Q2 2025 Genpact Ltd Earnings Call
Ladies and gentlemen, welcome to this 2025 second quarter gpac limited earnings conference call, my name is Lisa and I will be your conference moderator for today.
My purposes. The replay of the call will be archived and made available on the IRS Section of Jac's website. I would now like to turn the call over to Krista B, singer head of relations.
Excuse me, head of re investor relations agent back. Please proceed.
Thank you, Lisa. Good afternoon, everyone and welcome to Jen packs Q2 2025 earnings conference call.
We hope you've had a chance to read our earnings press release, which was posted on the investor relations section of our website. Demac.com
Today we have with us, be take Cara, president and CEO and Mike Weiner Chief Financial Officer.
BK will start with a high-level overview of the quarter and then Mike will cover our financial performance in Greater detail. Before we take your questions.
Please note. That during this call, we will make forward-looking statements including statements about our business, Outlook strategies and long-term goals.
These comments are based on our plans predictions and expectations as of today, which may change over time.
Actual results could differ materially due to a number of important risks and uncertainties, including the risk factors, and our 10K, and 10 Q filings with the SEC.
Also, during this call, we will discuss certain non-gaap Financial measures.
We have reconciled those to the most directly comparable GAAP financial measures in our earnings press release.
These non-GAAP measures are not intended to be a substitute for our GAAP results.
And finally, this call in its entirety is being webcast from our investor relations website and a replay and transcript will be available on our website in a few hours.
And with that, I'd like to turn it over to BK.
Thank you, Krista. Hello everyone and thank you for joining us today.
Q2 was another strong quarter for jpack with Revenue, reaching 1.25 billion.
Up 7% year-over-year reflecting broad-based outperformance across the business.
Building on strengths of our Core Business Services.
To accelerate Revenue growth and expand margins.
The genek next growth model has 3 key elements.
Which we call the 3 C's. They are number 1, our capabilities.
Which include what we go to market with across our Advanced Technology Solutions and Core Business Services.
Number 2, our clients, uh, which include who we serve across both the Enterprise and mid-market
And 3, our catalyst.
Which include how we plan to further accelerate growth?
Through investments in Partnerships and AI focused Talent.
We are seeing strong early momentum across each. Let me walk you through the key highlights.
First on capabilities, we have 2 sets of distinct but interconnected offerings, Advanced Technology Solutions.
And Core Business Services.
These offerings amplify each other, why?
Because as you have heard me say before, there is no artificial intelligence without process intelligence,
We are capitalizing on this opportunity by integrating Advanced Technologies into what genek has always been known for.
Exceptional process.
Industry domain and Last Mile expertise.
This quarter Advanced Technology Solutions Revenue, which includes data and AI.
Digital Technologies advisory and agentic solutions.
Continue to accelerate up 17% year-over-year driven by strength and data and AI. As we continue to help clients rapidly deploy AI systems into production.
Year and we are innovating rapidly.
The AI gigafactory is now live across. All genpac verticals with more than 45 clients, onboarded year to date.
And more than 100 experienced data and AI leaders joining us to help our clients rapidly scale. AI
We now have more than 270 Genai, Solutions in production environments with clients either deployed or going live up more than 3x year over year.
Argentic Solutions are also gaining traction.
All 4 modules of our agentic. AP Street are now generally available.
And we are delivering measurable results with more accurate data capture.
greater touchless processing and significant productivity benefits for clients and for genpact
The AP Suite is just 1. Example of how, our Advanced Technology Solutions are creating more value for clients and generating high value revenue for genpact
Our Advanced Technology Solutions deliver, more than 2x, the revenue per headcount compared to the company average.
And are growing at more than twice. The rate of Jax overall Revenue.
Approximately 70% of Advanced Technology Solutions. Revenue is an approximately 70% comes from non ft commercial terms.
Making it high quality.
Sticky.
And strategically aligned with our future Direction.
And while we are sharing,
AI driven productivity gains with clients incremental revenue is coming from expanded scope, increase volumes and entirely new logos driving net revenue growth
Second on clients.
