IBEX Raises 2027 Revenue Forecast to $735 Million After 15.9% Quarterly Growth
Key Facts
IBEX raised its fiscal 2027 revenue forecast to a range of $720 million to $735 million, from $700 million to $715 million, after reporting revenue of $175.2 million in the fiscal first quarter ended September 30, 2026. The company said in its announcement that the new range represents annual growth of 12% to 14%, compared with its previous forecast of 9% to 11% growth. The revision puts the expected revenue ceiling $20 million above the previous ceiling, following a 15.9% increase in quarterly revenue from $151.2 million in the year-earlier period. IBEX attributed the higher guidance to a combination of growth across multiple sectors, an expanding customer base and growth in AI agent solutions. The update follows a strong start to the fiscal year, while the company did not specify how much AI agent deals would contribute to its annual revenue forecast.
The revision also covered operating earnings; the company raised its forecast for adjusted EBITDA to $96 million–$99 million, compared with a previous range of $90 million to $94 million. That implies expected growth of 17% to 20% in fiscal 2027, versus 9% to 14% under the previous guidance. The outlook increase followed first-quarter net income growth to $14.8 million from $12 million in the year-earlier quarter. The company attributed the improvement in net income to growth in higher-margin international regions, AI agent business and digital acquisition, as well as lower general and administrative expenses as a share of revenue. Diluted earnings per share also rose to $0.99 from $0.82, while adjusted earnings per share increased to $1.10 from $0.90 in the year-earlier period.
Revenue growth extended across all four sectors reported by the company, led by HealthTech, which rose 39.9% in the fiscal first quarter of fiscal 2027. Revenue from travel, transportation and logistics grew 16.4%, while technology revenue rose 9.8% and retail and e-commerce revenue increased 8.7%. The figures support the company’s characterization of growth as spanning multiple sectors rather than being tied to a single driver. IBEX ended fiscal 2026 with revenue of $644.1 million, up 15.4% from $558.3 million in the previous fiscal year. Its initial 2027 guidance, announced in September, set revenue at $700 million to $715 million before the company raised it with its first-quarter results.
IBEX said it secured four new AI agent deal wins after the quarter ended, alongside its partnership with Sierra, and that it has a strong pipeline of opportunities. The company won four new customers during the first quarter, including two in financial technology, then announced four more AI agent wins after the period ended. The CEO says IBEX had implemented more than 10 successful AI agent deployments across five sectors through September 2026, while he said the strategic partnership with Sierra strengthened the company’s position in this market. The company said it had “four new AI agent wins since the end of the quarter.” These deals indicate commercial momentum after the quarter closed, but the announcement does not link them alone to the increase in annual guidance.
Cash flow from operating activities reached a first-quarter record of $16.3 million, compared with $15.7 million in the year-earlier quarter. Free cash flow was $9.2 million, versus $8 million in the comparable period. On spending, the company expects capital expenditures of about $30 million in fiscal 2027, at the high end of its previous range of $25 million to $30 million. IBEX attributed the higher spending outlook to its stronger growth expectations. Chief Financial Officer Taylor Greenwald said first-quarter momentum strengthened confidence in continued double-digit revenue growth and year-over-year margin improvement during fiscal 2027. The new guidance will be assessed against delivery within the revenue and adjusted earnings ranges, and whether AI agent deals convert into business during the fiscal year.