Genpact LTD
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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, 2026 · Filed Nov 6, 2026
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 2026-06-30; filed 2026-08-07.
0001398659-26-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001398659-26-000019
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 167 previous paragraphs and 170 current paragraphs.
93 unchanged; 64 reworded; 12 added; 10 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 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 (12)
Current report
•the approval, timing and effects of the Domestication (as defined below), including whether our shareholders approve the Domestication, whether the Board exercises its discretion to effect, defer or abandon it, its tax treatment and the risk that shareholders may recognize gain or other income with respect to their shares at the effective time of the Domestication (as a result of the application of Section 367(b) of the Internal Revenue Code of 1986, as amended (the “Code”) or the passive foreign investment company rules or otherwise);
Current report
•the effects of our recently implemented enterprise resource planning system on our invoicing and collection processes and accounts receivable, as well as on our internal control over financial reporting;
Current report
Domestication
Current report
As previously announced, we are seeking shareholder approval to grant the Board discretionary authority to change the Company’s jurisdiction of incorporation from Bermuda to Delaware in the United States by discontinuing as an exempted company limited by shares in Bermuda and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (the “Domestication”). If our shareholders approve this proposal, the Board will have the sole discretion, until the 2028 Annual General Meeting of Shareholders, to effectuate the Domestication. The Board has unanimously approved effectuating the Domestication, subject to approval by our shareholders and final approval by the Board. If the Domestication is approved and effected, on its effective date, currently expected to be on or around March 1, 2027, our common shares (including fractions of common shares, as the case may be) issued and outstanding immediately prior to the effective time of the Domestication will automatically convert by operation of law into an equivalent number of shares of common stock (or fractions of shares of common stock, as the case may be) of the Company after it is domesticated under the laws of Delaware (“Genpact Delaware”). Our name after the Domestication will remain “Genpact Limited.” For more information about the Domestication, please see our proxy statement/prospectus filed with the SEC on October 7, 2026 (the “Domestication Proxy Statement/Prospectus”), which is available on the SEC’s website at www.sec.gov.
Current report
Net revenues from Core Business Services in the third quarters of both 2026 and 2025 were $980.3 million. An increase in technology services revenue within Core Business Services in the third quarter of 2026 compared to the third quarter of 2025 was largely offset by our transition away from certain engagements not aligned with our Agentic Operations strategy.
Current report
Gross margin. As a result of the foregoing factors, our gross margin increased to 38.0% in the third quarter of 2026 from 36.4% in the third quarter of 2025.
Current report
Nine Months Ended September 30, 2026 compared to the Nine Months Ended September 30, 2025
Current report
Net revenues from our Financial Services segment increased by 5.4% in thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025, largely due to an increase in demand for our data and AI and advisory solutions and services within Advanced Technology Solutions as well as ramp-ups from existing and recently signed deals. Net revenues from our Consumer and Healthcare segment increased by 8.8% in thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025, largely due to an increase in demand for our Advanced Technology Solutions and technology services within our Core Business Services. Net revenues from our High Tech and Manufacturing segment increased by 6.6% in thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025, largely due to an increase in demand for our Advanced Technology Solutions and technology services within our Core Business Services, partially offset by our transition away from certain engagements not aligned with our Agentic Operations strategy.
Current report
Cost of revenue. Cost of revenue was $2,536.2 million in thenine months ended September 30, 2026, up $124.3 million, or 5.2%, from $2,411.9 million in thenine months ended September 30, 2025. This increase was primarily driven by wage inflation, offset by lower headcount and the mix of revenue in comparable periods.
Current report
Gross margin. As a result of the foregoing factors, our gross margin increased to 37.0% in thenine months ended September 30, 2026 from 35.9% in thenine months ended September 30, 2025.
Current report
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased to 15.0% in thenine months ended September 30, 2026 from 14.8% in thenine months ended September 30, 2025. Income from operations was $602.5 million in thenine months ended September 30, 2026, up $47.8 million from $554.7 million in thenine months ended September 30, 2025.
