Genpact Limited (G) Earnings Call Transcript & Summary

Hello, everyone, and thanks for joining us this afternoon for Genpact's Q2 2026 earnings conference call. We hope you've already had the opportunity to look at our earnings press release, which is posted in the investor relations section of our website, genpact.com. Joining us today are BK Kalra, our President and CEO, and Mike Weiner, our Chief Financial Officer. BK will begin with an overview of our results. After that, Mike will walk through our financial performance in more detail, and then we'll open the line for your questions. I'd like to note that on this call, we will be making forward-looking statements, including statements regarding our business outlook, strategies, and long-term goals. These comments reflect our plans, predictions, and expectations as of today, and they may change over time. Actual results could differ materially because of a number of important risks and uncertainties, including the risk factors described in our 10-K and 10-Q filings with the SEC. On this call, we will also discuss certain non-GAAP financial measures. We have reconciled those measures to the most directly comparable GAAP financial measures in our earnings press release. These non-GAAP measures are not meant to serve as a substitute for our GAAP results. You can also find supplemental investor information in our earnings press release, fact sheet, and investor presentation, all posted to our investor relations website. Lastly, this entire call is being webcast from our website. An audio replay and transcript will be made available shortly after the call concludes. With that, I'll hand things over to BK.

Thanks, Kyle. Hi everybody, and thanks for being with us today. Genpact had another robust quarter in Q2. Total revenue came to $1.343 billion, which is 7.1% higher than the same period a year ago. Revenue from Advanced Technology Solutions rose 24.1% compared with a year earlier, which shows our flywheel is operating at full power. Gross margin went up once again this quarter, giving us ongoing leverage to make substantial investments that fuel future growth. Adjusted diluted EPS once more increased by double digits, outpacing revenue, rising 13.6% versus the prior-year period. For the first time, non-FTE revenue made up more than 50% of total revenue. During the previous quarter, I mentioned something uncommon: a point in time when a structural change in the marketplace, a distinctive set of capabilities, and the correct strategic position all come together simultaneously. I'd like to expand on that idea now. To start, looking at the big picture, demand is still extremely robust even while AI redraws markets. What enterprises want are autonomous workflows that actually perform the work rather than merely assist it. Every function now is required to apply AI with demonstrable ROI. That is creating fresh buying centers, each with new requirements and new complexities. Meanwhile, one thing remains universally true. You cannot have artificial intelligence without process intelligence. Sure, frontier models improve weekly, yet they are also starting to become interchangeable, and the cost of switching keeps dropping. What models lack is knowledge of how a worldwide enterprise truly operates. The exceptions, the controls, the handoffs, and the real flow of work. That final mile. That's where outcomes are truly decided. That's where genuine differentiation lives. With enterprise customers, we keep seeing that readiness stays low, even though ambition stays very high. The foundational effort, the data harmonization effort, the process intelligence effort must still come first in order to generate ROI from AI investments; that explains why AI hasn't scaled at most companies, and it's exactly why customers turn to Genpact and our distinctive IP solutions. As I noted before, when a rare structural shift appears and a business can sharpen what makes it different and possesses the courage and discipline to act, the advantage that results compounds in ways that are hard to copy. This moment belongs to us. We are deliberately disrupting ourselves in order to lead in Agentic Operations. Genpact is no longer the company you once knew. We're moving into a new category with a growing TAM, constructing a business of higher quality, greater durability, and more structural value. At Investor Day last June, when we initially laid out our goal for the year, we anticipated revenue growth of 7%, with Advanced Technology Solutions expanding in the mid-teens. Since that time, our confidence in the opportunity ahead has only grown stronger. The momentum we see makes it obvious that the composition of our business is