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Dec 31, 2025
ExlService Q4 2025 Earnings Report
ExlService reported strong fourth quarter 2025 results with double-digit revenue growth and expanded profitability driven by AI and data solutions.
Key Takeaways
EXL delivered a robust Q4 2025 with revenue growing 12.7% year-over-year to $542.6 million. The company saw significant growth in its Healthcare and Life Sciences segment and authorized a new $500 million stock repurchase program. Profitability improved with Adjusted Diluted EPS rising 15% to $0.50.
Revenue increased 12.7% year-over-year to $542.6 million, driven by strong demand for AI-native solutions.
The Board authorized a new $500 million common stock repurchase program effective February 28, 2026.
Healthcare and Life Sciences was the fastest-growing segment in Q4, with revenue up 26.2% year-over-year.
Full-year 2026 guidance suggests continued momentum with expected revenue growth of 9% to 11%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2026, EXL expects revenue between $2.275 billion and $2.315 billion and adjusted diluted EPS between $2.14 and $2.19.
Positive Outlook
- Expected revenue growth of 9% to 11% year-over-year.
- Anticipated Adjusted Diluted EPS increase of 10% to 12%.
- Strong momentum in data and AI services fueling new client wins.
- New $500 million stock repurchase program demonstrates capital strength.
- Robust free cash flow generation expected to continue.
Challenges Ahead
- Guidance is subject to currency exchange rate fluctuations.
- Operating margin in Q4 showed a slight year-over-year decline from 14.8% to 14.4%.
- Adjusted EBITDA margin decreased slightly from 21.4% to 21.2% year-over-year.
- Potential impact from global macroeconomic uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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