EXLS · 10-Q · 2026Q1 · Full report
Revenue Performance and Mix
ExlService Holdings, Inc. · 2026-04-28 · Importance 60 · Surprise 40
Total revenues rose to $570.4 million in Q1 2026, up $69.4 million (13.8%) year-over-year, driven by expansion with existing clients (11.8% contribution) and new client wins (2.0%). By segment, Healthcare & Life Sciences grew 21.0% to $151.9 million, Insurance grew 12.7% to $194.0 million, International Growth Markets grew 13.4% to $97.1 million (including a 2.5% FX benefit, net of hedging), and Banking & Diversified grew 8.2% to $127.4 million. The top ten clients accounted for 34.6% of revenues in Q1 2026, and management warns loss of any top client could have a material impact. The growth was concentrated in expansions with existing clients across all reportable segments and contributed to a modest improvement in overall gross margin.
Key facts
- Total revenues for the three months ended March 31, 2026: $570.4 million, up $69.4 million or 13.8% from $501.0 million for the three months ended March 31, 2025.
- Healthcare and Life Sciences revenue for the three months ended March 31, 2026: $151.9 million, up $26.3 million or 21.0% from $125.6 million for the three months ended March 31, 2025.
- Gross profit for the three months ended March 31, 2026: $222.1 million, up $28.8 million or 14.9% from $193.3 million for the three months ended March 31, 2025.
- Insurance revenue for the three months ended March 31, 2026: $194.0 million, up $22.0 million or 12.7% from $172.0 million for the three months ended March 31, 2025.
- Income from operations for the three months ended March 31, 2026: $91.8 million, up $13.4 million or 17.1% from $78.4 million for the three months ended March 31, 2025.
- International Growth Markets revenue for the three months ended March 31, 2026: $97.1 million, up $11.4 million or 13.4% from $85.7 million for the three months ended March 31, 2025.
- Banking, Capital Markets and Diversified Industries revenue for the three months ended March 31, 2026: $127.4 million, up $9.7 million or 8.2% from $117.7 million for the three months ended March 31, 2025.
- Net income for the three months ended March 31, 2026: $67.1 million, up $0.5 million or 0.8% from $66.6 million for the three months ended March 31, 2025.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +12.2% | Total revenues for the three months ended March 31, 2026: $570.4 million, up $69.4 million or 13.8% from $501.0 million for the three… |
| operating_income | positive | realized | +2.4% | Income from operations for the three months ended March 31, 2026: $91.8 million, up $13.4 million or 17.1% from $78.4 million for the… |
| revenue | positive | realized | — | Banking, Capital Markets and Diversified Industries revenue for the three months ended March 31, 2026: $127.4 million, up $9.7 million or… |
| net_income | positive | realized | — | Net income for the three months ended March 31, 2026: $67.1 million, up $0.5 million or 0.8% from $66.6 million for the three months ended… |