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Date
Thursday, May 7, 2026 at 5 p.m. ET
Call participants
- Chief Executive Officer — Balkrishan Kalra
- Chief Financial Officer — Michael Weiner
- Head of Investor Relations — Kyle Bergstrom
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Takeaways
- Total Revenue -- $1.296 billion, up 6.7% year over year, driven by significant demand in both Advanced Technology Solutions and core services.
- Advanced Technology Solutions Revenue -- $345 million, representing 24% year over year growth and now accounts for 27% of total revenue.
- Agentic Solutions Bookings -- Nearly doubled total contract value in the quarter versus the entire year of 2025, with more than 50% of cumulative awarded contract value from new clients.
- Core Business Services Revenue -- $951 million, up 1.4% year over year, reflecting sustained demand and growth in essential operational services.
- Non-FTE Revenue -- 48% of total revenue, illustrating a strategic shift toward fixed-fee consumption and outcome-based commercial models.
- Segment Growth Rates -- High-Tech and Manufacturing up 8%, Consumer and Healthcare up 6.1%, Financial Services up 5.4% year over year.
- Partner-Related Revenue -- Grew 35% year over year, now close to 13% of total revenue, including a new strategic alliance with Google for CFO-focused AI solutions.
- Gross Margin -- Expanded by approximately 110 basis points to 36.4% compared to the prior year, marking twelve consecutive quarters of margin expansion.
- SG&A Expense -- 20.9% of revenue, aligned with disciplined investment in growth initiatives.
- Adjusted Operating Income -- $224 million with a 17.3% margin, supporting self-funded growth investments.
- Net Income and EPS -- Net income of $148 million; diluted EPS at $0.86; adjusted diluted EPS up 16.7% year over year at $0.98.
- Operational Cash Flow -- Utilized $24 million in operating cash, consistent with normal first quarter seasonal trends.
- Shareholder Returns -- Returned $102 million in Q1 via $70 million in share repurchases and $32 million in dividends.
- Backlog and Pipeline -- At record levels, with six large deals signed (each $50 million+), indicating continued multi-year growth visibility.
- Full-Year 2026 Revenue Outlook -- At least 7% annual growth expected, with Advanced Technology Solutions projected to grow at least 20%.
- Margin Guidance -- Management expects full-year gross margin to rise by 50 basis points to 36.5% and adjusted operating income margin to increase 25 basis points to 17.7%.
- Q2 2026 Guidance -- Projected total revenue of $1.324 billion to $1.336 billion (midpoint 6% growth), Advanced Technology Solutions growth of at least 20%, gross margin of 36.4%, adjusted operating income margin at 17.4%, and adjusted diluted EPS between $0.96 and $0.97.
- Revenue Decoupling from Headcount -- Management reported early signs of productivity leverage, with revenue growth outpacing headcount due to broader adoption of agentic and AI-led solutions.
Summary
Genpact Limited (G +1.83%) reported transformative progress in reshaping its business model through a surge in agentic and AI-driven offerings, underpinned by strategic partnerships and structural shifts away from traditional FTE-based models. Client demand is broad-based and accelerating, particularly for recurring, high-value technology solutions that leverage Genpact Limited’s proprietary process intelligence. Record backlog, strong deal inflows, and annuitized contract trends indicate expanding growth visibility and a richer margin profile within the company’s evolving portfolio.
- Kalra stated, "we nearly doubled the total contract value of our agentic solutions from all of 2025," highlighting strong market receptivity and competitive differentiation.
- Pipeline for Advanced Technology Solutions increased by more than 30% over the past 90 days, as disclosed by management.
- Management emphasized that Advanced Technology Solutions deliver more than two times the revenue per headcount, and two times the revenue growth of the total company, with 70% amortized revenue and 70% from non-FTE commercial models, projecting further operational leverage and margin expansion beyond current levels.
- The strategic alliance with Google enables delivery of agentic and AI-led solutions for the office of the CFO, expanding both customer reach and solution depth.
- Non-FTE commercial models are increasingly used for new agentic contracts, indicating an accelerating migration to outcome-based revenue streams.
