Why EXL (EXLS) Stock Is Down Today

What Happened?

Shares of data analytics and digital solutions company ExlService Holdings (NASDAQ:EXLS) fell 3.7% in the afternoon session after the stock pulled back following the release of its third-quarter results that topped analyst expectations and raised its full-year guidance, though the update was seemingly overshadowed by concerns about competition. 

The company's results were strong, and it boosted its 2025 revenue forecast to between US$2.07 and $2.08 billion. A key factor was the successful adoption of its new AI-powered data platform, EXLdata.ai. However, the positive report did not appear to change the view on a major risk facing the company. The stock's fall suggested that investors were still worried about the "intensifying competition in AI-driven business services," which tempered the good news from the earnings release and weighed on the shares.

The shares closed the day at $39.09, down 2.9% from previous close.

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What Is The Market Telling Us

EXL’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 7.5% on the news that the company reported strong second-quarter results that beat analyst expectations and raised its full-year financial forecast. The data and analytics company announced revenue of $514.5 million, a 14.7% increase year-over-year, while its adjusted earnings per share jumped 20.3% to $0.49, surpassing consensus estimates. Citing strong momentum and visibility, EXL boosted its full-year 2025 revenue guidance and lifted its adjusted EPS outlook. The company also revealed a new $125 million accelerated share repurchase program, signaling confidence to its investors. Adding to the positive sentiment, EXL announced a strategic collaboration with Genesys to enhance AI-driven customer engagement, underscoring the company's focus on its data and AI capabilities, which its CEO credited for the strong performance.

EXL is down 11.6% since the beginning of the year, and at $39.10 per share, it is trading 24.5% below its 52-week high of $51.80 from February 2025. Investors who bought $1,000 worth of EXL’s shares 5 years ago would now be looking at an investment worth $2,541.

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