Current report
Adjusted income from operations. As a result of the foregoing factors, AOI increased by $47.9 million to $703.8 million in thenine months ended September 30, 2026 from $655.9 million in thenine months ended September 30, 2025. Our AOI margin increased to 17.5% in thenine months ended September 30,2026 from 17.4% in the nine months ended September 30, 2025.
Removed paragraphs (10)
Previous report
•our ability to successfully implement our new enterprise resource planning system, including the effect of the transition on our internal control over financial reporting;
Previous report
Net revenues from Core Business Services in the second quarter of 2026 were $980.1 million, up $18.4 million, or 1.9%, from $961.8 million in the second quarter of 2025, primarily due to an increase in revenue from the technology services component of our Core Business Services in the second quarter of 2026 compared to the second quarter of 2025.
Previous report
Net revenues from our Financial Services segment increased by 3.3% in the second quarter of 2026 compared to the second quarter of 2025, largely due to ramp-ups of recently signed deals and an increase in demand for our digital technology services within Advanced Technology Solutions. Net revenues from our Consumer and Healthcare and High Tech and Manufacturing segments increased by 9.5% and 7.6%, respectively, in the second quarter of 2026 compared to the second quarter of 2025, largely due to an increase in demand for our Advanced Technology Solutions and the technology services component of our Core Business Services.
Previous report
Gross margin. Our gross margin increased to 36.5% in the second quarter of 2026 from 35.9% in the second quarter of 2025, primarily driven by lower headcount and a foreign exchange benefit, partially offset by the higher costs associated with an increase in revenue from resold partner technology in the second quarter of 2026 compared to the second quarter of 2025.
Previous report
Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025
Previous report
Cost of revenue. Cost of revenue was $1,677.5 million in thefirst half of 2026, up $87.2 million, or 5.5%, from $1,590.3 million in thefirst half of 2025. This increase was primarily driven by the higher costs associated with an increase in revenue from resold partner technology in thefirst half of 2026 compared to thefirst half of 2025 as well as wage inflation in thefirst half of 2026 compared to thefirst half of 2025.
Previous report
Gross margin. Our gross margin increased to 36.4% in thefirst half of 2026 from 35.6% in thefirst half of 2025, primarily driven by lower headcount and a foreign exchange benefit, partially offset by the higher costs associated with an increase in revenue from resold partner technology in thefirst half of 2026 compared to the first half of 2025.
Previous report
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased to 14.8% in thefirst half of 2026 from 14.7% in thefirst half of 2025. Income from operations was $391.5 million in thefirst half of 2026, up by $28.4 million from $363.1 million in thefirst half of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses in thefirst half of 2026 compared to thefirst half of 2025.
Previous report
Foreign exchange gains, net. We recorded a net foreign exchange gain of $9.4 million in thefirst half of 2026, compared to $1.7 million in thefirst half of 2025. The gain in thefirst half of 2026 was primarily due to gains on remeasurement resulting from the depreciation of the Indian rupee against the U.S. dollar, partially offset by losses on fair value hedges. The gain in thefirst 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.
Previous report
Adjusted income from operations. AOI increased by $30.2 million to $457.2 million in thefirst half of 2026 from $427.0 million in thefirst half of 2025. Our AOI margin was 17.3% in thefirst half of both 2026 and 2025.
