Q2 2026 Genpact Limited Earnings Call Transcript
Key Points
- Total revenue grew 7.1% year-over-year to $1.343 billion, with Advanced Technology Solutions revenue up 24.1%.
- Adjusted diluted EPS increased 13.6% year-over-year, growing faster than revenue.
- Gross margin expanded for the 13th consecutive quarter to 36.5%, up 60 basis points year-over-year.
- Record quarterly bookings, with 12 large deals signed year-to-date, double the prior year.
- Agentic Solutions on track to book over $1 billion in total contract value in 2026, with more than 50% from new clients.
- Non-FTE revenue surpassed 50% of total revenue for the first time, reflecting a shift to more durable, annuitized models.
- Advanced Technology Solutions revenue growth expected to accelerate to at least 25% for the full year 2026.
- Core Business Services revenue growth slowed to 1.9% in Q2, impacted by strategic transition away from non-aligned work.
- Transition away from non-strategic work expected to have nearly two points of impact on total revenue growth in 2026.
- Third-quarter core business services revenue expected to be flat to slightly down due to transition headwinds.
- Cash flow from operations was impacted by timing of collections and prepayments made in 2025.
- The transition of non-aligned work will continue to impact revenue growth over the next four to six quarters, with a slightly larger dollar impact expected in 2027.
- Headcount declined, reflecting early signs of revenue-headcount decoupling, which may raise concerns about future capacity.
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. (Operator Instructions) 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.
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, Genpac.com.
Today, we have with us BK Kalra, President and CEO, and Mike Wiener, Chief Financial Officer.
V.K. Will start with an overview of our results, and then Mike will cover financial performance in greater detail before we take your questions. Please note that during this call, we will make forward
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