We are very proud of our Enterprise and mid-market clients many of whom shared firsthand that investor day, how our Advanced Technology Solutions are driving meaningful value.
Today I want to share 2 additional stories with you that demonstrate how we are leveraging Advanced Technology Solutions across both the Enterprise and wind Market to build intelligent agile, operations for our clients.
The first is a leading Global Healthcare Solutions company.
Serving patients and providers for more than 125 years.
We are now integrating Genai and agentic AI into the company's product life cycle.
And reducing time to spend on routine engineering work, through Jai based documentation.
And leveraging, agentic AI Frameworks to proactively track and manage compliance across a rapidly evolving. Regulatory landscape.
Our AI powered Solutions and Industry domain expertise.
Enabling a more agile and innovative approach to launching new products and managing them in the aftermarket is resulting in faster time to market and has compliance and sustained product quality around the world.
The second example is a large Property and Casualty Insurance broker in North America.
We are partnering with this firm to modernize its operations using Ai and other Advanced Technologies.
Our partnership will transform their policy life cycle operation. Leveraging, intelligent automation, identic processes and scalable operating models to drive greater efficiency scalability and enhanced experience for their Retail Partners and carriers.
This works speaks to the strength of our leadership and insurance sector.
And our focus on empowering high growth. Mid-market clients with scalable repeatable. AI. Let's Solutions.
And finally, on catalyst.
We are further accelerating growth through investments in Partnership and AI focused Talent.
Partnerships represent a significant growth opportunity for genpact
Partner related revenues, grew more than 70% year-over-year in quarter 2 representing 10% of total revenue.
We have achieved top tier partnership status with AWS Salesforce and service. Now,
Our joint solution portfolio is also expanding.
Further differentiating genpact and accelerating pipeline growth.
For joining solutions for financial crimes with AWS Bedrock, order management with Salesforce.
Sourcing and procurement with service. Now, just to name a few
To further Advance our capabilities. We are also collaborating with startups like instabase for intelligent document processing zenity for responsible. AI adoption and so on so forth.
We also continue to make significant investments in AI Talent.
Accelerating our pivot to Advanced Technology Solutions with our focus on AI. Builders experts, who build AI Solutions.
And AI practitioners.
Domain experts trained to use AI in flow of work for client processes.
Now turning to guidance.
With better than expected results in quarter 2. We are raising our full year outlook for Revenue.
Adjusted operating income margin and eps.
Our expected Revenue range is now 4 to 6%. On as reported basis up from 2 to 5% previously.
We expect adjusted operating income margin of 17.4% up from 17.3% previously.
And we are raising our outlook for adjusted diluted EPS by 8 cents.
To $354 at the midpoint of the range.
In closing.
We are incredibly excited about the future as we reshape, genpact to be an AI first company.
Momentum is building as we leverage Advanced, Technology Solutions to strengthen our last mile advantage.
And position genek as a clear partner of choice for AI driven transformation.
With that, let me turn the call over to Mike.
Good afternoon, everyone and thank you for joining us.
Results for the second quarter, exceeded our expectations would Broadband strength across our businesses.
Total revenue grew to 1.254 billion up 7% from the prior year, driven by organic growth.
Data check and AI represented 48% of total revenue or 599 million and grew at 10% from the prior year, driven by continued strength and data and AI.
Digital operations revenue of 655 million was up 4%, year-over-year driven by strong execution and deal ramps.
Digital operations accounted for 52% of total revenue.
At investor day, we introduced 2 additional Revenue metrics to track our progress, against our genpac neck strategy, Advanced Technology Solutions and Core Business Services Advanced Technology Solutions revenue of 200 and 93 million was up 17% year-over-year reflecting strength in data and AI Core Business Services revenue of approximately 90062 million was up 4% primarily driven by digital operations.
This quarter Advanced Technology Solutions represented 23% of total revenue.
We close 4, large deals in second quarter, including 1. That was pushed out from the first quarter. All of the remaining large deals are pushed out or made active. As a reminder, large deals, are $50 million or greater in total contract value.
We also continue to expand our footprint, both with Enterprise and mid-market clients.
