Exl Reports Record Revenue of $634 Million and Raises 2026 Outlook
Key Facts
Exl Service said on October 27 that revenue reached $634.0 million in the third quarter ended September 30, 2026, up 19.7% year over year. Adjusted diluted EPS rose to $0.62 from $0.48 in the same period a year earlier, a gain of 28.5%. Diluted EPS under generally accepted accounting principles was $0.45, compared with $0.36 a year earlier, up 25.3%. A market comparison cited by MarketBeat showed revenue above estimates, while the company’s reported figures in its earnings release remained unchanged. The figures put revenue growth and adjusted earnings at the center of the company’s results, while the higher annual outlook signals management’s improved assessment of its business trajectory for the rest of the year.
On a quarterly basis, revenue increased 6.6% from the second quarter of 2026, both as reported and on a constant-currency basis. Growth extended across the company’s four segments, with insurance revenue at $208.5 million. Healthcare and life sciences generated $160.4 million, while banking, capital markets and diversified industries revenue was $153.5 million. International growth markets recorded $111.6 million. The figures show how revenue was distributed across the company’s businesses as total sales rose from the year-earlier period.
The chief executive said each business segment grew organically by more than 15% during the quarter. He added that revenue from data and AI, which represents about two-thirds of the company’s business, increased 36% as reported and 31% organically. This distinguishes revenue growth after accounting for currency movements from organic growth, which excludes that effect, in line with the company’s wording. For the year-over-year comparison, revenue was $529.6 million in the third quarter of 2025, up 12.2% from $472.1 million in the third quarter of 2024. Adjusted EPS in that quarter rose to $0.48 from $0.44 a year earlier, a gain of 10.8%.
Adjusted operating margin did not keep pace with revenue growth, coming in at 19.3% in the third quarter of 2026. The margin was 19.4% in the year-earlier period and 19.7% in the second quarter of 2026. The comparison shows a slight year-over-year decline and a further decrease from the previous quarter despite sequential revenue growth. The results therefore combined higher sales and adjusted earnings with an operating margin below its level in both comparison periods. The company did not describe the change in its earnings release as evidence of improved operating efficiency.
The company’s activity during the quarter included completing its acquisition of I-Merit, which it said established a model training solutions practice. It also announced that it won 14 new clients in the third quarter of 2026. This came alongside the data and AI revenue growth cited by the chief executive and growth across all four segments, according to the company’s release. Exl reported annual revenue of $2.09 billion in 2025, up 13.6% from 2024. When it reported the prior year’s results, the company set its initial 2026 revenue outlook at $2.275 billion to $2.315 billion.
The company has now raised its 2026 revenue outlook to $2.430 billion to $2.440 billion, compared with its previous range of $2.390 billion to $2.415 billion. It also raised its adjusted diluted EPS outlook to $2.34–$2.36 from $2.25–$2.29 previously. The initial revenue outlook issued with the company’s 2025 results was below the range it later raised. Management said in its release: "We now expect total full-year 2026 revenue to be between $2.430 billion and $2.440 billion." The company is scheduled to hold a call to discuss the results on October 28, 2026, at 10:00 a.m. Eastern Time. The company’s stock closed at $41.77 on October 26, the latest closing price included in the market data available here.