Genpact LTD (G)
SIC breadcrumb: Services > SIC Major Group 87 > SIC 8742 Services-Management Consulting Services
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1398659. Latest filing source: 0001398659-26-000004.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 5,079,879,000 | USD | 2025 | 2026-02-26 |
| Net income | 552,494,000 | USD | 2025 | 2026-02-26 |
| Assets | 5,843,267,000 | USD | 2025 | 2026-02-26 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001398659.json. Derived margins are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2,570,756,000 | 2,736,929,000 | 3,000,790,000 | 3,520,543,000 | 3,709,377,000 | 4,022,211,000 | 4,371,172,000 | 4,476,888,000 | 4,767,139,000 | 5,079,879,000 |
| Net income | 269,684,000 | 263,111,000 | 282,019,000 | 304,881,000 | 308,276,000 | 369,448,000 | 353,404,000 | 631,255,000 | 513,670,000 | 552,494,000 |
| Operating income | 341,206,000 | 331,279,000 | 348,152,000 | 429,376,000 | 438,717,000 | 508,999,000 | 502,151,000 | 630,857,000 | 702,061,000 | 750,207,000 |
| Gross profit | 1,016,416,000 | 1,055,491,000 | 1,079,022,000 | 1,225,855,000 | 1,291,240,000 | 1,431,959,000 | 1,536,398,000 | 1,570,665,000 | 1,690,066,000 | 1,831,012,000 |
| Diluted EPS | 1.28 | 1.34 | 1.45 | 1.56 | 1.57 | 1.91 | 1.88 | 3.41 | 2.85 | 3.13 |
| Assets | 2,885,880,000 | 3,449,621,000 | 3,529,445,000 | 4,454,184,000 | 4,873,513,000 | 4,975,269,000 | 4,588,814,000 | 4,805,713,000 | 4,987,153,000 | 5,843,267,000 |
| Liabilities | 1,594,712,000 | 2,020,827,000 | 2,125,263,000 | 2,765,013,000 | 3,039,284,000 | 3,078,136,000 | 2,762,656,000 | 2,557,321,000 | 2,597,542,000 | 3,293,866,000 |
| Stockholders' equity | 1,286,648,000 | 1,424,044,000 | 1,404,182,000 | 1,689,171,000 | 1,834,229,000 | 1,897,133,000 | 1,826,158,000 | 2,248,392,000 | 2,389,611,000 | 2,549,401,000 |
| Cash and cash equivalents | 422,623,000 | 504,468,000 | 368,396,000 | 467,096,000 | 680,440,000 | 899,458,000 | 646,765,000 | 583,670,000 | 648,246,000 | 853,836,000 |
| Net margin | 10.49% | 9.61% | 9.40% | 8.66% | 8.31% | 9.19% | 8.08% | 14.10% | 10.78% | 10.88% |
| Operating margin | 13.27% | 12.10% | 11.60% | 12.20% | 11.83% | 12.65% | 11.49% | 14.09% | 14.73% | 14.77% |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001398659.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 0.38 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 0.51 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 0.57 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 1,105,524,000 | 116,252,000 | 0.63 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,135,792,000 | 117,593,000 | 0.64 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,146,253,000 | 291,309,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 1,131,237,000 | 116,947,000 | 0.64 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,176,212,000 | 121,990,000 | 0.67 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,210,949,000 | 132,818,000 | 0.74 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,248,741,000 | 141,915,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 1,214,926,000 | 130,853,000 | 0.73 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,254,418,000 | 132,716,000 | 0.75 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,291,257,000 | 145,831,000 | 0.83 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,319,278,000 | 143,094,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 1,296,072,000 | 147,992,000 | 0.86 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001398659-26-000010.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis is meant to provide material information relevant to an assessment of the financial condition and results of operations of our company, including an evaluation of the amounts and uncertainties of cash flows from operations and from outside sources, so as to allow investors to better view our company from management’s perspective. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025 and with the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical information, this discussion includes forward-looking statements and information that involves risks, uncertainties and assumptions, including but not limited to those listed below and under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Special Note Regarding Forward-Looking Statements
We have made statements in this Quarterly Report on Form 10-Q (the “Quarterly Report”) in, among other sections, Part I, Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are forward-looking statements. In some cases, you can identify these statements by forward-looking terms such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “could,” “may,” “shall,” “will,” “would” and variations of such words and similar expressions, or the negative of such words or similar expressions. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, which in some cases may be based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In particular, you should consider the numerous risks outlined in Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Forward-looking statements we may make include, but are not limited to, statements relating to:
•our ability to retain existing clients and contracts;
•our ability to win new clients and engagements;
•the expected value of the statements of work under our master service agreements;
•our beliefs about future trends in our market;
•political, economic or business conditions in countries where we have operations or where our clients operate, and heightened economic uncertainty and geopolitical tensions;
•expected spending by existing and prospective clients on our solutions and services;
•foreign currency exchange rates;
•our ability to convert bookings to revenue;
•our rate of employee attrition;
•our effective tax rate; and
•competition in our industry.
Factors that may cause actual results to differ from expected results include, among others:
•our ability to anticipate, develop and incorporate advanced technologies, including artificial intelligence (“AI”) and generative and agentic AI, into our solutions and services as well as our internal operations and to compete in the rapidly evolving technological environment and successfully implement and generate revenue from new solutions and services;
•our ability to develop and successfully execute our business strategies;
•evolving global trade dynamics, including newly imposed or changing tariffs, trade restrictions and other measures introduced by major economies, any of which may disrupt global supply chains, increase operating costs for our clients and delay their business decisions;
•deterioration in the global economic environment and its impact on our clients;
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•our ability to hire and retain enough qualified employees to support our business, especially our advanced technology solutions;
•our ability to safeguard our systems and protect client, Genpact or employee data from security incidents or cyberattacks;
•our ability to effectively price our solutions and services and maintain our pricing and employee and asset utilization rates;
•general inflationary pressures and our ability to share increased costs with our clients;
•increasing competition in our industry;
•increases in wages in locations where we have operations;
•our ability to retain senior management;
•our ability to comply with data protection laws and regulations and to maintain the security and confidentiality of personal and other sensitive data of our clients, employees or others;
•telecommunications or technology disruptions or breaches, natural or other disasters, or medical epidemics or pandemics;
•our dependence on favorable policies and tax laws that may be changed or amended in a manner adverse to us or be unavailable to us in the future, including as a result of tax policy changes in India, and our ability to effectively execute our tax planning strategies;
•claims and lawsuits, including by clients, employees or third parties;
•regulatory, legislative and judicial developments, including the withdrawal of governmental fiscal incentives, particularly in India;
•our dependence on revenues derived from clients in North America and Europe and clients that operate in certain industries;
•geopolitical tensions, including the Russia-Ukraine war and the Middle East conflicts, and actions that may be taken by the United States and other countries in response;
•our ability to successfully consummate or integrate strategic acquisitions;
•our ability to attract and retain clients and to develop and maintain client relationships on attractive terms;
•our ability to service our defined contribution and benefit plan payment obligations;
•clarification as to the possible retrospective application of a judicial pronouncement in India regarding our defined contribution and benefit plan payment obligations;
•financing terms, including changes in the Secured Overnight Financing Rate ("SOFR") and changes to our credit ratings;
•our ability to meet our corporate funding needs, pay dividends and service debt, including our ability to comply with the restrictions that apply to our indebtedness that may limit our business activities and investment opportunities;
•our ability to successfully implement our new enterprise resource planning system;
•our ability to grow our business and effectively manage growth and international operations while maintaining effective internal controls;
•restrictions on visas for our employees, in particular for employees traveling to the United States, the United Kingdom and the European Union, and restrictions on immigration more generally, as well as the potentially increased costs of visas and the wages we are required to pay employees on visas;
•fluctuations in currency exchange rates between the currencies in which we transact business;
•the selling cycle for our client relationships;
•legislation in the United States or elsewhere that restricts or adversely affects demand for our services offshore;
•our ability to protect our intellectual property and the intellectual property of others;
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•the international nature of our business;
•technological innovation; and
•unionization of a significant number of our employees.
Although we believe the expectations reflected in the forward-looking statements are reasonable at the time they are made, we cannot guarantee future results, level of activity, performance or achievements. Achievement of future results is subject to risks, uncertainties, and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to update any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations. You are advised, however, to consult any further disclosures we make on related subjects in our Form 10-K, Form 10-Q and Form 8-K reports to the Securities and Exchange Commission (the “SEC”).
Macroeconomic and business environment
Our results of operations are affected by economic and geopolitical conditions, including overall levels of business confidence, inflationary pressures, monetary policy uncertainty and the pace of global growth. Economic uncertainty continues to increase in several markets globally, which has impacted our business and may continue to impact our business in the future. Any extended periods of slower sales cycles could have a material adverse effect on our business, financial position and results of operations.
