Stock Analysis

A Look at Genpact’s Valuation Following Strong Q3 Results and Upgraded 2025 Outlook

Genpact (NYSE:G) caught the market’s attention following upbeat third quarter results and a raised outlook for 2025. Strong growth in Advanced Technology Solutions and successful GenpactNext execution are fueling investor optimism.

See our latest analysis for Genpact.

It has been a busy stretch for Genpact, with upbeat quarterly earnings, a fresh share buyback tranche, and an upgraded 2025 outlook all making headlines. The company also clinched a Salesforce Partner Innovation Award in the Consumer Goods sector, reinforcing its digital leadership. Despite some notable insider sales, momentum in Genpact’s core tech-driven solutions helped push the 30-day share price return to nearly 14%. Looking longer term, the total shareholder return over the past three and five years stands at 8% and almost 18%, which highlights a steady growth track and increasing investor optimism.

If strong results in tech and digital transformation have you wondering where else the action is, now is a great time to discover fast growing stocks with high insider ownership

With shares up nearly 14% over the past month and a raised outlook for next year, investors might wonder whether Genpact’s recent momentum is already reflected in its stock price or if further gains could still be ahead.

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Most Popular Narrative: 10.8% Undervalued

At $44.89, Genpact’s shares are trading below the most widely followed narrative fair value of $50.30. The difference is enough to put the company in the undervalued zone. Now, let’s see the key driver analysts point to in this upbeat outlook.

Accelerated client adoption of Genpact's Advanced Technology Solutions, particularly in data and AI, should drive higher growth and improved margins, as these offerings deliver over twice the revenue per headcount versus legacy services and are expanding at over twice the company's overall rate, pointing toward robust long-term revenue and margin expansion.

Read the complete narrative.

Curious how ambitious revenue streams and next-gen digital strategies are reshaping Genpact's valuation outlook? Surprised by how much analysts are betting on AI-powered transformation? Find out which assumptions drive this potential upside. There is more to the story if you dig deeper.

Result: Fair Value of $50.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower growth in legacy services and tough macroeconomic conditions could challenge Genpact’s ability to sustain its positive momentum in the coming quarters.

Find out about the key risks to this Genpact narrative.

Build Your Own Genpact Narrative

If you want to go beyond these findings or think your own perspective may reveal more, you can create a custom narrative in just a few minutes with Do it your way.

A great starting point for your Genpact research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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