Track market-moving stories before they get noisy

ExlService Holdings (EXLS - Free Report) closed the last trading session at $28.49, gaining 0.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $41 indicates a 43.9% upside potential.

The average comprises eight short-term price targets ranging from a low of $35.00 to a high of $46.00, with a standard deviation of $3.78. While the lowest estimate indicates an increase of 22.9% from the current price level, the most optimistic estimate points to a 61.5% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for EXLS, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in EXLSThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 0.1%, as one estimate has moved higher compared to no negative revision.

Moreover, EXLS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much EXLS could gain, the direction of price movement it implies does appear to be a good guide.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

ExlService Holdings (EXLS - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this provider of outsourcing services a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for ExlService Holdings is 18.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 15% this year, crushing the industry average, which calls for EPS growth of 8%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for ExlService Holdings is 25.5%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.3%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 14.8% over the past 3-5 years versus the industry average of 8.5%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for ExlService Holdings. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made ExlService Holdings a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that ExlService Holdings is a potential outperformer and a solid choice for growth investors.

EXL’s 2026 UK Enterprise AI Study finds that while most companies think they’re ahead of the competition at AI, few actually see results at scale July 08, 2026 05:03 ET  | Source: EXL

75% of companies believe they are ahead of their competitors on AI, but just 12% meet the criteria to qualify as an AI Leader93% of UK companies believe it’s important to scale AI, yet only 3% will be given incremental budget (compared of 60% U.S. companies)77% of respondents say data is their biggest challenge in using AI effectively LONDON, July 08, 2026 (GLOBE NEWSWIRE) -- Most UK businesses believe they're outperforming their competitors on AI, and 38% of companies in the UK have already moved agentic AI beyond the pilot stage. But new research from EXL (NASDAQ: EXLS), a global data and AI company, shows that just 12% are making significant company-wide progress integrating AI across core business functions and experiencing a notable return on investment (ROI) from their AI initiatives.

The third annual EXL UK Enterprise AI Study is based on a survey of 212 C-suite and other senior decision makers across the banking and finance, insurance, retail, and utilities industries. Its findings reveal a significant disconnect between how organisations assess their AI progress and where they currently stand on real-world AI integration.

“As the pressure mounts for companies in the UK to deliver measurable results from AI, leaders in this space are distinguishing themselves by reimagining their business from the ground up,” said Bhupender Singh, president and head of international growth markets at EXL. “In order to catch up to these leaders, companies that are lagging behind need more than just technology; they need to redesign their operating models, from workflows to talent management and underlying data infrastructure.”

The following are some of the report's key findings:

Most UK businesses are overestimating progress made on AI integration: While 75% of UK business leaders say they are ahead of their competitors on enterprise AI integration, our research shows only 12% qualify as AI Leaders. Those Leaders have moved beyond pilots and embedded AI into high-impact workflows, reimagining how work gets done to generate greater business value. UK firms struggle with data in AI implementation: Overall, 77% of respondents said data is their biggest challenge in using AI effectively, even though improving data quality and accessibility was recognized as the most important approach for scaling future AI implementations. The companies succeeding in AI were roughly five times more likely to say they had leading-edge data management programs than those lagging behind. Utility companies drive biggest returns on AI investments: Agentic AI has been deployed in areas from customer service and experience in banking, finance and insurance, merchandising management in retail, and network security in utilities. However, it is utility companies that generated the biggest improvements in cost reduction, revenue growth, and margin expansion. Utilities in the UK have seen an average improvement across these financial measures of 27% from AI and 28% from agentic AI. The smallest financial benefits have been seen by insurers, with average returns of 18% and 17%, respectively. This may be a matter of who’s willing to prioritise AI, as 61% of utilities organisations rated scaling AI as extremely important against only 33% of insurers. Leaders reshape their operating models to align with AI: UK firms defined as AI Leaders understand that this technology cannot scale as a bolt-on to traditional operating models. Last year’s study found that 52% of Leaders completely redesigned their enterprise-wide operating model to deploy and benefit from AI. This year, 35% of Leaders indicate having done so. To their credit, AI Laggards are beginning to get the message. After only 3% of Laggards in last year’s study reported having redesigned their operating model, this year the figure jumps to 38%. To dive deeper into the findings, download the 2026 EXL UK Enterprise AI Study. For more information and to explore how EXL can deliver value for your AI initiatives, contact us.

About EXL

EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world's leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL's control. Forward-looking statements include information concerning EXL's possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL's actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL's filings with the Securities and Exchange Commission, including EXL's Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.

Media Contact
Keith Little
[email protected]

Positions EXL to accelerate AI innovation in the enterprise with iMerit’s direct relationships with foundation model buildersDeepens EXL’s vertically specialized end-to-end AI capabilities with iMerit’s model training, evaluation and reinforcement learningExpands EXL’s total addressable market across high-growth AI tech sectors, and multiplies the impact of iMerit on a broader enterprise audience NEW YORK, June 24, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced a definitive agreement to acquire iMerit, a recognized leader in AI model training, evaluation and reinforcement learning. iMerit is focused on helping its clients train large language and multimodal models to improve accuracy, precision, and effectiveness. The acquisition, valued at up to $310 million in upfront and future consideration, is expected to close in the third quarter of 2026, subject to customary closing conditions. The move strengthens EXL’s ability to help enterprises achieve measurable outcomes from AI, builds partnerships with leading foundation model builders and expands EXL’s reach into high-growth AI tech sectors.

"As organizations reimagine their businesses with AI, success requires industry-specific data, rigorous evaluation and reinforcement learning to deliver reliable results in business-critical workflows,” said Rohit Kapoor, chairman and chief executive officer of EXL. “The acquisition of iMerit strengthens EXL’s AI strategy and ability to help clients move from experimentation to production. By combining iMerit’s capabilities with EXL’s domain expertise and AI platforms, we are setting the standard for AI that is trusted, accountable and built to perform in the enterprise.”

