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EXL Surges on Strong Q1 Data & AI Growth
10 Jun
Summary
- EXL reported revenue growth of 13.8% year-on-year in Q1.
- Company's adjusted diluted EPS increased by 20% year-over-year.
- EXL's stock is down 4% despite strong quarterly results.
The data and business process services sector experienced a strong Q1, with collective revenues exceeding analyst estimates by 2.7%. Despite this positive trend, the sector's stock prices have collectively declined by 2.8% on average since their latest earnings reports.
EXL (NASDAQ:EXLS), a company evolved from outsourcing to technology-focused enterprise, announced Q1 revenues of $570.4 million, marking a 13.8% increase year-on-year. The company also reported a 20% year-over-year rise in adjusted diluted EPS, driven by its data and AI strategy.
Chairman and CEO Rohit Kapoor highlighted EXL's strong momentum entering 2026, attributing the sustained double-digit growth to its competitive position and effective execution of its data and AI strategy. EXL's expertise in assisting clients with AI adoption is resonating positively in the market.
However, investor expectations may have surpassed published Wall Street projections. Following its earnings announcement, EXL's stock price has seen a 4% decrease, trading at $29.42, reflecting potential market recalibrations despite the company's significant growth.
