Genpact’s Advanced Technology Solutions Growth of 30.3% Prompts Higher 2026 Margin and EPS Outlook
Key Facts
Genpact reported on November 5, 2026, results for the third quarter ended September 30, with Advanced Technology Solutions revenue growth of 30.3% year over year. Revenue in the segment was $405 million, equivalent to 29% of total net revenue. The company raised its 2026 outlook for gross margin and adjusted diluted EPS. The interim chief executive said the third quarter provided "another clear proof point that our shift to agentic operations is on the right track." The announcement comes as the company targets annual growth of at least 25% in Advanced Technology Solutions revenue.
Genpact’s net revenue in the quarter was $1.385 billion, up 7.3% from the same period a year earlier, or 7.5% on a constant-currency basis. Performance differed markedly between the two segments: Advanced Technology Solutions generated $405 million, while core services revenue was $980 million. Core services accounted for 71% of total revenue but remained flat year over year. By contrast, Advanced Technology Solutions’ share rose to 29% of the total as the segment grew 30.3% annually. The figures reflect the advanced segment’s expanding weight in the company’s business mix during the quarter.
Gross profit rose to $527 million, up 12.1% year over year, and gross margin was 38.0%. Net income reached $152 million, an increase of 4.0% from the year-earlier quarter, with a net margin of 10.9%. Adjusted diluted EPS was $1.07, up 10.3% year over year. Reported diluted EPS was $0.89, an increase of 7.2%. The figures showed growth in revenue and earnings, with the rates of increase varying across gross profit, net income and the two EPS measures.
Genpact raised its 2026 gross margin outlook to about 36.9%, nearly 90 basis points above the prior year’s level. Its outlook after second-quarter results had pointed to a margin of about 36.5%, an annual increase of about 50 basis points. The company also raised its forecast for adjusted diluted EPS growth to at least 13%, from a previous forecast of at least 12%. For net revenue, it expects growth of at least 7% on a reported basis, or 6.8% on a constant-currency basis. The company also targets growth of at least 25% in Advanced Technology Solutions revenue for the year.
The company generated $93 million in cash from operations during the third quarter. During the same period, it repurchased about 870 thousand common shares for about $31 million, at an average price of $35.49 per share. It also returned about $31 million to shareholders in dividends. Since the start of the year, it has returned about $246 million to shareholders through repurchases and dividends. The stock closed at $40.78 on November 4, 2026, the latest price included in EL7 data for this story.
The company describes constant-currency revenue growth and adjusted EPS as non-GAAP measures and says they should be read alongside reported results. In its statement, it said these measures are not based on a comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, measures calculated under generally accepted accounting principles. Management was scheduled to hold a conference call to discuss performance on November 5, 2026, at 5:00 p.m. Eastern time. The company said a recording and transcript of the call would be published afterward. The company’s announced annual revenue, margin and EPS outlooks remain its key performance indicators to watch for the rest of 2026.