- Management described client data complexity and rapid technology advancements as key drivers for embedded, long-term engagement opportunities.
- Existing and new global clients, including recent partnerships in Europe and Australia, are increasing their adoption of Genpact Limited’s advanced offerings and expanding contract scopes.
- Strong pricing discipline and accretive net revenue retention were specifically cited as sustaining growth and profitability trajectories.
Industry glossary
- Agentic Operations: A delivery model whereby autonomous AI-driven agents execute business processes, while human experts validate, supervise, and enhance these agents within a responsible governance framework.
- Advanced Technology Solutions (ATS): Genpact Limited’s segment including agentic, data and AI offerings, digital technologies, and advisory services that deliver above-average revenue growth versus legacy services.
- Non-FTE Commercial Model: A contract framework where fees are based on outcomes, consumption, or solution value rather than the number of employees (Full-Time Equivalents) deployed.
- 2x 2x, 70/70: Management’s metric indicating ATS delivers over two times the revenue per headcount and growth rate versus the total company, with 70% of the segment's revenue coming from amortized and non-FTE-based contracts.
Full Conference Call Transcript
Balkrishan will start with an overview of our results, and then Michael will discuss our financial performance in greater detail before we take your questions. Please note that during this call, we will make forward-looking statements including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions, and expectations as of today, which may change over time. Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors in our 10-Ks and 10-Q filings with the SEC. During this call, we will discuss certain non-GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release.
These non-GAAP measures are not intended to be a substitute for our GAAP results. More details on constant currency growth rates can also be found in the earnings press release and fact sheet posted to our Investor Relations website. And finally, this call in its entirety is being webcast from our website, and an audio replay and transcript will be available on our website in a few hours. With that, I would like to turn it over to Balkrishan. Thank you.
Balkrishan Kalra: Hello, everyone, and thank you for joining us today. Q1 was a record start to the fiscal year. I want to be unequivocal. I believe we are in the early innings of something that will fundamentally reshape this company's trajectory. It is rare to see the convergence of a structural shift in the market, a differentiated capability set, and the right strategic positioning all happening at the same time. When they do, and when a company has the discipline and courage to act on it, the resulting advantage compounds in ways that are difficult to replicate. That convergence is what we are experiencing right now.
Not at the moment, but as a sustained momentum we see reinforced in our pipeline, our client conversations, and our early results. A new Genpact Limited is taking shape. Our Q1 results demonstrate we are on a clear path as a leader in agentic and advanced technology solutions. Disciplined execution with healthy and increasing demand drove total revenue growth of 6.7% year-over-year to 1.296 billion dollars. Advanced Technology Solutions revenue growth accelerated to 24% year-over-year as we continue to rapidly deliver compelling innovation across our client base. Gross margin expanded for the twelfth quarter in a row, up more than 100 basis points year-over-year, further enabling significant investments for long-term growth.
And adjusted diluted EPS again grew faster than revenue, up 16.7% year-over-year. Our intentional focus and prioritization on driving high-quality, sustainable growth is showing up both in our top- and bottom-line results, and in future indicators of growth across bookings, pipeline, and inflows. Clients, including some of the world's largest corporations, are choosing Genpact Limited as a long-term strategic partner to reshape and run their mission-critical operations. We signed six large deals in the quarter, and we have a healthy pipeline of other large transformational deals, setting us up for continued strength through the year. We are contractually changing the game.
We are capturing more multi-year opportunities with annual recurring revenue streams, creating a robust durable base we can continue to build on. We are seeing strong early signs of scale, with headcount growth decoupling from revenue as we deeply leverage agentic and AI to make our delivery more productive. Momentum in advanced technology is rapidly building. Over the last 90 days, our pipeline has grown more than 30% as demand for our agentic solutions and data and AI expertise continues to meaningfully increase. Advanced Technology Solutions is becoming an increasing proportion of our bookings, adding to our record backlog, and it is contributing more to total revenue.
