Genpact Limited

Good day, ladies and gentlemen, and welcome to the 2026 first 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 the 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 Kyle Bickstrom, Head of Investor Relations at GENPAC. Please proceed.

Good afternoon, everyone, and welcome to GENPAC's Q1 2026 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, GEMPAC.com. Today, we have with us BK Kalra, President and CEO, and Mike Wiener, 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 constant currency growth rates can also be found in our earnings press release and fact sheet posted to our investor relations website. And finally, this call in its entirety is being webcast from our website and an audio replay and transcript will be available on our website in a few hours. With that, I'd like to turn it over to BK.

Thank you, Kyle. Hello, everyone, and thank you for joining us today. Q1 was a record start to the fiscal year, and I want to be unequivocal. I believe we are in the early innings of something that will fundamentally reshape this company's trajectory. It is rare to see the convergence of a structural shift in the market, a differentiated capability set, and the right strategic positioning all happening at the same time. When they do, and when a company has the discipline and courage to act on it, the resulting advantage compounds in ways that are difficult to replicate. That convergence is what we are experiencing right now. Not as a moment, but as a sustained momentum we see reinforced in our pipeline, our client conversations, and our early results. A new GenPact is taking shape, and our Q1 results demonstrate we are on a clear path as a leader in agentic and advanced technology solutions. Disciplined execution with healthy and increasing demand, drove total revenue growth of 6.7% year-over-year to $1.296 billion. Advanced technology solutions revenue growth accelerated to 24% year-over-year as we continue to rapidly deliver compelling innovation across our client base. Gross margin expanded for the 12th quarter in a row, up more than 100 basis points year over year, further enabling significant investments for long-term growth. And adjusted diluted EPS again grew faster than revenue, up 16.7% year over year. Our intentional focus and prioritization on driving high-quality, sustainable growth is showing up both in our top and bottom line results, and in future indicators of growth across booking, pipeline, and inflows. Clients, including some of the world's largest corporations, are choosing Genpak as a long-term strategic partner to reshape and run their mission-critical operations. We signed six large deals in the quarter and we have a healthy pipeline of other large transformational deals, setting us up for continued strength through the year. We are contractually changing the game. We are capturing more multi-year opportunities with annual recurring revenue streams, creating a robust, durable base we can continue to build on. And we are seeing strong early signs of scale. with headcount growth decoupling from revenue as we deeply leverage agentic and AI to make our delivery more productive. Momentum in advanced technology solutions is rapidly building. Over the last 90 days, our pipeline has grown more than 30% as demand for our agentic solutions and data and AI expertise continues to meaningfully increase. Advanced technology solutions is becoming an increasing proportion of our bookings, adding to our record backlog. And it is contributing more to total revenue. As I said, it grew 24% year over year, and now accounts for 27% of total revenue. These solutions continue to create more value for our clients, and generate high value revenue for GenPi. At Investor Day last June, we framed it as 2x2x7070. What this means is advanced technology solutions deliver more than two times the revenue per headcount and two times the revenue growth of the total company. With 70% annuitized revenue, and 70% from non-FTE commercial models. All of these metrics are tracking ahead of what we reported last year, further underscoring the high quality and sticky nature of this business. What I continue to be most proud of is our exceptional momentum with Agentech. These are not one-off projects. We are building a meaningful, long-term, annuitized business with our own IP that is deeply integrated in our client operations. Our agentic solutions growth is accelerating. This quarter alone, we nearly doubled the total contract value of our agentic solutions from all of 2025. We are fundamentally and rapidly transforming how businesses operate, and long-term demand for our agentic solutions is gaining significant traction. More and more new clients are choosing Genpak for our differentiated domain-driven offerings, bringing us into their operations because of the expertise and outcomes we uniquely provide. Existing clients, having known us for running mission-critical operations are experiencing a surge of innovation from us. And they are actively integrating our agentic offerings, expanding scope, volume, or both, as they move confidently towards outcome-driven, non-FT-led operations. This momentum is quickly building a meaningful recurring annual revenue base for Genpak, with expanding margins that continue to improve as the business scales. With accounts payable, record to report, source to pay, insurance, and our robust future roadmap, we are quickly becoming the agentic transformation partner of choice to move clients from digital operations to agentic operations. We are moving clients to a collaborative model between agents and human experts. Agents can now autonomously execute tasks in reimagined processes, while our last mile experts validate exceptions, train and advance models, and reinforce learnings, all within the guardrails of our responsible AI framework. We call this agentic operations. Over the past couple of years, the significant investments we have made to expand our advanced technology capabilities have effectively created a flywheel that builds to agentic operations and scalable autonomy. This incredible momentum would not have been possible without decades of experience running our clients' mission-critical operations. Core business services is a key element of our growth model. For our clients, our process intelligence and our ability to codify it continues to be the differentiating factor that brings their artificial intelligence to life, allowing them to achieve real scale across their global organization. Core business services revenue increased 1.4% in Q1 as we intentionally disrupt to create exponential value for our clients. Demand is healthy and growing. Our booking and pipeline continues to demonstrate that our deep domain and industry experience is amplifying our