Genpact Limited, a global advanced technology services and solutions provider, has emerged as a trailblazer in the realm of AI-driven business transformation. With a rich history spanning over two decades, the company has consistently proven its ability to adapt and innovate, positioning itself as a trusted partner for enterprises seeking to leverage the power of data, technology, and domain expertise.

Company History and Evolution

Founded in 1997 as a business process management and technology services company, Genpact has undergone a remarkable transformation since its inception. Originally established as a General Electric (GE) company, Genpact was spun off from GE in 2005, marking the beginning of its journey as an independent entity. In its early years, the company focused on providing business process outsourcing services to GE, leveraging its deep domain expertise and process knowledge. Over time, Genpact expanded its service offerings and client base, moving beyond its historical roots with GE.

A significant milestone in Genpact's history was its initial public offering in 2007, which provided the company with the necessary capital to accelerate its growth strategy. Following the IPO, Genpact invested heavily in expanding its geographic footprint, enhancing its service capabilities, and acquiring complementary businesses to broaden its portfolio. This strategic approach allowed the company to evolve from a BPO provider to a comprehensive solutions company, offering a unique blend of process expertise, information technology, and analytical capabilities.

Throughout its journey, Genpact has faced and overcome various challenges, including adapting to changes in client demands, technology trends, and the competitive landscape. The company successfully navigated the shift towards more digitally-enabled and analytics-driven solutions, aligning its offerings with the evolving needs of its clients. Additionally, Genpact has demonstrated resilience in managing broader macroeconomic and geopolitical headwinds that have impacted its industry.

Financials

Genpact's revenue has grown from $1.14 billion in the third quarter of 2023 to $1.21 billion in the fourth quarter of 2024, representing a 6.6% year-over-year increase. The company's adjusted diluted earnings per share (EPS) also witnessed a robust 10% year-over-year growth, reaching $3.28 for the full year 2024, compared to $2.98 in the previous year.

For the most recent fiscal year, Genpact reported revenue of $4.77 billion, net income of $513.7 million, operating cash flow of $615 million, and free cash flow of $554 million. In the most recent quarter, the company achieved revenue of $1.25 billion, net income of $141.9 million, operating cash flow of $204 million, and free cash flow of $181 million. The quarterly revenue growth of 9% year-over-year was driven by a 12% increase in Data-Tech-AI services and a 6% rise in Digital Operations services, with strong performance across all industry segments.

The company's financial performance has been underpinned by its strategic focus on two key revenue streams: Data-Tech-AI and Digital Operations. Data-Tech-AI, which includes the company's advanced analytics, AI, and digital transformation offerings, accounted for 47% of Genpact's total revenue in 2024, growing 6.9% year-over-year to reach $2.23 billion. Meanwhile, the Digital Operations segment, encompassing the company's traditional business process management services, contributed the remaining 53% of revenue, growing 6.1% year-over-year to $2.53 billion.

Genpact operates in three reportable segments: Financial Services, Consumer and Healthcare, and High Tech and Manufacturing. In the third quarter of 2024, the Financial Services segment generated net revenues of $331.55 million, up 5.8% year-over-year. The Consumer and Healthcare segment reported net revenues of $426.06 million, an 8.2% increase, while the High Tech and Manufacturing segment achieved net revenues of $453.33 million, up 5.8% from the prior year period.

The company's gross margin expanded from 35.5% in the third quarter of 2023 to 35.6% in the third quarter of 2024, primarily driven by revenue growth and lower stock-based compensation expense, partially offset by an increase in operational headcount and wage inflation. Adjusted income from operations increased from $195.0 million in the third quarter of 2023 to $213.0 million in the third quarter of 2024, largely due to higher revenues and operating efficiencies across the business.

Liquidity

Genpact's strong financial footing is further reflected in its healthy balance sheet. As of the end of 2024, the company reported $648 million in cash and cash equivalents, up from $584 million in the previous year. Additionally, the company's days sales outstanding (DSO) improved to 86 days, compared to 88 days in 2023, indicating enhanced working capital efficiency.

