Genpact (G) Stock Forecast & Price Target

Genpact is benefiting from a clear shift toward higher-value Advanced Technology Solutions, which grew 24.1% Y/Y to $363.3 million and now represents over 27% of revenue, helping total revenue rise 7.1% Y/Y to $1.343 billion and driving adjusted EPS of $1.00 above expectations. Its fundamentals also look stronger because gross margin expanded to 36.5% for the 13th consecutive quarter of expansion, while management raised FY26 ATS growth to above 25% and lifted FY26 EPS growth guidance to at least 12% on strong bookings, including six large deals and nearly $1 billion of agentic TCV in 2026. Although Core Business Services remains softer as the company transitions away from non-strategic work, the combination of durable margins, attractive valuation, and growing demand for AI-led transformation supports a favorable long-term outlook.

Genpact is vulnerable to a prolonged economic downturn that could reduce transformation deal signings and pressure organic growth, while shocks such as Covid-19 can slow client decision-making and weaken revenue momentum. Its global delivery model also depends on retaining talent in key regions, especially India, where wage inflation and the war for digital and analytics talent could squeeze margins and disrupt service quality. Although it ended the quarter with $517 million in cash and cash equivalents after $363 million of debt repayment and returned $82 million to shareholders, foreign currency exposure and softer growth prospects could still weigh on both the top and bottom line.