ExlService beats Q3 2026 estimates as AI revenue surges 36%
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Data and AI work now makes up almost two-thirds of the business and grew 36% in the quarter, enough for management to raise full-year revenue guidance to $2.43 billion to $2.44 billion with adjusted EPS of $2.34 to $2.36. That shift is what investors ignoring this name would miss.
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ExlService Holdings is compounding faster than the market priced in, with Q3 2026 adjusted diluted EPS of $0.62 beating expectations and revenue also coming in above expectations.
Data and AI-led revenue grew 36% and now accounts for almost two-thirds of the entire business, with every reportable segment posting organic growth above 15% in the quarter.
The company also completed the acquisition of iMerit during the quarter, establishing a new Model Training Solutions practice that adds capability in training data for AI systems. The deal lifted amortization and acquisition-related costs, but management treated the added strategic depth as a net positive for the company's positioning in enterprise AI workflows.
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Management raised full-year 2026 guidance on both revenue and adjusted diluted EPS, a signal that the quarter's momentum is expected to hold through the balance of the year.
CEO Rohit Kapoor noted that momentum has accelerated through the year, with Q3 delivering adjusted diluted EPS growth of 29% year-on-year. His comment that the business model provides very good visibility into the balance of the year adds weight to the raised guidance. An earnings call was scheduled for October 28 at 10:00 AM ET.
Mentioned: EXLS