Genpact LTD
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
G$42.27+2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0001398659-25-000098
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001398659-25-000109
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 176 current paragraphs.
97 unchanged; 68 reworded; 9 added; 6 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
One Big Beautiful Bill Act ("OBBBA")
Current report
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The OBBBA introduced several measures, including the permanent extension of select provisions from the Tax Cuts and Jobs Act of 2017, revisions to the international tax framework, and the reinstatement of favorable tax treatment for certain business-related items. The OBBBA contains multiple effective dates. The legislation did not have a material impact on our income tax expense for the quarter ended September 30, 2025, and we do not expect it to materially change our effective income tax rate for 2025.
Current report
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $8.3 million in the third quarter of 2025, up $1.8 million, or 27.6%, from $6.5 million in the third quarter of 2024. This increase was primarily driven by the amortization of acquired intangible assets from our recent acquisition of XponentL, partially offset by the completion of useful lives of intangible assets acquired in prior periods. For additional information about the acquisition of XponentL, see Note 3—“Business Acquisitions” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.
Current report
Other operating (income) expense, net. Other operating expense (net of income) was $7.6 million in the third quarter of 2025, compared to Other operating income (net of expense) of $0.0 million in the third quarter of 2024. The increase in other operating expense (net of income) was primarily driven by the abandonment of certain leased premises in the third quarter of 2025.
Current report
Nine Months Ended September 30, 2025 compared to the Nine Months Ended September 30, 2024
Current report
Our average headcount increasedby 8.7% to approximately 145,500 in the nine months ended September 30, 2025 from approximately 133,900 in the nine months ended September 30, 2024.
Current report
Income tax expense. Our income tax expense was $131.9 million in thenine months ended September 30, 2025, up from $122.5 million in thenine months ended September 30, 2024, due to higher pre-tax income, representing an effective tax rate (“ETR”) of 24.4% in thenine months ended September 30, 2025, down from 24.8% in thenine months ended September 30, 2024. The decrease in our ETR in thenine months ended September 30, 2025 was primarily driven by the mix of our pre-tax income and the impact of discrete items.
Current report
AOI of our Financial Services segment and High Tech and Manufacturing segment increased by 17.2% and 20.7%, respectively, in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024, primarily driven by higher revenues and operating efficiency. AOI of our Consumer and Healthcare segment increased by 3.1% in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024, primarily driven by higher revenues and operating efficiency, partially offset by investments in additional resources to drive business growth.
Current report
During the quarter ended September 30, 2025, we entered into a contract with a client providing that the client would pay us in 2025 for services to be rendered by us through 2026. As of September 30, 2025, we had received $45.0 million under this arrangement, which contributed to higher cash flows from operating activities for the nine months ended September 30, 2025. Although we may receive additional prepayments during the fourth quarter of 2025, none are guaranteed under the terms of this arrangement.
Removed paragraphs (6)
Previous report
Other operating (income) expense, net. Other operating income (net of expense) was $0.0 million in the second quarter of 2025, consistent with $0.1 million in the second quarter of 2024.
Previous report
Income tax expense. Our income tax expense was $44.0 million in the second quarter of 2025, up from $40.4 million in the second quarter of 2024, representing an effective tax rate (“ETR”) of 24.9% in the second quarter of 2025, unchanged from the second quarter of 2024.
Previous report
Six Months Ended June 30, 2025 compared to the Six Months Ended June 30, 2024
Previous report
Our average headcount increased by 9.7% to approximately 144,900 in the first half of 2025 from approximately 132,100 in the first half of 2024.
Previous report
Foreign exchange gains, net. We recorded a net foreign exchange gain of$1.7 million in the first half of 2025, compared to$3.3 million in the first half of 2024. The gain in the first half of 2025 resulted primarily from gains on fair value hedges, partially offset by losses on remeasurement resulting from the appreciation of the Indian rupee against the U.S. dollar. The gain in thefirst half of 2024 was primarily due to gains on fair value hedges and the depreciation of the Indian rupee against the U.S. dollar.
