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Investing.com - William Blair maintained its Outperform rating on Genpact Ltd . (NYSE:G), a prominent player in Professional Services with a market cap of $7.7 billion, following the company’s investor day presentation. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.17.
The firm expressed encouragement about Genpact’s strategic pivot and initiatives, noting that the company continues to execute on goals such as improving partner relationships, building comprehensive digital transformation and artificial intelligence (DTAI) solutions, and simplifying its go-to-market approach.
William Blair highlighted that partnership contributions have become an increasingly larger percentage of Genpact’s revenue, driven by accomplishments such as achieving the AWS Generative AI Competency. The company now has over 215 GenAI solutions in production environments, up from 145 last quarter.
Despite large deal delays reported last quarter, the firm noted that Genpact’s DTAI segment continues to see strong demand with overall pipeline at record levels, creating a strong foundation for 2025 and beyond, even as deal cycle times slow amid macro uncertainty.
Based on a price of $42.24, Genpact shares trade at an enterprise value of 8.6 times William Blair’s next-12-months’ EBITDA estimate, modestly above the BPO peer group average of 8.2 times, but at a 19% discount to the company’s trailing five-year average multiple of 10.6 times.
In other recent news, Genpact has been active with several significant developments. The company hosted an Investor Day to outline its AI-first strategy and provided updates on its second quarter and full-year 2025 performance. Genpact also announced a quarterly cash dividend of $0.17 per share for the second quarter of 2025, continuing its tradition of returning value to shareholders. In a strategic move to bolster its data services, Genpact completed the acquisition of XponentL Data, a firm specializing in data products and AI solutions. This acquisition is expected to enhance Genpact’s data capabilities and strategic partnerships. Additionally, Genpact launched an AI-powered accounts payable suite designed to streamline finance operations, a move that aligns with its Service-as-Agentic-Solutions portfolio. The company also received attention from TD Cowen, which raised its price target for Genpact to $55, citing the company’s AI strategy as a catalyst for future growth. These developments reflect Genpact’s ongoing pivot towards advanced technology offerings and its commitment to integrating AI into its business model.
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