Abstract

ExlService will release its quarterly results on February 24, 2026 Post Market; this preview consolidates recent financial data and forecasts to frame expectations for revenue, margins, and adjusted EPS, alongside majority institutional views from January 1, 2026 to February 17, 2026.

Market Forecast

Based on ExlService’s guidance framework and consolidated estimates, current-quarter revenue is projected at $532.15 million, up 11.86% year over year, with EBIT estimated at $97.97 million (up 13.66%) and adjusted EPS at $0.47 (up 12.03%); margin commentary points to a steady gross profit margin profile and a net profit margin aligned with the company’s recent trend. The company’s main business continues to be Operations Management, with a stable outlook supported by broad client demand, while the highest-potential segment is International Growth Markets, with traction in new logos and expanded scope at existing clients; revenue last quarter was $92.77 million and showed healthy year-on-year momentum.

Last Quarter Review

ExlService reported last quarter revenue of $529.59 million, a gross profit margin of 38.51%, GAAP net profit attributable to the parent company of $58.16 million, a net profit margin of 10.98%, and adjusted EPS of $0.48, with year-over-year revenue growth of 12.18% and adjusted EPS growth of 9.09%. The quarter-on-quarter change in net profit was -11.95%, reflecting typical seasonal factors and investment pacing. Main business highlights included Operations Management revenue of $436.81 million, while International Growth Markets generated $92.77 million; both segments benefited from cross-sell activity and project ramp-ups.

Current Quarter Outlook

Operations Management

Operations Management remains the core revenue engine for ExlService and is expected to anchor growth this quarter through resilient demand across insurance, healthcare, banking, and analytics-led process transformation. The company’s prior-quarter revenue base of $436.81 million demonstrates a scale advantage that tends to stabilize utilization and delivery margins, which supports a gross profit margin profile around the high-30% range seen in the last quarter. Market conversations around outsourcing and digitally enabled operations suggest continuity in volume growth, while pricing remains rational, enabling EBIT leverage in the mid-teens year-over-year range consistent with the current-quarter forecast. For investors tracking the stock, the performance of this segment will likely be gauged by new program wins, client retention metrics, and evidence of productivity gains translating into margin integrity.

International Growth Markets

International Growth Markets is positioned as ExlService’s most promising growth vector due to its mix of new client acquisition, expanded scope with existing relationships, and greater exposure to transformation work requiring advanced analytics. With $92.77 million in revenue last quarter, this segment contributes meaningfully to overall top-line expansion and may deliver above-company-average growth rates given its scale-up profile. The company’s consolidated revenue forecast implies continued acceleration, and this segment should be a beneficiary as contracts ramp and delivery footprints mature. Key watchpoints include the breadth of new logo additions, conversion of pipeline into billing, and whether cross-regional delivery structure supports consistent margin progression while managing cost inflation and currency effects.

Stock Price Drivers This Quarter

The stock will be most sensitive to delivery against the guided ranges for adjusted EPS and EBIT, and whether gross margin holds around the high-30% range while net margin remains near 11%. Upside could come from stronger-than-expected ramp in International Growth Markets and incremental operating leverage in Operations Management as utilization improves. Conversely, any signal of project delays, slower conversion of the pipeline, or increased cost pressure could weigh on sentiment. The balance of factors suggests a constructive setup for the quarter, with consensus expecting double-digit year-over-year growth in revenue and mid-teens growth in EBIT, placing focus on execution quality and margin discipline.

Analyst Opinions

Analyst and institutional previews compiled during the review window indicate a majority constructive stance, with bullish views outweighing cautious ones based on expectations of double-digit revenue growth and mid-teens EBIT expansion. The consensus leans toward stable margins, supported by ongoing demand in Operations Management and incremental contributions from International Growth Markets, with adjusted EPS expected near $0.47. Institutions emphasize the durability of client programs and the opportunity for analytics-enabled process improvements to underpin EBIT resilience. On balance, the majority view anticipates ExlService to meet or slightly exceed its revenue and EPS forecasts, contingent on sustained execution across its top clients and continued momentum in international markets.