As I said, it grew 24% year-over-year and now accounts for 27% of total revenue. These solutions continue to create more value for our clients and generate high-value revenue for Genpact Limited. At Investor Day last June, we framed it as 2x, 70/70. What this means is Advanced Technology Solutions deliver more than two times the revenue per headcount, and two times the revenue growth of the total company, with 70% amortized revenue and 70% from non-FTE commercial models. All of these metrics are tracking ahead of what we reported last year, further underscoring the high-quality and sticky nature of this business. What I continue to be most proud of is our exceptional momentum with agentic.
These are not one-off projects. We are building a meaningful long-term, utilized business with our own IP that is deeply integrated into our client operations. Our agentic solutions growth is accelerating. This quarter alone, we nearly doubled the total contract value of our agentic solutions from all of 2025. We are fundamentally and rapidly transforming how businesses operate, and long-term demand for our agentic solutions is gaining significant traction. More and more, new clients are choosing Genpact Limited for our differentiated domain-driven offerings, bringing us into their operations because of the expertise and outcomes we uniquely provide.
Existing clients, having known us for running mission-critical operations, are experiencing a surge of innovation from us, and they are actively integrating our agentic offerings, expanding scope, volume, or both, as they move confidently towards outcome-driven, non-FTE-led operations. This momentum is quickly building a meaningful recurring annual revenue base for Genpact Limited, with expanding margins that continue to improve as the business scales. With accounts payable, record-to-report, source-to-pay, insurance, and our robust future roadmap, we are quickly becoming the agentic transformation partner of choice to move clients from digital operations to agentic operations. We are moving clients to a collaborative model between agents and human experts.
Agents can now autonomously execute tasks and reimagine processes, while our last-mile experts validate exceptions, train and advance models, and reinforce learnings, all within the guardrails of our responsible AI framework. We call this agentic operations. Over the past couple of years, the significant investments we have made to expand our advanced technology capabilities have effectively created a flywheel that builds to agentic operations and scalable autonomy. This incredible momentum would not have been possible without decades of experience running our clients' mission-critical operations. Core business services is a key element of our growth model.
For our clients, our process intelligence and our ability to codify it continues to be the differentiating factor that brings their artificial intelligence to life, allowing them to achieve real scale across their global organization. Core business services revenue increased 1.4% in Q1, as we intentionally disrupt to create exponential value for our clients. Demand is healthy and growing. Our bookings and pipeline continue to demonstrate that our deep domain and industry experience is amplifying our broader portfolio. We are taking our extensive roadmap to our clients and seeing them rapidly rotate and also shape our future agentic solutions.
This is allowing us to make deliberate decisions to double down on scaling our agentic and AI-led offerings, prioritizing higher-quality, long-term growth that continues to build over time for Genpact Limited. Clients across the globe are now choosing Genpact Limited for more than just our operational expertise. They are choosing us for our technology and our ability to codify and scale process context. While our U.S. client traction continues to be strong, let me share two global examples, and both are new. First, from Europe: This quarter, we entered a new strategic partnership with a global leader in insurance and financial services to support their transformation into global verticals.
We will be running and optimizing their mission-critical operations while building functions of the future, entrusted to address the needs of all stakeholders, including their customers, employees, and shareholders. We are partnering to reimagine how their key functions operate and scale at an enterprise level, embedding agentic and AI-driven capabilities at the very core of our global enterprise transformation. We are integrating Genpact Limited's agentic finance IP solutions like accounts payable and record-to-report, as well as other AI-led offerings. The result is a fundamental shift for these functions to become predictive business partners while reducing transaction costs and improving compliance.
The combination of understanding the business context at the last mile, bringing the latest agentic innovations, and strong cultural and people alignment with outcome orientation creates an incredibly strong foundation for the strategic partnership. The next example comes from one of our new NextGen clients, which represents the next generation of market disruptors. Bendigo Bank, one of Australia's leading banks, is transforming its operating model to create a leaner, more resilient operating backbone, allowing investments to be redirected into customer experience, data, and product innovation. Bendigo Bank entered into a strategic multiyear partnership with Genpact Limited to drive greater productivity with stronger risk and control outcomes across core operations.