Previous report
AOI of our Financial Services segment, Consumer and Healthcare segment, and High Tech and Manufacturing segment increased by 21.5%, 6.4% and 18.4%, respectively, in the first half of 2025 compared to the first half of 2024, primarily driven by higher revenues and operating efficiency.
Reworded paragraphs (68)
Previous wording
•our ability to compete in the rapidly evolving technological environment and successfully implement and generate revenue from new services;
Current wording
•our ability to anticipate, develop and incorporate advanced technologies, including artificial intelligence (AI) and generative and agentic AI, into our solutions and services as well as our internal operations and to compete in the rapidly evolving technological environment and successfully implement and generate revenue from new solutions and services;
Previous wording
•evolving global trade dynamics, including recently imposed tariffs, trade restrictions and other measures introduced by major economies, any of which may disrupt global supply chains, increase operating costs for our clients and delay their business decisions;
Current wording
•evolving global trade dynamics, including newly imposed or changing tariffs, trade restrictions and other measures introduced by major economies, any of which may disrupt global supply chains, increase operating costs for our clients and delay their business decisions;
Previous wording
•geopolitical tensions, including the Russia-Ukraine war, the Middle East conflicts and any escalation in the India-Pakistan conflict, and actions that may be taken by the U.S. and other countries in response;
Current wording
•geopolitical tensions, including the Russia-Ukraine war and the Middle East conflicts, and actions that may be taken by the U.S. and other countries in response;
Previous wording
Recently announced broad-based tariffs by the U.S., and threatened or imposed retaliatory measures by other countries, have contributed to increased macroeconomic uncertainty in global markets, which may impact our revenue growth. Extended periods of slower sales cycles could have a material adverse effect on our business, financial position and results of operations.
Current wording
Broad-based tariffs imposed by the U.S., and threatened or imposed retaliatory measures by other countries, have contributed to increased macroeconomic uncertainty in global markets, which may impact our revenue growth. Extended periods of slower sales cycles could have a material adverse effect on our business, financial position and results of operations.
Previous wording
We are a global advanced technology services and solutions company. Powered by our mix of deep industry expertise, operational excellence, and advanced technology, we help companies reimagine finance and risk, supply chain and other core industry operations. We have over 146,000 employees serving clients in key industry verticals from more than 35 countries. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
Current wording
We are an agentic and advanced technology solutions company recognized for our deep industry knowledge, process intelligence and last-mile expertise. We have over 147,000 employees serving clients from more than 35 countries. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
Previous wording
In the quarter ended June 30, 2025, we recorded net revenues of $1,254.4 million. $599.3 million of our total net revenues was from Data-Tech-AI and the remaining $655.2 million was from Digital Operations. Net revenues from Advanced Technology Solutions were $292.7 million and net revenues from Core Business Services were $961.8 million.
Current wording
In the quarter ended September 30, 2025, we recorded net revenues of $1,291.3 million. $622.4 million of our total net revenues was from Data-Tech-AI and the remaining $668.9 million was from Digital Operations. Net revenues from Advanced Technology Solutions were $311.0 million and net revenues from Core Business Services were $980.3 million.
Previous wording
For a description of ourcritical accounting policies and estimates, see Note 2—“Summary of significant accounting policies” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above, as well as Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2025 from those described in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
For a description of ourcritical accounting policies and estimates, see Note 2—“Summary of significant accounting policies” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above, as well as Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates during the nine months ended September 30, 2025 from those described in our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
The following table sets forth certain data from our consolidated statements of income for the three and six months ended June 30, 2024 and 2025.
Current wording
The following table sets forth certain data from our consolidated statements of income for the three and nine months ended September 30, 2024 and 2025.
Previous wording
Net revenues. Our net revenues were $1,254.4 million in the second quarter of 2025, up $78.2 million, or 6.6%, from $1,176.2 million in the second quarter of 2024.
