Genpact (G) Delivers Record Results as Analyst Sentiment Stays Cautious

Genpact Limited (NYSE:G) is one of the best affordable tech stocks to buy right now. On February 6, BMO Capital analyst Keith Bachman lowered the price target on Genpact Limited (NYSE:G) to $44 from $48 and maintained a Market Perform rating.

Bachman made this adjustment despite noting that Genpact delivered solid results with mid- to high-single-digit growth and margin expansion. In his defense, the analyst said that there is pronounced ongoing negative AI-related sentiment affecting the broader IT services and software sectors. And as such, Bachman stated that IT services companies broadly will remain range-bound despite solid results over the near/medium-term.

Independent of the analyst action, Genpact released its Q4 2025 earnings on February 5. Net revenue for the quarter grew 5.6% year over year to $1.319 billion, and exceeded the $1.31 billion that Wall Street expected. Adjusted diluted EPS reached $0.97, up 6.6% from the prior year and beating consensus estimates by roughly $0.03. Management noted the company exceeded its own expectations for the quarter.

For the complete FY2025, Genpact’s net revenues were a record-setting $5.08 billion, up 6.6% year-over-year. Adjusted diluted EPS rose 11.3% to $3.65, marking the fifth consecutive year that earnings grew faster than revenue. The story is the same across key metrics: adjusted operating income increased 9.0% to $888 million, adjusted operating margin expanded to 17.5%, and gross profit improved 8.3% to $1.83 billion.

And for the upcoming first quarter, Genpact guided revenue in the range of $1.282 billion to $1.294 billion (5.5% to 6.5% growth). Management expects adjusted diluted EPS of $0.92 to $0.93, and noted that Advanced Technology Solutions, or ATS, growth should accelerate to high-teens year-over-year.

Genpact Limited (NYSE:G) provides business process management and IT services. The company’s operations focus on streamlining enterprise processes through automation, artificial intelligence, and cloud-based solutions.

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Disclosure: None. This article is originally published at Insider Monkey.