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• Total Revenue: $1.215 billion in Q1, up 8.3% year-over-year in constant currency.

• Adjusted EPS: $0.84, a 16% increase year-over-year.

• Gross Margin: Expanded by 30 basis points to 35.3%.

• Adjusted Operating Income Margin: Expanded 120 basis points to 17.3%.

• Net Income: $131 million.

• Operating Cash Flow: Improved to $40 million from a $26 million outflow in the prior year.

• Cash and Cash Equivalents: $562 million, up from $478 million a year ago.

• Data-Tech and AI Revenue: $582 million, up 11% year-over-year, representing 48% of total revenue.

• Digital Operations Revenue: $633 million, up 4% year-over-year, representing 52% of total revenue.

• SG&A Expenses: 19.8% of revenue, down from 20.8% in the prior year.

• Shareholder Returns: $93 million returned through $63 million in share repurchases and $30 million in dividends.

• Full Year Revenue Guidance: $4.862 billion to $5.005 billion, growth of 2% to 5%.

• Full Year Adjusted EPS Guidance: $3.41 to $3.52, representing 5.7% growth at the midpoint.

• Warning! GuruFocus has detected 3 Warning Sign with MELI.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Genpact Ltd (NYSE:G) reported a strong Q1 2025 with total revenues of $1.215 billion, up 8.3% year-over-year in constant currency, exceeding the high end of their guidance range.

• Adjusted EPS grew 16% year-over-year, reaching $0.84, which was $0.04 above the high end of their range.

• The company signed two large deals in Q1, with over 80% of associated revenue accounted for as data AI revenue, reflecting their successful pivot to advanced technologies.

• Genpact's pipeline is at an all-time high, indicating strong long-term demand and increased focus on cost optimization and transformation for clients.

• Partner-related revenues increased by 80% year-over-year, representing a significant ongoing opportunity for Genpact Ltd (NYSE:G).

Negative Points

• Several large deals were delayed due to supply chain and tariff-related uncertainties, leading to a more conservative approach in revenue guidance.

• The company widened its guidance range and lowered total revenue expectations to reflect slower cycle times and increased uncertainty in certain industries.

• Despite strong demand, Genpact Ltd (NYSE:G) reduced its digital operations and data-tech AI outlook due to delays in large deals.

• The operating environment has changed significantly, with increased caution in buying behavior, particularly in markets sensitive to global trade.

• There is a notable increase in uncertainty affecting revenue timing for future quarters, particularly impacting digital operations.