Current wording
Net revenues. Our net revenues were $1,291.3 million in the third quarter of 2025, up $80.3 million, or 6.6%, from $1,210.9 million in the third quarter of 2024.
Previous wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, British pound and Japanese yenagainst the U.S. dollar, our net revenues grew 6.2% in the second quarter of 2025 compared to the second quarter of 2024 on a constant currency 1 basis. We provide information about our revenue growth on a constant currency 1 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance.
Current wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, British pound and Japanese yenagainst the U.S. dollar, our net revenues grew 6.0% in the third quarter of 2025 compared to the third quarter of 2024 on a constant currency 1 basis. We provide information about our revenue growth on a constant currency 1 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance.
Previous wording
Our average headcount increased by 9.9% to approximately 146,900 in the second quarter of 2025 from approximately 133,700 in the second quarter of 2024.
Current wording
Our average headcount increased by 6.8% to approximately 146,800 in the third quarter of 2025 from approximately 137,500 in the third quarter of 2024.
Previous wording
Prior to the quarter commencing April 1, 2025, we disaggregated our revenue as revenue from either Digital Operations or Data-Tech-AI based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions or Core Business Services.
Current wording
Prior to the quarter commencing April 1, 2025, we disaggregated our revenue as revenue from either Data-Tech-AI or Digital Operations based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions or Core Business Services.
Previous wording
Net revenues from Data-Tech-AI in the second quarter of 2025 were $599.3 million, up $53.3 million, or 9.7%, from $546.0 million in the second quarter of 2024. This increase was largely driven by increased demand for our data and AI solutions and services as well as technology services in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
Net revenues from Data-Tech-AI in the third quarter of 2025 were $622.4 million, up $53.0 million, or 9.3%, from $569.4 million in the third quarter of 2024. This increase was largely driven by increased demand for our data and AI solutions and services as well as technology services in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Net revenues from Digital Operations in the second quarter of 2025 were $655.2 million, up $25.0 million, or 4.0%, from $630.2 million in the second quarter of 2024, primarily due to ramp-ups of services from recently signed deals.
Current wording
Net revenues from Digital Operations in the third quarter of 2025 were $668.9 million, up $27.3 million, or 4.3%, from $641.5 million in the third quarter of 2024, primarily due to ramp-ups of services from recently signed deals.
Previous wording
Net revenues from Advanced Technology Solutions in the second quarter of 2025 were $292.7 million, up $43.2 million, or 17.3%, from $249.5 million in the second quarter of 2024. This increase was largely driven by increased demand for our data and AI solutions and services in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
Net revenues from Advanced Technology Solutions in the third quarter of 2025 were $311.0 million, up $51.8 million, or 20.0%, from $259.2 million in the third quarter of 2024. This increase was largely driven by increased demand for our data and AI solutions and services in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Net revenues from Core Business Services in the second quarter of 2025 were $961.8 million, up $35.0 million, or 3.8%, from $926.8 million in the second quarter of 2024, primarily due to an increase in revenue from Digital Operations and technology services in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
Net revenues from Core Business Services in the third quarter of 2025 were $980.3 million, up $28.5 million, or 3.0%, from $951.8 million in the third quarter of 2024, primarily due to an increase in revenue from Digital Operations and technology services in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 6.1% and 1.1%, respectively, in the second quarter of 2025 compared to the second quarter of 2024, largely due to an increase in demand for our Advanced Technology Solutions. Net revenues from our High Tech and Manufacturing segment increased by 12.5% in the second quarter of 2025 compared to the second quarter of 2024, primarily driven by ramp-ups of services from recently signed deals.
Current wording
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 3.4% and 0.9%, respectively, in the third quarter of 2025 compared to the third quarter of 2024, largely due to an increase in demand for our Advanced Technology Solutions. Net revenues from our High Tech and Manufacturing segment increased by 14.4% in the third quarter of 2025 compared to the third quarter of 2024, primarily driven by ramp-ups of services from recently signed deals and an increase in demand for our Advanced Technology Solutions and technology services.
