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Genpact Limited redefines how global businesses manage complex operations and data flows. As a powerhouse in IT and business process outsourcing, it serves top industries with cutting-edge digital transformation and finance solutions. Renowned for innovation and operational excellence, Genpact supports clients in banking, healthcare, and manufacturing worldwide. As the industry evolves rapidly, I ask whether Genpact’s current fundamentals justify its market valuation and growth prospects in 2026.
Table of contents
Business Model & Company Overview
Genpact Limited, founded in 1997 and headquartered in Hamilton, Bermuda, stands as a global leader in Information Technology Services. With 145K employees, it delivers integrated business process outsourcing and IT solutions across banking, consumer goods, and manufacturing sectors. Its ecosystem blends finance, supply chain, and digital transformation services into a unified platform that drives operational excellence for clients worldwide.
The company’s revenue engine balances recurring services like finance and accounting with strategic IT consulting and digital analytics. Genpact’s broad footprint spans the Americas, Europe, and Asia, enabling tailored solutions across diverse markets. Its strong global presence and expertise in ESG and risk management create a durable competitive advantage that shapes the future of business process outsourcing.
Financial Performance & Fundamental Metrics
I analyze Genpact Limited’s income statement, key financial ratios, and dividend payout policy to assess its operational efficiency and shareholder value creation.
Income Statement
The table below summarizes Genpact Limited’s key income statement items for the fiscal years 2021 through 2025, showing revenue progression and profit metrics.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 4.02B | 4.37B | 4.48B | 4.77B | 5.08B |
| Cost of Revenue | 2.59B | 2.83B | 2.91B | 3.08B | 3.25B |
| Operating Expenses | 923M | 1.03B | 940M | 988M | 1.05B |
| Gross Profit | 1.43B | 1.54B | 1.57B | 1.69B | 1.83B |
| EBITDA | 709M | 653M | 773M | 853M | 875M |
| EBIT | 541M | 523M | 669M | 756M | 780M |
| Interest Expense | 58M | 58M | 66M | 80M | 50M |
| Net Income | 369M | 353M | 631M | 514M | 552M |
| EPS | 1.97 | 1.92 | 3.46 | 2.88 | 3.18 |
| Filing Date | 2022-03-01 | 2023-03-01 | 2024-02-29 | 2025-03-03 | 2026-02-05 |
Income Statement Evolution
Genpact’s revenue rose 26.3% from 2021 to 2025, with a 6.56% increase in 2025 alone, reflecting steady top-line growth. Net income grew 49.6% over the period, driven by improving net margins, which expanded 18.4%. Gross margin stabilized near 36%, while EBIT margin held favorably at 15.4%, indicating consistent operational efficiency.
Is the Income Statement Favorable?
In 2025, Genpact posted $5.08B revenue and $552M net income, yielding a 10.9% net margin, aligned with sector strength. EBITDA margin and interest expense ratios appear solid, supporting profitability. EPS rose nearly 10% year-over-year, signaling effective capital allocation. Overall, fundamentals remain favorable, with no evident margin pressure or cost anomalies.
Financial Ratios
The following table summarizes key financial ratios for Genpact Limited over the last five fiscal years, providing a clear view of its profitability, valuation, liquidity, leverage, and efficiency metrics:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 9.2% | 8.1% | 14.1% | 10.8% | 10.9% |
| ROE | 19.5% | 19.4% | 28.1% | 21.5% | 21.7% |
| ROIC | 9.4% | 10.2% | 15.8% | 13.0% | 12.3% |
| P/E | 27.0 | 24.1 | 10.0 | 14.9 | 14.7 |
| P/B | 5.25 | 4.67 | 2.81 | 3.21 | 3.19 |
| Current Ratio | 1.47 | 1.61 | 1.44 | 2.16 | 1.66 |
| Quick Ratio | 1.47 | 1.61 | 1.44 | 2.16 | 1.66 |
| D/E | 1.05 | 0.93 | 0.67 | 0.60 | 0.23 |
| Debt-to-Assets | 40.2% | 37.0% | 31.3% | 28.9% | 9.9% |
| Interest Coverage | 8.7x | 8.6x | 9.5x | 8.8x | 15.3x |
| Asset Turnover | 0.81 | 0.95 | 0.93 | 0.96 | 0.87 |
| Fixed Asset Turnover | 7.74 | 10.8 | 11.4 | 11.7 | 13.6 |
| Dividend Yield | 0.81% | 1.08% | 1.58% | 1.42% | 1.45% |
Evolution of Financial Ratios
Genpact Limited’s Return on Equity (ROE) remained robust, peaking at 28.08% in 2023 before settling near 21.67% in 2025. The Current Ratio showed volatility, rising sharply to 2.16 in 2024 then moderating to 1.66 in 2025. Debt-to-Equity ratio consistently declined from 1.05 in 2021 to 0.23 in 2025, reflecting reduced leverage. Profitability margins held steady, with net margins around 10.9% in 2025.