improving, and the strategic pivot is taking hold far more quickly. Consequently, we are leaning in and seizing this moment to further speed up durable long-term growth, and we are directing our capital toward this opportunity. Above all, we're leaning harder into the spaces offering the biggest long-run upside and the best payback; running mission-critical client operations at scale is what we're recognized for. Our shift takes us beyond operating business processes into operating Agentic Operations. So we're encoding that process intelligence into a more powerful form and directing additional capital toward it. We're funding the flywheel that's already gaining speed, sharpening our emphasis on Advanced Technology Solutions, since we see durable growth there, appealing margins, and client need that keeps rising alongside an expanding TAM. That same momentum lets us examine pieces of Core Business Services that don't fit our Agentic Operations strategy. Three straightforward questions serve as our test across the entire book of business. First: when our process intelligence is paired with frontier models, does that yield durable value and an edge clients can't readily copy? Second: does it deliver a compelling ROI for the client as well as for Genpact? Third: does it line up with expanding TAM? In cases where we answer yes, we're agentifying quickly. That covers the vast majority of our book spanning finance, supply chain, insurance, banking, and plenty of other mission-critical workloads, and it comes with expanding new TAM that we've already started to capture. In cases where every answer is no, we're partnering with clients to move that work elsewhere and reallocating our investments. These represent quite small slices of our business, such as specific content management areas and commoditized contact center components; that clarity sits at the core of turning into the Agentic Operations company. Despite this intentional disruption, we still see a path to delivering no less than 7% year-over-year revenue growth in 2026. Looking at the full year, we anticipate that moving away from work not aligned with our Agentic Operations strategy will drag total revenue growth by close to two points. Even so, Core Business Services revenue should still expand in 2026. Meanwhile, we now anticipate Advanced Technology Solutions revenue to pick up speed, rising no less than 25% in 2026. That pickup highlights how quickly adoption is happening and how our investments are delivering returns. Timing will matter for both 2026 and 2027, and for 2027 we presently anticipate the dollar effect to be a bit bigger, although continued momentum in strategy-aligned areas will offset it. Our purposeful focus and prioritization keep showing through in top and bottom line growth as well as in our demand signals. Demand for our deep domain and industry expertise remains healthy and expanding, reflected in bookings, backlog, and pipeline all climbing across both core and advanced tech; this quarter set our record for quarterly bookings. We signed six more large deals alongside a substantial pipeline of additional transformational deals, positioning us for a healthy finish to the year. Our revenue retention remains strong. Our business composition keeps shifting toward higher-value Advanced Tech products as we achieve substantial strides on the 2x/2x, 70/70 framework. Advanced Technology Solutions generate over twice the revenue per employee and over twice the revenue growth compared to the entire company, alongside greater than 70% annualized revenue and greater than 70% for non-FTE commercial models. Since we are radically altering the way we contract and deliver, we're establishing a strong, lasting foundation to grow upon that no longer depends on headcount. This encompasses additional multi-year recurring annual revenue streams and margin leverage from agentic and AI generating significantly greater scale. Throughout recent years, we've methodically broadened our advanced technology skills in areas where we are strongest; this has successfully produced a potent flywheel that is propelling Agentic Operations. The flywheel begins with our foundation: skilled operators, decades of client confidence, distinct domains, last-mile expertise. Essentially, process intelligence that isn't available for purchase off a shelf. The flywheel spins via the broadened skills in data and AI and through our partner ecosystem that drive today's Advanced Technology Solutions. That further enhances process intelligence, which secures trust to fulfill the Agentic mandate. The mandate widens our scope, which intensifies our intelligence. Intensified intelligence improves the following solution.