Previous wording
Cost of revenue. Cost of revenue was $804.4 million in the second quarter of 2025, up $44.5 million, or 5.9%, from $759.8 million in the second quarter of 2024. This increase was primarily due to (i) an increase in our operational headcount to support revenue growth as well as wage inflation, (ii) increased spending on professional services, and (iii) an increase in costs for resold partnership technologies in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
Cost of revenue. Cost of revenue was $821.6 million in the third quarter of 2025, up $42.1 million, or 5.4%, from $779.5 million in the third quarter of 2024. This increase was primarily due to an increase in our operational headcount to support revenue growth, wage inflation and an increase in costs for resold partnership technologies, partially offset by reduced spending on professional services in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Gross margin. Our gross margin increased from 35.4% in the second quarter of 2024 to 35.9% in the second quarter of 2025 primarily due to improved operating leverage.
Current wording
Gross margin. Our gross margin increased from 35.6% in the third quarter of 2024 to 36.4% in the third quarter of 2025 primarily due to improved operating leverage.
Previous wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.4% in the second quarter of 2024 to 21.2% in the second quarter of 2025. SG&A expenses were $266.4 million in the second quarter of 2025, up $26.8 million, or 11.2%, from $239.6 million in the second quarter of 2024. The increase was primarily due to (i) an increase in our support headcount and wage inflation, (ii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities and (iii) a higher allowance for credit losses in thesecond quarter of 2025 compared to thesecond quarter of 2024.
Current wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.1% in the third quarter of 2024 to 20.3% in the third quarter of 2025. SG&A expenses were $262.1 million in the third quarter of 2025, up $18.8 million, or 7.7%, from $243.3 million in the third quarter of 2024. The increase was primarily due to an increase in our support headcount, wage inflation and increased strategic investments in partnerships, alliances, and other sales and marketing capabilities in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues decreased from 14.5% in the second quarter of 2024 to 14.3% in the second quarter of 2025. Income from operations increased by $9.1 million from $170.3 million in the second quarter of 2024 to $179.4 million in the second quarter of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues decreased from 15.0% in the third quarter of 2024 to 14.8% in the third quarter of 2025. Income from operations increased by $10.0 million from $181.7 million in the third quarter of 2024 to $191.6 million in the third quarter of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses and other operating expense (income), net in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Foreign exchange gains, net. We recorded a net foreign exchange gain of $0.4 million in the second quarter of 2025 compared to $2.5 million in the second quarter of 2024. The gain in the second quarter of 2025 resulted primarily from gains on fair value hedges, partially offset by losses resulting from the appreciation of the Indian rupee against the U.S. dollar. The gain in the second quarter of 2024 resulted primarily from gains on fair value hedges and the depreciation of the Indian rupee against the U.S. dollar.
Current wording
Foreign exchange gains, net. We recorded a net foreign exchange gain of $3.7 million in the third quarter of 2025 compared to a gain of $1.1 million in the third quarter of 2024. The gains in the third quarters of 2025 and 2024 resulted primarily from the depreciation of the Indian rupee against the U.S. dollar.
Previous wording
Other income (expense), net. Our other income (net of expense) was $10.4 million in the second quarter of 2025, compared to $3.3 million in the second quarter of 2024, primarily due to a $4.6 million larger gain on the fair value of deferred compensation plan assets in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
Other income (expense), net. Our other income (net of expense) was $6.8 million in the third quarter of 2025, compared to $5.1 million in the third quarter of 2024, primarily due to a greater gain on the fair value of deferred compensation plan assets in the third quarter of 2025 than in the third quarter of 2024.
Previous wording
Income tax expense. Our income tax expense was $88.4 million in thefirst half of 2025, up from $79.8 million in thefirst half of 2024, representing an effective tax rate (“ETR”) of 25.1% in thefirst half of 2025, up from 25.0% in thefirst half of 2024. The change in our ETR in thefirst half of 2025 was primarily driven by the mix of our pre-tax income and the impact of discrete items.