Geopolitical tensions also continue to intensify. Conflicts in the Middle East, in particular the Iran conflict, as well as the ongoing conflict between Russia and Ukraine, are exacerbating global market volatility and regional instability. We do not have operations in Iran, Russia or Ukraine, and our direct exposure to affected countries in the Middle East remains limited. To date, these conflicts have not had a material impact on our business, financial position or operations, but it is difficult to anticipate the future impacts of these conflicts on our business or our clients’ businesses.
For additional information about the risks we face, see Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Overview
We are an agentic and advanced technology solutions company recognized for our deep industry knowledge, process intelligence and last-mile expertise. We have over 145,000 employees serving clients from more than 35 countries. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
In the quarter ended March 31, 2026, we recorded net revenues of $1,296.1 million. Net revenues from Advanced Technology Solutions were $345.2 million and net revenues from Core Business Services were $950.8 million.
Critical Accounting Policies and Estimates
For a description of our critical accounting policies and estimates, see Note 2—“Summary of significant accounting policies” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above, as well as Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026 from those described in our Annual Report on Form 10-K for the year ended December 31, 2025.
Due to rounding, the numbers presented in the tables or in the narrative included in this “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided.
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Results of Operations
The following table sets forth certain data from our consolidated statements of income for the three months ended March 31, 2025 and 2026.
Percentage Change
Increase/(Decrease)
Three months ended March 31,
Three months ended March 31,
2025
2026
2026 vs. 2025
(dollars in millio
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis is meant to provide material information relevant to an assessment of the financial condition and results of operations of our company, including an evaluation of the amounts and uncertainties of cash flows from operations and from outside sources, so as to allow investors to better view our company from management’s perspective. The following discussion should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this Annual Report on Form 10-K. In addition to historical information, this discussion includes forward-looking information that involves risks and assumptions, which could cause actual results to differ materially from management’s expectations. See “Special Note Regarding Forward-Looking Statements” included elsewhere in this Annual Report on Form 10-K.
Macroeconomic and business environment
Our results of operations are affected by economic and geopolitical conditions, new and rapidly changing technologies, and shifting levels of business confidence. Since the beginning of 2025, economic uncertainty has increased in several markets globally, driven by shifting trade policy and the prospect of slowing global growth, which has impacted our business and may continue to impact our business in the future.
Broad-based tariffs imposed by the U.S., and threatened or imposed retaliatory measures by other countries, have contributed to increased macroeconomic uncertainty in global markets, which may impact our revenue growth. Extended periods of slower sales cycles could have a material adverse effect on our business, financial position and results of operations.
Geopolitical tensions have also continued to intensify globally. The Russia-Ukraine war and ongoing conflicts in the Middle East are contributing to global market volatility and regional instability. We do not have operations in Russia or Ukraine and have limited operations in Israel or other affected countries. To date, these conflicts have not had a material impact on our business, financial position or operations, but it is difficult to anticipate the future impacts of these conflicts and other geopolitical tensions on our business or our clients’ businesses.
For additional information about the risks we face, see Part I, Item 1A—“Risk Factors.”
Overview
We are an agentic and advanced technology solutions company recognized for our deep industry knowledge, process intelligence and last-mile expertise. We have over 146,500 employees serving clients from more than 35 countries.
Our 2025 net revenues were $5.1 billion, an increase of 6.6% year-over-year, or 6.4% on a constant currency1 basis.
Net Revenues
Revenue by top clients. The table below sets forth the percentage of our total net revenues derived from our largest clients in the years ended December 31, 2024 and 2025:
Percentage of Total Net Revenues
Year ended December 31,
2024
2025
Top five clients
14.1
%
15.2
%
Top ten clients
22.4
%
23.4
%
Top fifteen clients
28.8
%
29.6
%
Top twenty clients
34.2
%
34.4
%
We earn revenues pursuant to contracts that generally take the form of a master service agreement ("MSA"), which is a framework agreement that is then supplemented by statements of work ("SOWs"). Our MSAs specify the general terms applicable to the services we will provide. Our MSAs are generally for terms of three to seven years, although they may also have an indefinite term or be for terms of less than three years. In most cases they do not specify pricing terms or obligate the client to purchase a particular amount of services. We then enter into SOWs under an MSA, which specify particular services to be provided and the pricing terms.
1 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.
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Most of our revenues are from SOWs with terms of two to five years. We typically have multiple SOWs under any given MSA, and the terms of our SOWs vary depending on the nature of the services to be provided. We seek to develop long-term relationships with our clients.
We believe that these relationships best serve our clients as they create opportunities for us to provide a variety of services using the full range of our capabilities and to deliver continuous process improvement.
New business proposals are reviewed in line with our strategy to target specific industry verticals and geographical markets. We begin each year with a set of named accounts, including prospective clients with operations in our target areas, and all opportunities during the year are reviewed by business leaders from the applicable industry vertical, operations, and finance teams. In this way, we try to ensure that contract terms meet our pricing, cash and service objectives. See Item 1—“Business—Sales and marketing” for additional information.
Many factors affect how we price our contracts. Under some of our MSAs, we are able to share a limited amount of inflation and currency exchange risk for engagements lasting longer than 12 months. Many of our MSAs also provide that, under transaction-based and fixed-price SOWs, we are entitled to retain a portion of certain productivity benefits we achieve. However, some of our MSAs and SOWs require certain minimum productivity benefits to be passed on to our clients. Once an MSA and the related SOWs are signed and production of services commences, our revenues and expenses increase as services are ramped up to the agreed upon level. In many cases, we may have opportunities to increase our profit margins over the life of an MSA or SOW, driven by a number of factors. Our revenues include gains or losses arising upon the maturity of qualified cash flow hedges.
Disaggregation of net revenues. Prior to the quarter that began on April 1, 2025, we disaggregated our net revenues as either Data-Tech-AI or Digital Operations revenues based on the nature of services rendered. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions and Core Business Services.
Expenses. Personnel expenses are a major component of both our cost of revenue and our selling, general and administrative ("SG&A") expenses. Personnel expenses include salaries and benefits (including stock-based compensation) as well as costs related to recruitment and training. Personnel expenses are allocated between cost of revenue and selling, general and administrative expenses based on the allocation of the employee. Depreciation and amortization expense are allocated between cost of revenue and selling, general and administrative expenses using an appropriate allocation basis.
Our industry is labor-intensive. Wage levels in the countries in which our delivery centers are located have historically increased on a year-over-year basis. We attempt to address the impact of wage increases, and pressures to increase wages, in a number of ways, which include seeking to control entry-level wages, managing attrition, internal training to re-skill existing employees, delivering productivity and “right-skilling,” which refers to ensuring that positions are not filled by overqualified employees. We try to control increases in entry-level wages by implementing innovative recruitment policies, utilizing continuous training techniques, emphasizing promotion opportunities and maintaining an attractive work atmosphere and culture.
In planning capacity expansion, we look for locations that help us ensure global delivery capability while helping us control average salary levels. In India and in other countries where we may open multiple offices or delivery centers, we try to expand into cities where competition for personnel and wage levels may be lower than in more developed cities. In addition, under some of our contracts we can share with our clients a portion of any increase in costs due to inflation. Nevertheless, despite these steps, we expect general increases in wage levels in the future, which could adversely affect our margins. A significant increase in attrition rates would also increase our recruitment and training costs and decrease our operating efficiency, productivity and profit margins. Increased attrition rates or increased pricing may also cause some clients to be less willing to use our services. See Item 1A—“Risk Factors—Wage increases in the countries where we operate may reduce our profit margin.”
Our operational expenses include facilities maintenance expenses, travel and living expenses, IT expenses, and consulting and certain other expenses. Consulting charges, consisting of the cost of consultants and contract employees with specialized skills who are directly responsible for the performance of services for clients, are included in cost of revenue. Facilities maintenance expenses and certain other expenses are allocated between cost of revenue and selling, general and administrative expenses based on the employee’s function.
Cost of revenue. The principal component of cost of revenue is personnel expenses. We include in cost of revenue all personnel expenses for employees who are directly responsible for the performance of services for clients, their supervisors and certain support personnel who may be dedicated to a particular client or a set of processes. Travel and living expenses are included in cost of revenue if the personnel expense for the employee incurring such expense is included in cost of revenue.
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The ratio of cost of revenue to revenues for any particular SOW or for all SOWs under an MSA, which generally has a longer term ranging from two to five years, is typically higher in the early periods of the contract or client relationship than in later periods. This is because the number of supervisory and direct support personnel relative to the number of employees who are performing services typically declines in later periods of the contract. It is also because we may retain a portion of the benefit of productivity increases realized over time.