That flywheel compounds as we build Agentic Operations at scale, and that makes what we've achieved tough for others to copy. We're shifting right now from work done and checked by people to work done by machines but still checked by people, and responsible AI sits around all of it. We're pulling compounding benefits from autonomous agents, with the context, governance, and oversight that only last-mile experts such as Genpact can deliver. That is giving even more lift to Advanced Technology Solutions, and you can see it in the substantial momentum we have. In quarter two, Advanced Technology Solutions revenue climbed another 24%, and it now makes up 27% of total revenue. During this quarter, Advanced Technology Solutions accounted for almost 40% of our bookings, while our pipeline rose meaningfully across every capability versus the prior quarter, which shows the considerable demand our flywheel is generating. We aren't tacking a quick extra line onto what we used to be. We're transforming what the entire business is and shifting into a new category. Everything converges here. Clients don't approach us to purchase Core or Advanced Tech. They approach us carrying a vision for what's ahead and the reality of their current position. We're powering the path toward Agentic-led autonomy that enterprises can rely on; we call that Agentic Operations. Domain experts alongside AI agents, working together through redesigned processes to carry out transactions. Model agnostic, designed for enterprise governance and clear auditability. Learning that compounds, provided via multiyear, annuitized, recurring revenues. The traction and demand are genuine. In Agentic solutions, we remain on track to book over $1 billion in total contract value in 2026 alone; that isn't a trivial figure, it isn't Agentic washing; it reflects only our productized AI offerings, built with Genpact IP, to run mission-critical business processes at enterprise scale, and it's delivered with multiyear annuitized recurring revenues through a commercial model that isn't tied to headcount. If you look at Agentic bookings so far, over half has come from new clients, which proves the extra TAM we're capturing quickly. Among the clients who rotate, we've observed net revenue growth above 3% and gross margin expansion above 300 basis points. More clients, bigger wallets, a larger market, richer margins, all simultaneously. We're rapidly assembling a strong roadmap that matches where our clients are headed with what only we can deliver; we recently announced Genpact Transaction Monitoring Analyst, the first module of our new Genpact Banking Analyst Suite, to help banks finish routine investigations faster and more consistently, with full auditability and human oversight baked in. We also recently launched the Genpact Deductions Recovery solution, our Agentic offering created to help consumer goods companies recover millions in lost revenue by automating how disputed deductions are identified, validated, and resolved, with quicker cycle times and stronger compliance. Alongside our current Agentic portfolio, which covers accounts payable, record to report, source-to-pay, and insurance, these are merely two more illustrations of how we're actively delivering the outcomes clients require to reshape their operations. When customers witness how our flywheel compounds and Agentic Operations keeps growing, they pick Genpact instead of older players or upstarts, tapping us for a wider set of workflows and other pieces of their transformation. Take one illustration: not long ago we began working with Lumen, a networking and technology firm operating worldwide, to bring agents into their accounts payable function. Mondelēz International, among the biggest snacking businesses globally, broadened our partnership so we could construct a company-wide agentic operating model covering their source-to-pay processes, reaching from procurement all the way through accounts payable. Those are merely two illustrations. Our strategy still leans heavily on partners; during quarter two, revenue tied to partners grew faster as we keep strengthening ties with those whose infrastructures matter most to our clients; this quarter, we earned the Databricks Brickbuilder specialization for manufacturing, transportation, and energy. ISG named Genpact a leader among ServiceNow Ecosystem partners for 2026, plus a rising star in their Databricks ecosystem report covering AI/ML and managed data optimization. Earlier this week, NelsonHall placed Genpact as a leader across all six of their F&A transformation need market segments for 2026, which include agentic AI, procure-to-pay, record-to-report, order-to-cash, CFO advisory, and finance transformation overall. Those are only a handful of fresh illustrations showing how concentrating on our strategic areas produces obvious results; to wrap up, this quarter stands as a major proof point for Genpact as we shape what lies ahead as a leader in Agentic Operations. We are altering our business in meaningful ways, creating a new Genpact within a fundamentally different category, going all in on our most strategic priorities to speed up the flywheel for Agentic Operations, generating high-quality, durable revenue that compounds and proves harder to replicate, pushing margins structurally higher, and in the end creating clear separation between Genpact and the market surrounding us. With that said, I'll hand the call over to Mike.

