Shares of Genpact (G) soared 5.47% in after-hours trading on Thursday following the release of the company's second-quarter 2025 financial results, which exceeded analyst expectations on both the top and bottom lines.
The business process management services provider reported adjusted earnings per share of $0.88, surpassing the consensus estimate of $0.86. Revenue for the quarter came in at $1.254 billion, beating the projected $1.233 billion. This represents a year-over-year growth of 6.6% in revenue.
Genpact's strong performance was driven by robust demand in its key segments. The Advanced Technology Solutions division saw a significant 17.3% increase in revenue, fueled by growing demand for AI and digital technology services. Additionally, the Data-Tech-AI segment, which now contributes to nearly half of the company's total net revenues, experienced a 9.7% growth.
The company's core Business Services also showed resilience, with revenue increasing by 3.8%, reflecting steady demand for decision support and technology services. These results demonstrate Genpact's successful strategy in capitalizing on the growing trends in AI and digital transformation.
Looking ahead, Genpact provided a positive outlook for the third quarter and full year, further boosting investor confidence. The company expects Q3 revenue between $1.258 billion and $1.270 billion, with adjusted EPS forecasted at $0.89 to $0.90. For the full year, Genpact anticipates revenue of $4.958 billion to $5.053 billion and adjusted EPS of $3.51 to $3.58.
The strong quarterly results and optimistic guidance have clearly resonated with investors, as reflected in the significant after-hours stock price increase. This positive reaction suggests that the market views Genpact's performance and future prospects favorably, particularly in the rapidly evolving fields of AI and digital services.