Current wording
Income tax expense. Our income tax expense was $43.5 million in the third quarter of 2025, up from $42.7 million in the third quarter of 2024, due to higher pre-tax income, representing an effective tax rate (“ETR”) of 23.0% in the third quarter of 2025, down from 24.3% in the third quarter of 2024. The decrease in our ETR in the third quarter of 2025 was primarily driven by the mix of our pre-tax income and the impact of discrete items.
Previous wording
Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.6% in the second quarter of 2025, up from 10.4% in the second quarterof 2024.
Current wording
Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 11.3% in the third quarter of 2025, up from 11.0% in the third quarterof 2024.
Previous wording
Adjusted income from operations. Adju sted income from operations (“AOI”) increased by $18.9 million, from $198.4 million in the second quarter of 2024 to $217.3 million in the second quarter of 2025. Our AOI margin increased from 16.9% in the second quarter of 2024 to 17.3% in the second quarter of 2025, largely driven by higher gross margin and an increase in other income, partially offset by higher SG&A expense in thesecond quarter of 2025 compared tothe second quarter of 2024.
Current wording
Adjusted income from operations. Adju sted income from operations (“AOI”) increased by $15.9 million, from $213.0 million in the third quarter of 2024 to $228.9 million in the third quarter of 2025. Our AOI margin increased from 17.6% in the third quarter of 2024 to 17.7% in the third quarter of 2025, largely driven by higher gross margin, partially offset by higher SG&A expense in thethird quarter of 2025 compared tothe third quarter of 2024.
Previous wording
We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, (v) acquisition-related expenses and (vi) income tax expense, as we believe that our results after considering these adjustments more accurately reflect our ongoing operations. To calculate AOI margin, we divided AOI (as calculated above) by net revenue. For additional information, see Note 18—“Segment reporting” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.
Current wording
We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, and (v) income tax expense, as we believe that our results after considering these adjustments more accurately reflect our ongoing operations. To calculate AOI margin, we divided AOI (as calculated above) by net revenue. For additional information, see Note 18—“Segment reporting” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.
Previous wording
AOI of our Financial Services and High Tech and Manufacturing segments increased by 19.5% and 20.7%, respectively, primarily driven by higher revenues and operating efficiency in the second quarter of 2025 compared to the second quarter of 2024. AOI of our Consumer and Healthcare segment increased by 7.5%, largely due to operating efficiency in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
AOI of our Financial Services and High Tech and Manufacturing segments increased by 9.8% and 24.6%, respectively, primarily driven by higher revenues and operating efficiency in the third quarter of 2025 compared to the third quarter of 2024. AOI of our Consumer and Healthcare segment decreased by 3.3%, largely driven by investments in additional resources to drive business growth in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
AOI for “Unallocated corporate expenses” in the table above primarily represents the adjustment of allowances for credit losses and over- or under-absorption of corporate overheads, which are not allocated to any individual segment for management's internal reporting purposes. See Note 18—“Segment reporting” under Part I, Item 1— “Unaudited Consolidated Financial Statements” above.
Current wording
AOI for “Unallocated corporate expenses” in the table above primarily represents the adjustment of allowances for credit losses, write-downs of property, plant and equipment and right-of-use assets, and over- or under-absorption of corporate overheads, which are not allocated to any individual segment for management's internal reporting purposes. See Note 18—“Segment reporting” under Part I, Item 1— “Unaudited Consolidated Financial Statements” above.
Previous wording
Net revenues. Our net revenues were $2,469.3 million in the first half of 2025, up $161.9 million, or 7.0%, from $2,307.4 million in the first half of 2024.
Current wording
Net revenues. Our net revenues were $3,760.6 million in the nine months ended September 30, 2025, up $242.2 million, or 6.9%, from $3,518.4 million in the nine months ended September 30, 2024.
