Key Highlights

● Third-quarter Revenue rose 7.3% to $1.385 billion.

● Advanced Technology Solutions revenue rose 30.3% to $405 million.

● Adjusted diluted EPS rose 10.3% to $1.07.

● Gross Margin was 38.0%.

Genpact Limited (NYSE:G) is in focus after reporting third-quarter 2026 results on November 5 and lifting parts of its full-year outlook. The professional services company said revenue rose 7.3% to $1.385 billion, driven by rapid growth in its Advanced Technology Solutions unit, and raised its guidance for gross margin and adjusted earnings per share. For investors tracking how artificial intelligence reshapes outsourced Business processes, the results offer a data point on whether newer, technology-led work can offset a flat legacy business.

Latest Company Context

In the quarter ended September 30, 2026, Genpact reported revenue of $1.385 billion, up 7.3% (7.5% in constant currency). Advanced Technology Solutions revenue was $405 million, up 30.3%, and represented 29% of the total, while Core Business Services was $980 million, flat year over year. Gross Profit was $527 million, a 38.0% margin. Net Income was $152 million and diluted EPS was $0.89, up 7.2%; adjusted diluted EPS was $1.07, up 10.3%. Adjusted income from operations was $247 million, a 17.8% margin. Operating Cash Flow was $93 million. During the quarter the company repurchased about 870,000 shares for roughly $31 million at an average of $35.49 and paid about $31 million in dividends; year-to-date Shareholder returns reached about $246 million.

Key Business and index Drivers

The central driver is the mix shift. Management now expects 2026 net revenue growth of at least 7% as reported, with Advanced Technology Solutions growing at least 25% and Core Business Services expected to continue growing. Gross margin is guided to about 36.9%, up roughly 90 basis points, and adjusted income from operations margin to about 17.7%, up about 25 basis points. Adjusted diluted EPS growth is guided to at least 13%; the release's reconciliation implies roughly $4.14, compared with $3.55 on a GAAP basis. These are management projections and depend on client Demand and execution. The higher-margin technology work is helping profitability, while the larger legacy services line remains flat, which keeps overall growth in the high single digits.

What Investors Should Watch

Investors may watch whether Advanced Technology Solutions sustains growth near or above the 25% pace needed to meet guidance, and whether Core Business Services can move beyond flat. The fourth-quarter report, which the company would typically issue in early calendar 2027, will show whether the raised margin outlook is achieved. Capital allocation is another item: continued Buybacks at prices around the mid-$30s and the Dividend could shape per-share results. Commentary on agentic artificial intelligence, pricing pressure from automation, and client budgets may also matter, since some analysts have noted that AI could reduce demand for traditional outsourcing hours. Cash generation, which was $93 million in the quarter, may be worth tracking against the year's returns to shareholders.

Other points of attention may include the sustainability of the 38.0% gross margin, which management links to a richer mix of technology-led work, and how much of the improvement reflects pricing versus delivery efficiency. The company's disclosure on operating cash flow, share count and Leverage could also help investors judge how flexibly it can fund acquisitions, dividends and repurchases while it invests in AI-related capabilities. Analyst expectations for the fourth quarter may move after the raised outlook, though such estimates are opinions rather than company commitments.

AI Unit Drives Raised Margin Outlook

Genpact's third-quarter report combined steady top-line growth, a rising share of technology-led revenue and a higher margin outlook. Whether the mix shift continues to offset a flat core business is the open question, and results could vary with demand and the pace of AI adoption. Investors may watch the next quarterly update and the evolution of Advanced Technology Solutions.