Key Highlights

● Second-quarter net revenues rose 7.1 per cent year over year to $1,343.4 million.

● Advanced Technology Solutions revenue rose 24.1 per cent year over year.

● Core Business Services, the larger unit, grew just 1.9 per cent in the quarter.

● Cash from operations fell to $72 million from $177 million a year earlier.

Genpact Limited (NYSE:G), which describes itself in its results release as NYSE: G, reported second-quarter 2026 results on 6 August 2026 for the quarter ended 30 June 2026. Net revenues were $1,343.4 million, up 7.1 per cent from $1,254.4 million, or 6.9 per cent in constant currency. Net income rose 9.8 per cent to $145.7 million, equivalent to $0.86 of diluted earnings per share. Adjusted diluted earnings per share were $1.00, up 13.6 per cent from $0.88. Income from operations was $192.9 million, a 14.4 per cent margin, while adjusted income from operations was $233.6 million, a 17.4 per cent margin. Gross profit was $490.3 million, up 8.9 per cent, and gross margin was 36.5 per cent. Operating income growth of 7.5 per cent trailed the 8.9 per cent rise in gross profit, so the benefit of faster gross profit growth was not fully carried through to operating profit, as we read the figures.

A business in two speeds

The segment split is the central feature. Advanced Technology Solutions, the faster-growing of its two reporting units, generated $363.3 million, up 24.1 per cent, and now represents about 27 per cent of revenue. Core Business Services, the larger unit, produced $980.1 million, up only 1.9 per cent. Our interpretation is that overall growth of about 7 per cent depends heavily on the smaller segment sustaining rapid expansion while the larger one stays close to flat. The company's own outlook points the same way, as set out below.

Cash flow and capital allocation

Cash generated from operations was $72 million in the quarter, compared with $177 million a year earlier, and $48.9 million for the six months against $217.8 million. This is a clear contrast with the improvement in earnings, and readers should watch whether the shortfall reverses in later quarters. The release data we read did not explain the cause in detail. Genpact repurchased about 1.6 million shares for roughly $50 million in the quarter, at an average price of $32.04, and $120.0 million in the first half. Six-month dividends paid were $63.3 million. At 30 June 2026 cash was $517.4 million and total debt was about $1,180 million, against total equity of $2.60 billion.

Growth Depends on the Smaller Segment Sustaining Its Pace

Genpact's overall growth of about 7 per cent leans heavily on Advanced Technology Solutions continuing to expand rapidly while its larger Core Business Services unit stays close to flat, a pattern the company's own third-quarter guidance reinforces by expecting the smaller segment to grow at least 25 per cent. The sharp drop in operating cash flow, to $48.9 million from $217.8 million over six months, is a clear contrast with the improvement in reported earnings that the company has not explained in the materials reviewed.