broader portfolio. We are taking our extensive roadmap to our clients and seeing them rapidly rotate and also shape our future agentic solutions. This is allowing us to make deliberate decisions to double down on scaling our agentic and AI-led offerings, prioritizing higher quality, long-term growth that continues to build over time for Genpak. Clients across the globe are now choosing Genpak for more than just our operational expertise. They are choosing us for our technology and our ability to codify and scale process context. While our US client traction continues to be strong, let me share two global examples, and both are new. First, from Europe. This quarter, we entered a new strategic partnership with a global leader in insurance and financial services to support their transformation into global verticals. We will be running and optimizing their mission-critical operations while building functions of the future, interested to address the needs of all stakeholders, including their customers, employees, and shareholders. We are partnering to reimagine how their key functions operate and scale at an enterprise level, embedding agentic and AI-driven capabilities at the very core of our global enterprise transformation. We are integrating Genpak's agentic finance IP solutions like accounts payable and record to report, as well as other AI-led offerings. The result is fundamental shift for these functions to become predictive business partners while reducing transaction costs and improving compliance. The combination of understanding the business context at the last mile bringing the latest agentic innovations and strong cultural and people alignment with outcome orientation creates an incredibly strong foundation for the strategic partnership. The next example comes from one of our new next-gen clients, which represents next generation of market disruptors. Bendigo Bank, one of Australia's leading banks, is transforming its operating model to create a leaner, more resilient operating backbone, allowing investments to be redirected into customer experience, data, and product innovation. Bendigo Bank entered into a strategic multi-year partnership with Genpact to drive greater productivity with stronger risk and control outcomes across core operations. Bendigo Bank selected Genpak given our ability to combine deep Australian banking operation expertise, proven innovation as demonstrated through real AI and agentic case studies, and a risk balance mindset critical in regulated environments. Both of these examples underscore our unique positioning and a clear flywheel effect. Decades of experience translating into codified domain knowledge, combined with expanding advanced technology capabilities and agentic operations, and all of these are compounding. What we also hear from clients is that their data, infrastructure, systems, and processes are complex. They need help navigating rapid technology changes, and they need partners who can connect across the broader ecosystem. We continue to deepen and expand our partner relationships with differentiated offerings, leveraging our clear domain expertise and connecting the dots for clients. In Q1, our partner-related revenues grew 35% year-over-year, now accounting for nearly 13% of total revenue. We continue to make meaningful progress against our partner strategy and this week marks a significant milestone. We just announced a strategic alliance with Google to create agentic and AI-led solutions for the Office of the CFO. This is not just a partnership announcement. It is deepening of a relationship that is already delivering real results for clients. Just two weeks ago at Google Next, Google spotlighted Genpak's finance solutions showcasing how we are enabling finance users to gain actionable insights from revenue and P&L data through natural language conversations in Gemini Enterprise. The thesis is simple. Genpak's context-rich process intelligence, combined with Google Cloud's AI infrastructure, allows us to drive agentic transformation across the office of the CFO. Let me bring that to life with a client example. Cardinal Health manufactures and distributes medical and healthcare products operating in 30 countries and serving 90% of US hospitals. We have a long standing relationship with Cardinal Health working on transformation across both finance and supply chain. The company wanted to streamline manual processes further to drive meaningful quality cost and productivity gains using AI. We collaborated with Google Cloud to launch an AI-led innovation leveraging deep process intelligence to pinpoint the right starting point. The results, for example, from credit memo processing are clear. Our agentic solutions are driving a meaningful increase in touchless processing, faster cycle times, and a significant improvement in cash flows. This is the kind of transformation change Genpak is enabling as we scale with partners across enterprise operations. I open today by describing something rare. A moment when structural shift in the market, a clear opportunity, and a company's unique positioning all converge at the same time. makes the case that 2026 is proving to be that moment, and Genpact is not just watching it unfold. We are shaping it. Our strategy is clear, our momentum is measurable, and increasingly, the market is seeing a different Genpact. For decades, we have been trusted for deep process intelligence, and running mission-critical operations at scale. That foundation has only strengthened. What's changed is what clients are now asking us to do with that foundation. Today, they come to us to bring together processes, technology, data, organizations to deliver outcomes that simply were not possible before. And because of that, We are winning new kinds of work, engaging in new kinds of conversations, and expanding the addressable market in front of us. Agentic operations is at the center of this. We are building, orchestrating, and responsibly governing agentic systems across the most essential parts of our clients' businesses. We are combining AI with decades of domain expertise in a way that is incredibly difficult to replicate. This isn't just a concept for us. It is live, it is scaling, and it is showing up in our results. And you can see the effect on the quality of the business. The shape of our business is changing in ways that matter. We are building revenues that are high quality, more durable, and harder to displace. The margin profile is structurally richer. We are leaning in hard behind our most strategic priorities, and that is opening up a daylight between Genpact and the market around us. This quarter is not an aspiration. It is a proof point. A new Genpact is here, and we are just getting started. With that, let me turn the call over to Mike.