Genpact (G)
NYSEIndustrialsInformation Technology ServicesSnapshot 2026-09-09
$34.87-1.36%
Close 2026-09-09 · 1-day change
NYSEIndustrialsInformation Technology ServicesSnapshot 2026-09-09
Broken: Primary pillar broken — Maintain adjusted operating margin near 17.7% in 2026: TTM operating margin 14.8% vs 17.7% target.
Genpact grows revenue about 7% a year. Profit margin target is 17.7%. The company trades cheap with a PE of 8. Analysts expect earnings per share near $4.07 in 2026. Free cash flow yield is strong at 13%.
The recent sharp selloff shows risk. Margin progress is mixed and guidance is soft. Revenue growth could fall below the 7% target. The sector faces headwinds that may pressure demand.
The price is about 45% below our fair value near $60. The market expects about 9% revenue growth, close to management's 7% target. Our view sees some risk from margin pressure and sector headwinds.
Breaks if: EPS falls below $4.04 in FY26
Breaks if: Operating margin falls below 17.7% in FY26
Breaks if: YoY revenue growth falls below 7% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a stable management team. The current thesis state is intact, supported by recent earnings beats, but it faces challenges from sector dynamics and execution quality.
The market currently prices G as cheap compared to its peers, reflecting a low expectations gap. However, there is a recognition of the fragility in earnings quality, which suggests that the market is cautious about future performance.
Management is on track to achieve its revenue growth targets, with net revenue growth of 7.1% reported in the latest quarter. However, the adjusted income from operations margin is showing mixed results, which could impact overall performance.
The long-term thesis hinges on the performance of sector bellwethers like BR, LDOS, and CACI. If these companies continue to perform well, it could provide a favorable environment for G, while any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Genpact's guidance to grow Advanced Technology Solutions revenue by at least 25% in 2026 reinforces this view. There are no significant threats noted at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: PE rises above 15 without earnings growth
In summary, G is navigating a challenging environment but is executing on key growth priorities. The next few quarters will be critical to watch for sector signals. Not investment advice.