Our pipeline remains strong and balanced across a mix of deal sizes, with both Advanced Technology Solutions pipeline up nearly 1.5 times year-over-year.
Revenue, grew across all segments, led by high-tech and Manufacturing at 13%, followed by financial services at 6% and consumer and Healthcare at 1%.
Non ftu Revenue which now includes outcome consumption and fixed fee deals. Accounted for 46% of second quarter Revenue in line with the period a year ago.
Turning to profitability, we expanded gross margin by 50 basis points year-over-year. Reaching 305.9% driven by operating Leverage.
Sgna expenses were 21.2% of Revenue, adjusted, operating income was 217 million and adjusted operating income. Margin expanded 40 basis points to 17.3%.
Our effective tax rate for the second quarter was 24.9% in line with the prior year.
109 million in the prior year. Additionally dsos were 91 days.
We ended the second quarter with 663 million in cash and cash equivalents down from 914 million a year ago, as a reminder, 2q 2024 included proceeds from a bond issuance, which were used to repay a bond maturity later in the year.
We've returned, s million dollars to shareholders in the second quarter through 30 million in Cherry purchases and 30 million in dividends.
Turning to Guidance with our strong second quarter performance, we're increasing our guidance range.
For the full year on an as reported basis. We now expect to deliver net revenue in the range of 4.958 million to 5.053 billion or 4 to 6% growth.
At the midpoint of 5%.
Data Tech, and Ai and digital operations revenue is expected to be approximately 7.4% to 2.9% respectively.
Given that estimated range, our adjusted diluted EPS is now expected to be between 3,051 and $3.58 representing 8.1% growth year-over-year at the midpoint again projected to grow faster than Revenue.
To provide additional details on reaching our 5%, midpoint of our full year Revenue guide. We need to deliver 238 million of growth for the full year.
Of which roughly 70% has been delivered in the first half that leaves, 30% or 76 million to be delivered in the second half moving on.
Our expectations for full year gross margin remain at 36% a 50 basis point increase year-over-year.
And are now 17.4%. A 30 basis point increase from the prior year, operating cash flow, is expected to be approximately 610 million.
On Capital allocation, we continue to aim to return at least.
50% of cash flow to investors through a combination of share repurchases and dividends while maintaining the flexibility for strategic Investments.
As a reminder, the exponential acquisition which closed in June is, now included in our guide and is not expected to have a material impact in 2025 results.
During the third quarter, on an as-reported basis, we expect to deliver net revenue between $1.258 billion and $1.27 billion, representing growth of 3.9% to 4.9%, with 4.4% as the midpoint. This translates into Data Tech and AI revenue growth of approximately 6.7%, and digital operations revenue growth of 2.3%, respectively.
We are now anticipating a margin of 36%.
And adjusted operating income margin of 17.5%.
We expect eluded EPS of 89 cents to 90 cents for the third quarter.
More details on constant currency. Growth rates can be found on our earnings press release. In fact, sheet posted to our investor relations website.
In closing we're excited about the future remain committed to Growing. Adjust the diluted EPS faster than Revenue expanding margins. While self-funding Investments for growth and maintaining strong track record of returning cash to shareholders. With that said, I'll turn the call over to Kristen now.
Great, thank you, Mike. Um operator we're ready to go ahead and take questions. Thank you.
Okay, thank you.
If you would like to ask a question, please press star, 1 1, 1 on your telephone, you will then hear an automated message. Advising. Your hand is raised. If you would like to remove yourself from the queue. Please press star 1 on 1 again.
We also ask that you wait for your name and Company to be announced before you proceed with your questions, 1 moment while we compile the Q&A roster.
Thank you so much. And the first question,
That I have today, is coming from the line of Brian. Bergin of TD. Cowen, your line is open,
Hey guys good afternoon. Thank you for taking the questions here. Um I I guess the first 1 I have is just as a list of pace and conversion a new bookings. You had noted a deal was signed ahead of the investor day just any further traction. You've seen there is as far as pipeline conversion goes and whether any prior tariff. Related delays are thawing.
