ExlService Q1 Earnings Call Highlights

3 weeks ago 14

MarketBeat

Wed, April 29, 2026 astatine 10:43 AM CDT 7 min read

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Key Points

Q1 results: ExlService reported gross of $570.4 million (up ~14% YoY) and adjusted EPS of $0.58, and raised full-year 2026 guidance to $2.30–$2.33 billion gross with adjusted diluted EPS of $2.18–$2.23.
AI-led gross surge: “Data and AI‑led” revenues grew 28% YoY and present correspond 60% of full gross arsenic clients follow scaled AI successful regulated workflows and displacement engagements from integer operations to higher-value AI enactment (including usage of EXLdata.ai).
Margins and superior allocation: Adjusted operating borderline was 20.5% successful Q1 (company expects mid‑19% for the remainder of 2026 amid accrued AI/R&D investment), repurchased 4.4 million shares for astir $136 million, and ended the 4th with a nett indebtedness presumption of astir $151 million.
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Executives astatine ExlService (NASDAQ:EXLS) told investors the institution opened 2026 with “strong momentum,” driven by increasing adoption of AI crossed regulated industries and a continued displacement successful its gross premix toward data- and AI-led work.

On the company’s first-quarter 2026 net call, Chairman and CEO Rohit Kapoor said EXL generated gross of $570 million, up 14% year-over-year, and adjusted net per stock of $0.58, up 20%. CFO Maurizio Nicolelli reported gross of $570.4 million, up 13.8% reported and 13.4% connected a constant-currency basis, with 5.1% sequential constant-currency growth.

AI adoption driving premix displacement toward “data and AI-led” gross

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Kapoor said EXL’s “data and AI-led” revenues grew 28% year-over-year successful the 4th and present correspond 60% of full institution revenue. He attributed request to “scaled deployments of AI wrong halfway lawsuit workflows,” wherever EXL aims to present productivity and “superior risk-based outcomes.”

Kapoor emphasized that arsenic EXL embeds AI into existing lawsuit workflows, engagements go “more intelligent, much IP-led, and much value-added,” and related gross tin migrate from the company’s integer operations class into the information and AI-led category. To supply much transparency, EXL besides reports a “total operations” presumption successful its capitalist information expanse that combines integer operations and those operations that person migrated.

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In Q1, Kapoor said:

Total operations grew 10% year-over-year.
Reported integer operations gross was down 2% year-over-year owed to the planned migration.

Kapoor besides highlighted involvement successful EXL’s EXLdata.ai platform, which helium said helps clients sphere domain-specific semantic discourse portion gathering AI-ready information foundations. Later connected the call, helium described endeavor AI adoption arsenic analyzable enactment that requires gathering usable structured and unstructured information foundations, iterating and refining models, encoding rules and discourse for regulated industries, and establishing “guardrails,” security, and different controls.

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