Exlservice Q2 revenue beats estimates

Overview

• US data and AI firm's Q2 revenue rose 16% yr/yr, beating analyst expectations

• Q2 adjusted diluted EPS up 22% yr/yr, beating analyst expectations

• Company raised 2026 revenue and adjusted EPS guidance, factoring in iMerit acquisition

Outlook

• ExlService raises 2026 revenue guidance to $2.390 bln-$2.415 bln, including iMerit acquisition

• Company expects 2026 adjusted diluted EPS of $2.25-$2.29, up from prior guidance

• ExlService says healthy pipeline and acquisition support confidence in full-year outlook

Result Drivers

• DATA AND AI STRATEGY - Co said sustained double-digit growth reflects continued execution of its data and AI strategy and differentiated position in helping clients adopt AI across the enterprise

• NEW CLIENT WINS - Co said it won 17 new clients in the quarter

• AI PARTNERSHIPS AND ACQUISITION - Co highlighted expanded partnerships with Databricks, OpenAI, Anthropic, and Snowflake, and the pending iMerit acquisition to advance AI capabilities

Company press release: ID:nGNX5m6dXd

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Exlservice Holdings Inc is $40.00, about 40.1% above its July 27 closing price of $28.56

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)