ExlService Holdings Inc.: 2Q26 First Look: Another Broad-Based Beat & Raise; Data & AI Continues to Accelerate

Research evidence excerpt

ExlService Holdings Inc.: 2Q26 First Look: Another Broad-Based Beat & Raise; Data & AI Continues to Accelerate

J P M O R G A N North America Equity Research

29 July 2026

ExlService Holdings Inc. Overweight

EXLS, EXLS US

2Q26 First Look: Another Broad-Based Beat & Raise; Price (28 Jul 26):$30.53

Data & AI Continues to Accelerate

Payments, Processors & IT Services

EXLS delivered another broad-based beat and raise, posting its biggest revenue Puneet Jain AC

beat since 1Q22 when industry-wide demand was the strongest. Revenue came in (1-212) 622-1436

~3ppts ahead of expectations, margins ~60-100 bps ahead, and adjusted EPS puneet.x.jain@jpmorgan.com

topping the Street by 4 cents. We view the FY26 revenue growth guidance raise to Tien-tsin Huang, CFA

13-14% FXN organic (from 10-12%) as constructive, marking an acceleration (1-212) 622-6632

from each of the prior two years, and our early read points to further upside: tien-tsin.huang@jpmorgan.com

guidance implies just 0.5-1.5% average organic sequential growth in 2H versus the Brendan Biles

3%+ rate in 2H 2024/2025. EXLS continues to benefit from traction in its Data/AI- (1-212) 270-0880

brendan.biles@jpmorgan.com

led services (standalone services up 20%+, Digital Ops embedded up 64%), and

Abbey Hochreiner

we're encouraged by sustained 10% growth in overall Digital Ops, which reflects (1-212) 270-5798

the combined impact of both AI cannibalization and higher volumes, signaling the abbey.hochreiner@jpmchase.com

AI mix shift is a net positive for the company. Expected stock reaction: Positive. J.P. Morgan Securities LLC

• Results summary. Revenue of $595M came in approx. 3ppts ahead of JPMe/

Street $576M, representing 15.9% y/y FXN organic growth and 4.4%

sequential FXN organic growth, ahead of our expectations for 12.5% and