The quarter came in ahead of the market’s setup. Published consensus was approximately $1.33 billion of revenue and $0.97 of adjusted EPS; Genpact delivered $1.343 billion and $1.00, respectively. Revenue rose 7.1% year over year, while adjusted diluted EPS increased 13.6%—a modest but clear beat rather than a merely in-line result. (Financial Highlights; Adjusted diluted EPS reconciliation)
| Metric | Q2 2026 | Q2 2025 / Prior expectation |
|---|---|---|
| Net revenues | $1.343B | $1.254B / ~$1.33B consensus |
| Diluted EPS | $0.86 | $0.75 |
| Adjusted diluted EPS | $1.00 | $0.88 / ~$0.97 consensus |
| Income from operations margin | 14.4% | 14.3% |
| Adjusted income from operations margin | 17.4% | 17.3% |
| Advanced Technology Solutions revenue | $363.3M | $292.7M |
| Advanced Technology Solutions growth | 24.1% | — |
The more important signal is the guidance raise. Management lifted full-year adjusted diluted EPS growth to at least 12%, versus the prior expectation of more than 10%, implying adjusted EPS of at least $4.09 versus the previous $4.04 outlook. It also raised the Advanced Technology Solutions growth target to at least 25%, from at least 20%, reinforcing that the higher-value technology mix—not just cost control—is becoming the central growth engine. (Full-year outlook; Segment results — Advanced Technology Solutions)
Margins are improving, but the expansion remains incremental. Adjusted operating margin reached 17.4%, only 10 basis points above the prior-year quarter and in line with the company’s previous Q2 target. The stronger read comes from mix and earnings growth: Advanced Technology Solutions revenue rose 24.1% and now represents roughly 27% of quarterly revenue, while Core Business Services grew only about 1.9%. (Segment results; Adjusted income from operations reconciliation)
Cash conversion was the main blemish. Operating cash flow fell to $48.9 million from $217.8 million a year earlier as accounts receivable increased by $175.3 million and other operating assets rose by $111.8 million. Cash also declined to $517.4 million after $363.3 million of debt repayment, $120.0 million of share repurchases, a $77.5 million earn-out payment, and dividends. The balance sheet is less leveraged on current maturities, but the quarter’s earnings beat was not matched by cash generation. (Cash Flow statement; Balance Sheet)
Net read: a genuine positive surprise, tempered by working-capital pressure. The result modestly exceeded near-term expectations, and the higher full-year EPS and technology-growth targets change the outlook more meaningfully than the quarterly beat alone. The key issue for investors is whether the unusually weak first-half operating cash flow reflects timing or a more persistent slowdown in collections and cash conversion; the filing does not resolve that question. (Full-year outlook; Cash Flow statement)
Read the original 8-K on SEC EDGAR ↗