Previous wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the Australian dollar and Indian rupee against the U.S. dollar, our net revenues grew 7.3% in the first half of 2025 compared to the first half of 2024 on a constant currency 2 basis. We provide information about our revenue growth on a constant currency 2 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance.
Current wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, British pound, Japanese yen, Australian dollar and Indian rupee against the U.S. dollar, our net revenues grew 6.8% in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 on a constant currency 2 basis. We provide information about our revenue growth on a constant currency 2 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance.
Previous wording
Prior to the quarter commencing April 1, 2025, we disaggregated our revenue as revenue from either Digital Operations or Data-Tech-AI based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions or Core Business Services.
Current wording
Prior to the quarter commencing April 1, 2025, we disaggregated our revenue as revenue from either Data-Tech-AI or Digital Operations based on the nature of the solutions and services provided. Beginning with the second quarter ended June 30, 2025, we now also disaggregate our revenue as revenue from Advanced Technology Solutions or Core Business Services.
Previous wording
Net revenues from Data-Tech-AI in thefirst half of 2025 were $1,181.2 million, up $111.3 million, or 10.4%, from $1,069.9 million in thefirst half of 2024. This increase was largely driven by increased demand for our data and AI solutions and services as well as technology services in thefirst half of 2025 compared to thefirst half of 2024.
Current wording
Net revenues from Data-Tech-AI in thenine months ended September 30, 2025 were $1,803.6 million, up $164.3 million, or 10.0%, from $1,639.3 million in thenine months ended September 30, 2024. This increase was largely driven by increased demand for our data and AI solutions and services as well as technology services in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024.
Previous wording
Net revenues from Digital Operations in thefirst half of 2025 were $1,288.1 million, up $50.6 million, or 4.1%, from $1,237.6 million in thefirst half of 2024, primarily due to ramp-ups of services from recently signed deals.
Current wording
Net revenues from Digital Operations in thenine months ended September 30, 2025 were $1,957.0 million, up $77.9 million, or 4.1%, from $1,879.1 million in thenine months ended September 30, 2024, primarily due to ramp-ups of services from recently signed deals.
Previous wording
Net revenues from Advanced Technology Solutions in thefirst half of 2025 were $570.3 million, up $81.0 million, or 16.5%, from $489.3 million in thefirst half of 2024. This increase was largely driven by demand for our data and AI solutions and services in thefirst half of 2025 compared to thefirst half of 2024.
Current wording
Net revenues from Advanced Technology Solutions in thenine months ended September 30, 2025 were $881.3 million, up $132.8 million, or 17.7%, from $748.5 million in thenine months ended September 30, 2024. This increase was largely driven by demand for our data and AI solutions and services in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024.
Previous wording
Net revenues from Core Business Services in thefirst half of 2025 were $1,899.1 million, up $80.9 million, or 4.5%, from $1,818.1 million in thefirst half of 2024, primarily due to an increase in revenue from Digital Operations and technology services in thefirst half of 2025 compared to thefirst half of 2024.
Current wording
Net revenues from Core Business Services in thenine months ended September 30, 2025 were $2,879.3 million, up $109.4 million, or 4.0%, from $2,769.9 million in thenine months ended September 30, 2024, primarily due to an increase in revenue from Digital Operations and technology services in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024.
Previous wording
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 6.4% and 2.6%, respectively, in thefirst half of 2025 compared to thefirst half of 2024, largely due to an increase in revenue from Advanced Technology Solutions as well as ramp-ups of services from recently signed deals. Net revenues from our High Tech and Manufacturing segment increased by 11.7% in thefirst half of 2025 compared to thefirst half of 2024, primarily driven by ramp-ups of services from recently signed deals.
Current wording
Net revenues from our Financial Services and Consumer and Healthcare segments increased by 5.4% and 2.0%, respectively, in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024, largely due to an increase in revenue from Advanced Technology Solutions and technology services. Net revenues from our High Tech and Manufacturing segment increased by 12.6% in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024, primarily driven by ramp-ups of services from recently signed deals and an increase in demand for our Advanced Technology Solutions and technology services.
