The data analytics and digital solutions company ExlService Holdings, Inc. (NASDAQ:EXLS) reported its second-quarter 2026 results after the market close on July 28. The headline numbers were solid relative to analyst expectations, though the stock’s after-market reaction was modestly negative.
Revenue and EPS vs Estimates
Revenue came in at $594.8 million, compared to the analyst consensus estimate of roughly $585.4 million. The difference works out to about 1.6% above projections – within the range that can be described as inline with expectations rather than a clear beat. On a year-over-year basis, revenue grew 15.6% (15.9% on a constant currency basis), accelerating from the first quarter’s pace.
On the profitability side, the result was more decisive. Adjusted diluted earnings per share (Non-GAAP) landed at $0.59, comfortably above the analyst estimate of $0.5576 by about 5.8%. That represents a 22.3% increase from the $0.49 reported in the same quarter last year. GAAP diluted EPS was $0.42, up from $0.40 a year ago.
Guidance Highlights
Management raised its full-year 2026 outlook. The company now expects total revenue in the range of $2.390 billion to $2.415 billion, up from the prior guidance of $2.30 billion to $2.33 billion. The midpoint of this new range, around $2.4025 billion, sits above the current analyst full-year sales estimate of $2.375 billion. Adjusted diluted EPS guidance was also lifted to $2.25 to $2.29, implying 16% to 18% year-over-year growth, compared with the previous range of $2.18 to $2.23.
The updated guidance includes anticipated revenue of $28 million to $32 million from the pending iMerit acquisition, which is expected to close on July 31, 2026. On an organic constant currency basis, management expects full-year revenue growth of 13% to 14%, up from the earlier 12% to 13% forecast.
Market Reaction
Despite the solid quarter and raised guidance, the stock was down about 0.36% in after-market trading. That mild decline likely reflects the strong run-up in the weeks leading into the report – the stock had gained roughly 19.4% over the past month and 11.6% in the last week alone. With much of the good news already baked into the price, the inline revenue result may have left some short-term traders looking for a larger upside surprise.
The company also reported healthy operational metrics, including a 19.7% adjusted operating margin (versus 19.6% a year ago) and adjusted EBITDA margin of 21.6%. Client wins remained strong, with 17 new clients added in the quarter.
Key Takeaways from the Press Release
- Segment performance: Insurance revenue grew to $197.8 million (up from $172.2 million), Healthcare and Life Sciences hit $158.0 million, and Banking, Capital Markets and Diversified Industries rose to $133.9 million. International Growth Markets contributed $105.1 million.
- Client additions: 17 new clients won in Q2, and the company deepened its AI ecosystem partnerships with OpenAI, Databricks, Anthropic (Claude), and Snowflake.
- Acquisition: The iMerit acquisition is set to close on July 31, adding foundation model expertise to the company’s AI capabilities.
For more historical earnings data, future projections, and analyst estimates, you can view the full earnings details and forecast page for EXLS.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
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ExlService (NASDAQ:EXLS) Posts Strong Q2 Earnings and Raises Full-Year Guidance, Reinforcing Its High Growth Stock Status
The data analytics and digital solutions company ExlService Holdings, Inc. (NASDAQ:EXLS) reported its second-quarter 2026 results after the market close on July 28. The headline numbers were solid relative to analyst expectations, though the stock’s after-market reaction was modestly negative.
Revenue and EPS vs Estimates
Revenue came in at $594.8 million, compared to the analyst consensus estimate of roughly $585.4 million. The difference works out to about 1.6% above projections – within the range that can be described as inline with expectations rather than a clear beat. On a year-over-year basis, revenue grew 15.6% (15.9% on a constant currency basis), accelerating from the first quarter’s pace.
On the profitability side, the result was more decisive. Adjusted diluted earnings per share (Non-GAAP) landed at $0.59, comfortably above the analyst estimate of $0.5576 by about 5.8%. That represents a 22.3% increase from the $0.49 reported in the same quarter last year. GAAP diluted EPS was $0.42, up from $0.40 a year ago.
Guidance Highlights
Management raised its full-year 2026 outlook. The company now expects total revenue in the range of $2.390 billion to $2.415 billion, up from the prior guidance of $2.30 billion to $2.33 billion. The midpoint of this new range, around $2.4025 billion, sits above the current analyst full-year sales estimate of $2.375 billion. Adjusted diluted EPS guidance was also lifted to $2.25 to $2.29, implying 16% to 18% year-over-year growth, compared with the previous range of $2.18 to $2.23.
The updated guidance includes anticipated revenue of $28 million to $32 million from the pending iMerit acquisition, which is expected to close on July 31, 2026. On an organic constant currency basis, management expects full-year revenue growth of 13% to 14%, up from the earlier 12% to 13% forecast.
Market Reaction
Despite the solid quarter and raised guidance, the stock was down about 0.36% in after-market trading. That mild decline likely reflects the strong run-up in the weeks leading into the report – the stock had gained roughly 19.4% over the past month and 11.6% in the last week alone. With much of the good news already baked into the price, the inline revenue result may have left some short-term traders looking for a larger upside surprise.
The company also reported healthy operational metrics, including a 19.7% adjusted operating margin (versus 19.6% a year ago) and adjusted EBITDA margin of 21.6%. Client wins remained strong, with 17 new clients added in the quarter.
Key Takeaways from the Press Release
For more historical earnings data, future projections, and analyst estimates, you can view the full earnings details and forecast page for EXLS.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
Read full article here »