Genpact offers asymmetric five-year upside as fast-growing, higher-margin Agentic Operations offsets near-term legacy-BPO disruption at only 8.58x forward earnings.
Overview
Genpact is a Bermuda-domiciled, New York-headquartered global professional-services company transitioning from traditional BPO toward Agentic Operations. Its ATS segment provides data, AI, digital integration, advisory, and autonomous-agent solutions, while Core Business Services supplies predictable digital operations and IT support. The company serves approximately one-quarter of the Fortune Global 500, with FY2025 revenue of $5.08 billion split 23.7% ATS and 76.3% Core Business Services. **ATS growth and mix improvement are the central investment drivers**: ATS grew 17% in FY2025 and 24.1% in Q2 FY2026, while 48% of Q1 FY2026 revenue used transaction-, consumption-, or outcome-based pricing. Q2 revenue rose 7.1% to $1.343 billion, adjusted EPS increased 13.6% to $1.00, gross margin expanded to 36.5%, and adjusted operating margin was 17.4%. Management raised FY2026 ATS growth guidance to at least 25% and adjusted EPS growth to at least 12%, but operating cash flow fell 59% to $72 million. **Valuation is compressed at 8.58x forward P/E versus approximately 25x for Accenture.** The near-term catalysts are cash-flow normalization, ATS acceleration, and successful legacy-contract exits; the key offset is a two-percentage-point FY2026 growth drag lasting four to six quarters.