Prepared remarks, we already closed 1 of them, and we closed many of the large deals or few other large deals, uh, in in second quarter, and both the large deal or overall pipeline continues to be in a pretty healthy State, Mike. Yeah, the only thing I'd like to add is that. Well, we closed 1 of those deals in. The first quarter is BK talked about. And we had 3 other large deals in a different cohort that weren't delayed um, that um, that that closed in the second quarter, uh, we're still in active dialogue with those deals. And we expect them to come to fruition within the year.
Okay. Okay. Good.
Second question on Jai: just anything the latest you can share about the net impact of Jai from traditional contracting on your base business? And if you could give any incremental details on the range of outcomes.
That, uh, that that you may have across engagements.
Yeah, I think as Brian, you may have noticed during our investor day, we shared a little bit of a detailed illustration.
Of how um a lot of this G and agentic implementations are shaping up uh our uh our franchise.
And it pretty much stays in a similar range and, uh, it was a demonstration of how AI is a clear tailwind and we continue to see uh that progress, uh, reasonably well, and I think how be if I look at the pipeline, we from a data and AI standpoint or G standpoint. Uh, that pipeline is actually, as proportion of from advanced technology solution continues to be actually at a very, very healthy stage.
And really thrilled as to how we are shaping, the uh, curve of the business, um, especially with our investments in this innovation.
Yeah, if I could just top top on to that, right? So when we think about it, we laid out we gave an illustrative example of BK alluded to earlier that we had in our investor that. Uh, but the way to kind of think about it is, um, we are sharing the AI productivity gains with our clients that's to be expected. But uh, we are seeing incremental Revenue coming from a number of sources including uh, expanded scope, increased volumes or both, as well as new logos. Um, that on top of our ability to do it and enhance our margins makes it very creative for genpac, both top and bottom line,
Okay, very good. Thank you.
The next question is coming from the line of surrender, fed of Jeffrey. Galien is open.
Um, thank you.
Um, BK. Can you maybe just talk about um, a bit more about the Advanced Technology Solutions um, the pipeline there.
Maybe how quickly that converts and just kind of the length of the project. So we have a better understanding of of that segment reporting given its 1 of the newer. Uh,
Pieces of data that you're providing.
Yeah, thanks and look overall, it's a revenue, disregard the specifically on advanced technology solution. Um, uh, as you, uh, as I justifying that the pipeline is actually, uh, growing, um,
At a much healthier Pace overall.
And, uh, uh, into a cross various components of advanced technology solution. Uh, conversion is a tad faster.
And as I mentioned, including at the investor day or in my prepared remarks today, it is uh, greater than 2x our Revenue by headcount and uh, is growing, certainly north of 2x of the overall company average and on your specific question, on the length of the contract, 70% of, uh, all of U Advanced Technology Solutions, approximately is an and also non FD.
Got it, that's helpful. And then just kind of following up, um, when I think about the
The growth rates from a segment perspective. It looks like you had nice growth across
each of the verticals. Um, any additional color that you can provide their, um,
Obviously seems like we've seen a pickup um you know, in Professional Services. So just some color on how we should think about
The demand environment there.
At the same level.
13% as Mike mentioned, in his prepared remarks uh Financial Services 6% and yes consumer Healthcare was 1%. But uh you know uh some concentration of macro sensitive customers specifically, if I look at the pipeline uh pipeline across cohorts, be it cohorts of the deal or cohorts of verticals. Cohort of goes continues to be in a pretty uh strong and pretty healthy stage and um really pleased with the strong execution that the team is, demonstrating along with that clients.
Yeah, so the only thing I'd like to add to that, is that, you know, we delivered 7% growth, uh, for the quarter, right? And then we are seeing, we're beginning to see the benefits of the Strategic Investments. We've made that we've self-funded in the business that's really reflecting in, you know, really our our, our, our Revenue disagrees, particularly that we're quite pleased in the 17th and Advanced Technology Solutions which speak I talked about in the previous question. 70%, annuitized is something we're really proud of
Thank you.
Question.
And the next question is coming from the line of Jacob Hagerty of beard. Your line is open.