Previous wording
Cost of revenue. Cost of revenue was$1,590.3 million in the first half of 2025, up$95.7 million, or 6.4%, from $1,494.6 million in the first half of 2024. The increase in cost of revenue in the first half of 2025 compared to the first half of 2024 was primarily due to (i) an increase in our operational headcount to support revenue growth as well as wage inflation, (ii) higher stock-based compensation expense, (iii) increased spending on professional services, and (iv) an increase in costs for resold partnership technologies in thefirst half of 2025 compared to thefirst half of 2024.
Current wording
Cost of revenue. Cost of revenue was $2,411.9 million in thenine months ended September 30, 2025, up $137.8 million, or 6.1%, from $2,274.1 million in thenine months ended September 30, 2024. This increase was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, (iii) higher stock-based compensation expense, (iv) increased spending on professional services, and (v) an increase in costs for resold partnership technologies in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024.
Previous wording
Gross margin. Our gross margin increased from 35.2% in the first half of 2024 to 35.6% in the first half of 2025. The increase in gross margin was primarily due to improved operating leverage in the first half of 2025 compared to the first half of 2024.
Current wording
Gross margin. Our gross margin increased from 35.4% in thenine months ended September 30, 2024 to 35.9% in thenine months ended September 30, 2025. The increase in gross margin was primarily due to improved operating leverage in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024.
Previous wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues were flat at 20.6% in thefirst half of 2024 compared to the first half of 2025. SG&A expenses were $507.5 million in thefirst half of 2025, up $32.8 million, or 6.9%, from $474.7 million in thefirst half of 2024. This increase was primarily driven by (i) higher stock-based compensation expense, (ii) a higher allowance for credit losses, (iii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, (iv)increased spending on professional services, and (v) wage inflationin the first half of 2025 compared to the first half of 2024.
Current wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased from 20.4% in thenine months ended September 30, 2024 to 20.5% in thenine months ended September 30, 2025. SG&A expenses were $769.6 million in thenine months ended September 30, 2025, up $51.6 million, or 7.2%, from $718.0 million in thenine months ended September 30, 2024. This increase was primarily driven by (i) higher stock-based compensation expense, (ii) a higher allowance for credit losses, (iii) increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, (iv) increased spending on professional services, and (v) wage inflation in thenine months ended September 30, 2025 compared to thenine months ended September 30, 2024.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Interest income (expense), net. Our interest expense (net of interest income) was $12.8 million in the third quarter of 2025, up $0.4 million from $12.4 million in the third quarter of 2024. Our interest income decreased from $10.3 million in the third quarter of 2024 to $5.1 million in the third quarter of 2025, due to lower interest rates and lower cash balances. This was partially offset by a decrease in interest expense largely due to (i) the absence of interest expense on our senior notes issued in 2019, which were repaid in December 2024, and (ii) lower interest expense on our term loan due to a lower SOFR and reduced volume in the third quarter of 2025 compared to the third quarter of 2024. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.6% in the third quarter of 2024 to 4.8% in the third quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Current report — wording carried from elsewhere
Foreign exchange gains, net. We recorded a net foreign exchange gain of $5.3 million in thenine months ended September 30, 2025, compared to $4.4 million in thenine months ended September 30, 2024. The gain in thenine months ended September 30, 2025 and 2024 was primarily due to the depreciation of the Indian rupee against the U.S. dollar.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Interest income (expense), net. Our interest expense (net of interest income) was $13.5 million in the second quarter of 2024 and 2025. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.4% in the second quarter of 2024 to 4.8% in the second quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Previous report — wording carried elsewhere
Amortization of acquired intangible assets. Amortization of acquired intangible assets was$8.6 million in the first half of 2025, down $4.8 million, or 36.0%, from$13.5 million in the first half of 2024. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.