second quarter 2026
Filed Aug 6, 2026Advanced Technology Solutions net revenue growth, up 24% year-over-year, drives Q2 performance
Net revenues grew 7.1% year-over-year, Advanced Technology Solutions grew 24.1%, gross profit, operating income, net income and diluted EPS increased, and the company raised full-year adjusted diluted EPS growth guidance to at least 12%. Cash generated from operations declined to $72 million from $177 million in the second quarter of 2025, while Core Business Services grew 1.9%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | $ 1,343,438 (In thousands) | – | 7.1% |
| Revenue growth on a constant currency basisnon-GAAP | 6.9% | – | – |
| Cost of revenueGAAP | 853,100 (In thousands) | – | – |
| Gross profitGAAP | $ 490,338 (In thousands) | – | 8.9% |
| Gross marginGAAP | 36.5% | – | – |
| Selling, general and administrative expensesGAAP | 294,129 (In thousands) | – | – |
| Amortization of acquired intangible assetsGAAP | 3,287 (In thousands) | – | – |
| Income from operationsGAAP | $ 192,942 (In thousands) | – | 7.5% |
| Income from operations marginGAAP | 14.4 % | – | – |
| Adjusted income from operationsnon-GAAP | $ 233,558 (In thousands) | – | 7.5% |
| Adjusted income from operations marginnon-GAAP | 17.4 % | – | – |
| Net incomeGAAP | $ 145,737 (In thousands) | – | 9.8% |
| Net income marginGAAP | 10.8 % | – | – |
| Adjusted net incomenon-GAAP | $ 170,895 (In thousands) | – | – |
| Diluted EPSGAAP | $ 0.86 | – | 14.7% |
| Adjusted diluted EPSnon-GAAP | $ 1.00 | – | 13.6% |
| Cash generated from operationsGAAP | $72 million | – | – |
| Net cash provided by operating activities, six months ended June 30GAAP | $ 48,908 (In thousands) | – | – |
| Net revenues, six months ended June 30GAAP | $ 2,639,510 (In thousands) | – | – |
| Net income, six months ended June 30GAAP | $ 293,729 (In thousands) | – | – |
| Diluted EPS, six months ended June 30GAAP | $ 1.71 | – | – |
| Adjusted diluted EPS, six months ended June 30non-GAAP | $ 1.98 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Advanced Technology SolutionsRepresenting 27% of total net revenues. | $ 363,323 (In thousands) | – | 24.1% |
| Core Business ServicesRepresenting 73% of total net revenues. | $ 980,115 (In thousands) | – | 1.9% |
third quarter of 2026 and full year 2026 outlook
- RevenueThird quarter of 2026: Net revenues in the range of $1.369 billion to $1.382 billion, representing year-over-year growth of approximately 6.0% to 7.0% as reported, or 6.2% to 7.2% on a constant currency basis. Full year 2026: Net revenue growth of at least 7% year-over-year on an as reported basis, or 6.8% on a constant currency basis.
- Gross marginThird quarter of 2026: approximately 36.6%. Full year 2026: approximately 36.5%, up approximately 50 basis points year-over-year.
- NoteThird quarter of 2026: Adjusted income from operations margin of approximately 17.8%.
- NoteThird quarter of 2026: Adjusted diluted earnings per share in the range of $1.04 to $1.05.
- NoteThird quarter of 2026: Advanced Technology Solutions revenue to grow at least 25% year-over-year.
- NoteThird quarter of 2026: Core Business Services revenue to be flat to slightly down year-over-year.
- NoteFull year 2026: Advanced Technology Solutions revenue to grow at least 25% year-over-year.
- NoteFull year 2026: Core Business Services growth to continue year-over-year.
- NoteFull year 2026: Adjusted income from operations margin of approximately 17.7%, up approximately 25 basis points year-over-year.
- NoteFull year 2026: Adjusted diluted earnings per share growth of at least 12% year-over-year.
- NoteFull year 2026: Diluted EPS $ 3.51 and Adjusted diluted EPS $ 4.09.
- NoteThird quarter of 2026: Diluted EPS $ 0.89 to $ 0.90.
Capital returns
- Genpact repurchased approximately 1.6 million common shares during the quarter for total consideration of approximately $50 million at an average price per share of $32.04.
- Payment for stock repurchased and retired (including expenses related to stock repurchased) was $ (120,007) (In thousands) for the six months ended June 30, 2026, compared with $ (92,999) (In thousands) for the six months ended June 30, 2025.
- Dividend paid was $ (63,325) (In thousands) for the six months ended June 30, 2026, compared with $ (59,408) (In thousands) for the six months ended June 30, 2025.
What drove it
- Advanced Technology Solutions net revenues were $363 million, up 24.1% year-over-year, representing 27% of total net revenues.
- Management cited strong client demand, disciplined execution, record bookings, increasing backlog, and continued pipeline growth.
- Gross profit increased 8.9% year-over-year and gross margin was 36.5%.
- Adjusted income from operations margin increased to 17.4 % from 17.3 % year-over-year.
Concerns
- Cash generated from operations was $72 million, compared to $177 million generated from operations in the second quarter of 2025.
- Core Business Services net revenues were $980 million, up 1.9% year-over-year.
- For the third quarter of 2026, Genpact expects Core Business Services revenue to be flat to slightly down year-over-year.
- Accounts receivable, net was 1,402,815 (In thousands) as of June 30, 2026, compared with 1,240,550 (In thousands) as of December 31, 2025.
