ExlService (NASDAQ:EXLS) Posts Earnings Results, Beats Expectations By $0.06 EPS

ExlService (NASDAQ:EXLS) released its earnings results on Tuesday. The business services provider reported $0.62 EPS for the quarter, topping analysts’ consensus estimates of $0.56 by $0.06, FiscalAI reports. The company had revenue of $633.96 million for the quarter, compared to analysts’ expectations of $615.51 million. ExlService had a return on equity of 30.61% and a net margin of 11.17%. The business’s revenue for the quarter was up 19.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.48 EPS.

ExlService Stock Down 0.5%

NASDAQ EXLS opened at $40.72 on Thursday. The company has a market cap of $6.17 billion, a PE ratio of 25.61, a price-to-earnings-growth ratio of 1.70 and a beta of 0.84. ExlService has a 52 week low of $24.85 and a 52 week high of $43.88. The firm’s 50-day simple moving average is $37.16 and its two-hundred day simple moving average is $32.81.

ExlService News Summary

Here are the key news stories impacting ExlService this week:

• Positive Sentiment: Strong Q3 results: ExlService reported revenue of approximately $634.0 million, up 19.7% year over year. Adjusted diluted EPS rose 28.5% to $0.62, exceeding the $0.56 analyst consensus, while GAAP diluted EPS increased 25.3% to $0.45. EXL Reports 2026 Third Quarter Results
• Positive Sentiment: 2026 outlook raised: Management increased its full-year earnings guidance, signaling confidence that demand for ExlService’s data, analytics and artificial-intelligence services remains strong. The updated outlook was described as slightly above expectations. ExlService Raises 2026 Earnings Guidance
• Positive Sentiment: AI-led growth narrative: Earnings-call commentary highlighted data- and AI-led revenue growth, with the company integrating AI into client workflows. Analysts and long-term-investor coverage viewed this strategy as supporting continued outperformance and a potentially favorable 2027 growth trajectory. ExlService 2027 Outlook
• Positive Sentiment: Analyst price-target increase: Needham raised its target for EXLS from $45 to $50 and maintained a “Buy” rating, implying substantial additional upside from the referenced $40.72 price. Needham analyst action
• Neutral Sentiment: Valuation and execution remain considerations: With EXLS trading near its 52-week high and at a reported P/E ratio above 25, investors may require continued strong growth and successful AI workflow adoption to justify further gains.

Insiders Place Their Bets

In other news, insider Vikas Bhalla sold 11,000 shares of ExlService stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $35.38, for a total value of $389,180.00. Following the completion of the transaction, the insider owned 109,295 shares in the company, valued at $3,866,857.10. This trade represents a 9.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.66% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Wall Street Zen upgraded shares of ExlService from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Weiss Ratings upgraded shares of ExlService from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday. Barrington Research set a $43.00 price target on shares of ExlService in a research note on Thursday, July 30th. Robert W. Baird set a $45.00 price objective on ExlService and gave the company an “outperform” rating in a report on Thursday, July 30th. Finally, TD Cowen reissued a “buy” rating and issued a $45.00 target price (up from $43.00) on shares of ExlService in a research report on Thursday, August 27th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $45.33.

ExlService Company Profile

ExlService Holdings, Inc, operating under the EXL brand, is a data analytics and digital operations company that helps businesses use data, technology and artificial intelligence to improve decision-making, manage risk and enhance operational performance. Its services include data management, advanced analytics, business process solutions, automation and technology-enabled transformation.

EXL serves clients across industries including insurance, healthcare, banking and capital markets, utilities, travel and transportation, retail, media and manufacturing.