The company maintains a solid liquidity position with a debt-to-equity ratio of 0.097. As of December 31, 2024, Genpact had access to a $650 million revolving credit facility, of which $11.6 million was utilized. The company also has additional fund-based and non-fund-based credit facilities with banks totaling $23.3 million, of which $9.3 million was utilized. Genpact's current ratio and quick ratio both stand at 2.16, further demonstrating its strong liquidity position.

Innovation and Technological Advancements

The company's commitment to innovation and technological advancement is evident in its recent initiatives. In 2024, Genpact launched its groundbreaking "Gigafactory," a first-of-its-kind AI accelerator designed to help enterprises rapidly scale AI solutions from pilot to full-scale production. The Gigafactory leverages Genpact's deep industry knowledge, data engineering expertise, and cross-functional teams to deliver responsible AI by design.

Furthermore, the company introduced its "Agentix" solutions, which harness the power of generative AI and machine learning models to automate and optimize key business processes, such as accounts payable invoice extraction. These domain-specific, agentic solutions are built on Genpact's extensive industry expertise, enabling clients to unlock significant value through AI-driven transformation.

Genpact's innovation efforts have not gone unnoticed. In 2025, the company was recognized as a "Sustainable Corporate of the Year" for the third consecutive year by Frost & Sullivan, underscoring its commitment to environmental stewardship through innovative sustainability initiatives across its global operations.

Resilience and Adaptability

Despite the challenges posed by the COVID-19 pandemic and the broader macroeconomic uncertainty, Genpact has demonstrated its resilience and adaptability. The company's strategic focus on digital transformation, data-driven insights, and AI-powered solutions has positioned it as a trusted partner for enterprises seeking to navigate the ever-evolving business landscape.

Genpact's core services span data, technology, analytics, and domain-specific business process expertise. With over 138,500 employees serving clients in key industry verticals from more than 35 countries, the company has been focused on expanding its capabilities in artificial intelligence, automation, and cloud-based offerings to help clients transform their operations and drive business value.

Future Outlook

Looking ahead, Genpact's guidance for 2025 reflects its continued momentum. The company expects to deliver net revenue in the range of $5.029 billion to $5.125 billion, representing growth of 5.5% to 7.7% on an as-reported basis. In constant currency terms, the company's net revenue is expected to grow between 6.2% to 8.2%, with the Data-Tech-AI and Digital Operations segments projected to grow approximately 6.4% and 7.9%, respectively.

For the full year 2025, Genpact anticipates adjusted diluted EPS growth of 9% at the midpoint, expected to grow faster than revenue. The company also projects gross margin expansion to 36%, a 50 basis point increase from 2024, and operating cash flow of approximately $590 million.

In the first quarter of 2025, Genpact expects revenue growth of 6.2% to 7.2% on an as-reported basis, translating to 7.1% to 8.1% growth in constant currency. The company forecasts a gross margin of 35% and an adjusted operating income margin of 16.5% for Q1 2025, with adjusted diluted EPS growth of approximately 9% at the midpoint compared to Q1 2024.

Genpact's commitment to driving shareholder value is further underscored by its plans to return at least 50% of its cash flow to investors through a combination of share repurchases and dividends. The company's board of directors has approved an 11% increase in the regular quarterly dividend to $0.17 per share, as well as a $500 million increase to its existing share repurchase authorization.

Conclusion

In conclusion, Genpact's transformation from a BPO provider to a comprehensive solutions company has been marked by its relentless pursuit of innovation and its ability to harness the power of data, technology, and domain expertise. As the company continues to push the boundaries of what's possible with AI-driven solutions, it stands poised to capitalize on the growing demand for advanced digital transformation services, solidifying its position as a leader in the industry. With strong financial performance, a healthy balance sheet, and a clear strategic vision, Genpact is well-positioned to drive continued growth and value creation for its clients and shareholders in the years to come.