Genpact Limited

Ladies and gentlemen, welcome to the 2025 Fourth Quarter GEMPAC Limited Earnings Conference Call. My name is Carmen, and I will be your conference moderator for today. At this time, all participants are in a listen-only mode. We will conduct a question and answer session towards the end of this conference call. As a reminder, this call is being recorded for replay purposes. The replay of the call will be archived and made available on the IR section of GenPAC's website. I would now like to turn the call over to Krista Bessinger, Head of Investor Relations at GenPAC. Please proceed.

Thank you, Operator. Good afternoon, everyone, and welcome to GenPAC's Q4 2025 Earnings Conference Call. We hope you've had a chance to read our earnings press release, posted on the investor relations section of our website genpak.com today we have with us bk kalra president and ceo and mike weiner chief financial officer bk will start with an overview of our results and then mike will cover our financial performance in greater detail before we take your questions please note that during this call we will make forward-looking statements including statements about our business outlook, strategies, and long-term goals. These comments are based on our plans, predictions, and expectations as of today, which may change over time. Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors in our 10-K and 10-Q filings with the SEC. During this call, we will discuss certain non-GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release. These non-GAAP measures are not intended to be a substitute for our GAAP results. More details on our constant currency growth rates can also be found in our earnings press release and fact sheet, which are posted to our investor relations website. And finally, this call in its entirety is being webcast from our investor relations website. And an audio replay and transcript will be available on our website in a few hours. And with that, I'd like to turn it over to BK.

Thank you, Krista. Hello, everyone. And thank you for joining us today. We delivered a strong close to a record year for Genpak. Focus execution, accelerating innovation, and broad-based demand drove $5.08 billion in revenue, up 6.6% for 2025. Advanced technology solutions revenue grew 17% to $1.2 billion, now accounting for 24% of our total revenue. We also delivered another year of healthy margin expansion. Gross margin expanded 60 basis points and adjusted operating income margin improved 40 basis points, even with our significant investments for long-term growth. Adjusted diluted EPS increased 11% faster than revenue for the fifth year in a row. In 2025, we built a strong foundation to drive sustainable long-term growth with a deliberate focus on rapidly scaling data, AI, and domain-driven agentic solutions to reimagine how clients operate. The shape of our business is meaningfully changing as a result. Our performance, pipeline, and prospects are increasingly higher quality and strategically aligned with our prioritization of advanced technology solutions and agentic-led work. We delivered over $5.5 billion in new bookings with healthy growth in advanced technology solutions, which now account for more than a third of total bookings. We won 16 large deals and continue to make progress with the next generation of market disruptors. We are in a very strong position as we enter 2026. Demand is healthy and growing. Our inflows and pipelines are robust and our backlog has never been higher as more clients see Genpak as a long-term strategic partner to transform their mission critical operations. 2025 was a year of intentional disruption and tremendous achievements. As I look back, I'm most proud of what we have built, launched and scaled with our agentic solutions. We are fundamentally reshaping how businesses operate and we are doing so at speed. Last February, we launched AP Capture The first module in our accounts payable agentic suite with AP advance, trace, and assist made available at the end of June. While it is still early days, we have closed over $200 million in total contract value just for our AP agentic solutions. Within that, over 40% of awarded contract value came from new clients. And for existing accounts that have rotated from FTE-led to a GenTech, both revenue and gross margin expansion are notably above what we reported at Investor Day in last June. With AP Suite, we have built the playbook for delivering sustainable, expanding value for clients and for GenPact, and we are just getting started. Our strong product roadmap of multiple domain specific solutions like AP are clearly aligned to our areas of operational expertise. The insurance policy and record to report agentic suite that we announced late last year are just a couple of examples. We believe the most successful companies will be those that leverage AI to achieve higher levels of autonomy and redefine how they run their businesses. Genpak is shifting the paradigm of how knowledge work gets done. We are pioneering a new operating model. We call it agentic operations. Agentic operations moves beyond automation to a collaborative model between agents and human experts through three main pillars. One, the main specific agents that autonomously execute tasks in reimagined processes. Last mile experts that validate exceptions, train and advance models, and reinforce learnings. And three, clear roles, skills, and governance underpinned by responsible AI. Agentic operations moves from human-processed, human-validated, to machine-processed, human-validated. As we enter 2026, a new Genpak is taking shape. We are setting the standard for AI-led transformation. We are uniquely positioned to help clients reimagine the most critical components of their journey, from fundamentally redesigning end-to-end processes, to building data and AI capabilities, to operating at scale through agentic collaboration. The opportunity ahead is significant. AI is rapidly evolving from generating insights to executing actions and CXOs face a clear business imperative. Translate AI and agentic investments into measurable financial outcomes. In the U.S. alone, the work of more than 70 million knowledge workers will be transformed by seamless collaboration between AI agents and human expertise. And research indicates that enterprise app integration with domain specialized agents that are built on last mile expertise will increasingly become the norm. It is clear enterprise transformation demands a parallel focus on process re-engineering, data modernization, agile tech architecture with AI embedded at its core and the discipline to unlearn legacy ways of working. This is exactly where Genpak shines and where we continue to differentiate. Through our Genpak Next strategy, we are expanding our capabilities, clients, and catalysts to capitalize on this meaningful opportunity and moving from meeting clients where they are to getting clients where they want to be.