ExlService Reports Strong Q2 Earnings and Raises Full-Year Guidance
ExlService reported second-quarter revenue of $594.8 million, a 15.6% increase from the prior year, with adjusted diluted EPS rising to $0.59, up 22.3%. The company attributed much of its growth—particularly in data and AI-led services—to increasing client demand for production-level AI deployment beyond proof-of-concept stages. Data and AI-led revenue accounted for 61% of total sales during the quarter and grew by 30%, driven by agentic AI adoption, token optimization strategies, and enhanced operational integration. ExlService also announced its acquisition of iMerit is set to close on July 31, expected to add $28 million to $32 million in revenue for 2026. The company raised full-year guidance, projecting revenue between $2.39 billion and $2.415 billion with adjusted EPS forecasted at $2.25–$2.29 per share. Management noted increased investment in AI capabilities will likely pressure operating margins in the second half of 2026.
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