Genpact (G) Stock Forecast & Price Target

Genpact is benefiting from a clear mix shift toward higher-value Advanced Technology Solutions, which grew 30.3% Y/Y to $405.1 million and now represents 29% of revenue, while total revenue still rose 7.3% Y/Y to $1.385 billion and beat estimates. Management’s outlook is equally supportive, with FY26 gross margin raised to about 36.9% and adjusted EPS growth lifted to 13%+, even as it deliberately exits roughly 2 points of non-strategic Core work. Strong commercial momentum, including 17 large deals year to date, record bookings, backlog and pipeline, and an expected $1 billion-plus of agentic TCV in 2026, suggests the growth engine is scaling and could support further margin expansion and re-rating potential.

Genpact is vulnerable to a prolonged economic downturn that could reduce transformation deal signings, pressure organic growth, and slow client decision-making, especially given its reliance on a global delivery model and exposure to shocks such as Covid-19. Talent retention risks in key regions and wage inflation in India’s competitive BPO and IT labor market could further erode margins and constrain execution in digital and analytics-heavy work. In addition, foreign-currency headwinds may weigh on both revenue and earnings, while the potential for multiple compression to ~6x FY27 or FY28 EPS underscores the market’s sensitivity to weaker growth and broader IT services valuation pressure.