EXLS · ExlService Holdings, Inc.

ExlService Holdings, Inc. delivered strong Q1 2026 results with revenue of $570.4 million, reflecting 13.8% year-over-year growth on a reported basis and 13.4% on constant currency, driven by balanced performance across segments: Insurance at $194.0 million (37.7% gross margin), Healthcare and Life Sciences at $151.9 million (45.3% margin), Banking/Capital Markets/Diversified at $127.4 million, and International Growth Markets at $97.1 million. Gross margin expanded slightly to 38.9% from 38.6% YoY, while operating income margin improved to 16.1% (GAAP) from 15.7% and adjusted to 20.5% from 20.1%, signaling operational leverage. GAAP net income reached $67.1 million with diluted EPS of $0.43, up from $0.40 YoY. Chairman Rohit Kapoor highlighted 14% revenue growth and 20% adjusted EPS increase, attributing it to competitive positioning and AI strategy execution, with industry expertise resonating in client adoption. CFO Maurizio Nicolelli noted prudent macro outlook but raised FY2026 guidance to $2.30-$2.33 billion revenue (10-12% growth) and $2.18-$2.23 adjusted EPS (12-14% growth), up from prior $2.275-$2.315 billion and $2.14-$2.19. Business momentum included 16 new client wins and AI awards from NVIDIA, AWS, Genesys, and Google Cloud, underscoring leadership in data/AI solutions. Balance sheet shows $145.4 million cash equivalents and $778.8 million equity as of March 31, 2026, supporting growth investments amid $417.4 million long-term borrowings.