Q1 2026 Exlservice Holdings Inc Earnings Call Transcript
Key Points
- ExlService Holdings Inc (EXLS) reported a strong revenue growth of 14% year-over-year, reaching $570 million in Q1 2026.
- The company's adjusted earnings per share increased by 20% year-over-year, demonstrating strong financial performance.
- Data and AI-led revenues grew 28% year-over-year, now representing 60% of the company's total revenue.
- High renewal rates and a strong pipeline indicate robust demand for EXLS's services, with more than 75% of revenue being recurring or annuity-like.
- EXLS has been recognized with several industry awards, including Advanced Technology Partner of the Year by NVIDIA and AI and Machine Learning Market Disruptor of the Year by AWS, highlighting its strong market position.
- SG&A expenses as a percentage of revenue increased by 20 basis points year-over-year, driven by investments in data and AI-led solutions.
- The digital operations segment experienced a 2% year-on-year decline in revenue, reflecting a shift towards data and AI-led operations.
- There is some softness in the retail and communication industries, which could impact future growth in these sectors.
- The company faces macroeconomic and geopolitical uncertainties, which could pose risks to its growth outlook.
- Despite strong revenue growth, the adjusted operating margin is expected to remain in the mid-19% range due to continued investments in data and AI capabilities.
Hello, and welcome to the ExlService Holdings, Inc. first quarter 2026 earnings conference call. (Operator Instructions) Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.
I will now turn the call over to Andrew Thut, Head of Investor Relations and Capital Markets.
Thanks, Jenny. Hello, and thank you for joining EXL's first quarter 2026 financial results conference call. On the call with me today are Rohit Kapoor, Chairman and Chief Executive Officer; and Maurizio Nicolelli, Chief Financial Officer. We hope you've had an opportunity to review the first quarter earnings press release we issued yesterday afternoon. We have also posted a slide deck and investor fact sheet on our Investor Relations website.
As a reminder, some of the matters we'll discuss this morning are forward-looking. Please keep in mind that these forward-looking statements are subject to known and unknown
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