Are the Financial Ratios Favorable?
In 2025, Genpact’s profitability indicators like net margin (10.88%) and ROE (21.67%) are favorable, exceeding typical sector benchmarks. Liquidity ratios, including a current ratio of 1.66, signal sound short-term financial health. Leverage is low with a debt-to-equity of 0.23 and strong interest coverage near 15.7. Asset turnover is neutral at 0.87, while the price-to-book ratio of 3.19 is unfavorable. Overall, 79% of ratios are favorable, positioning the financial profile as very favorable.
Shareholder Return Policy
Genpact Limited maintains a consistent dividend payout ratio around 21%, with a dividend yield near 1.45% in 2025. Dividend per share has steadily increased, supported by free cash flow coverage above 90%, alongside active share buybacks.
This balanced distribution aligns with prudent capital allocation, sustaining shareholder value without risking cash flow constraints. The policy reflects a stable approach to long-term value creation, avoiding excessive payouts or repurchases despite moderate leverage.
Score analysis
The following radar chart illustrates Genpact Limited’s key financial scores across value, profitability, and leverage metrics:
Genpact scores very favorably on discounted cash flow (5) and profitability ratios like ROE (4) and ROA (4). However, debt to equity (2) and price to book (2) scores indicate weaker capital structure and valuation metrics. Price to earnings is moderate (3).
Analysis of the company’s bankruptcy risk
Genpact’s Altman Z-Score places it securely in the safe zone, indicating a low risk of bankruptcy:
Is the company in good financial health?
The Piotroski Score chart highlights Genpact’s strong financial health with a high score of 8:
A Piotroski score of 8 signals very strong fundamentals, reflecting robust profitability, liquidity, and efficient capital management. This score suggests solid underlying financial strength.
Competitive Landscape & Sector Positioning
This section analyzes Genpact Limited’s strategic positioning within the technology sector and its revenue breakdown by segment. I will assess its key products, main competitors, and identify any competitive advantages. The goal is to determine whether Genpact maintains a sustainable edge over its rivals.
Strategic Positioning
Genpact Limited maintains a diversified product portfolio across banking, consumer healthcare, and high tech sectors. Geographically, it concentrates heavily in India, generating 2.76B of 2024 revenue, while also serving Americas, Europe, and Asia. This blend balances regional focus with global reach.
Revenue by Segment
This pie chart illustrates Genpact Limited’s revenue distribution by segment for fiscal year 2024, highlighting the concentration of sales across key business areas.
In 2024, the Consumer And Healthcare segment generated $1.69B, showing steady growth from $1.57B in 2023. Historically, this segment has become the main revenue driver, replacing a more diversified mix seen in earlier years. The notable concentration in Consumer And Healthcare signals both strength and risk if market dynamics shift, emphasizing the need for close monitoring of this segment’s performance going forward.
Key Products & Brands
Below is a summary of Genpact Limited’s key products and brands with their respective descriptions:
| Product | Description |
|---|---|
| Banking, Capital Markets and Insurance | Services focused on finance sector clients, including CFO advisory, risk, compliance, and reporting. |
| Consumer Goods, Retail, Life Sciences and Healthcare | Business process outsourcing and IT services tailored to consumer and healthcare industries. |
| High Tech, Manufacturing and Services | Solutions for technology, manufacturing, and related service sectors, including supply chain support. |
| Finance and Accounting Services | Comprehensive finance functions such as accounts payable, invoice-to-cash, record to report, and analysis. |
| Environmental, Social, and Governance (ESG) Services | Data management, carbon accounting, human rights assessments, sustainability diligence, and ESG reporting. |
| Sourcing and Procurement Services | Strategic sourcing, category management, spend analytics, and procurement operations. |
| Sales and Commercial Services | Campaign management, order processing, lead generation, pricing, and promotion optimization. |
| IT Services | End-user computing, infrastructure management, application support, and database management. |
| Transformation Services | Digital solutions, consulting, and analytics aimed at business transformation. |
Genpact’s portfolio spans a wide array of business process outsourcing and IT services, with specialized offerings for finance, healthcare, technology, and sustainability. The company leverages digital transformation and ESG capabilities to support diverse industry needs.
