Genpact (G) Earnings Growth Slowdown Tests Longstanding Bullish Narratives

Genpact (G) just closed out FY 2025 with Q4 revenue of US$1.3 billion and basic EPS of US$0.83, alongside trailing twelve month revenue of US$5.1 billion and EPS of US$3.18 that reflect steady earnings power through the year. The company has seen quarterly revenue move from US$1.21 billion in Q1 2025 to US$1.32 billion in Q4, while basic EPS ranged from US$0.75 to US$0.84 over the same period, giving investors a clear view of how the top and bottom lines shaped up across the year. With a net profit margin sitting just above 10% and earnings growth in the mid single digits, this set of results focuses on how durable those margins look from here.

See our full analysis for Genpact.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the widely followed bullish and bearish narratives around Genpact and where those stories might need updating.

Curious how numbers become stories that shape markets? Explore Community Narratives

7.6% Earnings Growth Versus 13.9% Five Year Pace

• Trailing twelve month earnings grew 7.6%, compared with a 13.9% five year EPS compound growth rate, so the most recent year sits below the longer run pace that investors have seen in the data.
• What stands out for the bullish view is that this slower 7.6% year still comes alongside a net profit margin of 10.9% and trailing twelve month net income of US$552.5 million, which supports the idea of high quality earnings even if the growth rate is not matching the 13.9% five year trend.
  • Supporters who focus on steady compounding can point to trailing twelve month revenue of about US$5.1b and EPS of US$3.18 as evidence that the business is still adding profit on a larger base.
  • On the other hand, anyone expecting the five year 13.9% pace to continue uninterrupted has to factor in that the latest year sits closer to the 7 to 9% range in the dataset.

Investors weighing this slower 7.6% year against the stronger 13.9% five year history may want to see how others frame that trade off in their narratives about the company. 📊 Read the full Genpact Consensus Narrative.

Margins Hold Around 10.9% Net Level

• Net profit margin is shown at 10.9% versus 10.8% a year ago, paired with Q4 FY 2025 net income of US$143.1 million on US$1.3b of revenue, which suggests the company is converting a similar share of revenue into profit as it did the prior year in the dataset.
• For a bullish take that emphasizes stable profitability, this small move in net margin together with quarterly EPS between US$0.75 and US$0.84 in FY 2025, and trailing twelve month EPS of about US$3.18, heavily supports the idea that the business is keeping earnings quality intact across different quarters rather than relying on one isolated spike.
  • Supporters can point out that each 2025 quarter delivered net income between roughly US$130.9 million and US$145.8 million, which lines up with the picture of consistent margins on a gradually larger revenue base.
  • At the same time, anyone cautious about profit sustainability can see that margins are not breaking out higher than 10.9%, so the story is more about holding the line than about a step change in profitability.

P/E Of 12.5x Versus Peers At 21 to 29x

• The trailing P/E of 12.5x at a share price of US$40.39 sits well below the 21.5x US Professional Services industry average and the 28.6x peer group average, while the DCF fair value in the dataset is US$126.94, which is much higher than the current share price.
• For a bullish narrative that leans on value, this wide gap between the current US$40.39 price, the 12.5x P/E, the DCF fair value of US$126.94, and an analyst price target of US$48.82, strongly supports the argument that investors are paying less than what both earnings multiples and cash flow estimates would suggest, even with earnings and revenue growth sitting in the 7 to 9% ranges.
  • Backers of the bullish case can highlight that analysts in the dataset see about 20.9% upside from US$40.39 to US$48.82, which lines up with the idea that the current pricing is conservative compared with the earnings profile.
  • Others might point out that the company is also forecast to grow more slowly than the broader US market in the dataset, which helps explain why the P/E discount exists even with that 20.9% implied upside.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Genpact's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Genpact's recent 7.6% earnings growth sitting below its 13.9% five year EPS pace, together with margins holding near 10.9%, suggests slower compounding momentum.

If that slowdown makes you want stronger growth stories at reasonable valuations, check out 53 high quality undervalued stocks right now to find companies that better fit that brief.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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