| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 594.76 | 4.3% | 15.6% |
| Total Income | 594.76 | 4.3% | 15.6% |
| Expenditure | 507.47 | 6.0% | 17.1% |
| PBT | 83.97 | 8.1% | 0.9% |
| Net Profit | 64.51 | 3.8% | 2.3% |
| OPM | 14.68% | 1.42pp | 1.09pp |
| NPM | 10.85% | 0.91pp | 1.99pp |
| EPS | 0.42 | 2.3% | 2.4% |
ExlService Holdings Reports Q2 2026 Results with 15.6% Revenue Growth
29 Jul 2026 · 29 Jul, 1:37 am
Summary
ExlService Holdings announced strong second quarter 2026 results, with revenue reaching $594.8 million, marking a 15.6% increase year-over-year. The company reported a 4.9% rise in GAAP diluted EPS to $0.42 and a significant 22.3% increase in adjusted diluted EPS to $0.59. Management expressed confidence in the company's performance, highlighted by a 16% year-on-year revenue growth and a 22% year-on-year increase in adjusted diluted EPS for the first half of the year. Consequently, ExlService Holdings has raised its full-year organic revenue growth guidance to 13%-14% and provided updated total revenue and adjusted diluted EPS expectations for 2026.
Key Highlights
- 1
ExlService Holdings reported second quarter revenue of $594.8 million, an increase of 15.6% year-over-year.
- 2
Diluted EPS (GAAP) for Q2 2026 was $0.42, up 4.9% from $0.40 in Q2 2025.
- 3
Adjusted Diluted EPS (Non-GAAP) for Q2 2026 reached $0.59, a 22.3% increase from $0.49 in Q2 2025.
- 4
The company's gross margin for the second quarter of 2026 was 38.0%, a slight increase from 37.7% in the prior year's second quarter.
- 5
Operating income margin for Q2 2026 was 14.7%, compared to 15.8% in Q2 2025.
- 6
Adjusted operating income margin for Q2 2026 was 19.7%, up from 19.6% in Q2 2025.
- 7
ExlService Holdings increased its organic full-year revenue growth guidance to 13% to 14%.
Management Comments
Rohit Kapoor
We entered 2026 with strong momentum that accelerated through the first half, delivering second quarter revenue growth of 16% year-on-year and adjusted diluted EPS of 22% year-on-year. Our sustained double-digit growth reflects continued execution of our data and AI strategy and our differentiated position which helps clients effectively adopt AI across the enterprise. We have very good visibility into the balance of the year and look forward to a solid finish to 2026.
Maurizio Nicolelli
Our strong second quarter performance, sustained growth momentum and healthy pipeline give us the confidence to increase our organic full-year revenue growth guidance to 13% to 14%, up from 10% to 12%. In addition, we are also updating our guidance to include $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026. We now expect full-year 2026 total revenue to be in the range of $2.390 billion to $2.415 billion, up from our prior guidance of $2.30 billion to $2.33 billion, reflecting 14% to 16% year-over-year growth on a reported basis. We now expect adjusted diluted earnings per share of $2.25 to $2.29, a 16% to 18% increase over 2025, up from our prior guidance of $2.18 to $2.23.
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