Main Competitors
The Technology sector in Information Technology Services includes 16 competitors, with the table below showing the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| International Business Machines Corporation | 272B |
| Accenture plc | 162B |
| Cognizant Technology Solutions Corporation | 40B |
| Fiserv, Inc. | 36B |
| Fidelity National Information Services, Inc. | 34B |
| Wipro Limited | 30B |
| Leidos Holdings, Inc. | 23B |
| Gartner, Inc. | 18B |
| CDW Corporation | 17B |
| Jack Henry & Associates, Inc. | 13B |
Genpact Limited ranks 12th among 16 competitors, with a market cap just 2.58% of the leader, IBM. Its valuation sits below both the average market cap of the top 10 (64.6B) and the sector median (17.8B). Genpact maintains a 57.33% market cap gap from the next competitor above, highlighting a significant scale difference.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does Genpact have a competitive advantage?
Genpact demonstrates a sustainable competitive advantage, as evidenced by a ROIC consistently exceeding its WACC by 5.1% and a strong 30.7% ROIC growth trend from 2021-2025. Its favorable margins and improving profitability underline efficient capital use and value creation.
Looking ahead, Genpact’s diverse IT and business process outsourcing services across multiple industries and regions position it well for growth. Expanding ESG advisory and digital transformation solutions offer fresh opportunities to capture new markets and deepen client relationships.
SWOT Analysis
This SWOT analysis highlights Genpact Limited’s key strategic factors to guide investment decisions.
Strengths
- strong ROIC vs WACC creating value
- growing revenue and net income over 5 years
- diversified global presence with leadership in India
Weaknesses
- relatively high price-to-book ratio
- moderate asset turnover indicating efficiency limits
- dependency on India market for revenue
Opportunities
- expanding ESG and digital transformation services
- growth potential in Americas and Europe
- increasing demand for finance and supply chain advisory
Threats
- intense competition in IT services
- geopolitical risks affecting global operations
- pressure on margins from rising costs
Genpact demonstrates a sustainable competitive advantage backed by solid profitability and growth. The company must address efficiency and valuation concerns while leveraging expanding digital and ESG trends to mitigate competitive and geopolitical risks.
Stock Price Action Analysis
The weekly chart for Genpact Limited (ticker: G) reveals key price movements and trend shifts over the past 12 months:
Trend Analysis
Over the past 12 months, Genpact’s stock price increased by 21.95%, indicating a bullish trend. The highest price reached 55.05, with a low of 30.9. Despite this gain, the trend shows deceleration. The 6.04% volatility suggests moderate price fluctuations.
Volume Analysis
In the last three months, trading volume has increased but is seller-driven, with sellers accounting for 62.2% of volume. Buyer dominance dropped to 37.77%, signaling cautious or bearish investor sentiment and heightened selling pressure.
Target Prices
Analysts set a clear target consensus for Genpact Limited, reflecting moderate upside potential.
| Target Low | Target High | Consensus |
|---|---|---|
| 42 | 50 | 46 |
The target range suggests analysts expect Genpact to trade between $42 and $50, with a consensus price of $46 indicating steady growth prospects.
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Analyst & Consumer Opinions
This section examines Genpact Limited’s analyst ratings and consumer feedback to provide balanced insight into market perceptions.
