Genpact raises 2026 outlook for revenue, margin and earnings growth despite a revenue miss
The company now expects a full-year gross margin of about 36.9%, up about 90 basis points, and adjusted diluted EPS growth of at least 13%.
Genpact raised its 2026 outlook for revenue growth, gross margin and adjusted earnings growth after third-quarter earnings per share of $1.07 beat forecasts by $0.01.
The company now expects net revenue growth of at least 7% as reported, or 6.8% in constant currency, which strips out exchange-rate swings. Gross margin should reach about 36.9%, up about 90 basis points on last year. A basis point is one hundredth of a percentage point. Adjusted income from operations margin is projected at about 17.7%, up about 25 basis points. Adjusted diluted EPS is now expected to grow by at least 13%.
Chief financial officer Sumita Pandit said strong revenue growth and significant gross margin expansion drove the decision to raise the gross margin and adjusted diluted EPS guidance.
The profit upgrade looks to rest on margin delivery more than on sales, since third-quarter revenue of $1.39B came in below the $1.40B expected.
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