Thanks for being here this afternoon, everyone. Our second quarter was a solid one, reflecting how our disciplined focus and spending are making us stronger in Agentic Operations. Revenue overall climbed 7.1% compared with the same period last year, hitting $1.343 billion, helped by continuing traction in Advanced Technology Solutions. That segment — spanning data and AI, digital technologies, advisory, and agentic — generated $363 million, once again expanding by more than 24% versus a year ago, with widespread gains throughout our flywheel. Customers are rapidly ramping up their adoption of Advanced Technology Solutions, and the bets we've placed strategically are paying off. Our prowess in advanced technology keeps building, as agentic and AI-driven breakthroughs appear in an ever-wider range of offerings. Our goal is to grow our addressable market dramatically, provide greater value to clients throughout complete workflows, and generate revenue for Genpact that is both higher-value and more sustainable. As BK said, we are intensifying our efforts on the most strategic priorities in order to speed up the flywheel for Agentic Operations, and the results are beginning to show. During Q2, our agentic bookings rose considerably compared with the prior quarter. Looking at 2026, we expect to reach more than $1 billion in agentic TCV — a fivefold increase over 2025. According to BK, our agentic business keeps securing a wider TAM and greater wallet share, with substantial momentum among both new and current clients. So far, over half of the total value of contracts we've been awarded has come from clients who are new to us. When it comes to accounts we already have that are shifting away from traditional delivery toward agentic delivery, the growth in net revenue and the expansion of gross margin are both still running ahead of the figures we shared at Investor Day back in June of last year, since we keep pushing for larger volumes, broader scope, or a mix of the two inside our current client base. That kind of momentum is building on itself, and we think it's creating a revenue base that's more durable, with gross margins that are higher and keep getting better as scale increases. Revenue from Core Business Services — a category that covers digital operations, decision support services, and technology services — rose 1.9% to $980 million during the second quarter. We keep witnessing robust appetite for the deep expertise in domains and industries that we've accumulated over many years of client confidence, as we assist customers in moving through various phases of their transformation efforts. Our sales organization carried on performing effectively, with considerable interest in both our foundational and cutting-edge technological offerings from new as well as current clients. Net revenue retention is still adding value, and we remain positive regarding our pricing approach since we provide growing benefits to our customer base. During the second quarter, our momentum on significant agreements persisted as well; we finalized six such deals, whereas we had three during the equivalent timeframe a year ago. That takes us to 12 major agreements so far this year, which is twice the number we achieved during the same stretch last year. Just so everyone's clear, when we talk about large deals, we mean those with a total contract value of at least $50 million. The bookings we saw this quarter were the biggest we've ever had, and close to 40% of that came from Advanced Technology Solutions. On top of that, we've still got a solid pipeline of more large deals coming. With the record backlog and pipeline we have, we're in a great position going into the second half of the year. This quarter, over half of our total revenue came from sources other than FTEs — which really shows how committed we've been to shifting toward fixed-fee, consumption, and outcome-based models. We're building up a meaningful base of recurring annual revenue that has nothing to do with FTEs. Looking at each segment: consumer and healthcare rose 9.5%, then high-tech and manufacturing was up 7.6%, and financial services was up 3.3%. On the profitability side, gross margin went up for a 13th quarter in a row, reaching 36.5%, which is roughly 60 basis points higher than a year ago. That margin picture comes from ongoing discipline in operations and pricing, plus the revenue our high-value advanced technology solutions bring in. Importantly, we're also seeing revenue rise without headcount rising, since we're embedding these solutions into our own operations and delivery. Now on to the P&L. SG&A came in at 21.9% of revenue. Adjusted operating income reached $234 million, a 7.5% increase from a year ago, which outpaced our revenue growth. Adjusted operating income margin was 17.4%, as we keep self-funding our strategic investments. Our effective tax rate for the second quarter was 23.7%. Net income came to $146 million, with diluted EPS of $0.86. Adjusted diluted EPS rose 13.6% to $1 per share, which is much faster than revenue for yet another quarter. On cash: we brought in $72 million of cash from operations and finished the second quarter with $517 million in cash and cash equivalents. That figure was affected by the timing of collections and by prepayments made in 2025. Credit quality is still strong. Over the quarter, shareholder returns totaled $82 million, split between $50 million of buybacks and $32 million of dividends. Turning to guidance: as BK noted, advanced technology solutions are carrying serious momentum. That's why we're leaning harder into a flywheel that's already accelerating, directing investment toward areas capable of producing durable value and long-term demand. Given a healthy backlog, a strong pipeline, and customer interest in what sets our capabilities apart, we believe we can reach at least 7% revenue growth for 2026 on an as-reported basis — even after absorbing roughly two points of drag from exiting work that falls outside our Agentic Operations strategy. Given how robust demand has been, we're raising our outlook for Advanced Technology Solutions: revenue should accelerate in the second half, with full-year growth of no less than 25%. Over in Core Business Services, growth is still on the table for 2026, even accounting for the roughly two-point drag tied to the transition I just described. As for when that drag lands, it will hit hardest in the second-half figures. Turning to margins, our full-year gross margin projection remains an expansion of 50 basis points, reaching 36.5%, while adjusted operating income margin should climb about 25 basis points to 17.7% — evidence of our continued dedication to funding growth investments ourselves. For adjusted diluted EPS, we're now calling for growth of at least 12%. Now moving to what we anticipate for Q3, looking at it as reported: our projection is total revenue in the range of $1.369 billion to $1.382 billion, which represents 6.5% growth at the midpoint. For Advanced Technology Solutions, we're expecting revenue growth to speed up to no less than 25% compared with the same period last year. Core Business Services, meanwhile, should come in flat to somewhat lower, and that's even after absorbing roughly three points of drag from moving away from work that doesn't fit with our Agentic Operations strategy. On gross margin, we're looking for expansion to 36.6%, while adjusted operating income margin should rise to 17.8%. And last, for Q3 we anticipate adjusted diluted EPS between $1.04 and $1.05. To wrap up, as BK put it clearly, a fresh Genpact is emerging. To seize this massive opportunity, we're transforming the way businesses function, drawing on our distinctive strengths that come from domain and industry knowledge, alongside major strides in our Advanced Technology Solutions; our attention is on setting ourselves apart in the marketplace, broadening our TAM considerably, speeding up high-quality revenue growth, and steadily widening margins. All of this positions us to keep delivering double-digit growth in adjusted diluted EPS as well as long-term value for clients. Having said that, I'll now hand the call back to Kyle.