EXL will now be at the center of how next-gen AI is built, leveraging iMerit’s client relationships with leading foundation model companies. EXL and its clients will benefit from early insight into how models are trained, fine-tuned and improved. This also positions EXL to help enterprises build fit-for-purpose small language models tailored to their data and workflows.

iMerit enhances EXL’s platform and human intelligence capabilities through its Ango platform and Scholars network. Ango powers sophisticated data interactions with GenAI models, enabling chain-of-thought reasoning, red teaming and multimodal evaluations. Scholars expands EXL’s domain expertise through iMerit’s global network of specialists, including physicians, scientists, engineers, linguists and other subject matter experts who support human intelligence-driven feedback workflows for reinforcement learning.

EXL will integrate Ango with its agentic platforms — including EXLerate.ai, EXLdata.ai, and EXLdecision.ai — to combine expert human judgment, model evaluation and enterprise-scale execution. Together, these capabilities create an end-to-end AI platform that helps enterprises accelerate the transition from pilot to production-scale AI.

“We see EXL as an ideal leader in this defining moment for AI. We can build on our work with AI innovators and bring those insights to companies seeking to unlock their proprietary data,” said Radha Ramaswami Basu, chief executive officer and founder of iMerit. “Both companies share a belief that specialized high-quality data is the foundation of AI success. We are excited to multiply our impact through EXL’s industry expertise, complementary technology and trusted enterprise relationships.”

These offerings strengthen EXL’s vertically integrated AI stack and its ability to build and fine-tune domain-specific language models. This is particularly critical for regulated industries such as healthcare, insurance, banking and capital markets where EXL is already a highly trusted data and AI partner.

This acquisition also expands EXL into high-growth AI sectors, including high tech, mobility, autonomous systems and physical AI. iMerit’s expertise across text, image, video, voice and LiDAR data creates a strong foundation for AI solutions powering robotics, autonomous vehicles and intelligent real-world environments.

Transaction Details

The $310 million acquisition involves an upfront consideration of $170 million, with an additional $140 million in incentives and earnouts over two years contingent on meeting specified milestones. The transaction is expected to close in the third quarter of this year, subject to customary closing conditions, including expiration or termination of the waiting period for applicable antitrust regulations.

Conference Call

EXL will host a conference call today, June 24, 2026, at 12:00 P.M. ET to provide additional information. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About EXL

EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

About iMerit

iMerit is a leader in AI fine tuning, evaluation, and reinforcement learning. iMerit helps frontier AI labs and enterprises build more accurate, reliable, and domain-aware models. iMerit delivers high-quality data across industries such as high-tech, autonomous mobility, healthcare AI, and robotics. Scholars, its global network of specialists, includes physicians, scientists, engineers, linguists, and other subject matter experts who power high-quality data creation, reasoning evaluation, model alignment, and human feedback workflows for next-generation AI systems. Its proprietary Ango Hub platform allows customers and experts to collaborate on complex multimodal data to generate highly curated and validated training artifacts for high-stakes models. iMerit is backed by Khosla Ventures, Omidyar Network, Dell Foundation and British International Investment (BII). Learn more at imerit.ai.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include the satisfaction or waiver of applicable closing conditions to the consummation of the iMerit acquisition, our ability to successfully integrate strategic acquisitions or achieve anticipated synergies, our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business and other factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

Contacts:
Investor Relations
Andrew Thut
Head of Investor Relations and Capital Markets
[email protected]  

Media – US, UK
Keith Little
Head of Public Relations
[email protected]  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0d619380-0e67-481b-b9ac-3d39b6a4008e.

EXL to acquire iMerit, advancing its leadership as the strategic partner for AI in the enterprise a global data and AI company, today announced a definitive agreement to acquire iMerit, a recognized...

ExlService Holdings (EXLS - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 11.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for EXLSThe heavy selling of EXLS shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.17. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering EXLS in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.2% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, EXLS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Posted by Defense World Staff on Apr 22nd, 2026

Boston Trust Walden Corp cut its stake in ExlService Holdings, Inc. (NASDAQ:EXLS – Free Report) by 4.2% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 2,608,036 shares of the business services provider’s stock after selling 113,123 shares during the period. ExlService makes up about 0.8% of Boston Trust Walden Corp’s holdings, making the stock its 19th largest holding. Boston Trust Walden Corp owned approximately 1.64% of ExlService worth $110,685,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in EXLS. AQR Capital Management LLC grew its position in ExlService by 540.4% in the third quarter. AQR Capital Management LLC now owns 1,963,973 shares of the business services provider’s stock worth $86,474,000 after acquiring an additional 1,657,317 shares during the period. Amundi purchased a new position in ExlService in the third quarter worth approximately $67,862,000. Jane Street Group LLC grew its position in ExlService by 534.2% in the second quarter. Jane Street Group LLC now owns 1,354,599 shares of the business services provider’s stock worth $59,318,000 after acquiring an additional 1,141,008 shares during the period. Qube Research & Technologies Ltd grew its position in ExlService by 4,269.6% in the second quarter. Qube Research & Technologies Ltd now owns 882,480 shares of the business services provider’s stock worth $38,644,000 after acquiring an additional 862,284 shares during the period. Finally, Tudor Investment Corp ET AL grew its position in ExlService by 451.2% in the third quarter. Tudor Investment Corp ET AL now owns 975,894 shares of the business services provider’s stock worth $42,969,000 after acquiring an additional 798,831 shares during the period. 92.92% of the stock is currently owned by hedge funds and other institutional investors.

ExlService Stock Up 0.2% NASDAQ:EXLS opened at $31.87 on Wednesday. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 0.32. The stock’s fifty day moving average is $30.63 and its two-hundred day moving average is $36.98. ExlService Holdings, Inc. has a 52 week low of $26.94 and a 52 week high of $48.79. The stock has a market capitalization of $4.98 billion, a price-to-earnings ratio of 20.69, a price-to-earnings-growth ratio of 1.43 and a beta of 0.89.