Yeah, hey guys, and congrats on a good quarter. Um, I just had a question quick on sequential Trends, so at the midpoint of your Q3 guide it implies below sequential Trends which would then mean that Q4 would have to be sort of above what's normal, uh, for you to hit the top end of your guide. Is that something that's possible if you hit the midpoint or you guys going to have to kind of lower the top end there? What are these thoughts on that?
Yeah, so sorry, it's Mike. So again, we feel really good about our guide in terms of in terms of the range. Again, the way I'd like you to think about it so at 5% which is the midpoint of of it, right? Um first of all we haven't changed our approach or on how we guide, right? Nothing's really changed on sequential basis. So again, using just simple math at 5% growth of the midpoint, right? We need to deliver about 238 million for the years. I've talked about, uh, 70% of that has already been behind us, so if you then can extrapolate that the other 30% is about 76 million, uh, and again, we feel good about being able to achieve that certainly of the midpoint of the range and we'll ultimately see about execution and client and client involvement to, um, that potentially could push us above that number.
Yeah, and we continue to be prudent about how uh we guide and how we deliver.
Gotcha. And then just a quick follow-up. So appreciate the disclosures on Advanced Tax Solutions and Core Business Services. Just looking back at 2024 that really Advanced Tax Solutions started to really accelerate um in Q3 and since then Core Business Services has been decelerating. Is that a trend that you expect to continue? I know we start to hit tougher, comps in the back, half for Advanced Tax Solutions. Um, like how how are you viewing the interaction between those 2 growth rates.
Yeah, so I'll kick this off. Okay, and then I'll maybe we'll hand it over to you some additional high level comments about it. So, if we, you know, we we hearken back to our investor day which I had about 6 weeks ago, right? We gave out our our targets. Um, um, and uh, for the midpoint, but the way to kind of think about it. We are thinking about our ATS business growing at least 15 uh, percent, right. Uh, and our Core Business is growing at 4 to 5% and some of that is really driven by the rotation out of Core Business Services. As we pivot into Advanced Technology Solutions and again, your correct to assume uh is correct to point out the acceleration. We had late last year and throughout this year, uh, in advanced tech technology Solutions and that really pinpoints back to the Investments we've made uh in in that Revenue category and we're looking at hyper charging that on a go forward basis. And that's really what's reflected in our guide for this year.
And for a medium-term guide.
And there will be some variability in, uh, comps and numbers that, uh, might come through and I won't overeat into that. Uh, our fundamentally really pleased with all of our investments that we are making in advanced technology solution how is ramping up but I will also Center the argument a little bit on total revenue growth uh that we uh continue to deliver at uh amongst the top top end uh profile of uh in our sector.
Gotcha. Thanks guys.
Thank you. 1 moment for the next question.
And the next question will be coming from the line of Sean Kennedy of mu, please go ahead.
For a Genpact Solutions, currently, and how can that mix change over time?
Okay, I think, um, you know, Point number 1, uh, Sean, I would say really, uh, pleased with the book of business and the clients that we have are be it in Enterprise, or mid-market. And, uh, we are continuing to take these innovative solutions to all of these clients and all of these clients that are adopting a different pace depending upon where they are in their Journeys.
And uh what we are seeing is uh clearly all of these Solutions taken up by new logos as well a little bit more actively. So really pleased as to how be the agentic or data and AI Solutions are in our pipeline fueled by both existing clients as well as newer ones.
Great, thank you. And then also could you share like how client conversations progressing last few months know, from early April, when Teresa like what was it a brief pause followed by, you know, a quick re-engagement or a client's full, generally more cautious.
So, overall, look client conversations, uh, uh, continue to be more centered around data, and Ai and how, uh, all of this can actually generate Roi for all the Investments. They are making. Um, you know, we all talk about, uh, technical debt and, you know, some of my conversation is always about the process that, uh, and the frame that I always say that, hey, there aren't any benefit of artificial intelligence, if there is not process intelligence behind it and I think a lot of that differentiation is coming to life. Yeah. If I can just add on to that for a quick second. So a lot of our customer get our conversations remain really healthy for us and there's something we're we're super proud of and that's reflected in our in our guide. You know, the macro means somewhat muted, right? It has clarified a little from the paralysis that we've seen in the early part of the year. Um, we remained, uh, you know, somewhat cautious um and prudent with how we think.