What to watch
- Advanced Technology Solutions revenue growth of at least 25% year-over-year in the third quarter and full year 2026.
- Core Business Services performance against third-quarter guidance for flat to slightly down revenue year-over-year.
- Third-quarter net revenues in the range of $1.369 billion to $1.382 billion.
- Third-quarter gross margin of approximately 36.6% and adjusted income from operations margin of approximately 17.8%.
- Third-quarter adjusted diluted earnings per share in the range of $1.04 to $1.05.
- Cash generation and the working-capital effect of accounts receivable growth.
Balance sheet and cash flow
- Cash and cash equivalents were $ 517,387 (In thousands) as of June 30, 2026, compared with $ 853,836 (In thousands) as of December 31, 2025.
- Short-term investments were — as of June 30, 2026, compared with 350,000 (In thousands) as of December 31, 2025.
- Current portion of long-term debt was 26,201 (In thousands) as of June 30, 2026, compared with 376,027 (In thousands) as of December 31, 2025.
- Long-term debt, less current portion, was 1,154,056 (In thousands) as of June 30, 2026, compared with 1,166,274 (In thousands) as of December 31, 2025.
- Accounts receivable, net was 1,402,815 (In thousands) as of June 30, 2026, compared with 1,240,550 (In thousands) as of December 31, 2025.
- Purchase of property, plant and equipment was $ (37,855) (In thousands) for the six months ended June 30, 2026, compared with $ (44,201) (In thousands) for the six months ended June 30, 2025.
- Payment for internally generated intangible assets (including intangible assets under development) was $ (16,093) (In thousands) for the six months ended June 30, 2026, compared with $ (2,987) (In thousands) for the six months ended June 30, 2025.
- Repayment of long-term debt was $ (363,250) (In thousands) for the six months ended June 30, 2026, compared with $ (13,250) (In thousands) for the six months ended June 30, 2025.
- Payment of earn-out consideration was $ (77,500) (In thousands) for the six months ended June 30, 2026.
Analysis
Genpact reported second-quarter net revenues of $1.343 billion, up 7.1% year-over-year and 6.9% on a constant currency basis. Growth was led by Advanced Technology Solutions, where net revenues were $363 million and increased 24.1% year-over-year. The segment represented 27% of total net revenues. Core Business Services remained the larger business at $980 million, or 73% of total net revenues, but grew 1.9% year-over-year.
Profitability expanded year over year. Gross profit rose 8.9% to $490 million and gross margin was 36.5%. Income from operations was $193 million, up 7.5%, while GAAP operating margin was 14.4%, compared with 14.3% in the prior-year quarter. Adjusted income from operations was $234 million, up 7.5%, and adjusted operating margin was 17.4%, compared with 17.3%. Net income was $146 million, up 9.8%, and diluted EPS was $0.86, up 14.7%. Adjusted diluted EPS increased 13.6% to $1.00.
The cash-flow picture was weaker than the earnings result. Cash generated from operations was $72 million in the quarter, compared with $177 million in the second quarter of 2025. For the six months ended June 30, net cash provided by operating activities was $48,908 (In thousands), compared with $217,801 (In thousands) a year earlier. The cash-flow statement reported an increase in accounts receivable of $175,331 (In thousands), while accounts receivable on the balance sheet increased to 1,402,815 (In thousands) from 1,240,550 (In thousands) at December 31, 2025.
Capital deployment included repurchases of approximately 1.6 million common shares for approximately $50 million during the quarter at an average price per share of $32.04. During the first six months, the company repaid $363,250 (In thousands) of long-term debt, paid $63,325 (In thousands) in dividends, paid $120,007 (In thousands) for stock repurchases and retired shares, and paid $77,500 (In thousands) of earn-out consideration. Cash and cash equivalents were $517,387 (In thousands) at June 30, 2026.
The outlook calls for third-quarter net revenues of $1.369 billion to $1.382 billion, adjusted operating margin of approximately 17.8%, and adjusted diluted EPS of $1.04 to $1.05. Management expects Advanced Technology Solutions revenue to grow at least 25% year-over-year but expects Core Business Services revenue to be flat to slightly down in the third quarter. For full-year 2026, the company expects at least 7% reported revenue growth, approximately 36.5% gross margin, approximately 17.7% adjusted operating margin, and adjusted diluted EPS growth of at least 12% year-over-year.
Management, verbatim
Q2 was another strong quarter for Genpact, demonstrating our flywheel is accelerating, and our pivot to Agentic Operations is taking hold faster. Given the tremendous momentum we are seeing, we now expect Advanced Technology Solutions revenue to grow at least 25% for the full year.
Balkrishan "BK" Kalra, President and CEO, Genpact
This quarter reflects both strong client demand and disciplined execution, with revenue growth of 7.1%, another quarter of year-over-year margin expansion, and double-digit EPS growth. Record bookings, increasing backlog, and continued pipeline growth underscore the strength we are seeing across the business.
Michael Weiner, Chief Financial Officer, Genpact
We are raising our adjusted diluted EPS 1 growth guidance to at least 12% for 2026. As we continue to shift toward higher-value Advanced Technology Solutions, we are focused on creating a stronger, more durable, and structurally richer business.
Michael Weiner, Chief Financial Officer, Genpact
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Quarterly free cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Prior-quarter comparisons were not reported for the presented second-quarter metrics.
- A third-quarter or full-year operating-expense guidance figure was not reported.
- A third-quarter or full-year tax-rate guidance figure was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.