Bendigo Bank selected Genpact Limited given our ability to combine deep Australian banking operation expertise, proven innovation as demonstrated through real AI and agentic case studies, and a risk-balanced mindset critical in regulated environments. Both of these examples underscore our unique positioning and a clear flywheel effect: decades of experience translating into codified domain knowledge, combined with expanding advanced technology capabilities and agentic operations—and all of these are compounding. What we also hear from clients is that their data infrastructure, systems, and processes are complex. They need help navigating rapid technology changes, and they need partners who can connect across the broader ecosystem.
We continue to deepen and expand our partner relationships with differentiated offerings leveraging our clear domain expertise and connecting the dots for clients. In Q1, our partner-related revenues grew 35% year-over-year, now accounting for nearly 13% of total revenue. We continue to make meaningful progress against our partner strategy, and this week marks a significant milestone. We just announced a strategic alliance with Google to create agentic and AI-led solutions for the office of the CFO. This is not just a partnership announcement. It is a deepening of our relationship that is already delivering real results for clients.
Just two weeks ago at Google Next, Google spotlighted Genpact Limited's finance solutions, showcasing how we are enabling finance users to gain actionable insights from revenue and P&L data through natural language conversations in Gemini Enterprise. The thesis is simple. Genpact Limited's context-rich process intelligence, combined with Google Cloud's AI infrastructure, allows us to drive agentic transformation across the office of the CFO. Let me bring that to life with a client example. Cardinal Health manufactures and distributes medical and health care products, operating in 30 countries and serving 90% of U.S. hospitals. We have a long-standing relationship with Cardinal Health, working on transformation across both finance and supply chain.
The company wanted to streamline manual processes further to drive meaningful quality, cost, and productivity gains using AI. We collaborated with Google Cloud to launch an AI-led innovation leveraging deep process intelligence to pinpoint the right starting point. The results, for example from credit memo processing, are clear. Our agentic solutions are driving a meaningful increase in touchless processing, faster cycle times, and a significant improvement in cash flows. This is the kind of transformational change Genpact Limited is enabling as we scale with partners across enterprise operations. I opened today by describing something rare, a moment when a structural shift in the market, a clear opportunity, and a company's unique positioning all converge at the same time.
Quarter one makes the case that 2026 is proving to be that moment, and Genpact Limited is not just watching it unfold. We are shaping it. Our strategy is clear. Our momentum is measurable. And increasingly, the market is seeing a different Genpact Limited. For decades, we have been trusted for deep process intelligence and running mission-critical operations at scale. That foundation has only strengthened. What has changed is what clients are now asking us to do with that foundation. Today, they come to us to bring together processes, technology, data, and organizations to deliver outcomes that simply were not possible before.
Because of that, we are winning new kinds of work, engaging in new kinds of conversations, and expanding the addressable market in front of us. Agentic operations is at the center of this. We are building, orchestrating, and responsibly governing agentic systems across the most essential parts of our clients' businesses. We are combining AI with decades of domain expertise in a way that is incredibly difficult to replicate. This is not just a concept for us. It is live, it is scaling, and it is showing up in our results. You can see the effect on the quality of the business. The shape of our business is changing in ways that matter.
We are building revenues that are high-quality, more durable, and harder to displace. The margin profile is structurally richer. We are leaning in hard behind our most strategic priorities, and that is opening up a daylight between Genpact Limited and the market around us. This quarter is not an aspiration. It is a proof point. A new Genpact Limited is here, and we are just getting started. With that, let me turn the call over to Michael.
Michael Weiner: Good afternoon, everyone, and thank you for joining us today. We delivered another strong quarter, highlighting the tremendous momentum we have seen as we set a new standard for agentic transformation. Total revenue grew 6.7% year-over-year to 1.296 billion dollars with accelerating growth in Advanced Technology Solutions. Advanced Technology Solutions, which includes data and AI, digital technologies, advisory, and agentic, grew 24% year-over-year, reaching 345 million dollars, with significant strength in data and AI and agentic. Demand for our Advanced Technology Solutions is growing rapidly, and our strategic investments are paying off. Our advanced tech capabilities continue to grow with clear innovation across agentic and AI-led offerings.