Reworded paragraphs (64)
Previous wording
The following discussion and analysis is meant to provide material information relevant to an assessment of the financial condition and results of operations of our company, including an evaluation of the amounts and uncertainties of cash flows from operations and from outside sources, so as to allow investors to better view our company from management’s perspective. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025 and with the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical information, this discussion includes forward-looking statements and information that involves risks, uncertainties and assumptions, including but not limited to those listed below and under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
The following discussion and analysis is meant to provide material information relevant to an assessment of the financial condition and results of operations of our company, including an evaluation of the amounts and uncertainties of cash flows from operations and from outside sources, so as to allow investors to better view our company from management’s perspective. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025 and with the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical information, this discussion includes forward-looking statements and information that involves risks, uncertainties and assumptions, including but not limited to those listed below and under “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
We have made statements in this Quarterly Report on Form 10-Q (the “Quarterly Report”) in, among other sections, Part I, Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are forward-looking statements. In some cases, you can identify these statements by forward-looking terms such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “could,” “may,” “shall,” “will,” “would” and variations of such words and similar expressions, or the negative of such words or similar expressions. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, which in some cases may be based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In particular, you should consider the numerous risks outlined in Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
We have made statements in this Quarterly Report on Form 10-Q (the “Quarterly Report”) in, among other sections, Part I, Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are forward-looking statements. In some cases, you can identify these statements by forward-looking terms such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “could,” “may,” “shall,” “will,” “would” and variations of such words and similar expressions, or the negative of such words or similar expressions. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, which in some cases may be based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In particular, you should consider the numerous risks outlined in Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in Part II, Item 1A—“Risk Factors” in this Quarterly Report on Form 10-Q.
Previous wording
•our ability to develop and successfully execute our business strategies;
Current wording
•our ability to develop and successfully execute our business strategies, including our Agentic Operations strategy and our transition away from engagements that are not aligned with that strategy;
Previous wording
•our ability to effectively price our solutions and services and maintain our pricing and employee and asset utilization rates;
Current wording
•our ability to effectively price our solutions and services and maintain our pricing and employee and asset utilization rates, and the effect on our margins of the mix of our revenue, including revenue from resold partner technology;
Previous wording
•financing terms, including changes in the Secured Overnight Financing Rate ("SOFR") and changes to our credit ratings;
Current wording
•financing terms, including changes in prevailing interest rates, the Secured Overnight Financing Rate ("SOFR") and changes to our credit ratings, and our ability to refinance our indebtedness;
Previous wording
Although we believe the expectations reflected in the forward-looking statements are reasonable at the time they are made, we cannot guarantee future results, level of activity, performance or achievements. Achievement of future results is subject to risks, uncertainties, and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to update any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations. You are advised, however, to consult any further disclosures we make on related subjects in our Form 10-K, Form 10-Q and Form 8-K reports to the Securities and Exchange Commission (the “SEC”).
Current wording
Although we believe the expectations reflected in the forward-looking statements are reasonable at the time they are made, we cannot guarantee future results, level of activity, performance or achievements. Achievement of future results is subject to risks, uncertainties, and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to update any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations. You are advised, however, to consult any further disclosures we make on related subjects in our Form 10-K, Form 10-Q and Form 8-K reports to the SEC.
Previous wording
For additional information about the risks we face, see Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
For additional information about the risks we face, see Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A—“Risk Factors” in this Quarterly Report on Form 10-Q.
Previous wording
We are an Agentic Operations company, where applied AI meets context-rich process intelligence. We run and transform mission-critical operations for global enterprises. Our Agentic Operations are grounded in decades of operating core business processes across finance, supply chain, banking, insurance, and more. We have over 141,000 employees serving clients from more than 35 countries. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
Current wording
We are an Agentic Operations company, where applied AI meets context-rich process intelligence. We run and transform mission-critical operations for global enterprises. Our Agentic Operations are grounded in decades of operating core business processes across finance, supply chain, banking, insurance, and more. We have over 142,000 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, 2026, we recorded net revenues of $1,343.4 million. Net revenues from Advanced Technology Solutions were $363.3 million and net revenues from Core Business Services were $980.1 million.
Current wording
In the quarter ended September 30, 2026, we recorded net revenues of $1,385.4 million. Net revenues from Advanced Technology Solutions were $405.1 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, 2025. There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2026 from those described in our Annual Report on Form 10-K for the year ended December 31, 2025.
