EXL Q2 2026: Revenue Jumps, Guidance Rises, and an AI-Driven Acquisition Gets Ready to Enter the Stadium

Snapshot in a Sentence (and a Table of One-Liners)

• Ticker: EXLS (EXLService Holdings, Inc.)
• Revenue (Q2 2026): $594.8 million, up 15.6% YoY; up 4.3% sequential
• GAAP EPS: $0.42
• Adjusted EPS (Non-GAAP): $0.59
• Full-year 2026 revenue forecast: $2.390 billion to $2.415 billion
• Full-year 2026 adjusted EPS: $2.25 to $2.29
• Acquisition: iMerit adds about $28–$32 million of revenue and closes around July 31, 2026

The Numbers, with a Sense for the Runway

EXL’s June-quarter results sit in a familiar rhythm for a data-and-AI services company: top-line growth powered by a favorable mix, modest GAAP earnings uplift, and a stronger non-GAAP trajectory that reflects the company’s emphasis on high-value, non-manufacturing work streams. Revenue rose to $594.8 million, a 15.6% year-over-year gain and a 4.3% rise from the prior quarter, aided by currency effects that the company notes as steady on a constant-currency basis. GAAP diluted EPS came in at $0.42, while adjusted diluted EPS arrived at $0.59, up 4.9% and 22.3% respectively from the year-ago quarter.

The split between GAAP and non-GAAP performance matters here not as a dig at accounting but as a signal about how investors think about value creation in services businesses: the non-GAAP line shows the operating leverage of the model, while the GAAP line anchors the business in the realities of stock-based comp and other non-cash or one-time factors.

Outlook and the iMerit Inflection Point

Guidance is the main plot twist. The company raised its full-year 2026 revenue forecast to a range of $2.390 billion to $2.415 billion, up from a prior $2.30 billion to $2.33 billion, implying a healthy lift in expected annual growth. The adjusted EPS target for the year is lifted to $2.25–$2.29, a 16%–18% increase versus 2025. In a quick add-on, EXL projects that the iMerit acquisition will contribute $28.0 million to $32.0 million in revenue, a line item that helps broaden the mix toward higher-value, data-centric work.

Management frames the upgrade as an organic acceleration complemented by the acquisition. CEO Rohit Kapoor emphasized momentum into 2026 and a sustained, double-digit growth path driven by the company’s data and AI strategy. CFO Maurizio Nicolelli underscored the confidence to lift the revenue and EPS targets and highlighted the strategic value of iMerit in expanding the firm’s pipeline and client exposure.

"We entered 2026 with strong momentum that accelerated through the first half, delivering second quarter revenue growth of 16% year-on-year and adjusted diluted EPS of 22% 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. We have very good visibility into the balance of the year and look forward to a solid finish to 2026." — Rohit Kapoor, CEO

"Our strong second quarter performance, sustained growth momentum and healthy pipeline give us the confidence to increase our organic full-year revenue growth guidance to 13% to 14%, up from 10% to 12%. In addition, we are also updating our guidance to include $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026. We now expect full-year 2026 total revenue to be in the range of $2.390 billion to $2.415 billion, up from our prior guidance of $2.30 billion to $2.33 billion, reflecting 14% to 16% year-over-year growth on a reported basis. We now expect adjusted diluted earnings per share of $2.25 to $2.29, a 16% to 18% increase over 2025, up from our prior guidance of $2.18 to $2.23." — Maurizio Nicolelli, CFO

Earnings Analysis: What Wall Street Will Be Asking

On the surface, the numbers lean in EXL’s favor: higher revenue, stronger adjusted profits, and a raised revenue forecast for 2026. The release, however, does not publish a formal EPS consensus or a dedicated earnings surprise metric, so the magnitude of the surprise versus external estimates remains an open question. Investors will likely parse the delta between GAAP and Non-GAAP lines, and whether the iMerit contribution—now anchored by a July close—delivers incremental margin expansion as the year plays out.

From a sector perspective, EXL’s results reinforce a narrative around AI-enabled services and data-centric outsourcing as a growth engine. If the iMerit acquisition integrates smoothly, EXL could edge its mix toward higher-margin work, potentially pressuring peers to pursue more aggressive bets on scale, automation, and AI-enabled offerings. In other words, the market may watch EXLS’s ability to convert this growth into sustainable operating leverage, rather than one-off revenue bumps.

Notes and Reconciliations

The press release reiterates standard practice: EXL provides reconciliations of adjusted (non-GAAP) measures to the most directly comparable GAAP figures at its end. The non-GAAP metrics—like adjusted EPS and constant currency measures—are not GAAP, but they help investors gauge the underlying operating performance. A reminder that the arithmetic of blended earnings depends on which line you want to follow.)