ExlService Holdings Inc. (EXLS) surged 7.02% in post-market trading following the release of its first-quarter 2026 financial results, which significantly exceeded analyst expectations.

The data and AI services firm reported Q1 revenue of $570.4 million, beating the consensus estimate of $557.7 million and representing a 14% year-over-year increase. Adjusted diluted earnings per share came in at $0.58, surpassing the $0.54 estimate and marking a 20% rise from the same period last year. The company also reported an adjusted operating margin of 20.5% and highlighted that it won 16 new clients during the quarter.

Driving the positive investor sentiment, ExlService raised its full-year 2026 guidance. The company now expects revenue in the range of $2.30 billion to $2.33 billion, up from its prior outlook, and projects adjusted diluted EPS of $2.18 to $2.23. Management attributed the strong performance and optimistic outlook to the successful execution of its data and AI strategy and sustained business momentum.