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, 2025. There have been no material changes to our critical accounting policies and estimates during the nine months ended September 30, 2026 from those described in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
The following table sets forth certain data from our consolidated statements of income for the three and six months ended June 30, 2026 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, 2026 and 2025.
Previous wording
Net revenues. Our net revenues were$1,343.4 million in the second quarter of 2026, up $89.0 million, or 7.1%, from$1,254.4 million in the second quarter of 2025.
Current wording
Net revenues. Our net revenues were$1,385.4 million in the third quarter of 2026, up $94.1 million, or 7.3%, from$1,291.3 million in the third quarter of 2025.
Previous wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro and Australian dollar against the U.S. dollar, our net revenues grew 6.9% in the second quarter of 2026 compared to the second quarter of 2025 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 value of the Australian dollar against the U.S. dollar, our net revenues grew 7.5% in the third quarter of 2026 compared to the third quarter of 2025 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 decreased by 2.6% to approximately 143,100 in the second quarter of 2026 from approximately 146,900 in the second quarter of 2025.
Current wording
Our average headcount decreased by 3.5% to approximately 141,700 in the third quarter of 2026 from approximately 146,800 in the third quarter of 2025.
Previous wording
Effective January 1, 2026, we revised our revenue disaggregation to better align with our current business structure, strategic priorities and internal reporting. Our revenue is now disaggregated between Advanced Technology Solutions and Core Business Services, replacing the prior disaggregation between Data-Tech-AI and Digital Operations. Accordingly, no disaggregation of revenue between Data-Tech-AI and Digital Operations has been presented for the three and six months ended June 30, 2026 and 2025.
Current wording
Effective January 1, 2026, we revised our revenue disaggregation to better align with our current business structure, strategic priorities and internal reporting. Our revenue is now disaggregated between Advanced Technology Solutions and Core Business Services, replacing the prior disaggregation between Data-Tech-AI and Digital Operations. Accordingly, no disaggregation of revenue between Data-Tech-AI and Digital Operations has been presented for the three and nine months ended September 30, 2026 and 2025.
Previous wording
Net revenues from Advanced Technology Solutions in the second quarter of 2026 were $363.3 million, up $70.7 million, or 24.1%, from $292.7 million in the second quarter of 2025. This increase was broad-based and driven by increased demand for each component of our Advanced Technology Solutions, namely digital technology, data and AI solutions and services, agentic solutions and advisory services, in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
Net revenues from Advanced Technology Solutions in the third quarter of 2026 were $405.1 million, up $94.1 million, or 30.3%, from $311.0 million in the third quarter of 2025. The increase in the third quarter of 2026 was broad-based and driven by increased demand for digital technology, data and AI, and advisory solutions and services as well as agentic solutions in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Net revenues from our Financial Services segment increased by 4.4% in thefirst half of 2026 compared to thefirst half of 2025, largely due to an increase in revenue from Advanced Technology Solutions and ramp-ups of recently signed deals. Net revenues from our Consumer and Healthcare segment increased by 7.8% in thefirst half of 2026 compared to thefirst half of 2025, largely due to an increase in demand for our Advanced Technology Solutions and technology services within our Core Business Services. Net revenues from our High Tech and Manufacturing segment increased by 7.8% in thefirst half of 2026 compared to thefirst half of 2025, primarily driven by an increase in demand for our Advanced Technology Solutions and technology services within our Core Business Services.
Current wording
Net revenues from our Financial Services segment increased by 7.4% in the third quarter of 2026 compared to the third quarter of 2025, largely due to an increase in demand for our data and AI and advisory solutions and services within Advanced Technology Solutions as well as ramp-ups of existing and recently signed deals. Net revenues from our Consumer and Healthcare segment increased by 10.7% in the third quarter of 2026 compared to the third quarter of 2025, largely due to an increase in demand for our Advanced Technology Solutions and the technology services component of our Core Business Services. Net revenues from our High Tech and Manufacturing segment increased by 4.4% in the third quarter of 2026 compared to the third quarter of 2025, largely due to an increase in demand for our data and AI, advisory and agentic solutions and services within Advanced Technology Solutions as well as the technology services component of our Core Business Services, partially offset by our transition away from certain engagements not aligned with our Agentic Operations strategy.
