Genpact Reports Q2 Revenue Growth and Raises 2026 Outlook

Genpact (NYSE: G ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

1%. The company is focusing on strategic initiatives, including a transition towards agentic operations and away from non-strategic work, which will impact revenue growth by nearly two points in 2026. Genpact anticipates at least 7% revenue growth for 2026, with Advanced Technology Solutions expected to accelerate by at least 25%. 5%, signing 12 large deals year-to-date, and significant demand for advanced technology solutions.

Management emphasized the strategic pivot towards agentic operations, leveraging AI and process intelligence, and noted the largest-ever quarterly bookings as evidence of strong demand. Full Transcript Carmen, Operator Good day, ladies and gentlemen, and welcome to the 2026 Second Quarter Genpact Limited Earnings Conference Call. My name is Carmen, and I will be your conference moderator for today. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session towards the end of this conference call. As a reminder, this call is being recorded for replay purposes. The replay of the call will be archived and made available on the IR section of Genpact's website. I would now like to turn the call over to Kyle Vickstrom, Head of Investor Relations at Genpact.

Please proceed. Kyle Vickstrom, Head of Investor Relations Good afternoon, everyone, and welcome to Genpact's Q2 2026 earnings conference call. We hope you've had a chance to read our earnings press release posted on the Investor Relations section of our website. Today we have with us Balkrishan "BK" Kalra, President and CEO, and Mike Wiener, Chief Financial Officer.

BK will start with an overview of our results, and then Mike will cover our financial performance in greater detail. Before we take your questions, please note that during this call we will make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions, and expectations as of today, which may change over time. Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors in our 10-K and 10-Q filings with the SEC.

During this call we will discuss certain non-GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release. These non-GAAP measures are not intended to be a substitute for our GAAP results. Supplemental investor information can also be found in our earnings press release, fact sheet, and investor presentation posted to our Investor Relations website.

And finally, this call in its entirety is being webcast from our website. An audio replay and transcript will be available shortly after the call. With that, I'd like to turn it over to BK. Balkrishan "BK" Kalra, President and CEO Thank you, Kyle.

Hello everyone, and thank you for joining us today. Q2 was another strong quarter for Genpact. 1% year over year. 1% year over year, demonstrating that our flywheel is firing on all cylinders.

We expanded gross margin for yet another quarter, providing continued leverage for significant investments to drive future growth. 6% year over year. And non-FTE revenue surpassed 50% of total revenue for the first time. Last quarter I spoke about something rare, a moment when a structural shift in the market, a differentiated capability set, and the right strategic positioning all converge at the same time.

I want to build on that today. First, at the macro level, demand continues to remain very strong even as AI is redrawing markets. Enterprises want autonomous workflows that do the work, not just support it. Every function now has a mandate to leverage AI with clear ROI.

This is opening new buying centers with new sets of requirements and complexities. At the same time, one universal truth has not changed. There is no artificial intelligence without process intelligence. And yes, frontier models are getting better by the week.

But they are also beginning to converge on interchangeability, with switching costs getting lower. But models do not know how a global enterprise actually runs. The exceptions, the controls, the handoffs, and the actual flow of work—the last mile. This is where the outcome is actually won or lost.

This is where the actual differentiation sits. And among enterprise clients, we continue to observe that readiness is low, even if aspiration remains very high. The foundational work, the data harmonization work, the process intelligence work, still has to happen first to get ROI from investments in AI. That is why AI has not scaled for most companies.

And it is precisely why clients are looking to Genpact and our differentiated IP solutions. I said earlier, when such a rare structural shift is presented and a company can sharpen its differentiation and has the courage and discipline to act, the resulting advantage compounds in ways that are difficult to replicate. This is our moment. We are intentionally disrupting ourselves to be the leader in agentic operations.

Genpact is not the company you knew. We are entering a new category with expanding TAM, building a higher-quality, more durable, and structurally more valuable business. At Investor Day last June, when we first outlined our ambition for the year, we expected to deliver revenue growth of 7% with Advanced Technology Solutions growing mid-teens. Since then, our conviction in the opportunity ahead has only strengthened.

The momentum we are seeing makes it clear that the shape of our business is changing for the better and the strategic pivot is taking hold much faster. As a result, we are leaning in and embracing this moment to further accelerate durable long-term growth. And we are allocating our capital against this opportunity. Most importantly, we are doubling down in areas where we see the greatest long-term opportunity and the strongest returns.