We are expanding our total addressable market, delivering more value to clients across end-to-end workflows, and driving high-value revenue for Genpact Limited. As Balkrishan mentioned, we continue to make tremendous progress building a sticky, high-quality business. For Advanced Technology Solutions, 2x, 70/70 is just getting better. In agentic operations, we are quickly becoming the partner of choice to move clients from traditional digital operations to agentic. This quarter alone, we nearly doubled the total contract value of our agentic solutions relative to 2025, with more than 50% of our cumulative awarded contract value coming from new clients. This is a clear indication of our increasing TAM and expanding wallet share.
For existing accounts that are rotating from traditional to agentic delivery, net revenue growth and gross margin expansion are both notably above what we reported at our Investor Day in June. This momentum in agentic across both new and existing clients is building a stronger annual recurring revenue base for Genpact Limited with higher gross margins that continue to improve with scale. Core business services, which includes digital operations, decision support services, and technology services, grew 1.4% to 951 million dollars in the first quarter, reflecting continued client trust and ongoing demand for our deep domain and industry experience, as well as deliberate focus on driving high-quality long-term growth for Genpact Limited.
Sales execution and demand remain strong across Advanced Technology Solutions and core business services as we continue to make progress with both new and existing clients. Net revenue retention remains accretive, and we feel good about our pricing as we continue to deliver meaningful ROI to our clients through their transformational journeys. Our large-deal momentum also continues. We signed six large deals in Q1, and we have a strong pipeline of additional large deals, which combined with our record backlog, puts us in a very strong position for the remainder of the year. As a reminder, large deals are 50 million dollars or greater in total contract value.
Non-FTE revenue represented 48% of total revenue in Q1, reflecting a strategic shift to fixed-fee consumption and outcome-based models. With the tremendous momentum we are seeing in agentic, we are building a meaningful recurring annual revenue base decoupled from FTEs. We are effectively shifting away from productivity-dependent commercial models of the past. At a segment level, High-Tech and Manufacturing grew 8%, followed by Consumer and Healthcare growth of 6.1%, and Financial Services growth of 5.4%. Turning to profitability, gross margin expanded once again, up approximately 110 basis points to 36.4%, strengthening our ability to invest for long-term growth.
Our consistent track record of margin expansion reflects our disciplined approach to operations and pricing, as well as an increasing contribution from high-value Advanced Technology Solutions revenue. Importantly, we are also seeing strong early signs of revenue growth decoupling from headcount as we embed AI and agentic solutions in our own operations and delivery. Moving on to the rest of the P&L, SG&A expense as a percentage of revenue was 20.9%. Adjusted operating income was 224 million dollars with adjusted operating income margin of 17.3%, as we continue to self-fund our strategic investments. Our effective tax rate in the first quarter was 23.7%. Net income for the first quarter was 148 million dollars and diluted EPS was 0.86 dollars.
Adjusted diluted EPS increased 16.7% to 0.98 dollars, growing significantly faster than revenue yet another quarter. Turning to cash, we utilized 24 million dollars of cash in operations, which is in line with typical first quarter trends, and ended with 578 million dollars in cash and cash equivalents, up 16 million dollars from a year ago. We also returned 102 million dollars to shareholders in Q1 through 70 million dollars in share repurchases and 32 million dollars in dividends. Turning to our outlook, our backlog, pipeline, and inflows are at record levels with exceptional strength in agentic and Advanced Technology Solutions, putting us in a strong position for the remainder of the year.
As a result, we continue to expect to deliver at least 7% growth for 2026 on an as-reported basis. Given the accelerating momentum in agentic, our strengthening partnerships, and healthy demand we are seeing for data and AI, we now expect Advanced Technology Solutions to grow at least 20%. In core business services, we expect growth to continue, even as we help clients accelerate their AI-led transformation through agentic operations and increase our focus on driving sustainable growth through advanced technology innovations. On margins, we continue to expect full-year gross margin to expand by 50 basis points to 36.5%, with adjusted operating income margin expected to increase 25 basis points to 17.7%.