Previous wording
Cost of revenue. Cost of revenue was $853.1 million in the second quarter of 2026, up $48.8 million, or 6.1%, from $804.4 million in the second quarter of 2025. This increase was primarily driven by the higher costs associated with an increase in revenue from resold partner technology in the second quarter of 2026 compared to the second quarter of 2025 as well as wage inflation in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
Cost of revenue. Cost of revenue was $858.7 million in the third quarter of 2026, up $37.1 million, or 4.5%, from $821.6 million in the third quarter of 2025. This increase was primarily driven by the higher costs associated with an increase in revenue from resold partner technology, increased spending on professional services and wage inflation, partially offset by lower headcount.
Previous wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased to 21.9%in the second quarter of 2026 from 21.2% in the second quarter of 2025. SG&A expenses were $294.1 million in the second quarter of 2026, up $27.7 million, or 10.4%, from $266.4 million in the second quarter of 2025. The increase was primarily due to increased strategic investments in partnerships, alliances, and other sales and marketing capabilities as well as wage inflation in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased to 22.6%in the third quarter of 2026 from 20.3% in the third quarter of 2025. SG&A expenses were $312.5 million in the third quarter of 2026, up $50.4 million, or 19.2%, from $262.1 million in the third quarter of 2025. The increase was primarily due to increased strategic investments in agentic engineering and sales and marketing capabilities, higher allowance for credit losses and higher stock-based compensation expense in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $3.3 million in the second quarter of 2026, down $1.0 million, or 23.9%, from $4.3 million in the second quarter of 2025. This decrease was primarily driven by the completion of useful lives of intangible assets acquired in prior periods.
Current wording
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $3.3 million in the third quarter of 2026, down $5.0 million, or 60.3%, from $8.3 million in the third quarter of 2025. This decrease was primarily driven by the completion of useful lives of intangible assets acquired in prior periods.
Previous wording
Other operating (income) expense, net. Other operating income (net of expense) was $0.0 million in the second quarters of both 2026 and 2025.
Current wording
Other operating (income) expense, net. Other operating income (net of expense) was $0.0 million in the third quarter of 2026, compared to Other operating expense (net of income) of $7.6 million in the third quarter of 2025 resulting from a charge related to the abandonment of certain leased premises recorded in the third quarter of 2025.
Previous wording
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased to 14.4% in the second quarter of 2026 from 14.3% in the second quarter of 2025. Income from operations was $192.9 million in the second quarter of 2026, up $13.5 million from $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 2026 compared to the second quarter of 2025.
Current wording
Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased to 15.2% in the third quarter of 2026 from 14.8% in the third quarter of 2025. Income from operations was $211.0 million in the third quarter of 2026, up $19.3 million from $191.6 million in the third quarter of 2025.
Previous wording
Foreign exchange gains, net. We recorded a net foreign exchange gain of $2.1 million in the second quarter of 2026 compared to $0.4 million in the second quarter of 2025. The gain in the second quarter of 2026 resulted primarily from gains on fair value hedges and the depreciation of the Indian rupee against the U.S dollar. 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.
Current wording
Foreign exchange gains, net. We recorded a net foreign exchange gain of $0.9 million in the third quarter of 2026 compared to $3.7 million in the third quarter of 2025. The gains in the third quarters of 2026 and 2025 resulted primarily from the depreciation of the Indian rupee against the U.S. dollar.
