ExlService Raises 2026 Outlook After Growth Acceleration

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter revenue reached $634.0 million, up 19.7% from a year earlier, and the company lifted full-year revenue guidance to $2.430 billion to $2.440 billion.

ExlService Holdings, Inc. (EXLS), a global data and AI company, reported third-quarter revenue of $634.0 million, up 19.7% from $529.6 million a year earlier, as year-over-year growth accelerated from 15.6% in the second quarter and 13.8% in the first quarter.

The sequential increase was 6.6%, both on a reported basis and on a constant currency basis, after 4.3% sequential growth in the second quarter.

Chairman and Chief Executive Officer Rohit Kapoor said the company entered 2026 with strong momentum that accelerated through the year, delivering third-quarter revenue growth of 20% year-on-year and adjusted diluted EPS growth of 29% year-on-year. He said every segment grew more than 15% organically, and that data and AI-led revenue, almost two-thirds of the business, grew 36% on a reported basis and 31% organically.

GAAP diluted earnings were $0.45 a share, up 25.3% from $0.36 a year earlier, after 4.9% year-over-year growth in the second quarter. Adjusted diluted earnings were $0.62 a share, up 28.5% from $0.48 a year earlier, after 22.3% year-over-year growth in the second quarter.

Insurance remained the largest reportable segment at $208.5 million, up 15.5% from $180.5 million a year earlier. Healthcare and Life Sciences revenue was $160.4 million, up 18.6% from $135.3 million. Banking, Capital Markets and Diversified Industries revenue was $153.5 million, up 26.9% from $121.0 million. International Growth Markets revenue was $111.6 million, up 20.3% from $92.8 million.

Gross margin was 38.0%, compared with 38.5% a year earlier. Healthcare and Life Sciences gross margin was 45.2%. Banking, Capital Markets and Diversified Industries gross margin was 34.4%. Insurance gross margin was 36.2%. International Growth Markets gross margin was 36.2%.

Operating income margin was 14.0%, compared with 14.4% a year earlier and 14.7% in the second quarter. Adjusted operating income margin was 19.3%, down from 19.7% in the second quarter. Adjusted EBITDA margin was 21.3%, down from 21.6% in the second quarter.

The company completed the acquisition of iMerit, establishing a Model Training Solutions practice, and closed a new $1 billion senior secured credit facility. It won 14 new clients in the quarter.

Chief Financial Officer Maurizio Nicolelli said the third-quarter performance gave the company confidence to raise its full-year outlook once again. EXL now expects full-year 2026 total revenue of $2.430 billion to $2.440 billion, up from prior guidance of $2.390 billion to $2.415 billion, reflecting 16% to 17% year-over-year growth on a reported basis and 15% on an organic constant currency basis.

The company now expects adjusted diluted earnings per share of $2.34 to $2.36, a 20% to 21% increase over 2025, up from prior guidance of $2.25 to $2.29. Guidance assumes a U.S. dollar to Indian rupee exchange rate of 95, a U.K. pound sterling to U.S. dollar rate of 1.33, a U.S. dollar to Philippine peso rate of 63, and all other currencies at current rates.

Kapoor said the business model affords very good visibility into the balance of the year and that the company looks forward to a solid finish to 2026.