We are known for running mission-critical client operations at scale. We are moving from running business operations to running agentic operations. Therefore, we are codifying this process intelligence into a stronger moat and allocating even more capital. Here we are investing behind the flywheel that is already accelerating, with an even greater focus on Advanced Technology Solutions, where we believe growth is durable, margins are attractive, and client demand continues to build with expanding TAM.

This momentum also gives us the opportunity to review components in Core Business Services that are not aligned with our agentic operations strategy. We apply the test across our book of business with three simple questions. One: does combining our process intelligence with frontier models create durable value and an advantage that clients cannot easily replicate? Two: does it provide a compelling ROI for both the client and Genpact?

And three: is it aligned with expanding TAM? Where the answers are yes, we are identifying at speed. This is vast majority of our book across finance, supply chain, insurance, banking, and many other mission-critical workloads. And this has expanding new TAM which we have begun to capture already.

And where the answers are no, across the board we are working with clients to transition work back and redeploying investments. These are very small parts of our business like certain areas of content management and commoditized parts of contact centers. This clarity is at the heart of becoming the agentic operations company. Even with this intentional disruption, we still have line of sight to deliver at least 7% year-over-year revenue growth in 2026 on a full-year basis.

We expect the transition away from this work not aligned with our agentic operations strategy will have nearly two points of impact to total revenue growth. Despite this, Core Business Services revenue is still expected to grow for 2026. At the same time, we now expect Advanced Technology Solutions revenue to accelerate, growing at least 25% for 2026. This acceleration underscores the rapid pace of adoption and how our investments are paying off.

While timing will be a factor for both 2026 and 2027, for 2027 we currently expect the dollar impact to be slightly larger, though offset by continued momentum in areas aligned with our strategy. Our deliberate focus and prioritization continue to show up in top and bottom line growth and in our demand signals. Demand for our deep domain and industry expertise is healthy and growing as evidenced by our booking backlog and pipeline all increasing across both core and advanced tech. This quarter marked our largest ever quarterly bookings.

We signed another six large deals with a large pipeline of other transformational deals, setting us up for a healthy close to the year, and our revenue retention continues to be strong. The mix of our business continues to move towards higher-value advanced tech offerings as we make meaningful progress against our 2x2x70/70 metric frame. Advanced Technology Solutions deliver more than two times the revenue per headcount and more than two times the revenue growth of the total company, with more than 70% annualized revenue and more than 70% for non-FTE commercial models.

As we fundamentally change how we contract and deliver, we are creating a robust, durable base to build on that is no longer tied to headcount. This includes more multi-year recurring annual revenue streams and margin leverage from agentic and AI driving more meaningful scale. Over the past few years we have systematically expanded our advanced technology capabilities in areas of our core strength. This has effectively created a powerful flywheel that is fueling agentic operations.

The flywheel starts with our core expert operators—decades of client trust, clear domains, last-mile knowledge, in essence process intelligence you cannot buy off a shelf. Then the flywheel turns with the expanded capabilities in data and AI and through our partner ecosystem that power the Advanced Technology Solutions of today. And that enriches process intelligence further, which earns trust to deliver the agentic mandate. The mandate expands our scope, which deepens our intelligence, and deeper intelligence makes the next solution better.

This flywheel compounds, building agentic operations at scale, making our success hard to replicate. We are actively moving from human-processed and human-validated to machine-processed and human-validated, all wrapped in responsible AI, driving compounding advantages from autonomous agents with the context, governance, and oversight that only last-mile experts like Genpact can provide. All of this is further accelerating Advanced Technology Solutions, and that's playing out with the significant momentum we are seeing. Advanced Technology Solutions revenue grew another 24% in quarter two, now accounting for 27% of total revenue.

This quarter Advanced Technology Solutions represented nearly 40% of our bookings, and our pipeline increased meaningfully across all capabilities quarter over quarter, highlighting the significant demand our flywheel is driving. We are not adding a fast line to the past. We are changing what the whole business is and moving to a new category. This is where it all comes together.

Clients do not come to us to buy core or advanced tech. They come to us with a vision for the future and a reality of where they are today. We are enabling the journey to agentic-led autonomy that enterprises can trust. We call it agentic operations: domain experts and AI agents working side by side through reimagined processes to execute transactions.