Previous wording
Interest income (expense), net. Our interest expense (net of interest income) was $15.1 million in the second quarter of 2026, up $1.7 million from $13.5 million in the second quarter of 2025. Our interest expense increased primarily due to a higher interest rate on our Senior Notes issued in November 2025 compared to our 2021 Senior Notes (as defined below), which we repaid on April 10, 2026. The increase was partially offset by lower interest expense on our term loan due to a lower SOFR and reduced volume in the second quarter of 2026 compared to the second quarter of 2025. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased to 5.4% in the second quarter of 2026 from 4.8% in the second quarter of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Current wording
Interest income (expense), net. Our interest expense (net of interest income) was $16.5 million in the third quarter of 2026, up $3.7 million from $12.8 million in the third quarter of 2025. Our interest income decreased to $3.5 million in the third quarter of 2026 from $5.1 million in the third quarter of 2025, due to lower cash deposits. Our interest expense increased primarily due to a higher interest rate on our Senior Notes issued in November 2025 compared to our 2021 Senior Notes (as defined below), which we repaid on April 10, 2026. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased to 5.6% in the third quarter of 2026 from 4.8% in the third quarter of 2025. See the section titled “Liquidity and Capital Resources—Financing Arrangements” for further discussion.
Previous wording
Other income (expense), net. Our other income (net of expense) was $11.0 million in the second quarter of 2026, up from $10.4 million in the second quarter of 2025. The increase was primarily driven by a larger gain on the fair value of deferred compensation plan assets in the second quarter of 2026 compared to the second quarter of 2025, partially offset by a gain on a one-time sale of certain IT assets in the second quarter of 2025.
Current wording
Other income (expense), net. Our other income (net of expense) was $1.0 million in the third quarter of 2026, down from $6.8 million in the third quarter of 2025. The decrease was primarily driven by a decrease in the fair value of deferred compensation plan assets in the third quarter of 2026 compared to an increase in the fair value of deferred compensation plan assets in the third quarter of 2025.
Previous wording
Income tax expense. Our income tax expense was $45.1 million in the second quarter of 2026, up from $44.0 million in the second quarter of 2025, due to higher pre-tax income, representing an effective tax rate (“ETR”) of 23.7% in the second quarter of 2026, down from 24.9% in the second quarter of 2025. The decrease in our ETR in the second quarter of 2026 was primarily driven by the optimization of intercompany financing, as well as the mix of our pre-tax income and the impacts of other discrete items.
Current wording
Income tax expense. Our income tax expense was $44.8 million in the third quarter of 2026, up from $43.5 million in the third quarter of 2025, due to higher pre-tax income, representing an effective tax rate (“ETR”) of 22.8% in the third quarter of 2026, down from 23.0% in the third quarter of 2025. The decrease in our ETR in the third quarter of 2026 was primarily driven by the optimization of intercompany financing, as well as the geographic mix of our pre-tax income.
Previous wording
Net income. As a result of the foregoing factors, net incomewas$145.7 million in thesecond quarter of 2026, up$13.0 million from$132.7 million in thesecond quarter of 2025. Net income as a percentage of net revenues was 10.8% in the second quarter of 2026, up from 10.6% in the second quarterof 2025.
Current wording
Net income. As a result of the foregoing factors, net incomewas$151.7 million in thethird quarter of 2026, up$5.8 million from$145.8 million in thethird quarter of 2025. Net income as a percentage of net revenues was 10.9% in the third quarter of 2026, down from 11.3% in the third quarterof 2025.
Previous wording
Adjusted income from operations. Adju sted income from operations (“AOI”) increased by$16.3 million to $233.6 million in the second quarter of 2026 from$217.3 million in the second quarter of 2025. Our AOI margin increased to 17.4% in the second quarter of 2026 from 17.3% in the second quarter of 2025, largely driven by higher gross margin, partially offset by higher SG&A expenses in thesecond quarter of 2026 compared tothe second quarter of 2025.
Current wording
Adjusted income from operations. As a result of the foregoing factors, adju sted income from operations (“AOI”) increased by$17.6 million to $246.5 million in the third quarter of 2026 from$228.9 million in the third quarter of 2025. Our AOI margin increased to 17.8% in the third quarter of 2026 from 17.7% in the third quarter of 2025.