Selling, general and administrative expenses. Our SG&A expenses are primarily comprised of personnel expenses for senior management and other support personnel in enabling functions, such as human resources, finance, legal, marketing, sales and sales support, and other non-billable support personnel. The operational costs component of SG&A expenses also includes travel and living costs for such personnel. Additionally, the operational costs component of SG&A expenses includes acquisition related costs, legal and professional fees (which represent the costs of third-party legal, tax, accounting and other advisors), strategic investments in research and development, digital technology, advanced automation and robotics, and an allowance for credit losses.
Amortization of acquired intangible assets. Amortization of acquired intangible assets consists of amortization expenses relating to intangible assets acquired through acquisitions.
Other operating (income) expense, net. Other operating (income) expense, net primarily consists of the impact of certain operating losses resulting from the write-down of operating lease right-of-use assets, property, plant and equipment and intangible assets, losses on the sale of assets classified as held for sale, gains on lease terminations, the waiver of a vendor liability and a gain on the redemption of a loan note associated with the sale of a business classified as held for sale.
Foreign exchange gains (losses), net. Foreign exchange gains (losses), net primarily consists of gains or losses on the re-measurement of non-functional currency assets and liabilities. In addition, it includes gains or losses from derivative contracts entered into to offset the impact of the re-measurement of non-functional currency assets and liabilities. It also includes the realized and unrealized gains or losses on derivative contracts that do not qualify for hedge accounting.
We also enter into derivative contracts to offset the impact of the re-measurement of non-functional currency expenditures and income. The gains or losses on derivative contracts that qualify for hedge accounting, which are cash flow hedges, are deferred and included under other comprehensive income (loss) until the derivative contracts mature, at which time the gains or losses on such cash flow hedges are classified as net revenues, cost of revenue or selling, general and administrative expenses based on the underlying risk being hedged. See Note 2—“Summary of significant accounting policies” to our Consolidated Financial Statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ and Item 7A—“Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk.”
75% of our fiscal 2025 net revenues were earned in U.S. dollars. We also received payments in euros, UK pounds sterling, Australian dollars, Indian rupees and Japanese yen. Our costs are primarily incurred in Indian rupees, as well as U.S. dollars, Romanian leu, UK pounds sterling, Chinese renminbi, Philippine pesos, Polish zloty, euros, Mexican pesos, Costa Rican colón, Japanese yen, Canadian dollars, Malaysian ringgit, Guatemalan quetzals, Australian dollars, South African rand and Hungarian forint and the currencies of the other countries in which we have operations. While some of our contracts provide for limited sharing of the risk of inflation and fluctuations in currency exchange rates, we bear a substantial portion of this risk, and therefore our operating results could be negatively affected by adverse changes in wage inflation rates and foreign currency exchange rates. See our discussion of wage inflation under “Expenses” above. We enter into forward currency contracts, which are generally designed to qualify for hedge accounting, in order to hedge most of our net cost currency exposure between the U.S. dollar and the Indian rupee and Mexican peso, between the Australian dollar and the Indian rupee, and between the euro and the Romanian leu, and our revenue currency exposure between the U.S. dollar and the UK pound sterling, Philippine peso, Hungarian forint, Chinese renminbi, Malaysian ringgit, Polish zloty, Costa Rican colón, and the euro, and between the Chinese renminbi and the Japanese yen. However, our ability to hedge such risks is limited by local law, the liquidity of the market for such hedges and other practical considerations. Thus, our results of operations may be adversely affected if we are not able to enter into the desired hedging arrangements or if our hedging strategies are not successful. See Note 2—“Summary of significant accounting policies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
Interest income (expense), net. Interest income (expense), net consists primarily of interest expense on indebtedness, including resulting from interest rate swaps and a treasury rate lock agreement, finance lease obligations, certain items related to debt restructuring, and interest income on certain deposits. We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term Secured Overnight Financing Rate (“SOFR”) and the floor rate under our term loan and make payments based on a fixed rate.
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Other income (expense), net. Other income (expense), net primarily includes certain government incentives received by our subsidiaries, gains (losses) on the sale/disposal of property, plant and equipment and changes in the fair value of assets in our deferred compensation plan.
Income taxes. We are incorporated in Bermuda and have operations in many countries. Our effective tax rate has historically varied and will continue to vary from year to year based on the tax rate in the jurisdiction of our organization, the geographical sources of our earnings and the tax rates in those countries, the tax relief and incentives available to us, the financing and tax planning strategies employed by us, changes in tax laws or the interpretation thereof, and movements in our tax reserves, if any.
Bermuda taxes. We are organized in Bermuda. On December 27, 2023, the government of Bermuda passed legislation introducing a corporate income tax of 15%, which became effective on January 1, 2025. As a result of this new legislation, we recorded a deferred tax asset on net operating losses, which was fully offset by a valuation allowance.
Transfer pricing. We have transfer pricing arrangements among our subsidiaries involved in various aspects of our business, including operations, marketing, sales and delivery functions. U.S., UK, and Indian transfer pricing regulations, as well as the regulations applicable in the other countries in which we operate, require that any international transaction involving affiliated enterprises be made on arm’s-length terms. We consider the transactions among our subsidiaries to be substantially on arm’s-length pricing terms. If, however, a tax authority in any jurisdiction reviews any of our tax returns and determines that the transfer prices we have applied are not appropriate, or that other income of our affiliates should be taxed in that jurisdiction, we may incur increased tax liability, including accrued interest and penalties, which would cause our tax expense to increase, possibly materially, thereby reducing our profitability and cash flows.
Other taxes. We have operating subsidiaries or branches in several countries, including Albania, Argentina, Australia, Brazil, Bulgaria, Canada, China, Colombia, Costa Rica, the Czech Republic, Egypt, Germany, Guatemala, Hungary, India, Ireland, Israel, Japan, Kosovo, Malaysia, Mexico, the Netherlands, Norway, the Philippines, Poland, Portugal, Romania, Singapore, Slovakia, South Africa, Thailand, Turkey, the United Kingdom, the United States and Vietnam, as well as sales and marketing subsidiaries in certain jurisdictions, including the United States and the United Kingdom, which are subject to tax in such jurisdictions.
One of our subsidiaries in China obtained a ruling from the Government of China certifying it to be a Technologically Advanced Service Enterprise. As a result, that subsidiary is subject to a lower corporate income tax rate of 15% through December 31, 2026, subject to the fulfillment of certain conditions. Our delivery centers are eligible for corporate tax holidays or concessional tax rates in certain other jurisdictions, including Costa Rica, Israel, Malaysia, the Philippines and Poland. These tax concessions will expire over the next few years, possibly increasing our overall tax rate.
The governments of foreign jurisdictions where we deliver services may assert that certain of our clients have a “permanent establishment” in such jurisdictions by reason of the activities we perform on their behalf, particularly those clients that exercise control over or have substantial dependency on our services. Such an assertion could affect the size and scope of the services requested by such clients in the future.
Our ability to repatriate surplus earnings from our foreign subsidiaries in a tax-efficient manner is dependent upon interpretations of local laws and applicable double taxation treaties. Possible changes in such laws and the renegotiation of existing double tax avoidance treaties may adversely affect our overall tax rate.
Tax audits. Our tax liabilities may also increase, including due to accrued interest and penalties, if the applicable income tax authorities in any jurisdiction, during the course of any audits, were to disagree with any of our tax return positions. We have an indemnity from GE for any additional taxes attributable to periods prior to December 30, 2004.
Tax losses and other deferred tax assets. Our ability to utilize our tax loss carry forwards and other deferred tax assets and credits may be affected if our profitability deteriorates or if new legislation is introduced that changes carry-forward or crediting rules. Additionally, reductions in enacted tax rates may affect the value of our deferred tax assets and our tax expense.
One Big Beautiful Bill Act ("OBBBA")
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The OBBBA introduced several measures, including the permanent extension of select provisions from the Tax Cuts and Jobs Act of 2017, revisions to the international tax framework, and the reinstatement of favorable tax treatment for certain business-related items. The OBBBA contains multiple effective dates. The legislation did not have a material impact on our income tax expense for the year ended December 31, 2025.
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Certain Acquisitions
From time to time we may make acquisitions or engage in other strategic transactions if suitable opportunities arise, and we may use cash, securities, other assets or a combination thereof as consideration.
