Genpact Q1 2025 Earnings Report
Key Takeaways
Genpact delivered $1.215 billion in revenue for Q1 2025, up 7.4% year-over-year. Net income was $131 million and adjusted EPS reached $0.84. Both operating and adjusted margins expanded, while free cash flow turned positive. The company remains focused on innovation and AI-led transformation to drive future growth.
Revenue rose 7.4% year-over-year to $1.215 billion
Data-Tech-AI revenue grew 11.1%, now 48% of total revenue
Adjusted operating margin expanded to 17.3%
Cash from operations was $40 million, reversing a negative outflow from Q1 2024
Genpact
Genpact
Genpact Revenue by Segment
Genpact Revenue by Geographic Location
Forward Guidance
Genpact reduced its full-year revenue growth expectations but maintained margin and earnings guidance, with focus on sustaining performance through innovation and operational leverage.
Positive Outlook
- Data-Tech-AI expected to grow ~5.1% YoY for FY25
- Maintains full-year adjusted operating margin target of ~17.3%
- Q2 revenue guided at $1.210B–$1.233B
- Gross margin guidance steady at ~36.0%
- Focus on AI-driven transformation remains strong
Challenges Ahead
- Full-year revenue growth guidance lowered to 2.0%–5.0%
- Digital Operations growth forecast reduced to 2.0% YoY
- Q2 Digital Ops growth forecasted at only 0.6% YoY
- Adjusted EPS range trimmed to $3.41–$3.52
- Challenging macro environment impacting client spending
Revenue & Expenses
Visualization of income flow from segment revenue to net income