10 Mid-Cap IT Stocks Outperforming The Market In 2025

5. ExlService Holdings Inc. (NASDAQ:EXLS) 

ExlService Holdings Inc. provides data analysis and digital operations & solutions services. It operates through four segments; analytics, insurance, emerging business, and healthcare. The stock is up 15% so far this year.

EXLS doesn’t announce its Q4 earnings till the end of February so there is probably still a bit more juice in its ongoing rally. The last time the management did an earnings call, the company reported a decent earnings beat. The revenue of $472.07 million came in better than the estimates by $11.27 million. The EPS of $0.44 also beat estimates by $0.03. A 15% revenue growth and a 16% earnings growth was a satisfactory performance for the management.

The CEO of the company, Rohit Kapoor, is also quite optimistic about the company’s future prospects:

As we continue to expand our data modernization and AI solution set with innovations such as industry-specific large language models (LLMs), we are well positioned to continue our momentum into the fourth quarter and beyond

As a rather small player in AI, EXLS does stand the risk of government regulation or outright changes in the way AI develops in the coming months. Despite the company’s strengths, there are competitors out there that are doing the same thing and EXLS will have to differentiate itself to keep its moat. Investors will need to keep a close eye on how the technology and the company develop.