Genpact (NYSE: G), a global professional services firm, saw its shares plummet 7.39% in pre-market trading on Thursday, despite reporting better-than-expected earnings for the first quarter of 2025. The sharp decline comes as investors grapple with mixed signals, including a significant price target cut from JP Morgan.

For the quarter ended March 31, Genpact reported adjusted earnings of 84 cents per share, surpassing the mean analyst expectation of 79 cents. The company's revenue rose 7.4% year-over-year to $1.21 billion, meeting Wall Street's projections. Net income for the quarter stood at $130.85 million, with the reported EPS at 73 cents.

However, the positive earnings report was overshadowed by JP Morgan's decision to lower its price target for Genpact from $55 to $49. This reduction in price target, coupled with potential concerns about the company's growth rate or future guidance not detailed in the provided information, appears to have spooked investors. The pre-market plunge suggests that market participants may be reassessing Genpact's valuation and growth prospects, despite its ability to beat earnings estimates in recent quarters.