GENPACT LTD (NYSE:G) reported its fourth quarter and full-year 2025 financial results, delivering a performance that was mixed relative to Wall Street expectations. The company’s core earnings per share surpassed estimates, but a slight revenue miss and cautious near-term guidance appear to be shaping the market's initial reaction.
Quarterly Results vs. Estimates
The business transformation services provider posted solid growth for the quarter ended December 31, 2025, though it did not fully meet analyst projections on the top line.
- Revenue: Reported Q4 revenue was $1.32 billion, representing a 5.6% year-over-year increase. This figure came in approximately 1.1% below the analyst consensus estimate of $1.33 billion.
- Earnings Per Share (Non-GAAP): The company reported adjusted EPS of $0.97, which exceeded the consensus estimate of $0.953 by 1.8%.
Market Reaction and Forward Guidance
The market's response in after-hours trading was positive, with shares rising over 2%. This upward move suggests investors may be focusing on the earnings beat and the company's robust full-year performance. However, the company's outlook for the upcoming quarter introduces a note of caution.
Genpact provided revenue guidance for the first quarter of 2026 of approximately $1.29 billion. This forecast falls about 2.3% below the current analyst consensus estimate of $1.32 billion for Q1 2026. The softer-than-expected guidance likely tempers some of the optimism from the earnings beat and may explain why the stock's gains were not more pronounced.
Full-Year 2025 Highlights
Beyond the quarterly numbers, the press release underscored a year of steady growth and strategic execution for Genpact. Key full-year 2025 achievements include:
- Overall Growth: Net revenues reached $5.08 billion, up 6.6% (6.4% on a constant currency basis).
- Segment Strength: The company's Advanced Technology Solutions segment was a standout performer, with net revenues surging 17.0% to $1.20 billion. This highlights the successful pivot toward higher-value, technology-driven services.
- Profitability: Full-year adjusted diluted EPS grew 11.3% to $3.65, outpacing revenue growth and indicating improved operational efficiency.
- Shareholder Returns: Demonstrating confidence in its financial stability, the company announced a 10% increase in its planned quarterly dividend.
Analyst Estimates for the Year Ahead
Looking forward, analysts have already modeled expectations for fiscal year 2026. The current consensus estimates project:
- Full-Year 2026 Revenue: $5.53 billion
- Full-Year 2026 EPS: $4.03
These figures imply a growth trajectory that investors will watch closely as the year unfolds, especially in light of the company's conservative Q1 guidance.
Conclusion
Genpact's fourth-quarter earnings report paints a picture of a company delivering solid profitability and strong growth in its advanced technology offerings. The EPS beat and robust full-year results are clear positives. However, the slight revenue miss for Q4 and, more notably, the below-consensus guidance for the current quarter provide a balanced perspective. The initial positive market reaction indicates that investors are weighing the earnings strength and long-term strategic progress against the near-term headwinds suggested by the outlook.
For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data on Chartmill.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