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 segment increased by 6.9%, primarily driven by higher revenues and operating efficiency in the second quarter of 2026 compared to the second quarter of 2025. AOI of our High Tech and Manufacturing segment decreased by 0.4%, primarily driven by the ramp-down of a higher margin customer, partially offset by higher revenue in the second quarter of 2026 compared to the second quarter of 2025. AOI of our Consumer and Healthcare segment decreased by 4.6%, largely driven by investments in additional resources to drive business growth in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
AOI of our Financial Services segment increased by 24.9%, primarily driven by higher revenues and operating efficiency in the third quarter of 2026 compared to the third quarter of 2025. AOI of our Consumer and Healthcare segment increased by 21.4%, largely driven by higher revenues and operating efficiency, partially offset by investments in additional resources to drive business growth in the third quarter of 2026 compared to the third quarter of 2025. AOI of our High Tech and Manufacturing segment increased by 8.4%, primarily driven by higher revenues, partially offset by the ramp-down of a high-margin customer in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Net revenues. Our net revenues were$2,639.5 million in the first half of 2026, up $170.2 million, or 6.9%, from$2,469.3 million in the first half of 2025.
Current wording
Net revenues. Our net revenues were$4,024.9 million in the nine months ended September 30, 2026, up $264.3 million, or 7.0%, from$3,760.6 million in the nine months ended September 30, 2025.
Previous wording
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, British pound, and Australian dollar against the U.S. dollar, our net revenues grew 6.3% in the first half of 2026 compared to the first half of 2025 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 values of the euro and Australian dollar against the U.S. dollar, our net revenues grew 6.7% in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 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
Our average headcount decreased by 0.4% to approximately 144,300 in the first half of 2026 from approximately 144,900 in the first half of 2025.
Current wording
Our average headcount decreased by 1.4% to approximately 143,400 in the nine months ended September 30, 2026 from approximately 145,500 in the nine months ended September 30, 2025.
Previous wording
Net revenues from Advanced Technology Solutions in thefirst half of 2026 were $708.6 million, up $138.3 million, or 24.2%, from $570.3 million in thefirst half of 2025. This increase was broad-based and driven by demand for each component of our Advanced Technology Solutions, namely digital technology, data and AI solutions and services, agentic solutions and advisory services, in thefirst half of 2026 compared to thefirst half of 2025.
Current wording
Net revenues from Advanced Technology Solutions in thenine months ended September 30, 2026 were $1,113.7 million, up $232.4 million, or 26.4%, from $881.3 million in thenine months ended September 30, 2025. This increase was broad-based and driven by demand for each component of our Advanced Technology Solutions.
Previous wording
Net revenues from Core Business Services in thefirst half of 2026 were $1,931.0 million, up $31.9 million, or 1.7%, from $1,899.1 million in thefirst half of 2025, primarily due to an increase in revenue from the technology services component of our Core Business Services in thefirst half of 2026 compared to thefirst half of 2025.
Current wording
Net revenues from Core Business Services in thenine months ended September 30, 2026 were $2,911.3 million, up $31.9 million, or 1.1%, from $2,879.3 million in thenine months ended September 30, 2025, primarily due to an increase in revenue from the technology services component of our Core Business Services, partially offset by our transition away from certain engagements not aligned with our Agentic Operations strategy.
Previous wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased to 21.4% in thefirst half of 2026 from 20.6% in thefirst half of 2025. SG&A expenses were $564.5 million in thefirst half of 2026, up $57.0 million, or 11.2%, from $507.5 million in thefirst half of 2025. This increase was primarily driven by increased strategic investments in partnerships, alliances, and other sales and marketing capabilities, increased spending on professional services and wage inflation in thefirst half of 2026 compared to thefirst half of 2025.