Thank you, Mike. Operator, we are ready to go ahead and take questions.

Hello there, and thanks. Regarding the strategic prioritization you're pursuing, and perhaps the segment dynamics — given this deliberate reshaping of the business with a two-point CBS headwind in the current year and what sounds like a comparable headwind in the next one — how does the target growth model appear once we get past these changes? If I strip out that 2%, which is weighted toward the second half, it looks like you're still roughly within the CBS target model. I'd like to verify whether your view of the target model differs from the investor day one — the 4%-5% CBS and the 15%+ ATS. Should it be different, perhaps address how sustainable that very robust ATS growth is.

I'll handle that one, Bryan. Thanks. On the whole, we feel extremely positive about the pace at which we're growing the business, not only in advanced tech but in Core Business Services as well; that's the flywheel producing results, beginning with core and data and AI advisory partner solutions and arriving at Agentic Operations, a new category we are creating and delivering. When I look at the demand signals, they're clearly extremely high in advanced tech and remain very strong in core. Our backlog is truly accumulating quite strongly. We cited the highest ever quarterly booking just last quarter. Pipeline remains strong as well. In essence, we are molding the business into one that's much higher growth and more durable, richer, as we move through 2026, 2027. Mike?

One more point on top of what was said, and to start, let's raise the level of this conversation somewhat. People don't actually approach us in order to purchase Core Business Services or anything tied to ATS. Those labels merely represent how we categorize revenue from the services and products we provide, correct? What brings them to us is a need to fix issues and keep essential operations running. As BK mentioned a moment ago, we are pushing hard to make those operations agentic. Thinking about it, our confidence remains strong regarding the guidance we issued for this year as well as the longer-range guidance we laid out on Investor Day, which, I believe, took place in June of last year.

Got it. For my next question, I'd like to dig into bookings and how much visibility we have on backlog. You called out record bookings, backlog expansion, and clearly a still-strong pipeline. At this point in time, how much visibility does that base give you into growth for 2027?