Stock Grades
Here is the latest collection of stock grades from well-established financial firms for Genpact Limited:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2026-02-06 |
| JP Morgan | Maintain | Neutral | 2025-08-20 |
| Needham | Maintain | Buy | 2025-08-08 |
| Mizuho | Maintain | Neutral | 2025-07-01 |
| Needham | Maintain | Buy | 2025-06-30 |
| TD Cowen | Maintain | Buy | 2025-06-27 |
| Needham | Maintain | Buy | 2025-05-08 |
| Baird | Maintain | Neutral | 2025-05-08 |
| Mizuho | Maintain | Neutral | 2025-02-10 |
| Needham | Maintain | Buy | 2025-02-07 |
The consensus reflects a balanced view with a slight tilt toward buying, as Needham consistently endorses a Buy rating while other firms prefer Neutral. This mix aligns with the overall Hold consensus among analysts.
Consumer Opinions
Genpact Limited inspires a mix of admiration and critique from its user base, reflecting its complex role in business process management.
| Positive Reviews | Negative Reviews |
|---|---|
| Efficient service delivery with consistent quality. | Customer support response times can lag. |
| Innovative use of technology to streamline processes. | Occasional issues with project communication. |
| Strong expertise in analytics and digital transformation. | Pricing perceived as high by small clients. |
Overall, consumers praise Genpact for its technological innovation and execution reliability. However, communication gaps and pricing concerns emerge as notable pain points.
Risk Analysis
Below is a summary of key risks facing Genpact Limited, categorized by likelihood and potential impact:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Exposure to global economic cycles affecting client spending on IT services | Medium | High |
| Competitive Risk | Intense competition could pressure margins and market share | High | Medium |
| Financial Risk | Moderate debt level could strain if cash flows weaken | Low | Medium |
| Regulatory Risk | Changes in data privacy and outsourcing regulations across regions | Medium | Medium |
| Operational Risk | Reliance on continuous innovation to maintain service differentiation | Medium | Medium |
| Currency Risk | Fluctuations in USD and other currencies impacting international earnings | Medium | Low |
I observe that competitive and market risks dominate. Genpact’s 0.735 beta shows moderate volatility, but global economic shifts could reduce client budgets sharply. Its low debt (D/E 0.23) and strong interest coverage mitigate financial distress risk. Regulatory changes in IT outsourcing remain a moderate concern given global operations. Overall, risks are manageable but warrant close monitoring.
Should You Buy Genpact Limited?
Genpact appears to be a robust value creator with a very favorable moat, evidenced by a growing ROIC well above WACC. Despite some unfavorable leverage metrics, its solid profitability and strong financial health support an overall A- rating.
Strength & Efficiency Pillars
Genpact Limited exhibits strong profitability and operational efficiency. The net margin stands at a solid 10.88%, supported by a return on equity of 21.67% and a return on invested capital (ROIC) of 12.32%. Notably, the ROIC exceeds the weighted average cost of capital (WACC) of 7.21%, confirming the company as a value creator. This growing ROIC trend signals sustainable competitive advantage and disciplined capital allocation, reinforcing its robust operational foundation.
Weaknesses and Drawbacks
Genpact’s valuation and leverage metrics present some concerns. The price-to-book ratio at 3.19 is elevated, indicating the stock may be trading at a premium relative to its book value. Although debt-to-equity is low at 0.23, which is favorable, the moderate price-to-earnings ratio of 14.72 calls for caution given recent market volatility. Additionally, recent seller dominance (37.77% buyer volume) could exert short-term downward pressure on the stock price.
Our Final Verdict about Genpact Limited
Genpact Limited may appear attractive for long-term exposure due to its strong fundamentals and value creation. Despite a bullish overall trend, recent seller dominance suggests a wait-and-see approach for a better entry point. The company’s financial health remains solid with a safe Altman Z-Score of 3.09, supporting confidence in its solvency and growth potential.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Why Are Genpact (G) Shares Soaring Today – Yahoo Finance (Feb 06, 2026)
- Down 20.8% in 4 Weeks, Here’s Why Genpact (G) Looks Ripe for a Turnaround – Finviz (Feb 06, 2026)
- Genpact Limited (NYSE:G) Q4 2025 Earnings Call Transcript – Insider Monkey (Feb 06, 2026)
- Genpact Reports Fourth Quarter and Full Year 2025 Results – PR Newswire (Feb 05, 2026)
- Genpact Limited (NYSE:G) to Issue Quarterly Dividend of $0.19 – MarketBeat (Feb 06, 2026)
For more information about Genpact Limited, please visit the official website: genpact.com