On June 5, 2025, we acquired 100% of the outstanding equity interests in XponentL Data, Inc., a Delaware corporation, and certain affiliated entities in Albania, India and Kosovo (collectively referred to as “XponentL”), for total purchase consideration of $160.2 million. This amount represents cash consideration of $82.7 million (including $2.3 million of cash acquired) and earn-out consideration of $77.5 million payable by us in March 2026 to the sellers of XponentL. This acquisition brings differentiated domain-led data strategy, design, and engineering capabilities, deep industry experience, and strategic partnerships. This acquisition builds on Genpact's pivot to data, AI, and other advanced technologies, enhancing Genpact's ability to help clients across the lifecycle of AI transformation, from strategy through implementation. Goodwill arising from the acquisition amounting to $112.3 million has been allocated among our three reporting units as follows: to the Financial Services segment in the amount of $6.2 million, to the Consumer and Healthcare segment in the amount of $88.8 million and to the High Tech and Manufacturing segment in the amount of $17.3 million, using a relative fair value allocation method. Goodwill arising from this acquisition is not deductible for income tax purposes and represents primarily the acquired capabilities and other benefits expected to result from combining the acquired operations with our existing operations.
New Bookings
New bookings is an operating or other statistical measure. We define new bookings as the total contract value of new client contracts and certain changes to existing client contracts to the extent that such contracts represent incremental future revenue. In determining total contract value for this purpose, we assume the volume to which the client has committed or make a conservative projection where the client has not made a volume commitment. New bookings attributable to deals may exclude a portion of the total contract value if the services are subject to certain contingencies, such as regulatory or other approvals. Regular renewals of contracts with no change in scope, which we consider business as usual, are not included as new bookings. We provide information regarding our new bookings because we believe doing so provides useful trend information regarding changes in the volume of our new business and may be a useful metric as an indicator of future revenue growth potential. Our management also uses new bookings to measure our sales force productivity.
New bookings in 2025 and 2024 were $5.5 billion and $5.7 billion, respectively.
New bookings can vary significantly year to year depending in part on the timing of signing of large contracts. The types of services clients are demanding, the duration of the contract and the pace and level of client spending may impact the conversion of new bookings to revenues. For example, bookings for our Digital Operations services and Core Business Services, which are typically provided under multi-year contracts, generally convert to revenue over a longer period of time than do bookings for our Data-Tech-AI services and Advanced Technology Solutions, which often include shorter cycle, project-based work.
Information regarding our new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues over time. The calculation of new bookings involves estimates and judgments. There are no third-party standards or requirements governing the calculation of new bookings. We do not update our new bookings for material subsequent terminations or reductions related to new bookings originally recorded in prior fiscal years. New bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. Our revenues recognized each year will vary from the new bookings value since new bookings is a snapshot measurement of a portion of the total client contract value at a given time.
Critical Accounting Policies and Estimates
A summary of our significant accounting policies is included in Note 2—“Summary of significant accounting policies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if changes in the estimate that are reasonably possible could materially impact the financial statements or require a higher degree of judgment than others in their application. We base our estimates on historical experience, contractual commitments and on various other assumptions that we believe to be reasonable under the circumstances and at the time they are made. We believe the following critical accounting policies require a higher level of management judgment and estimates than others in preparing the consolidated financial statements. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.
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Business combinations. The application of business combination accounting requires the use of significant estimates and assumptions. We account for business combinations using the acquisition method of accounting, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. The measurement of purchase price, including future contingent consideration, if any, and its allocation, requires significant estimates in determining the fair values of assets acquired and liabilities assumed, including with respect to intangible assets and deferred and contingent consideration. Significant estimates and assumptions we may make include, but are not limited to, the timing and amount of future revenue and cash flows based on, among other things, anticipated growth rates, customer attrition rates, and the discount rate reflecting the risk inherent in future cash flows.
In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with business combinations are initially estimated as of the acquisition date, and we reevaluate these items quarterly with any adjustments to our preliminary estimates being recorded to goodwill within the measurement period (up to one year from the acquisition date).
Goodwill and other intangible assets. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. We test goodwill for impairment as of December 31 every year. We may perform quantitative testing where the fair value of the reporting unit is compared with its carrying amount, including goodwill, or choose to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Based on the results of the qualitative assessment, we perform the quantitative assessment of goodwill impairment if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
For the years ended December 31, 2023 and 2024, we relied on a qualitative assessment to determine if it was more likely than not that the fair value of a reporting unit was less than its carrying amount. For the year ended December 31, 2025, we performed a quantitative assessment of impairment of goodwill as of December 31, 2025 for all reporting units to enhance the robustness of the testing process and to establish updated fair value baselines. The fair value of each reporting unit was determined using an income approach (discounted cash flow method). This valuation required us to make significant estimates regarding future cash flows, including projections of revenue growth, operating margins, and the selection of appropriate market-participant discount rates and terminal growth rates.
For the years ended December 31, 2023 and 2024, our qualitative assessments showed that it was more likely than not that the fair value of our reporting units exceeded their carrying amounts and concluded that no impairment existed as of December 31, 2023 and 2024. Based on the results of the quantitative assessment for the year ended December 31, 2025, the fair value of each reporting unit was found to be substantially in excess of its carrying value and we concluded that no impairment existed as of December 31, 2025.
We capitalize certain software and technology-related development costs incurred in connection with developing or obtaining software or technology for sale or lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) the external direct costs of materials and services utilized in developing or obtaining software and technology, (ii) compensation and related benefits for employees who are directly associated with the project, and (iii) interest costs incurred while developing or obtaining software or technology for sale or lease to customers.
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We test our intangible assets for impairment whenever events occur or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether we have incurred an impairment loss requires comparing the carrying amounts of the assets to the sum of future undiscounted cash flows expected to be generated by the assets. When determining the fair value of our intangible assets, we utilize various assumptions, including discount rates, estimated growth rates, economic trends and projections of future cash flows. These projections also take into account factors such as the expected impact of new client contracts, expanded or new business from existing clients, efficiency initiatives, and the maturity of the markets in which each of our businesses operates. We generally categorize intangible assets acquired individually or with a group of other assets or in a business combination as customer-related, marketing-related, technology-related, and other intangible assets. See Note 2—“Summary of significant accounting policies—Goodwill and other intangible assets” and Note 9—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ for more information about how we value our intangible assets. Actual results may vary, and may cause significant adjustments to the valuation of our assets in the future.
Income taxes. We calculate and provide for income taxes in each of the tax jurisdictions in which we operate. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and for all operating losses and tax credits carried forward, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are recognized in full, subject to a valuation allowance that reduces the amount recognized to that which is more likely than not to be realized. In assessing the likelihood of realization, we consider estimates of future taxable income.
In the case of an entity that benefits from a corporate tax holiday, deferred tax assets or liabilities for existing temporary differences are recorded only to the extent such temporary differences are expected to reverse after the expiration of the tax holiday. We also evaluate potential exposures related to tax contingencies or claims made by tax authorities in various jurisdictions and determine if a reserve is required. A reserve is recorded if we believe that a loss is more likely than not to occur and the amount can be reasonably estimated. Any such reserves are based on estimates and are subject to changing facts and circumstances considering the progress of ongoing audits, case law and new legislation. We believe that the reserves we have established are adequate.
We apply a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position is more likely than not to be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50% likely of being realized upon settlement. We also include interest and penalties related to unrecognized tax benefits within our provision for income tax expense.
We generally plan to indefinitely reinvest the undistributed earnings of foreign subsidiaries, except for those earnings that can be repatriated in a tax-efficient manner. As a result, we recognize tax that would be incurred on undistributed earnings not subject to indefinite reinvestment.
Due to rounding, the numbers presented in the tables included in this Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided.
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Results of Operations
For a discussion of our results of operations for the year ended December 31, 2023, including a year-to-year comparison between 2024 and 2023, refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024.
The following table sets forth certain data from our consolidated statements of income for the years ended December 31, 2024 and 2025:
Year ended December 31,
Percentage change increase/ (decrease) 2025 vs. 2024
2024
2025
Net revenues
$
4,767.1
$
5,079.9
6.6
%
Cost of revenue
3,077.1
3,248.9
5.6
%
Gross profit
$
1,690.1
$
1,831.0
8.3
%
Gross margin
35.5
%
36.0
%
Operating expenses
Selling, general and administrative expenses
967.1
1,046.7
8.2
%
Amortization of acquired intangible assets
26.5
24.3
(8.2)
%
Other operating (income) expense, net
(5.6)
9.8
NM*
Income from operations
$
702.1
$
750.2
6.9
%
Income from operations as a percentage of net revenues
14.7
%
14.8
%
Foreign exchange gains, net
2.9
7.4
151.6
%
Interest income (expense), net
(47.2)
(49.6)
5.0
%
Other income (expense), net
19.0
22.1
16.3
%
Income before income tax expense
$
676.8
$
730.1
7.9
%
Income tax expense
163.2
177.7
8.9
%
Net income
$
513.7
$
552.5
7.6
%
Net income as a percentage of net revenues
10.8
%
10.9
%
*Not Meaningful
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Fiscal Year Ended December 31, 2025 Compared to the Fiscal Year Ended December 31, 2024
Net revenues. Our net revenues were $5,079.9 million in 2025, up $312.7 million, or 6.6%, from $4,767.1 million in 2024.
