Genpact (G) Valuation Check After Q4 Beat Strong AI Demand And Higher Dividend Guidance
Genpact (G) is back in focus after a busy update, combining Q4 results that exceeded Wall Street expectations with 2026 guidance, a higher quarterly dividend, and ongoing share repurchases.
See our latest analysis for Genpact.
Even with the strong Q4 print, 2026 guidance and a higher dividend, Genpact's recent share price performance has been weak, with a 30 day share price return of 21.95% decline and a 1 year total shareholder return of 33.64% decline. This suggests momentum has been fading despite the fresh focus on AI led offerings and buybacks.
If this update has you reassessing service and AI related names, it could be worth scanning the 59 profitable AI stocks that aren't just burning cash as a way to spot other cash generating AI exposed businesses.
So with Genpact guiding to higher earnings, lifting its dividend and continuing buybacks while the share price has retreated, is the market offering a discount or already pricing in the company’s future AI led growth?
Most Popular Narrative: 25.6% Undervalued
Genpact's most followed narrative puts fair value at about $48.82 per share versus the last close at $36.31. This frames the current pullback as a sizeable gap to that estimate.
Genpact's strong pipeline, particularly in high-growth verticals like high tech, manufacturing, and financial services, combined with increasing large-deal activity and stable operating leverage, sets the stage for above-sector-average revenue and EPS growth, aided by operating margin expansion and continued return of capital to shareholders.
Curious what earnings trajectory and margin profile sit behind that valuation gap? The narrative leans on steady top line progress, firmer profitability and a future P/E that stays below many service peers.
Result: Fair Value of $48.82 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that 21.9% 30 day share price decline and management’s own comments on muted demand and slower legacy services show how easily this upbeat narrative could be knocked off course.
Find out about the key risks to this Genpact narrative.
Build Your Own Genpact Narrative
If you see the story differently or just prefer to test the numbers yourself, you can build a custom Genpact view in minutes by starting with Do it your way.
A great starting point for your Genpact research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
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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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