ExlService declared that its board has approved a share repurchase program on Tuesday, March 17th that permits the company to buyback $125.00 million in outstanding shares. This buyback authorization permits the business services provider to purchase up to 2.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling In other ExlService news, EVP Ajay Ayyappan sold 8,114 shares of the company’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $42.53, for a total transaction of $345,088.42. Following the transaction, the executive vice president directly owned 53,515 shares in the company, valued at $2,275,992.95. This represents a 13.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 11,586 shares of company stock worth $449,725 in the last 90 days. 4.04% of the stock is owned by corporate insiders.

Analyst Ratings Changes EXLS has been the subject of several analyst reports. Robert W. Baird set a $35.00 price objective on ExlService in a research report on Wednesday, February 25th. Weiss Ratings reiterated a “hold (c+)” rating on shares of ExlService in a research report on Thursday, January 22nd. Needham & Company LLC reiterated a “buy” rating and issued a $40.00 price objective (down from $55.00) on shares of ExlService in a research report on Wednesday, February 25th. Wall Street Zen upgraded ExlService from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Finally, Stifel Nicolaus lowered their price objective on ExlService from $54.00 to $46.00 and set a “buy” rating for the company in a research report on Thursday, February 26th. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, ExlService currently has an average rating of “Moderate Buy” and a consensus price target of $43.60.

Get Our Latest Analysis on ExlService

About ExlService (Free Report)

ExlService Holdings, Inc (NASDAQ: EXLS) is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk.

Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge.

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Posted by Defense World Staff on Apr 25th, 2026

Cwm LLC lowered its stake in shares of ExlService Holdings, Inc. (NASDAQ:EXLS – Free Report) by 34.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 48,245 shares of the business services provider’s stock after selling 25,919 shares during the period. Cwm LLC’s holdings in ExlService were worth $2,048,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of EXLS. Mather Group LLC. purchased a new position in shares of ExlService during the 3rd quarter valued at $25,000. CENTRAL TRUST Co increased its holdings in ExlService by 2,428.0% in the 3rd quarter. CENTRAL TRUST Co now owns 632 shares of the business services provider’s stock worth $28,000 after acquiring an additional 607 shares during the last quarter. True Wealth Design LLC increased its holdings in ExlService by 57.2% in the 4th quarter. True Wealth Design LLC now owns 706 shares of the business services provider’s stock worth $30,000 after acquiring an additional 257 shares during the last quarter. First Horizon Corp bought a new stake in ExlService in the 3rd quarter valued at about $32,000. Finally, V Square Quantitative Management LLC purchased a new stake in ExlService during the fourth quarter valued at about $33,000. Institutional investors own 92.92% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have weighed in on EXLS. Robert W. Baird set a $35.00 target price on shares of ExlService in a research report on Wednesday, February 25th. TD Cowen dropped their price target on shares of ExlService from $51.00 to $45.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. Wall Street Zen raised shares of ExlService from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Weiss Ratings reiterated a “hold (c+)” rating on shares of ExlService in a research note on Thursday, January 22nd. Finally, Stifel Nicolaus lowered their target price on shares of ExlService from $54.00 to $46.00 and set a “buy” rating on the stock in a report on Thursday, February 26th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, ExlService currently has a consensus rating of “Moderate Buy” and an average price target of $43.60.

Get Our Latest Stock Analysis on ExlService

Insiders Place Their Bets In other ExlService news, EVP Ajay Ayyappan sold 1,197 shares of the firm’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $29.79, for a total value of $35,658.63. Following the completion of the transaction, the executive vice president directly owned 53,901 shares of the company’s stock, valued at $1,605,710.79. This trade represents a 2.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders have sold 11,586 shares of company stock worth $449,725. Corporate insiders own 4.04% of the company’s stock.

ExlService Stock Down 0.5% EXLS stock opened at $30.40 on Friday. The stock has a 50-day simple moving average of $30.68 and a two-hundred day simple moving average of $36.81. ExlService Holdings, Inc. has a twelve month low of $26.94 and a twelve month high of $48.79. The firm has a market capitalization of $4.75 billion, a PE ratio of 19.74, a PEG ratio of 1.38 and a beta of 0.89. The company has a quick ratio of 2.56, a current ratio of 2.56 and a debt-to-equity ratio of 0.32.

ExlService announced that its board has initiated a stock buyback plan on Tuesday, March 17th that allows the company to buyback $125.00 million in shares. This buyback authorization allows the business services provider to buy up to 2.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

ExlService Company Profile (Free Report)

ExlService Holdings, Inc (NASDAQ: EXLS) is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk.

Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge.

Further Reading Five stocks we like better than ExlService

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April 28, 2026 16:01 ET  | Source: EXL

2026 First Quarter Revenue of $570.4 Million, up 13.8% year-over-year
Q1 Diluted EPS (GAAP) of $0.43, up 5.7% from $0.40 in Q1 of 2025
Q1 Adjusted Diluted EPS (Non-GAAP) (1) of $0.58, up 20.2% from $0.48 in Q1 of 2025

NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended March 31, 2026.

Chairman and Chief Executive Officer Rohit Kapoor said, “We entered 2026 with strong momentum, delivering revenue growth of 14% and increased our adjusted diluted EPS by 20% year-over-year. Our sustained double-digit growth demonstrates the strength of our competitive position as well as strong execution against our data and AI strategy. EXL’s recognized industry expertise and leadership in helping clients adopt AI throughout their enterprise is resonating strongly with the market.”

Chief Financial Officer Maurizio Nicolelli said, “While we remain prudent given the evolving macro-economic environment, our strong first quarter performance and continued business momentum give us the confidence to raise guidance. We now expect full-year 2026 revenue in the range of $2.30 billion to $2.33 billion, up from our prior guidance of $2.275 billion to $2.315 billion, reflecting 10% to 12% year-over-year growth on both a reported and constant currency basis. We now expect adjusted diluted earnings per share of $2.18 to $2.23, a 12% to 14% increase over 2025, up from our prior guidance of $2.14 to $2.19.”

