Key Takeaways From Genpact Limited’s Analyst Day

Deutsche Bank analysts provided their key takeaways from Genpact Limited (NYSE:G) Analyst Day, noting that the company is well positioned to continue meeting strong demand.

The company laid out its 2026 financial goals and reiterated its full 2022-year guidance while highlighting a business characterized by recurring revenue, expanding margins, and strong cash flow generation.

Since 2018, the company has grown at approximately 10% revenue CAGR and seen around 70bps of adjusted operating margin expansion and it expects this strong growth to continue through 2026 with an organic revenue growth CAGR of over 10%, accelerating margin expansion, and more regular stock buybacks leading to adjusted EPS growing faster than revenue through the mid-term.

Beyond its midterm financial roadmap, the company also addressed concerns around a potential recession, highlighting the shift in client discussions from revenue-driven conversations to cost-driven ones as well as the non-discretionary nature of the company’s services. While the company continues to deal with the war for talent and wage inflation, the analysts believe it is well positioned to take advantage of a shift in demand towards its emerging services offerings and should continue to see solid bookings and win rates.