About it on a prospective basis. Uh, but you know, our guide really is how to think about it from reflecting, particularly that in Advanced Technology Solutions, as we're seeing enhanced demand for that.
Great. Thank you. Appreciate all the colors. Again,
Thank you.
Thank you. 1 moment for the next question.
And the next question will be coming from the line of pruned. Jane of JP Morgan Chase, your line is open.
Hey uh, thanks for taking my question. Uh, and good quarter guys.
Um my question is around like AI. Like are there any processes or uh verticals regions where AI adoption is higher than others?
And do clients typically go with their existing vendors when they're trying to bring AI in their business processes or are they okay like looking back?
New vendors, like a vendor who can bring more AI solutions than their current provider. Okay?
Yeah, thanks for me. Uh, overall, uh, I would say, uh, maybe I'll, uh, address your, uh, second question first. Uh, what what we see as I was mentioning, uh, earlier, um, a very, uh, strong demand from all of our existing clients, uh, as well as newer clients. And I think the last mile expertise beat off, uh, end to end process ownership, deep domain, uh, or operational data operating at scale is shining through, especially when we are
Are investing in technology at that last Mile and Shining, uh, the differentiation further.
And, uh, clearly, we see an uptick there. And that's what you see in our Advanced Technology Solutions results. I think, even as you progress within this quarter,
and then our investments in Partnerships, uh, is further, uh, accelerating that
More on your question 1. I think look.
I would say, um, it, it is a cross sectors, uh, clearly Financial Services, um, by you know how the experiment at much faster Pace, but, uh, we are seeing even manufacturing high-tech or even consumer companies. Uh, uh, you know, uh, really not behind. Uh, maybe from a geography standpoint us is uh, continues to lead, more Australia is ahead, too. So is Europe. I think it's more broad-based. I would say.
Pricing environment. Uh,
Whether AI is accelerating some of the pricing pressure. Uh or if you are seeing any instances of any of your competitors, uh pursuing deals and being irrational in pricing at all.
So I won't say, uh, Mike, you you look at pricing also far more closely. I don't see any irrational pricing Behavior, Uh, at all Punnett and uh, clients are actually getting more focused on value, not just also cost and uh, clearly we are shifting the needle on non ft models as well. And we spoke about advanced technology solution, nearly 70%, uh, non- FTE. Um, and more consumption based structures or, uh, uh, so I think I, I, we don't see any irrational pricing Behavior, right? No, we don't see any rational pricing Behavior. The 1 thing that I would continue to point out that you just alluded to is the delivery from FTE Legacy models is now shifting at a faster Pace, uh, to non FTE or outcome based models or, you know, any flavor of that pricing which I think is, is really healthy for us and also healthy for the industry is all
Okay, thank you.
Thank you.
As a reminder, if you would like to ask a question, please press star 1, 1 on your telephone, 1 moment, for the next question.
In our next question, we will be coming from the line of Bradley Clark of BMO Capital Markets. Your line is open.
Hi, thanks for taking my question. I want to ask about the mid-term target of 7% growth and sort of, however, way to, um, the year 2026 given, you know, your guide for the second half doesn't imply some further deceleration. And I just want to understand about, you know, what you guys are seeing on the pipeline or in the large deal bookings that you closed in the quarter that helped give you confidence, you know, in that acceleration from sort of where the second half is laid out here to get to the 7% growth target that you laid out in yesterday's call. You know, what could help go by to get the number back up? Thank you.
Yeah, so again, the investor we, we highlighted at least 7% growth for the midterm, which is 26 and 27, right? Uh, we continue to build momentum in our business, uh, the pipeline remains very healthy and conversion rate should be okay. Alluded to, we'll provide some bookings information at the end of, of the year. But, uh, if you're really double clicking on, what will the impact be of potentially? These
Uh, this cohort of delayed large deals. Really has no effect on our view, either for this year, or for the next year. We continue to execute extremely well in the existing deals that we have, as well as where our pipeline lies. Yeah. Maybe 2 comments to add, uh, uh, you know, stay prudent about our guide and don't want uh, numbers to run ahead of us. And we remain confident of our medium-term targets that we laid out at investor day. And if you look at last X, number of quarters, we continue to perform at the top end of, uh, our services sector.