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro and UK pound sterling against the U.S. dollar, our net revenues grew 6.4% in 2025 compared to 2024 on a constant currency2 basis. Revenue growth on a constant currency2 basis is a non-GAAP measure. We provide information about our revenue growth on a constant currency2 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of our business performance. Total net revenues on a constant currency2 basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and adjusted for hedging gains/losses.
Our average headcount increased to approximately 146,000 in 2025 from approximately 135,400 in 2024.
Prior to the quarter that began on April 1, 2025, we disaggregated our revenue as revenue from either Data-Tech-AI or Digital Operations based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from either Advanced Technology Solutions or Core Business Services.
Net revenues disaggregated between Data-Tech-AI and Digital Operations were as follows:
Year ended December 31,
Percentage change increase/ (decrease) 2025 vs. 2024
2024
2025
(dollars in millions)
Data-Tech-AI services
$
2,233.9
$
2,442.4
9.3
%
Digital Operations services
2,533.3
2,637.5
4.1
%
Total net revenues
$
4,767.1
$
5,079.9
6.6
%
Net revenues from Data-Tech-AI services in 2025 were $2,442.4 million, up $208.5 million, or 9.3%, from $2,233.9 million in 2024. This increase was driven by increased demand for our data and AI solutions and services as well as technology services in 2025 compared to 2024.
Net revenues from Digital Operations services in 2025 were $2,637.5 million, up $104.2 million, or 4.1%, from $2,533.3 million in 2024, primarily driven by ramp-ups of services from recently signed deals.
Net revenues disaggregated between Advanced Technology Solutions and Core Business Services were as follows:
Year ended December 31,
Percentage change increase/ (decrease) 2025 vs. 2024
2024
2025
(dollars in millions)
Advanced Technology Solutions
$
1,029.1
$
1,204.1
17.0
%
Core Business Services
3,738.0
3,875.8
3.7
%
Total net revenues
$
4,767.1
$
5,079.9
6.6
%
Net revenues from Advanced Technology Solutions in 2025 were $1,204.1 million, up $175.0 million, or 17.0%, from $1,029.1 million in 2024. This increase was largely driven by increased demand for our data and AI solutions and services in 2025 compared to 2024.
Net revenues from Core Business Services in 2025 were $3,875.8 million, up $137.8 million, or 3.7%, from $3,738.0 million in 2024, primarily due to an increase in revenue from Digital Operations and technology services in 2025 compared to 2024.
2 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period.
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Net revenues by segment were as follows:
Year ended December 31,
Percentage change increase/ (decrease) 2025 vs. 2024
2024
2025
(dollars in millions)
Financial Services
$
1,288.9
$
1,356.8
5.3
%
Consumer and Healthcare
1,692.7
1,724.7
1.9
%
High Tech and Manufacturing
1,785.6
1,998.4
11.9
%
Net revenues
4,767.1
5,079.9
6.6
%
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 5.3% and 1.9%, respectively, in 2025 compared to 2024, primarily driven by an increase in revenue from Advanced Technology Solutions and technology services. Net revenues from our High Tech and Manufacturing segment increased by 11.9% in 2025 compared to 2024, primarily driven by an increase in ramp-ups of services from recently signed deals and an increase in demand for our Advanced Technology Solutions and technology services. For additional information, see Note 23—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Cost of revenue. Cost of revenue was $3,248.9 million in 2025, up $171.8 million, or 5.6%, from $3,077.1 million in 2024. The increase in our cost of revenue in 2025 compared to 2024 was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) an increase in costs for resold partnership technologies, (iv) higher stock-based compensation expense, and (v) increased spending on professional services. This increase was partially offset by lower communication and travel-related expenses in 2025 compared to 2024.
Gross margin. Our gross margin increased from 35.5% in 2024 to 36.0% in 2025 primarily due to improved operating leverage in 2025 compared to 2024.
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of total net revenues were 20.6% in 2025 and 20.3% 2024. SG&A expenses were $1,046.7 million in 2025, up $79.6 million, or 8.2%, from $967.1 million in 2024. The increase in SG&A expenses was primarily due to (i) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, (ii) higher stock-based compensation expense, (iii) a higher allowance for credit losses, and (iv) wage inflation in 2025 compared to 2024.
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $24.3 million in 2025, down $2.2 million, or 8.2%, from $26.5 million in 2024. This decrease was primarily due to the completion of useful lives of intangibles acquired in prior periods, partially offset by the amortization of acquired intangible assets from our recent acquisition of XponentL. For additional information, see Note 3—“Business acquisitions” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Other operating (income) expense, net. Other operating expense (net of income) was $9.8 million in 2025, compared to Other operating income (net of expense) of $5.6 million in 2024. During 2025, we recorded a charge of $10.1 million related to the abandonment of certain leased premises no longer in use with no such corresponding charge in 2024. During 2024, we recorded a gain upon the redemption of a loan note associated with the sale of a business previously classified as held for sale and the waiver by a vendor of a liability, with no such corresponding income recorded in 2025.
Income from operations. As a result of the foregoing factors, income from operations as a percentage of total net revenues increased from 14.7% in 2024 to 14.8% in 2025. Income from operations increased by $48.1 million from $702.1 million in 2024 to $750.2 million in 2025, primarily due to a higher gross margin, partially offset by an increase in SG&A expenses and Other operating expense (net of income) in 2025 compared to 2024.
Foreign exchange gains (losses), net. We recorded a net foreign exchange gain of $7.4 million in 2025, compared to $2.9 million in 2024. The gains in both years resulted primarily from the weakening of the Indian rupee against the U.S. dollar.
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Interest income (expense), net. Our interest expense (net of interest income) was $49.6 million in 2025, up $2.4 million from $47.2 million in 2024, reflecting the net impact of an $8.4 million decrease in interest income in 2025 compared to 2024 and an offsetting $6.0 million decrease in interest expense in 2025 compared to 2024. Our interest income decreased from $32.3 million in 2024 to $23.9 million in 2025 due to lower interest rates and lower cash balances in 2025 compared to 2024. The decrease in interest expense was largely driven by lower interest expense on our term loan due to a lower SOFR and reduced volume in 2025 compared to 2024, which we discuss in the section titled “Liquidity and Capital Resources—Financial Condition” below. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.5% in 2024 to 4.7% in 2025.
Other income (expense), net. Our other income (net of expense) was $22.1 million in 2025, compared to $19.0 million in 2024. This change was primarily due to higher gain on the fair value of deferred compensation plan assets in 2025 compared to 2024.
Income tax expense/(benefit). Our income tax expense was $177.7 million in 2025, compared to an income tax expense of $163.2 million in 2024. Our effective tax rate ("ETR") was 24.3% in 2025 and 24.1% in 2024. The increase in our ETR in 2025 was primarily driven by the impact of non-recurring discrete items.
Net income. As a result of the foregoing factors, net income increased by $38.8 million from $513.7 million in 2024 to $552.5 million in 2025. Net income as a percentage of net revenues was 10.9% in 2025, up from 10.8% in 2024.
Adjusted income from operations. Adjusted income from operations ("AOI") increased by $73.6 million from $813.9 million in 2024 to $887.6 million in 2025. Our AOI margin increased from 17.1% in 2024 to 17.5% in 2025, primarily driven by cost efficiencies and operating leverage in 2025 compared to 2024.
AOI and AOI margin are non-GAAP measures and are not based on any comprehensive set of accounting rules or principles. They should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. We believe that presenting AOI alongside our reported results offers useful supplemental information to our investors and management regarding financial and business trends relating to our financial condition and results of operations. A limitation of using AOI versus net income calculated in accordance with GAAP is that AOI excludes certain recurring costs and certain other charges, namely stock-based compensation and amortization of acquired intangibles. We compensate for this limitation by providing specific information on the GAAP amounts excluded from AOI.
