EXL revenue jumps 15.6% to $594.8M as AI strategy gains traction

EXL reported Q2 revenue of $594.8 million, up 15.6% year over year, and raised its full-year guidance.

"Our sustained double-digit growth reflects continued execution of our data and AI strategy," Chairman and CEO Rohit Kapoor said.

Adjusted diluted EPS came in at $0.59, up 22.3% from $0.49 a year earlier. Revenue on a constant currency basis grew 15.9%. The company added 17 new clients during the quarter. Gross margin widened to 38% from 37.7% a year ago.

EXL now expects full-year revenue of $2.39 billion to $2.415 billion, up from a prior range of $2.30 billion to $2.33 billion. The updated guidance includes $28 million to $32 million from the pending iMerit acquisition, expected to close July 31.

Insurance revenue rose to $197.8 million from $172.2 million a year earlier, while healthcare and life sciences revenue increased to $158 million from $129.5 million. Banking, capital markets and diversified industries revenue grew to $133.9 million from $121.1 million, and international growth markets revenue rose to $105.1 million from $91.7 million.

Adjusted operating income margin held at 19.7%, compared with 19.6% in the year-ago quarter. The company ended the quarter with $126.7 million in cash and cash equivalents and $157.1 million in short-term investments.

EXL also deepened its AI ecosystem during the quarter, achieving gold status with Databricks, becoming an OpenAI Services Partner, and joining the Claude Partner Network from Anthropic. The company agreed to acquire iMerit, adding foundation model expertise to its enterprise AI capabilities.

The guidance raise signals management expects AI-driven demand to sustain momentum through the second half. Investors will watch the iMerit integration and its contribution to the company's AI services portfolio in coming quarters.

This article is for informational purposes only and does not constitute investment advice.