |
| Diluted EPS (GAAP) | $0.75 | $0.67 | 11.9 % | |
| Revenue (GAAP) | $1.25 billion | $1.23 billion | $1.18 billion | 6.6 % |
| Adjusted Income from Operations Margin | 17.3 % | 16.9 % | 0.4 pp | |
| Data-Tech-AI Revenue | $599 million | N/A | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
Genpact operates across more than 20 countries, offering digital transformation services to clients worldwide. Its core business involves helping organizations modernize their operations using technologies such as artificial intelligence (AI), data analytics, cloud solutions, and automation. The company’s client base includes a significant segment of Fortune Global 500 companies, underscoring its global reach and industry credibility.
In recent years, Genpact has focused its efforts on several main areas: expanding its technological capabilities, deepening industry-specific expertise, forming strategic partnerships, and scaling its global delivery centers. Advanced technology offerings, especially in AI and data analytics, have become key growth drivers, while disciplined cost management and operational efficiency remain ongoing priorities. The ability to adapt solutions to meet complex regulatory requirements and industry standards has also become increasingly important for Genpact’s success.
Quarter in Review: Financial and Operational Performance
The company delivered a quarter that exceeded both internal and analyst expectations. GAAP revenue reached $1.25 billion, marking a 6.6% increase over the prior year period, and This was $23.55 million above analyst consensus. Adjusted diluted EPS was $0.88, an increase of 11.4% from the prior year (adjusted, non-GAAP) and $0.03 ahead of projections (non-GAAP). GAAP net income also rose, with margins showing modest improvement.
Technology-driven offerings were at the forefront of Genpact’s growth. Data-Tech-AI services—a segment including solutions built around artificial intelligence, advanced analytics, and cloud-based platforms—generated $599 million in Q2 2025. This represented a 9.7% year-over-year increase and accounted for nearly half of Genpact’s total revenue. Advanced Technology Solutions, which focus on developing and implementing emerging digital technologies for clients, posted the fastest growth of any product line, rising 17.3% year over year (adjusted). This momentum highlights the company’s successful pivot toward higher-value, technology-intensive services.
Digital Operations, which covers a broad range of process management and automation services, delivered growth but at a slower pace, up 4.0% year over year. This segment continued to face timing delays for large customer deals, particularly in sectors sensitive to global trade disruptions. Management confirmed that no significant contracts were lost, but extended negotiation cycles and decision-making delays continued to affect near-term segment results. The shift in the business mix has increased the share of technology-driven revenue, aligning with broader company strategy.
Despite strong revenue and earnings trends, cash generated from operations declined compared to the prior year, dropping to $177 million from $209 million. On the capital-return front, Genpact continued to buy back shares, repurchasing approximately 700,000 shares for about $30 million.
Outlook and Guidance
Looking ahead, management raised its full-year FY2025 guidance for both revenue and adjusted (non-GAAP) earnings per share. The company now expects total GAAP revenue between $4.96 billion and $5.05 billion for FY2025, with growth targeted at 4.0–6.0%. Adjusted diluted EPS (non-GAAP) is forecast to range from $3.51 to $3.58 for FY2025, up from prior guidance of $3.41–$3.52. This midpoint increase is driven by anticipated strength in Data-Tech-AI and Advanced Technology Solutions. For Q3 2025, GAAP net revenues are expected to be in the range of $1.26 billion, and adjusted diluted EPS (non-GAAP) is guided at $0.89–$0.90.
Management emphasized ongoing momentum in high-growth areas but remained cautious about potential headwinds. Delays in large deal signings within Digital Operations and lingering uncertainties in supply-chain-heavy verticals remain key watch points. Investors are advised to monitor trends in discretionary technology spending and operating cash flow, alongside conversion of the growing pipeline in technology-enabled segments. Genpact’s increased guidance reflects both progress in its strategic transformation and prudence given market dynamics.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