This reflects our continued commitment to self-fund investments for growth. We expect adjusted diluted EPS to grow over 10%, again faster than revenue. Turning to the second quarter, on an as-reported basis, we expect to deliver total revenue between 1.324 billion and 1.336 billion dollars, or 6% growth at the midpoint. We expect Advanced Technology Solutions to grow at least 20% year-over-year, and we expect continued growth in core business services. We expect gross margin to expand to 36.4% and adjusted operating income margin to increase to 17.4%. Finally, we expect adjusted diluted EPS of 0.96 to 0.97 dollars for the second quarter. In closing, as Balkrishan made clear, the shape of our business is changing.
We are reshaping how businesses operate, building on the strength of our deep domain and industry experience with significant investments in Advanced Technology Solutions. We are differentiating our position in the market, expanding our TAM, accelerating high-quality revenue growth, and consistently expanding margins, all of which allow us to continue to deliver double-digit growth in adjusted diluted EPS and long-term value for clients and Genpact Limited alike. With that said, let me turn the call back over to Kyle.
Kyle Bergstrom: Great. Thank you, Michael. Operator, we are ready to go ahead and take questions.
Operator: Thank you so much. Ladies and gentlemen, to ask a question, simply press 11 on your telephone and wait for your name to be announced. To remove yourself, press 11 again. One moment for our first question. Our first question comes from the line of Bryan C. Bergin with TD Cowen. Please proceed.
Bryan C. Bergin: Hi, all. Good afternoon. Thank you. So my first question, really at a high level, is a status update on client decision-making and spending trends from a macro standpoint, given it certainly picked up in April and May. Pipeline and large deals, sales activities seem pretty solid, but just wanted to test any areas by impact, vertical, or geography. I will ask my second question upfront here. Just as it relates to CBS-to-ATS migration, can you dig in a little bit more on the level of change between the segments as you modernize your delivery and recategorize?
Balkrishan Kalra: Thanks, Bryan. I will take it. Overall, demand environment across the board—be it cohorts of Advanced Technology Solutions or core services, or new clients and existing clients, or previous segments that we have, or geos—continues to be very strong. Our pipeline and inflows continue to be at record levels, so really pleased with that. On your second question, I think our flywheel effect has begun to show results. The flywheel effect actually starts from core business services where demand continues to be strong.
Our context-rich process intelligence that we have harnessed for decades is the core which, in combination with modern data, reimagined workflows, cleaner architectures, and how we are bringing all of this together to deliver superior outcomes for our clients, is beginning to show results, and it is showing in a disproportionate way in Advanced Technology Solutions. We are getting engaged in newer kinds of conversations and focused not just on meeting clients where they are, but also getting them where they want to be at a much faster pace. Really pleased with where we are and how we are shaping the new Genpact Limited.
Bryan C. Bergin: Alright. Thank you.
Operator: Thank you. One moment for our next question, please. Our next question comes from Sean Michael Kennedy with Mizuho. Please proceed.
Sean Michael Kennedy: Hi, everyone. Thanks for taking my question. Congrats on the ATS acceleration—really impressive. I was wondering about the visibility in that business and how dependent ATS is on partner-related revenue growth, and the runway you see there, being 13% of revenue at the moment. Thank you.
Balkrishan Kalra: Thanks, Sean. I will make three points. First, as I mentioned, 2x, 70/70— a high proportion of all of Advanced Technology Solutions is amortized, so we have pretty strong visibility into it. Second, I would not say it is only partner solutions. Yes, partner solutions are taking shape, but what is gaining more and more traction is agentic as well as data and AI. We leverage partner solutions as I enumerated in my prepared remarks as well. We feel really good about Advanced Technology Solutions visibility as well as core business.
Michael Weiner: The only thing I would add is, particularly of note, the 70% of that business being annuitized gives us very good ability to predict the business. It is also supported by a really strong pipeline and inflows that are growing. We feel great about it.
Sean Michael Kennedy: Great. Thank you. Appreciate all the color. Good luck for the rest of the year.
Balkrishan Kalra: Thank you.
Operator: Thank you. Our next question comes from Surinder Singh Thind with Jefferies. Please proceed.