We calculate AOI as net income, excluding (i) stock-based compensation, (ii) amortization and impairment of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, (v) acquisition-related expenses and (vi) income tax expense, as we believe that our results after taking into account these adjustments more accurately reflect our ongoing operations. To calculate AOI margin, we divided AOI (as calculated above) by net revenue, excluding revenue from the business classified as held for sale. For additional information, see Note 23—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
The following table shows the reconciliation of AOI to the most directly comparable GAAP measure for the years ended December 31, 2024 and 2025:
Year ended December 31,
2024
2025
(dollars in millions)
Net income
$
513.7
$
552.5
Foreign exchange gains, net
$
(2.9)
$
(7.4)
Interest (income) expense, net
$
47.2
$
49.6
Income tax expense
$
163.2
$
177.7
Stock-based compensation expense
$
66.4
$
89.6
Amortization of acquired intangible assets
$
26.5
$
24.3
Acquisition-related expenses
$
—
$
1.3
Adjusted income from operations
$
813.9
$
887.6
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The following table sets forth our AOI by reportable business segment for the years ended December 31, 2024 and 2025:
Year ended December 31,
Percentage change increase/ (decrease) 2025 vs. 2024
2024
2025
(dollars in millions)
Financial Services
$
215.9
$
244.2
13.1
%
Consumer and Healthcare
$
293.1
$
295.1
0.7
%
High Tech and Manufacturing
$
319.4
$
370.2
15.9
%
Total reportable segment
$
828.4
$
909.5
9.8
%
Unallocated corporate expenses
$
(14.5)
$
(21.9)
NM*
Adjusted income from operations
$
813.9
$
887.6
9.0
%
*Not Meaningful
AOI of our Financial Services segment increased to $244.2 million in 2025 from $215.9 million in 2024, primarily due to higher revenues and improved operating efficiency in 2025 compared to 2024. AOI of our Consumer and Healthcare segment increased to $295.1 million in 2025 from $293.1 million in 2024, largely driven by higher revenues and improved operating efficiency, partially offset by investments in additional resources to drive business growth in 2025 compared to 2024. AOI of our High Tech and Manufacturing segment increased to $370.2 million in 2025 from $319.4 million in 2024, primarily driven by higher revenues and improved operating efficiency in 2025 compared to 2024.
AOI for “Unallocated corporate expenses” in the table above primarily represents the adjustment of allowances for credit losses, write-downs of property, plant and equipment and right-of-use assets, and over-or-under-absorption of overheads, none of which is allocated to any individual segment for management's internal reporting purposes. See Note 23—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Seasonality
Our financial results may vary from period to period. Our revenues are typically higher in the third and fourth quarters than in other quarters, as a result of several factors. We generally find that demand for short-term Data-Tech-AI services, including analytics and IT projects, increases in the fourth quarter as our clients utilize the balance of their budgets for the year. Additionally, demand for certain services, such as collections and transaction processing, is often greater in the second half of the year as our clients’ volumes in such areas increase.
Statement of financial position
Key changes in our financial position during 2025
Following are the significant changes in our financial position as of December 31, 2025 compared to December 31, 2024:
•Prepaid expenses, other current assets, contract cost assets and other assets increased by $159.2 million
The increase in prepaid expenses, other current assets, and other assets is primarily due to higher deferred billings, higher contract assets (net of amortization), higher deferred compensation plan assets and higher prepaid expenses. The increase was partially offset by a decrease in contract cost assets and lower advance income tax payments. For additional information, see Note 7—“Prepaid expenses and other current assets,” Note 10—“Other assets” and Note 24—“Net revenues—Contract balances” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
•Accounts receivable, net increased by $41.9 million
The increase in our accounts receivable is primarily due to an increase in quarter-over-quarter revenue in the fourth quarter of 2025 compared to 2024, partially offset by lower days sales outstanding in 2025 compared to 2024.
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•Goodwill and intangible assets increased by $151.4 million
Goodwill increased by $111.3 million, primarily due to our acquisition of XponentL. Our intangible assets increased by $40.1 million primarily due to our acquisition of XponentL, partially offset by the amortization of intangible assets. For additional information, see Note 3—“Business acquisitions” and Note 9—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
•Property, plant and equipment, net decreased by $17.5 million
The decrease in property, plant and equipment, net was primarily due to the reclassification of capitalized CCA implementation costs which were previously included within capital work in progress during 2024 and a charge related to depreciation, amortization and impairment during 2025, partially offset by current year additions. For additional information, see Note 2—“Summary of significant accounting policies” and Note 8—“Property, plant and equipment, net” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
•Operating lease right-of-use assets decreased by $0.5 million
The decrease in operating lease right-of-use assets is due to amortization and a charge related to the abandonment of certain leased premises no longer in use, partially offset by additions due to new leases/lease renewals entered into in 2025. For additional information, see Note 11—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
•Short-term investments increased by $326.6 million
The increase in short term investments is primarily due to additional investments made in term deposits during 2025 using the proceeds of the 2025 Senior Notes (as defined below). The proceeds to be received upon maturity of these short-term investments will be utilized to repay the 2019 Senior Notes (as defined below), which mature on April 10, 2026.
•Operating lease liability decreased by $3.4 million
The decrease in operating lease liability is due to lease payments made in 2025, partially offset by additions and modifications in 2025.
•Accounts payable, accrued expenses, other current liabilities and other liabilities increased by $366.0 million
The increase in accounts payable, accrued expenses, other current liabilities and other liabilities is primarily due to an increase in contract liabilities due to higher advance payments received from a customer, earn-out consideration payable in relation to our acquisition of XponentL, higher expense-related accruals, higher mark-to-market losses on derivative financial instruments, higher deferred compensation plan liabilities, higher statutory liabilities and an increase in employee-related accruals in 2025 compared to 2024. This increase was partially offset by a decrease in accounts payable in 2025 compared to 2024.
•Long-term debt increased by $320.9 million
The increase in long-term debt is primarily attributable to the issuance of our 2025 Senior Notes in November 2025, partially offset by installment payments made on our term loan in 2025. For additional information, see Note 13—“Long-term debt” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
•Net deferred tax assets decreased by $15.9 million
Our net deferred tax assets decreased by $15.9 million in 2025 compared to 2024. For additional information, see Note 22—“Income taxes” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
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Liquidity and Capital Resources
Overview
Information about our financial position as of December 31, 2024 and 2025 is presented below:
As of December 31,
As of December 31,
Percentage change increase/ (decrease) 2025 vs. 2024
2024
2025
(dollars in millions)
Cash and cash equivalents
$
648.2
$
853.8
31.7
%
Short-term investments
23.4
350.0
NM*
Long-term debt due within one year
26.2
376.0
NM*
Long-term debt other than the current portion
1,195.3
1,166.3
(2.4)
%
Total equity
2,389.6
2,549.4
6.7
%
*Not Meaningful
Financial Condition
We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities.
On February 8, 2024, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1375 per common share to $0.1525 per common share, representing an annual dividend of $0.61 per common share for 2024, up from $0.55 per common share in 2023. On March 26, 2024, June 26, 2024, September 25, 2024 and December 23, 2024, we paid dividends of $0.1525 per share, amounting to $27,492 million, $27,337 million, $26,939 million and $26,698 million in the aggregate, respectively, to shareholders of record as of March 11, 2024, June 10, 2024, September 11, 2024 and December 9, 2024, respectively.
On February 6, 2025, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1525 per common share to $0.17 per common share, representing an annual dividend of $0.68 per common share for 2025, up from $0.61 per common share in 2024. On March 26, 2025, June 30, 2025, September 25, 2025 and December 23, 2025, we paid dividends of $0.17 per share, amounting to $29,784 million, $29,624 million, $29,293 million and $29,046 million in the aggregate, respectively, to shareholders of record as of March 11, 2025, June 18, 2025, September 11, 2025 and December 9, 2025, respectively.
On February 5, 2026, our board of directors approved a 10% increase in our quarterly cash dividend from $0.17 per common share to $0.1875 per common share, representing a planned annual dividend of $0.75 per common share for 2026, up from $0.68 per common share in 2025. Any future dividends will be at the discretion of our board of directors and subject to Bermuda and other applicable laws.
As of December 31, 2025, the total authorization under our existing share repurchase program was $2,750.0 million, including $500.0 million approved in the first quarter of 2025, of which $364.1 million remained available as of December 31, 2025. Since our share repurchase program was initially authorized in 2015, we have repurchased 70,899,146 of our common shares at a weighted average price of $33.65 per share, for an aggregate purchase price of $2,385.9 million. This amount includes shares repurchased under our 2017 accelerated share repurchase program.
During the years ended December 31, 2024 and 2025, we repurchased 6,591,550 and 6,129,521 of our common shares, respectively, on the open market at a weighted average price of $38.31 and $46.16 per share, respectively, for an aggregate purchase price of $252.5 million and $282.9 million, respectively. All repurchased shares have been retired.
For additional information, see Note 18—“Capital stock” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
We expect that for the next twelve months and for the foreseeable future, our cash from operations, cash reserves and debt capacity will be sufficient to finance our operations, our growth and expansion plans, dividend payments and additional share repurchases we may make under our share repurchase program. In addition, we may raise additional funds through public or private debt or equity financing. Our working capital needs are primarily to finance our payroll and other administrative and information technology expenses in advance of the receipt of accounts receivable. Our primary capital requirements include opening new delivery centers, expanding existing operations to support our growth, financing acquisitions and enhancing capabilities, including building certain advanced technology solutions.
