What Happened?
Shares of business transformation services company Genpact (NYSE: G) jumped 4.6% in the morning session after the company reported second-quarter results that beat analyst expectations and raised its full-year financial guidance, fueling investor optimism. The company posted second-quarter revenue of $1.25 billion and adjusted earnings per share (EPS) of $0.88, surpassing analysts' consensus estimates. The revenue figure represented a 6.6% increase year on year. Looking ahead, Genpact raised its full-year guidance for both revenue and profit, now expecting revenue of $5.01 billion and adjusted EPS of $3.55 at the midpoints. Despite a miss on adjusted EBITDA and a lower free cash flow margin compared to the previous year, the positive revenue and earnings performance, coupled with the improved outlook, drove the stock higher.
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What Is The Market Telling Us
Genpact’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Genpact is up 2.9% since the beginning of the year, but at $44.26 per share, it is still trading 20.3% below its 52-week high of $55.54 from February 2025. Investors who bought $1,000 worth of Genpact’s shares 5 years ago would now be looking at an investment worth $1,057.
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