______________________________________________________________

Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP. Financial Highlights: First Quarter 2026

Revenue for the quarter ended March 31, 2026, increased to $570.4 million, compared to $501.0 million for the first quarter of 2025, an increase of 13.8% on a reported basis and 13.4% on a constant currency basis. Revenue increased by 5.1% sequentially, both on a reported basis and on a constant currency basis, from the fourth quarter of 2025.   Revenue
 Gross Margin  Three months ended
 Three months endedReportable Segments March 31, 2026
 March 31, 2025
 December 31, 2025
 March 31, 2026 March 31, 2025 December 31, 2025  (dollars in millions)       Insurance $        194.0  $        172.0  $        185.8          37.7 %         36.6 %         36.5 %Healthcare and Life Sciences          151.9           125.6   142.2          45.3 %         43.9 %         44.0 %Banking, Capital Markets and Diversified Industries          127.4           117.7   122.6          36.9 %         37.3 %         38.8 %International Growth Markets          97.1           85.7   92.0          34.1 %         36.6 %         34.3 %Total $        570.4  $        501.0  $        542.6          38.9 %         38.6 %         38.6 %                                                   Operating income margin for the quarter ended March 31, 2026 was 16.1%, compared to 15.7% for the first quarter of 2025 and 14.4% for the fourth quarter of 2025. Adjusted operating income margin for the quarter ended March 31, 2026 was 20.5%, compared to 20.1% for the first quarter of 2025 and 18.8% for the fourth quarter of 2025.Diluted earnings per share for the quarter ended March 31, 2026 was $0.43, compared to $0.40 for the first quarter of 2025 and $0.38 for the fourth quarter of 2025. Adjusted diluted earnings per share for the quarter ended March 31, 2026 was $0.58, compared to $0.48 for the first quarter of 2025 and $0.50 for the fourth quarter of 2025. Business Highlights: First Quarter 2026

Won 16 new clients in the first quarter of 2026.Named as "Advanced Technology Partner" of the Year by NVIDIA for EXL’s deep technical expertise on the NVIDIA AI Enterprise stack and co-creating differentiated industry solutions and platforms, integrating NVIDIA’s powerful AI frameworks and GPU-accelerated technologies.Selected by AWS as the 2025 AI/ML Market Disruptor of the Year, recognizing EXL’s exceptional innovation and leadership in leveraging AWS AI/ML services and setting new benchmarks for AI excellence in the industry.Named the 2025 Genesys New Partner of the Year, celebrating EXL’s ability to orchestrate AI-powered customer experience (CX) transformation through strategic collaboration with Genesys, advancing transformative solutions with real-world impact.Recognized by Google Cloud as a global strategic services partner, highlighting EXL’s strengths across data, AI, and customer experience (CX) transformation, and its development of Google's Gemini Enterprise powered solutions and accelerators that enable scalable, AI-driven business transformation.Named a leader in Everest Group Customer Experience Services in Insurance Operations Peak Matrix Assessment 2025, showcasing EXL’s deep domain expertise across both the P&C and L&A lines, robust data and AI capabilities and versatile suite of proprietary tools. 2026 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 93.0, U.K. pound sterling to U.S. dollar exchange rate of 1.33, U.S. dollar to the Philippine peso exchange rate of 59.5 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2026:

Revenue of $2.30 billion to $2.33 billion, representing an increase of 10% to 12% on both a reported and constant currency basis from 2025.Adjusted diluted earnings per share of $2.18 to $2.23, representing an increase of 12% to 14% from 2025. Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, April 29, 2026 at 10:00 A.M. ET to discuss the Company’s first quarter operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.
EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business and other factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

 EXLSERVICE HOLDINGS, INC.
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)
   Three months ended March 31,  2026   2025 Revenues, net$        570,351  $        501,019 Cost of revenues(1)         348,270           307,705 Gross profit(1)         222,081           193,314 Operating expenses:    General and administrative expenses         69,051           59,417 Selling and marketing expenses         47,201           41,925 Depreciation and amortization expense         14,003           13,557 Total operating expenses         130,255           114,899 Income from operations         91,826             78,415 Foreign exchange gain, net         1,135           1,192 Interest expense         (3,951)          (4,144)Other income, net         2,391           4,703 Income before income tax expense and earnings from equity affiliates         91,401           80,166 Income tax expense         24,318           13,496 Income before earnings from equity affiliates         67,083           66,670 Loss from equity-method investment         (2)          (109)Net income$        67,081  $        66,561 Earnings per share:    Basic$        0.43  $        0.41 Diluted$        0.43  $        0.40 Weighted average number of shares used in computing earnings per share:   Basic         156,049,147           162,490,179 Diluted         156,904,203           164,557,333   (1) Exclusive of depreciation and amortization expense.   EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)
  As of March 31, 2026 December 31, 2025    Assets   Current assets:   Cash and cash equivalents$        145,405  $        146,326 Short-term investments         108,358           182,041 Restricted cash         12,409           12,392 Accounts receivable, net         388,563           343,105 Other current assets         142,626           146,093 Total current assets         797,361           829,957 Property and equipment, net         109,388           111,821 Operating lease right-of-use assets         92,980           97,411 Restricted cash         6,964           7,251 Deferred tax assets, net         140,602           129,968 Goodwill         418,659           419,654 Other intangible assets, net         32,978           36,204 Long-term investments         17,532           8,198 Other assets         59,915           61,771 Total assets$        1,676,379  $        1,702,235 Liabilities and stockholders’ equity   Current liabilities:   Accounts payable$        11,260  $        4,753 Current portion of long-term borrowings         4,886           4,886 Deferred revenue         22,905           15,356 Accrued employee costs         71,604           146,775 Accrued expenses and other current liabilities         171,934           135,498 Current portion of operating lease liabilities         16,925           16,857 Total current liabilities         299,514           324,125 Long-term borrowings, less current portion         412,491           293,712 Operating lease liabilities, less current portion         84,277           88,167 Deferred tax liabilities, net         1,707           2,125 Other non-current liabilities         99,586           81,401 Total liabilities         897,575           789,530 Commitments and contingencies   Stockholders’ equity:   Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued         —           — Common stock, $0.001 par value; 400,000,000 shares authorized, 209,929,764 shares issued and 152,999,425 shares outstanding as of March 31, 2026 and 208,855,566 shares issued and 156,430,028 shares outstanding as of December 31, 2025         210           209 Additional paid-in capital         674,662           677,562 Retained earnings         1,600,060           1,532,979 Accumulated other comprehensive loss         (237,374)          (180,727)Total including shares held in treasury         2,037,558           2,030,023 Less: 56,930,339 shares as of March 31, 2026 and 52,425,538 shares as of December 31, 2025, held in treasury, at cost         (1,258,754)          (1,117,318)Total stockholders’ equity         778,804           912,705 Total liabilities and stockholders’ equity $        1,676,379  $        1,702,235   EXLSERVICE HOLDINGS, INC. Reconciliation of Adjusted Financial Measures to GAAP Measures
In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