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Cash flows from operating, investing and financing activities, as reflected in our consolidated statements of cash flows, are summarized in the following table:
Year ended December 31,
Percentage
change
2024
2025
(dollars in millions)
Net cash provided by (used for)
Operating activities
$
615.4
$
812.9
32.1
%
Investing activities
(106.0)
(495.5)
(367.6)
%
Financing activities
(424.8)
(106.8)
74.9
%
Net increase (decrease) in cash and cash equivalents
$
84.6
$
210.6
148.8
%
Cash flows provided by operating activities. Net cash provided by operating activities was $812.9 million in 2025, up from $615.4 million in 2024. This increase in cash provided by operating activities was primarily driven by (i) a $38.8 million increase in net income in 2025 compared to 2024, (ii) a $40.5 million increase in non-cash expense, primarily due to higher stock-based compensation expense, higher unrealized (gain)/loss on the revaluation of foreign currency assets/liabilities, the write-down of operating right-of-use assets of abandoned leased premises, and a higher allowance for credit losses, partially offset by deferred tax benefit in 2025 compared to 2024, and (iii) a $118.1 million decrease in operating assets and liabilities, which was primarily driven by higher customer advances, lower accounts receivable, and lower employee payments, partially offset by higher tax payments, higher vendor-related payments and lower service tax refunds in India in 2025 compared to 2024.
In 2025, we entered into a contract with a client pursuant to which the client made advance payments in 2025 for services partially rendered during 2025 and that will continue to be rendered by us through 2026. As of December 31, 2025, we had received advances of $170.0 million under this arrangement, which contributed to higher cash flows from operating activities in 2025. Although we may receive additional prepayments under this arrangement during the first quarter of 2026, none are guaranteed under the terms of our agreement with the client.
Cash flows used for investing activities. Our net cash used for investing activities was $495.5 million in 2025, compared to $106.0 million in 2024. Net cash used by investing activities increased primarily due to (i) the purchase of short-term investments (net of proceeds from maturities) of $326.6 million in 2025 compared to $23.4 million in 2024, (ii) payments of $80.4 million for business acquisitions, net of cash acquired, in 2025, and (iii) a $5.9 million increase in cash used for payments (net of sales proceeds) for the purchase of property, plant and equipment and internally generated intangible assets in 2025 compared to 2024.
Cash flows used for financing activities. Our net cash used for financing activities was $106.8 million in 2025, compared to $424.8 million in 2024. This decrease in cash used for financing activities was primarily due to (i) higher proceeds from borrowings (net of repayments and debt issuance and refinancing costs) amounting to $319.4 million in 2025 compared to repayments of borrowings (net of proceeds) of $47.3 million in 2024. The decrease in cash used for financing activities was partially offset by (i) higher payments for stock repurchased and retired (including related expenses), amounting to $283.0 million in 2025 compared to $252.7 million in 2024, (ii) higher payments for the net settlement of stock-based awards, amounting to $33.4 million in 2025 compared to $22.3 million in 2024, and (iii) higher dividend payments of $117.7 million in 2025 compared to $108.5 million in 2024.
Financing Arrangements (Credit facility)
In December 2022, we entered into an amended and restated credit agreement (the "2022 Credit Agreement") with Genpact USA, Inc. (“Genpact USA”), Genpact Global Holdings (Bermuda) Limited (“GGH”) and Genpact Luxembourg S.à r.l. (“Genpact Luxembourg”, and together with Genpact USA and GGH, the “Borrowers”), as borrowers, Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, swingline lender and issuing bank, and the lenders and other parties thereto, which consists of a $530.0 million term loan and a $650.0 million revolving credit facility. An additional third-party fee paid in connection with the 2022 Credit Agreement is being amortized over the term of the term loan and revolving credit facility, which expire on December 13, 2027. In connection with our entry into the 2022 Credit Agreement, we terminated our previous credit facility under our amended and restated credit agreement entered into in August 2018 (the “2018 Credit Agreement”) with the Borrowers, as borrowers, Wells Fargo, as administrative agent, and the lenders and other financial institutions party thereto, which was comprised of a $680.0 million term loan and a $500.0 million revolving credit facility. The 2022 Credit Agreement replaced the 2018 Credit Agreement.
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The 2022 Credit Agreement is guaranteed by us and certain of our subsidiaries. The obligations under the 2022 Credit Agreement are unsecured.
Borrowings under the 2022 Credit Agreement bear interest at a rate equal to, at our election, either Adjusted Term SOFR (which is the rate per annum equal to (a) Term SOFR (the forward-looking secured overnight financing rate) plus (b) a Term SOFR Adjustment of 0.10% per annum, but in no case lower than 0.00%) plus an applicable margin equal to 1.375% per annum or a base rate plus an applicable margin equal to 0.375% per annum, in each case subject to adjustment based on the Borrowers' debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. from time to time (the "Debt Ratings"). The revolving credit commitments under the 2022 Credit Agreement are subject to a commitment fee equal to 0.20% per annum, subject to adjustment based on the Debt Ratings. The commitment fee accrues on the actual daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations.
The 2022 Credit Agreement restricts certain payments, including dividend payments, if there is an event of default under the 2022 Credit Agreement or if we are not, or after making the payment would not be, in compliance with certain financial covenants contained in the 2022 Credit Agreement. These covenants require us to maintain a net debt to EBITDA leverage ratio of less than 3x and an interest coverage ratio of more than 3x. During the year ended December 31, 2025, we were in compliance with the terms of the 2022 Credit Agreement, including all of the financial covenants therein. Our retained earnings are not subject to any restrictions on availability to make dividend payments to shareholders, subject to compliance with the financial covenants described above that are contained in the 2022 Credit Agreement.
As of December 31, 2024 and 2025, our outstanding term loan, net of debt amortization expense of $0.9 million and $0.6 million, respectively, was $476.1 million and $449.9 million, respectively.
We also have fund-based and non-fund based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2024 and 2025, the limits available under such facilities were $22.4 million and $26.6 million, respectively, of which $8.5 million and $8.0 million, respectively, were utilized, constituting non-funded drawdown. As of December 31, 2024 and 2025, a total of $1.5 million and $1.3 million, respectively, of our revolving credit facility was utilized, of which $0.0 million and $0.0 million, respectively, constituted funded drawdown, and $1.5 million and $1.3 million, respectively, constituted non-funded drawdown. Our outstanding term loan and revolving credit facility expire on December 13, 2027.
We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term SOFR and the floor rate under our term loan and make payments based on a fixed rate. As of December 31, 2025, we were party to interest rate swaps covering a total notional amount of $221.9 million. Under these swap agreements, the rates that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%.
Genpact Luxembourg issued $400.0 million aggregate principal amount of 3.375% senior notes in November 2019 (the “2019 Senior Notes”). The 2019 Senior Notes were fully guaranteed by the Company and Genpact USA. The total debt issuance cost of $2.9 million incurred in connection with the 2019 Senior Notes offering was amortized over the life of the notes as additional interest expense. The 2019 Senior Notes matured on December 1, 2024 and were fully repaid.
Genpact Luxembourg and Genpact USA co-issued $350.0 million aggregate principal amount of 1.750% senior notes in March 2021 (the "2021 Senior Notes"). The 2021 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $3.0 million incurred in connection with the 2021 Senior Notes offering is being amortized over the life of the 2021 Senior Notes as additional interest expense. As of December 31, 2024 and 2025, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $0.8 million and $0.2 million, respectively, was $349.2 million and $349.8 million, respectively, which is payable on April 10, 2026.
In June 2024, Genpact Luxembourg and Genpact USA co-issued $400.0 million aggregate principal amount of 6.000% senior notes (the "2024 Senior Notes"). The 2024 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $4.4 million incurred in connection with the 2024 Senior Notes offering is being amortized over the life of the 2024 Senior Notes as additional interest expense. As of December 31, 2024 and 2025, the amount outstanding under the 2024 Senior Notes, net of debt amortization expense of $3.9 million and $3.0 million, respectively, was $396.1 million and $397.0 million, respectively, which is payable on June 4, 2029.
In November 2025, Genpact UK Finco plc and Genpact USA co-issued $350.0 million aggregate principal amount of 4.950% senior notes (the “2025 Senior Notes"). The 2025 Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $4.6 million incurred in connection with the 2025 Senior Notes is being amortized over the life of the 2025 Senior Notes as additional interest expense. As of December 31, 2025, the amount outstanding under the 2025 Senior Notes, net of debt amortization expense of $4.4 million, was $345.6 million, which is payable on November 18, 2030.
