Genpact Limited (NYSE:G) is one of the best affordable tech stocks to buy right now. On February 6, BMO Capital analyst Keith Bachman lowered the price target on Genpact Limited (NYSE:G) to $44 from $48 and maintained a Market Perform rating.
Bachman made this adjustment despite noting that Genpact delivered solid results with mid- to high-single-digit growth and margin expansion. In his defense, the analyst said that there is pronounced ongoing negative AI-related sentiment affecting the broader IT services and software sectors. And as such, Bachman stated that IT services companies broadly will remain range-bound despite solid results over the near/medium-term.
Independent of the analyst action, Genpact released its Q4 2025 earnings on February 5. Net revenue for the quarter grew 5.6% year over year to $1.319 billion, and exceeded the $1.31 billion that Wall Street expected. Adjusted diluted EPS reached $0.97, up 6.6% from the prior year and beating consensus estimates by roughly $0.03. Management noted the company exceeded its own expectations for the quarter.
For the complete FY2025, Genpact’s net revenues were a record-setting $5.08 billion, up 6.6% year-over-year. Adjusted diluted EPS rose 11.3% to $3.65, marking the fifth consecutive year that earnings grew faster than revenue. The story is the same across key metrics: adjusted operating income increased 9.0% to $888 million, adjusted operating margin expanded to 17.5%, and gross profit improved 8.3% to $1.83 billion.
And for the upcoming first quarter, Genpact guided revenue in the range of $1.282 billion to $1.294 billion (5.5% to 6.5% growth). Management expects adjusted diluted EPS of $0.92 to $0.93, and noted that Advanced Technology Solutions, or ATS, growth should accelerate to high-teens year-over-year.
Genpact Limited (NYSE:G) provides business process management and IT services. The company’s operations focus on streamlining enterprise processes through automation, artificial intelligence, and cloud-based solutions.
While we acknowledge the potential of Genpact Limited (NYSE:G) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than G and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds and 7 Best Used Car Stocks To Buy According to Hedge Funds.
Disclosure: None. This article is originally published at Insider Monkey.