 (i)Adjusted operating income and adjusted operating income margin; (ii)Adjusted EBITDA and adjusted EBITDA margin; (iii)Adjusted net income and adjusted diluted earnings per share; and (iv)Revenue growth on a constant currency basis.    These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, certain defined social security contributions, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

EXL provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's underlying business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period. Foreign currency translation impacted revenue growth, primarily driven by movements in the U.S. dollar against the Indian rupee (INR), the U.K. pound sterling (GBP), and Australian dollar (AUD).

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended March 31, 2026 and March 31, 2025, and the three months ended December 31, 2025:

Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)
  Three months ended March 31, December 31, 2026
 2025
 2025
Net income (GAAP)$        67,081  $        66,561  $        60,246 add: Income tax expense         24,318           13,496           15,230 add/(subtract): Foreign exchange gain/(loss), net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net         427           (1,642)          2,547 Income from operations (GAAP)$        91,826  $        78,415  $        78,023 add: Stock-based compensation expense         22,101           19,187           20,751 add: Amortization of acquisition-related intangibles         3,226           3,246           3,307 Adjusted operating income (Non-GAAP)$        117,153  $        100,848  $        102,081 Adjusted operating income margin as a % of Revenue (Non-GAAP)         20.5%          20.1%          18.8%add: Depreciation on long-lived assets         10,777           10,311           13,037 Adjusted EBITDA (Non-GAAP)$        127,930  $        111,159  $        115,118 Adjusted EBITDA margin as a % of revenue (Non-GAAP)         22.4%          22.2%          21.2%  Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share amount)  Three months ended March 31, December 31,  2026   2025   2025 Net income (GAAP)$        67,081  $        66,561  $        60,246 add: Stock-based compensation expense         22,101           19,187           20,751 add: Amortization of acquisition-related intangibles         3,226           3,246           3,307 add: Changes in fair value of contingent consideration         —           —           2,300 add/(subtract): Other tax expenses/(benefits) (a)         —           —           267 add: Amortization of prior service cost (b)         521           —           — subtract: Tax impact on stock-based compensation expense (c)         (1,316)          (9,105)          (5,895)subtract: Tax impact on amortization of acquisition-related intangibles         (812)          (799)          (892)subtract: Tax impact on amortization of prior service cost         (133)          —           — Adjusted net income (Non-GAAP)$        90,668  $        79,090  $        80,084 Adjusted diluted earnings per share (Non-GAAP)$        0.58  $        0.48  $        0.50 
(a) To exclude tax expenses related to certain deferred tax assets and liabilities.

(b) To exclude amortization of prior service cost arising from the implementation of the new Labor Codes in India.

(c) Tax impact includes $1,280 and $14,526 for the three months ended March 31, 2026 and 2025, respectively, and $1,138 for the three months ended December 31, 2025, related to discrete benefit recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.

Contacts:
Investor Relations
Andrew Thut
Head of Investor Relations and Capital Markets
[email protected]

Media - US
Keith Little
Head of Public Relations
[email protected]

Key Takeaways Innodata posted 48% 2025 revenue growth and sees 35% growth in 2026, despite project volatility.EXLS Q1 2026 revenue rose 13.8% to $570.4M; nearly 60% now tied to data and AI-led services.Innodata trades at 33.6x forward P/E vs 13.5x for EXLS, underscoring growth vs stability. The data and artificial intelligence services space is evolving rapidly as enterprises scale generative AI, automation and analytics across operations. Within this landscape, Innodata Inc. (INOD - Free Report) and ExlService Holdings, Inc. (EXLS - Free Report) represent two distinct but increasingly comparable plays on the same theme—data-driven AI enablement.

Innodata is emerging as a specialized, high-growth data engineering partner focused on training, evaluating and optimizing AI models, particularly in generative AI and agentic systems. ExlService, by contrast, operates at a much larger scale, blending data, AI and digital operations to deliver enterprise-wide transformation across industries like insurance, healthcare and banking.

Both companies are benefiting from rising enterprise AI adoption, stronger demand for data-centric services and increasing complexity in model deployment. However, they differ meaningfully in scale, growth trajectory, innovation intensity and valuation. Let’s take a closer look at the fundamentals of both stocks to assess which offers the more compelling investment opportunity at this point.

The Case for Innodata StockInnodata has built a compelling growth story by positioning itself at the core of the generative AI value chain. The company’s strength lies in its ability to engineer high-quality datasets, evaluate model performance and improve AI systems across their lifecycle. This positioning is increasingly critical as enterprises shift from experimentation to production-scale AI deployment.

The company’s latest results highlight strong momentum. Revenue rose 22% year over year in the fourth quarter of 2025 to $72.4 million, while 2025 revenues surged 48% to $251.7 million, reflecting accelerating demand for its services. Profitability is also improving, with adjusted EBITDA rising 68% for the year, indicating operating leverage despite continued investment.

