ExlService Holdings (NASDAQ:EXLS) extended its winning streak to a 5th consecutive day on Wednesday, jumping 17.88 percent to close at $35.99 apiece after solid results in the second quarter and posting a highly optimistic outlook for the remainder of the year.
The company recorded $594.76 million in the second quarter of the year, marking a 15.6 percent jump from the $514.46 million in the same period last year on the back of strong revenues across all business segments.
The insurance segment contributed the largest chunk at $197.8 million, followed by healthcare and life sciences at $158 million. The banking, capital markets, and diversified industries segment shared $133.9 million, while the international growth markets booked $105.1 million.
Net income, however, dipped by 2.3 percent to $64.5 million from $66.05 million year-on-year.
During the period, ExlService Holdings (NASDAQ:EXLS) also won 17 new clients, signaling strong demand for its services.
Photo by Tima Miroshnichenko on Pexels
Double-Digit FY26 Growth Target
Encouraged by the results, ExlService Holdings (NASDAQ:EXLS) issued revenue guidance of $2.39 billion to $2.415 billion for full-year 2026, or an implied 14 to 16 percent year-on-year jump on a reported basis.
Adjusted diluted earnings per share are expected to end at $2.25 to $2.29, or a 16 to 18 percent increase from 2025.
“We entered 2026 with strong momentum that accelerated through the first half, delivering second quarter revenue growth of 16 percent year-on-year and adjusted diluted EPS of 22 percent year-on-year. Our sustained double-digit growth reflects continued execution of our data and AI strategy and our differentiated position, which helps clients effectively adopt AI across the enterprise,” ExlService Holdings (NASDAQ:EXLS) Chairman and CEO Rohit Kapoor.
“We have very good visibility into the balance of the year and look forward to a solid finish to 2026,” he added.
Price Target Upgrade
Investment firm Needham & Company posted a bullish stance about the company.
In its market note, Needham raised its price target for ExlService Holdings (NASDAQ:EXLS) to $45 from $40 previously, while reaffirming a buy recommendation. The new figure marked a 25 percent upside potential from its latest closing price.
Hedge Funds Buy In
More institutional investors appeared optimistic about the growth prospects for the company in the first quarter of the year.
Data from Insider Monkey showed that during the period, 38 hedge funds held positions in the firm, up from 35 in the quarter prior.
Institutional conviction also strengthened, with their combined holdings increasing by 32.6 percent to $874 million from $658.9 million quarter-on-quarter, signaling growing confidence and reflecting broader optimism over its ability to sustain earnings momentum.
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