Model-agnostic, built for enterprise governance and clear auditability. Learning that compounds, delivered through multi-year annualized recurring revenues. And the traction and demand are real. In AgentIQ solutions we are on track to book over $1 billion in total contract value just in 2026.

This is not a trivial number and it is not agentic washing. This represents just our productized AI offerings built with Genpact IP to run mission-critical business processes at enterprise scale, and it is delivered with multi-year annualized recurring revenues through a commercial model that is not tied to headcount. Looking at AgentIQ bookings to date, more than half has come from new clients, proving the additional TAM we are capturing at speed. And from the clients who rotate, we have seen more than 3% net revenue growth and more than 300 basis points of gross margin expansion.

More clients, bigger wallets, a larger market, and richer margins all at once, and we are quickly building a robust roadmap that aligns where our clients are going with what we can uniquely deliver. We recently announced Genpact Transaction Monitoring Analyst, the first module of our new Genpact Banking Analyst suite to help banks complete routine investigations faster and more consistently with full auditability and human oversight built in.

We also recently launched the Genpact Deduction Recovery Solution, our agentic offering designed to help consumer goods companies recover millions in lost revenue by automating the identification, validation, and resolution of disputed deductions with faster cycle times and enhanced compliance. Adding to our existing AgentIQ portfolio, which includes Accounts Payable, Record to Report, Source to Pay, and insurance, these are just two additional examples of how we are actively delivering the outcomes clients need to reshape their operations.

As clients see the compounding effects of our flywheel and expanding agentic operations, they are choosing Genpact over legacy and new competitors to work across even more workflows and the additional parts of their transformation. As a case in point, we recently embarked on a journey with Lumen, a global networking and technology company, to identify their accounts payable operations. And Mondelez International, one of the world's largest snacking companies, expanded our relationship to build an enterprise-wide agentic operating model across their Source to Pay processes, spanning procurement through accounts payable. These are just a couple of examples.

Partners also continue to be an important part of our strategy. In quarter two, our partner-related revenue growth accelerated as we continue to deepen relationships with partners core to our clients' infrastructures. This quarter we achieved the Databricks Brick Builder specialization for Manufacturing, Transportation, and Energy. ISG recognized Genpact as a leader in the ServiceNow ecosystem partners for 2026 and as a rising star in their Databricks ecosystem report for AI/ML and Managed Data Optimization.

And earlier this week, NelsonHall identified Genpact as a leader in all six of their F&A transformation NEAT market segments for 2026, including Agentic, Procure to Pay, Record to Report, Order to Cash, CFO Advisory, and Finance Transformation. Overall, these are just a few recent examples that highlight how focus in our strategic areas is having a clear impact. In closing, this quarter is a significant proof point for Genpact as we shape what comes next.

As a leader in agentic operations, we are changing our business in ways that matter—building a new Genpact in a fundamentally different category, doubling down on our most strategic priorities to accelerate the flywheel for agentic operations, building high-quality durable revenue that compounds and is harder to replicate, driving structurally richer margins, and ultimately opening daylight between Genpact and the market around us. With that, let me turn the call Mike Weiner, CFO Good afternoon everyone, and thank you for joining us today. We delivered a strong second quarter, highlighting how our focus and investments are strengthening our position in agentic operations.

343 billion, as momentum in Advanced Technology Solutions continues to build. Advanced Technology Solutions revenue, which includes data and AI, Digital Technologies Advisory, and agentic, reached $363 million, growing again over 24% year over year. With broad-based strength across our flywheel, demand for our advanced technology solutions is scaling quickly, and our strategic investments are delivering results. Our advanced technology capabilities are compounding, with agentic- and AI-led innovation showing up across a growing set of offerings.

We are focused on exponentially expanding our total addressable market, delivering more value for clients across end-to-end workflows, and driving higher-value, more durable revenue for Genpact. As BK mentioned, we're doubling down on our most strategic priorities to accelerate the flywheel for agentic operations, and we can start seeing the payoff in the second quarter. Our agentic bookings grew significantly quarter over quarter for 2026. We are tracking to deliver over a billion dollars in agentic TCV, five times more than 2025.

And as BK noted, our agentic business continues to capture a broader TAM and wallet share, with meaningful traction across both new and existing clients. To date, more than 50% of our cumulative awarded contract value is coming from new clients.