What stands out is Innodata’s deep alignment with next-generation AI trends. Management is investing heavily in areas such as generative AI model training, agentic AI evaluation systems and physical AI (robotics). The company is also moving up the value chain—from being a data supplier to becoming a lifecycle partner for AI systems. This transition is strategically significant and could drive higher margins and stickier client relationships over time.

Growth visibility remains strong. Management expects revenue growth of approximately 35% or more in 2026, with potential upside as new programs scale. Importantly, demand is broadening beyond its largest customer, with opportunities across hyperscalers, enterprise AI labs and sovereign AI initiatives.

However, the story is not without risks. Innodata’s business remains project-based, with revenue timing tied to customer ramp schedules and AI development cycles. The company also faces customer concentration risk and inherent volatility in emerging AI workloads. Additionally, continued investments in talent and infrastructure could pressure margins in the near term.

Still, Innodata’s high-growth profile, strong positioning in generative AI and expanding innovation pipeline make it one of the more dynamic players in the AI data ecosystem.

The Case for ExlService StockExlService offers a more diversified and scaled approach to AI-driven services. The company combines data, analytics and digital operations to deliver end-to-end transformation across multiple industries, giving it a broader and more stable revenue base.

The company’s first-quarter 2026 performance underscores this consistency. Revenues increased 13.8% year over year to $570.4 million, while adjusted earnings per share (EPS) grew 20.2% to 58 cents. Growth is supported by strong demand across insurance, healthcare and banking segments, along with increasing adoption of AI-led solutions.

One of ExlService’s key strengths is its diversified revenue mix. No single client or use case dominates, reducing volatility compared with smaller, specialized peers. Its scale—over $2.3 billion in expected 2026 revenues—also provides operational stability and pricing power.

The company is steadily integrating AI into its service offerings, with nearly 60% of revenue now tied to data and AI-led services, which are growing faster than the rest of the business. Strategic partnerships with major platforms like NVIDIA, AWS and Google Cloud further strengthen its competitive position and enhance its ability to deliver enterprise-grade AI solutions.

Margins are another positive. ExlService continues to expand operating margins, supported by automation, productivity gains and a higher mix of analytics-led services. The company also raised its 2026 guidance, reflecting confidence in demand trends.

That said, growth remains more moderate compared with high-growth AI specialists like Innodata. Revenue growth is expected in the 10–12% range for 2026, significantly below Innodata’s projected trajectory. The company also operates in a competitive outsourcing and digital services market, where pricing pressure and macro uncertainty can affect demand.

Additionally, while ExlService is investing in AI, its positioning is more incremental rather than transformational. It is embedding AI into existing services rather than leading cutting-edge innovation in areas like model training or agentic AI.

Momentum Check: Stock Performance TrendsBoth stocks have underperformed broader markets in 2026, reflecting investor caution toward AI services names after strong prior gains. Innodata shares have plunged 17.8% year to date, while ExlService has plummeted more sharply by 27.8%. This compares with a 4.5% gain for the S&P 500.

However, recent momentum tells a different story. Over the past month, Innodata stock has rebounded strongly, gaining 21.6%, while ExlService has remained largely flat with a 0.3% increase.

This divergence suggests improving sentiment toward Innodata’s growth story, while ExlService continues to trade more defensively.

INOD vs EXLS Price Performance (1-Month)

Image Source: Zacks Investment Research

Valuation Perspective: Growth vs. Stability Trade-offValuation highlights a clear contrast between the two names.

Innodata trades at a forward 12-month P/E of 33.6X, reflecting its high-growth profile and strong exposure to generative AI trends. ExlService, in comparison, trades at a much lower 13.5X forward earnings multiple, indicating a more mature growth outlook and lower perceived risk.

The premium valuation for Innodata appears justified by its faster growth and strategic positioning in emerging AI segments. However, it also leaves less room for execution missteps. ExlService’s lower valuation offers a margin of safety but may limit upside unless growth accelerates.

INOD vs EXLS Valuation – P/E F12M

Image Source: Zacks Investment Research

Earnings Outlook: Estimate Revision TrendsEarnings estimate trends for both companies have remained stable in the near term.

For Innodata, the Zacks Consensus Estimate for 2026 EPS has remained unchanged at $1.01 over the past 30 days, implying 9.8% growth. Revenue is expected to grow 36%, reinforcing its high-growth narrative.

INOD Estimate

Image Source: Zacks Investment Research

ExlService’s 2026 EPS estimate is also unchanged at $2.18, reflecting 11.8% expected growth. Revenue is projected to increase 10.3%, consistent with management’s guidance.

EXLS Estimate

Image Source: Zacks Investment Research

The lack of upward revisions for both stocks suggests a wait-and-watch approach among analysts, particularly given macro uncertainties and evolving AI spending patterns.

Final Take: Which Stock Has the Edge?Both Innodata and ExlService offer exposure to the expanding AI data services market, but they cater to different investor profiles.

Innodata stands out as a high-growth, innovation-led player with strong positioning in generative AI, agentic systems and data engineering. Its accelerating revenue growth, expanding customer base and evolving role as a strategic AI partner provide meaningful upside potential. However, this comes with higher volatility and execution risk.

ExlService, on the other hand, offers stability, diversification and consistent execution. Its large-scale operations, strong client base and steady AI integration make it a more defensive play. But EXLS — a Zacks Rank #4 (Sell) stock — with its slower growth profile and less differentiated AI positioning may limit long-term upside.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Innodata — carrying a Zacks Rank #3 (Hold) — with its superior growth outlook, stronger exposure to high-value AI segments and improving momentum, gives it a clearer path to outperform, despite its higher valuation. For investors willing to accept higher risk in exchange for stronger growth potential, Innodata appears to be the more compelling AI data stock at current levels.

May 07, 2026 08:32 ET  | Source: EXL

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) -- EXL [NASDAQ: EXLS], a global data and AI company, announced it has been honored with the 2026 CSO Award for Application Security for EXL SARA™, its AI-powered Security Architecture Review Automation (SARA) that has transformed the way security architecture and risk reviews are conducted.