Current wording
Selling, general and administrative (SG&A) expenses. SG&A expenses as a percentage of net revenues increased to 21.8% in thenine months ended September 30, 2026 from 20.5% in thenine months ended September 30, 2025. SG&A expenses were $876.9 million in thenine months ended September 30, 2026, up $107.4 million, or 13.9%, from $769.6 million in thenine months ended September 30, 2025. This increase was primarily driven by wage inflation, increased strategic investments in agentic engineering and sales and marketing capabilities, higher allowance for credit losses and higher stock-based compensation expense in thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025.
Previous wording
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $6.4 million in thefirst half of 2026, down $2.2 million, or 25.9%, from $8.6 million in thefirst half of 2025. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.
Current wording
Amortization of acquired intangible assets. Amortization of acquired intangible assets was $9.7 million in thenine months ended September 30, 2026, down $7.2 million, or 42.8%, from $16.9 million in thenine months ended September 30, 2025. This decrease was primarily due to the completion of useful lives of intangible assets acquired in prior periods.
Previous wording
Other operating (income) expense, net. Other operating income (net of expense) was$0.4 million in the first half of 2026, consistent with$0.2 million in the first half of 2025.
Current wording
Other operating (income) expense, net. Other operating income (net of expense) was$0.4 million in the nine months ended September 30, 2026, compared to Other operating expense (net of income) of$7.5 million in the nine months ended September 30, 2025. During the nine months ended September 30, 2025, we recorded a charge related to the abandonment of certain leased premises.
Previous wording
Interest income (expense), net. Our interest expense (net of interest income) was $26.7 million in thefirst half of 2026, up $1.8 million from $24.9 million in thefirst half of 2025. Our interest income increased to $14.9 million in thefirst half of 2026 from $10.8 million in thefirst half of 2025, due to higher interest rates and higher cash balances in thefirst half of 2026 compared to thefirst half of 2025. Our interest expense increased primarily due to incremental interest expense on our senior notes issued in November 2025, partially offset by (i) a reduction in interest expense on our senior notes issued in 2021, which were repaid in April 2026, and (ii) lower interest expense on our term loan due to a lower SOFR and reduced volume in thefirst half of 2026 compared to thefirst half of 2025. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased to 5.0% in thefirst half of 2026 from 4.8% in thefirst half of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.
Current wording
Interest income (expense), net. Our interest expense (net of interest income) was $43.2 million in thenine months ended September 30, 2026, up $5.5 million from $37.7 million in thenine months ended September 30, 2025. Our interest income increased to $18.4 million in thenine months ended September 30, 2026 from $15.9 million in thenine months ended September 30, 2025, due to higher cash deposits. Our interest expense increased primarily due to incremental interest expense on our senior notes issued in November 2025, partially offset by (i) a reduction in interest expense on our senior notes issued in 2021, which were repaid in April 2026, and (ii) lower interest expense on our term loan due to a lower SOFR and reduced volume in thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased to 5.2% in thenine months ended September 30, 2026 from 4.8% in thenine months ended September 30, 2025. See the section titled “Liquidity and Capital Resources—Financing Arrangements” for further discussion.
Previous wording
Other income (expense), net. Our other income (net of expense) was $10.7 million in thefirst half of 2026, compared to $12.1 million in thefirst half of 2025, primarily due to a gain on a one-time sale of certain IT assets in thefirst half of 2025.
Current wording
Other income (expense), net. Our other income (net of expense) was $11.7 million in thenine months ended September 30, 2026, compared to $18.9 million in thenine months ended September 30, 2025, primarily due to changes in the fair value of deferred compensation plan assets in both periods as well as a gain on a one-time sale of certain IT assets in thenine months ended September 30, 2025.
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Current report — wording carried from elsewhere
Foreign exchange gains, net. We recorded a net foreign exchange gain of $10.3 million in thenine months ended September 30, 2026, compared to $5.3 million in thenine months ended September 30, 2025. The gain in both periods was primarily due to the depreciation of the Indian rupee against the U.S. dollar.