Surinder Singh Thind: Thanks. On Advanced Technology Solutions and the 2x revenue per headcount, is that what you are initially seeing at this point, and how should we expect that to evolve over the coming years? I am trying to understand when a client shifts from core operations to more agentic operations, what percentage of those revenues is more IT-based, and then how do we think about the human component there and the ongoing maintenance and recalibration that is often required?
Balkrishan Kalra: There are many questions in that, Surinder, so let me take them. First, at a business level, we are seeing early signs of decoupling and creating more leverage where revenue will grow faster than headcount, and it has begun to show results. I will still say we are in the early stages of that. Second, to your specific question: for agentic, those revenues have no bearing on headcount. It is all IP-based revenues, amortized with minimum volume commitments, and it is recurring. So it has zero bearing on headcount. Obviously, there are people deployed, but as we drive more efficiency, the revenue per headcount will only increase.
Last point on overall Advanced Technology Solutions: it is greater than 2x, and we expect it to continue to grow better than 2x—better numbers, better numerics.
Surinder Singh Thind: That is helpful. And then on the earlier commentary on demand, it seems like relative to 60 or 90 days ago, nothing has really changed. Is that the messaging here? Because peers and the industry are seeing a bit more weakness and delays in client decisioning. Are you seeing a different picture because of the nature of your work?
Balkrishan Kalra: We hear some of that commentary too, but in our pipeline and inflows, we believe we have begun to demonstrate that we are separating from the pack. We see record levels of pipeline across cohorts, as I mentioned earlier, and more of that flywheel effect taking shape because of our context-rich process intelligence. We have been working on it for decades, and the time has possibly come to show what it means as we supplement it with technology investments and ramps in our strategic areas, demonstrating meaningful results to the world's largest companies as these agents go live in their environments.
Operator: Thank you. As a reminder, if you do have a question, simply press 11 to get in the queue. Our next question is from Puneet Jain with JPMorgan. Please proceed.
Puneet Jain: Hi, thanks for taking my question. Balkrishan, I was wondering if you can talk about the specific drivers for such strong traction in agentic services you are seeing this quarter. Was it related to evolution in AI models, especially cloud and open-topic, which could be driving clients to embrace some of these models, or is it that with new budgets clients have new urgency to push ahead?
Balkrishan Kalra: As we mentioned in our prepared remarks, we nearly doubled the agentic bookings, and all of these are in annualized recurring revenues, relative to what we did in all of 2025. I would not attribute it only to improved models—though those help, and we use them. Fundamentally, what has begun to show in both our existing and new clients is the structural advantage driven by context-rich process intelligence. I have always said there is no artificial intelligence without process intelligence, and it is beginning to show in our results. Technology is becoming more ubiquitous and available. Process is more intense, and that is where we live. That is the intersection of AI.
That is where we see the outcomes, and we are delivering superior outcomes. That structural advantage has begun to show—early days.
Puneet Jain: Got it. And if you can also talk about the operational structure of these agentic deals. Do you purchase tokens, decide which models are relevant for clients, and manage change management and governance constraints that have kept adoption low in the past?
Balkrishan Kalra: There are a couple of parts to your question. We live in these client environments. We understand their data, friction points, process flows, how upstream and downstream processes work, and how change dynamics have to work. Therefore, we handhold our clients holistically to drive and embed into the agentic system, and not just hand over software and move on. On models, there is a structured process for what to use and when. We do not need to expose clients to tokens or low-level details. Clients care about outcomes. We structure the commercial model as annualized recurring revenues with minimum volume commitments.
Operator: Thank you so much. As I see no further questions in the queue, I will conclude the Q&A session and pass it back to management for closing comments.
Balkrishan Kalra: Thank you, Carmen. I want to extend my sincere gratitude to all of our employees around the globe whose dedication and innovation make everything we are building possible, and to our esteemed clients for continuing to choose Genpact Limited as their partner for agentic-led transformation, and to our shareholders for their ongoing support. You are seeing a new Genpact Limited, and we look forward to showing you even more. Thank you.
Operator: This concludes our conference. Thank you for participating, and you may now disconnect.