SARA leverages advanced AI technologies to augment and streamline security architecture reviews across cloud and enterprise environments. By embedding security and privacy controls at the design phase, SARA applies an early-stage approach to optimize the software development lifecycle. This enables proactive, self-service risk capabilities to identify and address risk earlier in the development process, enabling faster and secure solutions with stronger enterprise risk posture.

“This recognition reflects EXL’s continued commitment to driving innovation with responsible and secure AI adoption,” said Baljinder Singh, executive vice president and global chief information officer at EXL. “SARA demonstrates the impact of combining advanced AI technologies with a security-by-design approach. By leveraging AI-driven architecture reviews, we are accelerating trusted solution delivery while strengthening governance and cybersecurity excellence.”

“This year’s award winners show how security teams have repositioned themselves as strategic business enablers,” said Beth Kormanik, content director of the CSO Cybersecurity Awards & Conference. “They tackle business challenges by leveraging new technology and ideas and delivering detailed planning and strong execution. Their organizations are stronger for these efforts that protect revenue continuity, improve resilience, and strengthen compliance. We congratulate them and look forward to celebrating them at the CSO Cybersecurity Awards & Conference.”

The CSO Awards recognizes organizations that demonstrate exceptional innovation and measurable impact in cybersecurity. EXL’s recognition highlights its leadership in applying AI-driven solutions to address critical security challenges, reduce operational risk and enable sustainable growth in today’s rapidly evolving data and AI landscape.

About EXL  

EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world's leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

About CSO

CSO serves enterprise security decision-makers and users with the critical information they need to stay ahead of evolving threats and defend against criminal cyberattacks. With incisive content that addresses all security disciplines, from risk management to network defense to fraud and data loss prevention, CSO offers unparalleled depth and insight to support key decisions and investments for IT security professionals. www.csoonline.com

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About the CSO Awards and CSO Hall of Fame Award Inductees

The CSO Awards recognize organizations for security projects and initiatives demonstrating outstanding business value and thought leadership. The CSO Hall of Fame honors leaders who have significantly contributed to advancing information risk management and security. Inductees exemplify the qualities of leadership and excellence and, by their example, contribute to improving security across all organizations. Award winners are honored at the CSO Cybersecurity Awards & Conference.

About Foundry

Foundry helps companies bring their visions to reality through a combination of media, marketing technologies, and proprietary data on a global scale. Our platforms are powered by data from an owned and operated ecosystem of global editorial brands, awards, and events, all engineered and integrated to drive marketing campaigns for technology companies.

Foundry is one of the world's leading tech media, data, and marketing services companies, and is the proud owner of the global tech sector's most revered media brands including CIO, CSO, Network World, InfoWorld, PC World and Macworld.

To learn more about Foundry, visit foundryco.com.

Cautionary Statement Regarding Forward-Looking Statements  

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. 

Media Contact   
Keith Little
[email protected]

INOD shares have nearly doubled since Q1 results, as revenues jump 54% and guidance is raised. Meanwhile, a lofty 73.4x forward P/E has investors weighing profit-taking.

ExlService NASDAQ: EXLS executives used the company’s 2026 Investor Day to outline a strategy centered on enterprise adoption of artificial intelligence, arguing that the company’s mix of data management, domain expertise and operations experience positions it for continued double-digit growth.

Chairman and CEO Rohit Kapoor said EXL aims to be a “strategic trusted partner” for enterprise clients as they adopt and implement AI. He said the company’s shareholder objective is to deliver “sustained market-leading growth of revenue and profit.”

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Kapoor said AI is creating both excitement and uncertainty, but cautioned that enterprise clients will not generate significant business value from AI through plug-and-play deployments alone. He said clients need organized data, business context, model fine-tuning, monitoring, governance and risk mitigation.

“Unless and until you apply the knowledge and mastery on data and you bring together the data and make it ready for AI,” Kapoor said, companies cannot get to desired outcomes. He added that AI will eliminate some roles but will also augment human work and expand the total addressable market by moving human involvement toward more complex and judgment-based tasks.

Executives Emphasize Data, Context and AI Vikas Bhalla, president and head of the AI Services and Operations Strategic Growth Unit, said enterprise AI adoption has moved from experimentation toward production-grade use in core business operations. He said clients are focused on whether AI can create measurable customer and business impact, scale in select workflows and provide trust through audit trails and evidence for decisions.

Bhalla said EXL’s approach is built around three elements: data, context and AI. He said data must be accessible, able to handle structured and unstructured sources, and supported by lineage, knowledge graphs, governance and quality controls. He also said context includes both industry domain knowledge and client-specific workflows, systems, policies and customer preferences.

Bhalla said EXL has created agentic platforms to accelerate deployment, including EXLdata.ai, EXLdecision.ai and EXLerate.ai. He said the company’s operations and data-and-AI businesses are increasingly reinforcing each other, using the example of claims work where operational knowledge informs AI models and analytics insights improve operating workflows.

Client Examples Highlight AI Use Cases Vivek Jetley, president and head of analytics, insurance, healthcare and life sciences, said EXL has 115 clients in the Fortune 2000, more than 400 clients using its data and AI work, average client tenure of more than 10 years and a 94% AI deployment success rate.

Jetley said EXL is seeing client demand in four areas:

Preparing data for AI; Providing AI services to redesign workflows; Running operations in an AI-led model; Delivering integrated solutions using EXL proprietary technology and outcome-based pricing. He cited a top 20 global insurer where EXL helped build data pipelines for underwriting and claims work, which expanded a 10-year operational relationship into work with the client’s chief information and data teams. He also described a mid-sized client where EXL shifted a potential small outsourcing opportunity into a multi-year AI-first business transformation program.

Jetley said EXL’s Smart Agent Assist product helped a large U.K. retailer increase agent productivity, leading the client to adopt EXL’s AI more broadly. He said EXL’s revenue from that client rose 20% despite some reduction in manual work because the company gained a larger scope.