Excellent, appreciate the caller.
Thank you. And this does 1 moment, please.
I have another question that will be coming from the line of Maggie Nolan of William, Blair. Your line is open.
Hi. This is Maggie Nolan with William. Blair thanks for taking my question. Um I I wanted to see your um thoughts on
You know, as we continue to see how these Trends with AI develop, um, whether or not you're seeing a little bit of a convergence between, what would have traditionally been considered, you know, it services and what have traditionally would have been considered BPO? Um, just given that AI is more comprehensive. There seems to be an appetite for larger more comprehensive deal sizes that.
Touch, you know data um and process and all these different areas is that something that resonates uh with you as you think about, you know a multi-year vision for the company and how is genpac responding to that.
Uh, thanks, Mary look. I think, um, uh, I'll first speak to our strategy. Uh, Maggie and strategy of known as Last Mile experts. So, I'll be from a process domain. Contextual data, operational data, and operations at scale, and applying
Um, uh, investments in technology on this differentiation. Uh, that has been core to us.
More and more. And, you know, like, I typically say, 2x, 2x 770, I think it's, uh, getting, uh, shown in nearly now quarter of our Revenue. Uh, you know, growing uh, at, uh, 2x the rate of the company and, uh, uh, the 70%, uh, annualized and 70%, non ft models, and 2x the revenue by headcount look. I think, uh, we we do believe uh, that, um, you know, for clients, uh, clients, don't think about BPO it. Clients are looking for, who is providing them value? Who is underwriting the value. And I think uh, that's where the industry domain, uh, running operations at Large Scale. Knowing the last mile I think is begun to shine more. I don't know if that answers your question.
Yes, that's helpful. Thank you.
Um, and then
uh, also on kind of a multi-year timeline, you know, obviously you've you've
Uh, talked about this a little bit in the past, but can you elaborate on the ability to drive Revenue um and kind of decouple that to some degree from headcount? Um, and then what type of Investments are most important for, you know, the headcount that does remain if you perhaps invest a little bit less in headcount to drive the same amount of Revenue, thank you.
Sure. So maybe 2 2 parts uh uh 2 part answer as I think about uh what you asked.
Look, I think, uh, first thing: all this transformation is not happening overnight. It is a multi-year, uh, transition and transformation. We are wanting to take all these solutions to our clients, and, uh, we got to meet them where they are and kind of also, while, you know, we, uh, accelerate their pace, uh, but we also need to kind of walk with them and kind of, uh, set up the data pipeline, set up the infrastructure. And I think we are in that early phase now. I, I think, um, so multi-year, as we have said, I think we gave certainly medium-term targets of at least 7. Um, and...
Uh, as we think from our Workforce standpoint, Maggie, we we said that there are only as we progress. There will be only 2 cohorts of people in genpi, AI Builders or AI practitioners, uh, we set up some, uh, near-term targets as well, we shared at the investor day and really pleased as to how the talent makes and how our talent is uh really uh adopting all of these uh uh new technologies and new uh techniques at scale. Um, and I mentioned about our culture as well and 1, attribute of the culture is learning attribute. That is always being uh, Jen packed. And that is really again um taking shape in a more
Fundamental way now.
Thank you very much.
Thank you. And there are no more questions in the queue. I would like to turn the call back over to management for any closing remarks. Please proceed,
Thank you. Lisa look. I want to thank you all for joining us today and my heartfelt, thanks to our incredible employees for all of their hard work. We are very excited about the future of genpact.
As we look ahead, we will continue to leverage Advanced Technology Solutions to strengthen our lives, and positions, and track as a partner of choice. For AI driven transformation.
I also want to take this opportunity to thank all of our clients for choosing genpact and all the shareholders for ongoing support. We look forward to speaking with you again next quarter. Thank you.
Thank you for joining today's conference call. This does conclude today's meeting. You may all disconnect