Winners And Losers Of Q3: Genpact (NYSE:G) Vs The Rest Of The Business Process Outsourcing & Consulting Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the business process outsourcing & consulting industry, including Genpact (NYSE:G) and its peers.

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 8 business process outsourcing & consulting stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.

Genpact (NYSE:G)

Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE:G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Genpact reported revenues of $1.29 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 24.4% since reporting and currently trades at $47.78.

Is now the time to buy Genpact? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: CRA (NASDAQ:CRAI)

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

CRA reported revenues of $185.9 million, up 10.8% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 13.8% since reporting. It currently trades at $202.27.

Is now the time to buy CRA? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Concentrix (NASDAQ:CNXC)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ:CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.48 billion, up 4% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

As expected, the stock is down 27.8% since the results and currently trades at $39.70.

Read our full analysis of Concentrix’s results here.

FTI Consulting (NYSE:FCN)

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE:FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

FTI Consulting reported revenues of $956.2 million, up 3.3% year on year. This result surpassed analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

FTI Consulting had the slowest revenue growth among its peers. The stock is up 9.7% since reporting and currently trades at $170.86.

Read our full, actionable report on FTI Consulting here, it’s free for active Edge members.

Exponent (NASDAQ:EXPO)

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ:EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Exponent reported revenues of $137.1 million, up 9.6% year on year. This number topped analysts’ expectations by 4%. It was a very strong quarter as it also logged a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Exponent achieved the biggest analyst estimates beat among its peers. The stock is up 11.1% since reporting and currently trades at $74.21.

Read our full, actionable report on Exponent here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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