In collections, Jetley said EXL built an end-to-end digital platform that uses analytics to determine outreach and treatment strategies. He said the platform has produced a 20% reduction in charge-offs for a client and is now used with more than 20 clients. In Payment Integrity, he said EXL identified $3.2 billion of claims for clients last year and runs a prepay and post-pay program for one large client that is delivering more than $600 million in annual savings.

Financial Model and Guidance Chief Financial Officer Maurizio Nicolelli said EXL has outgrown peers over the last nine quarters, including nearly 14% revenue growth in the first quarter of 2026 compared with peers at about 6%. He said the company’s goal remains to grow adjusted earnings per share faster than revenue.

Nicolelli said EXL’s gross margin expanded 350 basis points from 2020 to 2025, adjusted operating margin expanded 360 basis points and return on invested capital increased by more than 1,100 basis points. He said the company’s data-and-AI-led business grew 21% over that five-year period, excluding AI-embedded operations, while total operations grew 14%.

According to Nicolelli, data-and-AI-led revenue represented 55% of total revenue in 2025, up from 38% in 2020, and increased to 60% in the first quarter of 2026. He said more than three-quarters of revenue is recurring, defined as contracted for one year or more, and that net revenue retention was greater than 1.1 in 2025 and the first quarter of 2026.

EXL reiterated that it raised 2026 revenue growth guidance after the first quarter to 10% to 12%, up from an initial 9% to 11%. The company also raised adjusted EPS growth guidance to 12% to 14%, from 10% to 12%. Nicolelli said EXL expects double-digit year-over-year revenue growth through its medium-term target period, which he defined as 2026 and 2027.

Capital Allocation and AI Investment Nicolelli said EXL generated nearly $300 million of free cash flow in 2025, up 34% from the prior year, and ended the first quarter with leverage below 1x. He said the company expects a more balanced capital allocation approach between M&A and stock repurchases, after leaning more toward buybacks in recent years.

Kapoor said EXL has increased investments by almost four times and will continue to pursue strategic acquisitions to build capability. He also announced that Bhupender Singh joined the company as president and head of international growth markets, saying international expansion is a key priority.

During the question-and-answer session, executives said more than 30% of EXL’s revenue is outcome-based. They also said AI-related changes have shortened internal planning cycles from three years reviewed annually to quarterly reviews, reflecting the rapid pace of technology change.

About ExlService NASDAQ: EXLSExlService Holdings, Inc NASDAQ: EXLS is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk.

Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ExlService Holdings is transitioning from legacy outsourcing to a data and AI-led enterprise, now generating 60% of revenue from AI solutions. EXLS delivered 13.8% YoY revenue growth and 20.2% adjusted EPS growth in Q1 2026, with expanding margins and robust recurring revenue. I see at least 22-44% upside, with fair value in the $37–$44 range near term and more as the market recognizes its AI-driven business mix.

, /PRNewswire/ -- Paying healthcare providers is far from straightforward. Frequent policy changes, complex contracts, and diverse payment methods make reimbursement a moving target. Traditional rules-based systems can't keep pace with today's data volume or easily adapt to evolving requirements, leaving many organizations stuck with manual fixes, delays, rising administrative costs, and shrinking margins as denials continue to increase across the industry.

To address these challenges, EXL is collaborating with Lifemed to disrupt and advance modern revenue cycle management (RCM) through AI-powered automation. Instead of relying on generic industry datasets, their AI capabilities use deep learning to analyze a provider's unique historical data. This adaptive solution processes medical, contractual, and financial data in real time, transforming RCM from a reactive process into a proactive one by identifying errors, automating compliance checks, optimizing billing codes, and autonomously managing denials and appeals with minimal human intervention prior to submitting the claim to the payer. As a result, healthcare provider organizations can accelerate reimbursements, increase revenue, and free up staff to focus on complex, high-risk cases.

"At EXL, we're thrilled to collaborate with Lifemed to deliver a truly differentiated solution that redefines how providers handle their revenue cycle," said Trevor Jares, vice president of Integrated Revenue Management Solutions at EXL. "By integrating intelligence, automation, and real-time insights, we're driving a more efficient, next-generation approach to claims management – from submission through adjudication – we will be able to arm providers with a technology that will deliver a significant positive impact on their margins."

"Our collaboration with EXL represents a major leap in revenue cycle innovation," said Darian Rodriguez, executive vice president of Revenue Cycle Automation at Lifemed. "Together, we can accelerate the adoption of smarter, more efficient RCM workflows that shift operations from reactive error correction to proactive prevention aided by our Deepclaim neural network AI real-time pre-adjudication capabilities, helping providers recover more revenue, operate at maximum efficiency, and focus on delivering better care outcomes."

This solution boosts financial performance, decreases denials, and optimizes the revenue cycle, delivering 10–25% higher net revenue, cutting accounts receivables (AR) days by 30% or more and reducing related staffing workload by over 80%.

Contact us to discover how you can empower your data to achieve faster, more accurate payments with a risk-free assessment and 90-day pilot – now available and conducted live in your environment at no cost.

About Lifemed

Lifemed is a healthcare technology company redefining revenue cycle management through AI-powered automation. Its flagship platform, Deepclaim, leverages a proprietary deep learning neural network to analyze a provider's unique historical data in real time — automating compliance checks, optimizing billing codes, and autonomously managing denials and appeals before claims ever reach the payer. Unlike traditional rules-based systems, Deepclaim adapts continuously to evolving payer policies and contract complexity, transforming revenue cycle operations from reactive error correction to proactive prevention. Lifemed's solutions have delivered measurable outcomes for health systems nationwide, including significant improvements in net patient service revenue, reductions in AR days, and decreased administrative overhead. Learn more at lifemed.ai.

About EXL

EXL (NASDAQ: EXLS) is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world's leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 67,000 employees spanning six continents. For more information, visit www.exlservice.com.

SOURCE Life Med, Inc.