| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 43 | 26.3x | 17.3x | Around median | |
Growth | 77 | 13.6% | 7.1% | Top tier | |
Quality | 81 | 18.7% | 4.5% | Top tier | |
Safety | 81 | 0.9x | 2.6x | Top tier | |
Capital Return | 46 | 0.00% | 0.06% | Around median | |
Momentum | 81 | -14.8% | -1.6% | Top tier | |
Sentiment | 43 | 7 | 3 | Around median |
The floor: what the company is worth if growth stopped today
59% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ExlService Holdings, Inc. provides digital operations, data management and analytics services, and artificial intelligence solutions to enterprises, with a clear focus on the insurance, healthcare and life sciences, banking, and international growth markets sectors. In Q2 fiscal year 2026, data- and artificial intelligence-based services and solutions accounted for 61% of revenue, while approximately one-third of revenue came from insurance, more than one-quarter from healthcare and life sciences, and slightly less than one-quarter from banking, capital markets, and diversified industries. The growth model relies on expanding existing relationships, winning new clients, and integrating artificial intelligence into processes such as claims, medical insurance, underwriting, and payment integrity.
Revenue in Q2 fiscal year 2026 reached approximately $594.8 million, up 15.6% year over year and 15.9% in constant currency, with sequential growth of 4.4% in constant currency. Adjusted earnings per share were $0.59, up 22.3% year over year, and the adjusted operating margin reached 19.7%, an increase of 10 basis points, despite selling, general, and administrative expenses rising by 170 basis points to 20.9% of revenue. For the first half of fiscal year 2026, the company recorded revenue of $1.17 billion, an adjusted operating margin of 20.1%, and adjusted earnings per share of $1.17.
Growth was broad-based in Q2 fiscal year 2026: insurance generated $197.8 million, growing 14.9%; healthcare and life sciences generated $158 million, growing 22%; banking, capital markets, and diversified industries generated $133.9 million, growing 10.7%; and international growth markets generated $105.1 million, growing 16.3% in constant currency. According to EDGAR data, trailing twelve-month revenue for fiscal year 2026 was approximately $2.2 billion, gross profit was $829.8 million, net income was $251.5 million, and earnings per share were approximately $1.60.
The average analyst price target is $44, within a narrow range of $43 to $45, with a consensus Buy rating; the average target is very close to the top of the 52-week range of $45.08, compared with a low of $24.85. This valuation is supported by Q2 fiscal year 2026 revenue growth of 15.6% and the increase in annual guidance, but the risks of a lower second-half margin, the integration of iMerit, and the growth slowdown implied by the guidance range remain counterweights to analysts' optimistic view.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The most prominent driver is the data and artificial intelligence business, which grew by 30% in Q2 fiscal year 2026 and now represents 61% of revenue. The growth rate of this business accelerated from 18% in Q3 fiscal year 2025 to 21% in Q4 fiscal year 2025 and then to 28% in Q1 fiscal year 2026. Growth sources include data management, artificial intelligence services and solutions, payment integrity, and artificial intelligence-enabled operations.
Insurance revenue reached $197.8 million and grew by 14.9%, while healthcare and life sciences recorded $158 million, growing by 22%. Banking, capital markets, and diversified industries generated $133.9 million, growing by 10.7%, and international growth markets recorded $105.1 million, growing by 16.3% in constant currency. Growth came from higher volumes, expanded client relationships, new client wins, and accelerating data and artificial intelligence projects.
EXL completed the acquisition of iMerit on August 3, 2026, to strengthen its artificial intelligence data, model training, evaluation, and reinforcement learning capabilities. Management expects iMerit to add between $28 million and $32 million to revenue during the remaining five months of fiscal year 2026, with a dilutive impact of $0.01 on adjusted earnings per share. Radha Ramaswami Basu, founder and CEO of iMerit, joined EXL's executive committee.
Automated analysis for informational purposes only — not investment advice.
On July 28, 2026, EXL raised its revenue guidance to a range of $2.39–$2.415 billion, representing reported growth of 14% to 16% and organic constant-currency growth of 13% to 14%. The company also raised its adjusted earnings per share guidance to $2.25–$2.29, representing growth of 16% to 18%. Management expects capital expenditures of $58 million to $62 million, net interest expense of $16 million to $18 million, and an effective tax rate of 21% to 22%.
The adjusted operating margin reached 19.7% in Q2 fiscal year 2026, up 10 basis points year over year, and reached 20.1% in the first half, an increase of 20 basis points. In contrast, selling, general, and administrative expenses increased to 20.9% of revenue, and the gross margin declined by approximately 90 basis points from the previous quarter after wage increases took effect on April 1, 2026. Management expects a lower adjusted operating margin in the second half of fiscal year 2026 due to investment in sales and data and artificial intelligence capabilities, while the fiscal year 2026 margin is expected to remain similar to fiscal year 2025.
EXL integrates agentic artificial intelligence into structured workflows such as insurance claims, underwriting, and health plan member services. In Q2 fiscal year 2026, the company launched its first customer-facing agentic artificial intelligence module at a national health plan and also won a data ingestion solution contract with a global insurer following a multi-vendor competition. Management says its expertise in model and workflow design enabled some clients to reduce token consumption by up to 80% without sacrificing quality or response time.