I won't get into talking specifically about 2027. Instead, let me walk through how we're framing our guidance for this year, and from there you can project it forward into next year. I believe that will be reasonably useful, right? As you accurately restated, we posted record bookings and backlog coming out of just an outstanding first half of this year, right? If you consider it, and since this will also help carry us forward into next year, we had 12 large deals during the first half; that's twice as many as we had in the same period last year, right? On top of that, there's an extremely strong pipeline, which we're working diligently to convert, right? We continue to see strength and demand in both core and ATS; as for the work we're moving back to our clients, correct, that will show up across the next four to six quarters, with two points being impacted for the full year this year, right? I'd also keep thinking about how the business keeps rolling out and executing. Once again, we feel really good about where we stand. We have solid line of sight to delivering these results for this year and then on into next year.

Yeah, that sounds great. Thanks a lot.

Yeah. I'd say, if I could jump in here, we're seeing some real momentum gathering around Advanced Tech. Advanced Tech also happens to be an annuitized business. So that flywheel moving from Core over to Advanced Tech, which then feeds into Agentic Operations, is generating quite a bit of momentum along with durable, richer revenues.

Hello, and thanks. Perhaps one more question regarding the non-strategic work. Could you assist us in grasping how those compare on margins relative to other services in your portfolio, and then perhaps how that would appear in the current year compared with the following year? And is this process essentially finished at this point?

Yes. I might handle that one, and Mike, please jump in if you wish. To start, as you're able to observe, Maggie, in line with the 13th quarter of gross margin expansion, I believe that path remains unchanged, that momentum remains unchanged. As I noted, we are molding the business with revenues that are more durable and more richer, and as a result the margin profile, whether gross margin or AOI, we anticipate will stay on the path we're discussing. To be more precise, once again this represents a very small part of our business that did not pass the three tests we discussed. How do we generate durable value that can be readily replicated, or does it deliver a strong ROI, both for Genpact and clearly for our clients? Is it in line with a large, fast-growing market and expanding TAM? Once again, these constitute a very small part of our business, as I said, small parts of content management or some of the commoditized contact center play, which is what we are moving away from.

Got it. Now that we're growing more at ease with the kind of new Genpact that comes with different pricing structures, I was hoping you could give us a clearer picture regarding agentic workflows — specifically, what happens with pricing and margins when token prices go up, and how that affects your capacity to push margin expansion.

Sure. Let me address that one more time, quickly. With agentic solutions, first, we're taking advantage of scale, and these aren't custom-built agents made to order. That distinction matters a great deal, I believe, compared to what other players are doing. The reason is that a compounding learning element exists inside the solution set, plus scale from an economic angle too. What we have here is annuitized recurring revenue carrying minimum volume commitments. A floor exists beneath the revenue we bring in, with upside coming when a client widens use cases or tacks on additional agentic workflows. Clearly, retention is extremely high, spanning multiple years, and the relationship is significantly stickier. Then, looking at margin, structurally speaking, we anticipate benefiting on both fronts. As compute gets better, technology expenses come down with time. Since we hold the stack, the efficiency improvements accrue to us. With agents taking on a greater share of the workflow, labor expenses fall. People get involved solely for situations demanding high judgment, never for processing at volume. When it comes to token economics, the way we're designing the architecture also permits dynamic switching and model flexibility with zero disruption for clients. I'd call it a robust token FinOps that we've got. Our procurement is solid. Neither overprovisioning nor underprovisioning occurs, or anything like that. I feel genuinely positive about where we're steering this company.

Very thorough. Thank you, BK.

Thanks, Maggie.

Thanks. BK, regarding the Advanced Technology Solutions segment and the pickup we've witnessed there in work or revenue growth, could you perhaps discuss, when I consider the agentic solutions now offered, how much of that stems from simply additional products you provide and extra services connected to that business line item, as opposed to what I'd describe as mounting demand for an already existing set of products and services? I'm merely attempting to grasp whether, as you develop and generate additional agentic solutions, we ought to anticipate Advanced Technology Solutions possibly continuing to speed up its growth rate. Or what way should we describe, comprehend, or provide context regarding the present growth rate and perhaps its durability?