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We pay interest on (i) the 2021 Senior Notes semi-annually in arrears on April 10 and October 10 of each year, (ii) the 2024 Senior Notes semi-annually in arrears on June 4 and December 4 of each year, and (iii) the 2025 Senior Notes semi-annually in arrears on May 18 and November 18 of each year, ending on the maturity dates of April 10, 2026, June 4, 2029 and November 18, 2030, respectively.
For additional information, see Notes 13—“Long-term debt” and 14—“Short-term borrowings” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
We use a revolving accounts receivable-based facility for managing our cash flows. As part of this arrangement, accounts receivable sold under this facility are de-recognized upon sale along with the related allowances, if any. As of December 31, 2024 and 2025, we had a revolving accounts receivable-based facility of $60.0 million and $100.0 million, respectively, permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business. The aggregate maximum capacity utilized at any time during the years ended December 31, 2024 and 2025 was $55.9 million and $60.0 million, respectively. The principal amount outstanding against this facility as of December 31, 2024 and 2025 was $26.6 million and $55.1 million, respectively. The cost of factoring accounts receivable sold under this facility during the years ended December 31, 2024 and 2025 was $2.3 million and $2.1 million, respectively.
We also have arrangements with financial institutions that manage the accounts payable program for certain of our large clients. We sell certain accounts receivable pertaining to such clients to these financial institutions on a non-recourse basis. There is no cap on the value of accounts receivable that can be sold under these arrangements. We used these arrangements to sell accounts receivable amounting to $270.2 million and $327.2 million during the years ended December 31, 2024 and December 31, 2025, respectively, which also represents the maximum utilization under these arrangements in each such year. The cost of factoring such accounts receivable during the years ended December 31, 2024 and 2025 was $6.0 million and $5.8 million, respectively.
For additional information, see Note 4—“Accounts receivable, net of allowance for credit losses” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Goodwill Impairment Testing
Goodwill of a reporting unit is tested for impairment at least annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. In accordance with ASC 350, Intangibles-Goodwill and Other, we may perform quantitative testing where the fair value of the reporting unit is compared with its carrying amount, including goodwill, or choose to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Based on the results of the qualitative assessment, we perform the quantitative assessment of goodwill impairment if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
Based on our assessment of such qualitative factors in 2024, in accordance with ASC 350, we concluded that as of December 31, 2024, the fair values of all of our reporting units are likely to be higher than their respective carrying values.
For the year ended December 31, 2025, we performed a quantitative assessment for impairment of goodwill as of December 31, 2025 for all reporting units to enhance the robustness of our testing process and to establish updated fair value baselines. The fair value of each reporting unit was determined using an income approach (discounted cash flow method). This valuation required management to make significant estimates regarding future cash flows, including projections of revenue growth, operating margins, and the selection of appropriate market-participant discount rates and terminal growth rates.
Off-Balance Sheet Arrangements
Our off-balance sheet arrangements consist of foreign exchange contracts. For additional information, see Item 1A—“Risk Factors—Currency exchange rate fluctuations in various currencies in which we do business, especially the Indian rupee, the euro and the U.S. dollar, could have a material adverse effect on our business, results of operations and financial condition" and Note 6—“Derivative financial instruments” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Other Liquidity and Capital Resources Information
As of December 31, 2024 and 2025, we have purchase commitments, net of capital advances paid in respect of such purchases, of $25.3 million and $16.5 million, respectively. For additional information, see Note 25—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
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As of December 31, 2024 and 2025, we also have operating and finance lease commitments of $276.2 million and $268.4 million, respectively, to be paid over the remaining lease terms. For additional information, see Note 11—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Supplemental Guarantor Financial Information
As discussed in Note 13, “Long-term debt,” to our consolidated financial statements under Part IV, Item 15—"Exhibits and Financial Statement Schedules," Genpact Luxembourg and Genpact USA co-issued the 2021 Senior Notes and the 2024 Senior Notes. Genpact UK Finco plc and Genpact USA co-issued the 2025 Senior Notes. As of December 31, 2025, the outstanding balance for the 2021 Senior Notes, the 2024 Senior Notes and the 2025 Senior Notes (collectively, the "Senior Notes") was $349.8 million, $397.0 million and $345.6 million, respectively. Each series of Senior Notes is fully and unconditionally guaranteed by the Company. Genpact USA co-guaranteed the 2019 Senior Notes, Genpact UK Finco plc co-guaranteed the 2021 Senior Notes and the 2024 Senior Notes, and Genpact Luxembourg S.à r.l co-guaranteed the 2025 Senior Notes. Our other subsidiaries (such subsidiaries are referred to as the “non-Guarantors”) do not guarantee any series of outstanding Senior Notes. During the year ended December 31, 2024, the Company repaid the 2019 Senior Notes in the amount of $400.0 million at their maturity.
The Company (with respect to all series of Senior Notes) has fully and unconditionally guaranteed (i) that the payment of the principal, premium, if any, and interest on the Senior Notes shall be promptly paid in full when due, whether at stated maturity of the Senior Notes, by acceleration, redemption or otherwise, and that the payment of interest on the overdue principal and interest on the Senior Notes, if any, if lawful, and all other obligations of the applicable issuer or issuers of the Senior Notes, respectively, to the holders of the Senior Notes or the trustee under the Senior Notes shall be promptly paid in full or performed, and (ii) in case of any extension of time of payment or renewal of any Senior Notes or any of such other obligations, that the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. Failure of payment by Genpact Luxembourg, Genpact UK Finco plc or Genpact USA when due of any amount so guaranteed or any performance so guaranteed for whatever reason shall obligate the Company to pay the same immediately. The Company has agreed that the guarantees described above are guarantees of payment of the Senior Notes and not guarantees of collection.
The following tables present summarized financial information for Genpact Luxembourg, Genpact USA, Genpact UK Finco plc and the Company (collectively, the “Debt Issuers and Guarantors”) on a combined basis after elimination of (i) intercompany transactions and balances among the Debt Issuers and Guarantors and (ii) equity in earnings from and investments in the non-Guarantors.
Summarized Statements of Income
Year ended
December 31, 2024
Year ended
December 31, 2025
(dollars in millions)
Net revenues
$
422.4
$
398.6
Gross profit
422.4
398.6
Net income
237.1
224.4
Below is a summary of transactions with non-Guarantors included in the summarized statement of income above:
Year ended
December 31, 2024
Year ended
December 31, 2025
(dollars in millions)
Royalty income
$
—
$
—
Revenue from services
422.4
398.6
Interest income /(expense), net
(15.5)
11.1
Other income /(expense), net
(4.4)
(11.3)
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Summarized Balance Sheets
As of
December 31, 2024
As of
December 31, 2025
(dollars in millions)
Assets
Current assets
$
1,842.4
$
2,658.1
Non-current assets
1,000.5
966.0
Liabilities
Current liabilities
$
4,150.1
$
5,017.3
Non-current liabilities
1,236.1
1,058.6
Below is a summary of the balances with non-Guarantors included in the summarized balance sheets above:
As of
December 31, 2024
As of
December 31, 2025
(dollars in millions)
Assets
Current assets
Accounts receivable, net
$
174.7
$
175.9
Loans receivable
932.4
1,731.5
Others
589.0
302.3
Non-current assets
Others
$
46.2
$
—
Liabilities
Current liabilities
Loans payable
$
3,447.0
$
3,170.1
Others
659.9
1,475.5
Non-Current liabilities
Loans payable
$
38.0
$
38.0
The Senior Notes and the related guarantees rank pari passu in right of payment with all senior and unsecured debt of the Debt Issuers and the Guarantors and rank senior in right of payment to all of the Debt Issuers' and the Guarantors' future subordinated debt. The Senior Notes are effectively subordinated to all of the Debt Issuers' and the Guarantors' existing and future secured debt to the extent of the value of the assets securing such debt. The Senior Notes are structurally subordinated to all of the existing and future debt and other liabilities of the Guarantors' subsidiaries (other than the Issuer), including the liabilities of certain subsidiaries pursuant to our senior credit facility. The non-Guarantors are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any amounts due under the Senior Notes or to make the funds available to pay those amounts, whether by dividend, distribution, loan or other payment. If the Debt Issuers or the Guarantors have any right to receive any assets of any of the non-Guarantors upon the insolvency, liquidation, reorganization, dissolution or other winding-up of any non-Guarantor, all of that non-Guarantor’s creditors (including trade creditors) would be entitled to payment in full out of that non-Guarantor’s assets before the holders of the Senior Notes would be entitled to any payment. Claims of holders of the Senior Notes are structurally subordinated to the liabilities of certain non-Guarantors pursuant to their liabilities under our senior credit facility.
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Recent Accounting Pronouncements
Recently adopted accounting pronouncements
For a description of recently adopted accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.”
For a description of recently issued accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”