Yeah. Brief response, yes, you ought to anticipate it speeding up. I believe it's the flywheel effect we keep mentioning. That flywheel truly develops from the power of our core, the profound process intelligence, domain knowledge, decades of operational excellence. This draws process, data, enterprise technology, all of it into one place, and then we handle driving change management on the client side too; it likewise unlocks fresh workloads for us; we're shifting from merely operating client operations to owning the complete transformation piece for them, whether that's foundational efforts or data modernization, enterprise architecture, as I stated. Consequently, creating these large-scale agentic solutions will generate an exponential impact over time. Yes, you ought to anticipate this acceleration persisting, and it's firing across every component.

Let me just tack one item onto that, BK. You brought up how revenue from Advanced Technology Solutions rose 24% during the quarter, correct? That comes to roughly $360-ish million. Only a small portion of that involves agentic related revenue, isn't that right? We spend a lot of time discussing the bookings. Those will simply underpin the growth, especially looking ahead. The agentic bookings make us quite happy, and as we've set out, we expect that figure to reach around $1 billion this year.

That's useful. So BK, during the past 2 years, revenue from partnerships and partnership sourcing has played a significant role in the strategy. Could you give us a little more detail there, perhaps regarding some of what was said in the prepared remarks? Regarding the bookings you're seeing now, what portion arrives via your partners, and how might that stack up against the prior year, plus how ought we to view it going forward?

Partners form a core element of the flywheel. My consistent view is that you might be anyone, yet no single organization holds every solution within its own four walls, no matter how innovative a company you are. So the technology and partner ecosystem is essential to delivering value for clients. We've put substantial investment into this area, and I'd say we're at the beginning of that journey, with a considerable opportunity lying ahead. Here's a fast illustration: recently, in a supply chain case, we worked alongside ServiceNow for a top energy equipment manufacturer, and they aimed to move a heavily customized legacy platform onto a new domain-specific platform backed by ServiceNow. They picked Genpact to lead that transformation, in which we handled data model standardization, governance, and workflows, integrating nearly 100 fragmented workflows. We addressed numerous customizations and then created a future-ready platform. All of that combined our supply chain domain knowledge with a robust relationship with ServiceNow. Every bit of this is reflected in our results and, ideally, in theirs as well.

Thanks.

Hey, everybody. Nice work on the numbers, and I appreciate you fielding my questions. I'd like to know whether you're feeling any added strain from customers bringing work back in-house, or from being squeezed out by spending on AI token infrastructure, the way some of your competitors reportedly are. Thanks.

Thank you, Sean. My view is that everything here ties back to the strategy — what we're pushing forward and how we intend to build this company's future. When I consider where clients are putting their engineering people first, it's increasingly the tougher challenges, the ones tied closely to what their company strategy demands. Take a pharmaceutical firm: the question is how a new molecule gets developed. Or a food and beverage business: what's the next best drink, or the next best brand, that they can launch. Then there's running mission-critical operations — finance, HR, supply chain, procurement — which sits at the heart of Genpact, and that's the direction we're steering the company. That's where we're delivering all these agentic solutions, and our clients are embracing them in a major way.

Good to hear that. When it comes to those agentic bookings, is any particular customer type standing out as especially successful?

Honestly, I'd say it spans every segment, new ones included, and we're grabbing the new TAM — like we said, we anticipate more than $1 billion in bookings from agentic alone, with no agentic washing, sold as annualized recurring revenues. Over 50% of that comes from clients who are newer. We're rotating our current clients, and that rests on the domain and industry-specific expertise we possess, which we bring to both new and existing clients while capturing the TAM. Core hands us this right to win, and that's why we built the strategy we discussed. So it's creating a very long runway in clearly chosen areas of our domain industry expertise. Client trust keeps growing further.

Great. Thanks so much.

Thanks.

Hi, appreciate you fielding my question. I'd like to dig deeper into that non-strategic portfolio as well. Generally speaking, do such contracts come out of one-off customer engagements, or do they represent processes you handle for bigger accounts? In your view, where will the work that's being moved away end up? Could it land with some of your rivals, or are customers bringing it back internally?