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what it is
ExlService helps big companies run claims, billing, analytics, and other messy workflows with data, AI, and outsourced staff.
how it gets paid
Last year Exlservice Hold made $2.1B in revenue. Insurance was the main engine at $0.53B, or 25% of sales.
why it's growing
Revenue grew 13.6% last year. What's more, a client-retention rate that exceeded 90%, and the successful transition of digital operations into data and ai-led services helped to boost exlservice's performance.
what just happened
Revenue hit $1.5B and EPS reached $1.17, both far above last year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
26.5x trailing p/e — priced about right
24.0% return on capital — every dollar works hard here
xvary composite: 62/100 — average
What they do
ExlService helps big companies run claims, billing, analytics, and other messy workflows with data, AI, and outsourced staff.
EXLS wins by getting inside the work your customer cannot afford to break. Client retention topped 90%, which means once EXLS is running claims, billing, or healthcare workflows, ripping it out is painful. Digital operations (running daily business tasks for clients) becomes recurring revenue, so what: you get stickier sales than a normal project shop.
How they make money
$2.1B
annual revenue · their business grew +13.6% last year
Insurance
$0.53B
+10.0%
Healthcare and Life Sciences
$0.44B
+12.0%
Banking and Capital Markets
$0.34B
+11.0%
Retail
$0.29B
+13.0%
Communications and Media
$0.21B
+9.0%
Other industries
$0.29B
+14.0%
The products that matter
data, analytics, and automation services
Data and AI Services
$2.1B revenue · 100% of sales
it's the entire business. the company generated $2.1B in revenue here while growing 13.6% from last year.
core engine
insurance workflow support
Insurance
part of the $2.1B revenue base
insurance is one of the verticals behind the full $2.1B business, but this snapshot does not break out the exact share. that missing mix data matters because end-market concentration risk lives here.
core vertical
healthcare and banking operations
Healthcare and Banking
supports the 13.3% net margin
these regulated verticals help explain why EXLS can keep 13.3 cents of every revenue dollar. they also mean compliance and client budgets matter more here than product hype.
margin support
Key numbers
24.0%
return on capital
Return on capital means EXLS earns $0.24 for each $1 invested in the business, so you are not funding growth that goes nowhere.
21.0%
operating margin
Operating margin means EXLS keeps $0.21 from each $1 of revenue after core operating costs, which is rich for an outsourcing-heavy model.
$350M
long-term debt
That is just 5% of capital, so leverage is not the thing that breaks this story.
90%+
client retention
Client retention means customers stay. So what: this revenue base behaves more like a subscription than a one-off project book.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $350M (5% of capital)
- net profit margin 13.9% — keeps 14 cents of every dollar in revenue
- return on equity 28% — $0.28 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EXLS 3 years ago → it's now worth $11,490.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $1.5B and EPS reached $1.17, both far above last year.
Revenue rose 192% vs. prior year and EPS rose 225%, while gross margin landed at 38.3%. The core story is the same: growth stayed strong while profitability held up.
$525M
revenue
$1.17
eps
38.3%
gross margin
the number that mattered
The 38.3% gross margin matters because it shows EXLS is not buying growth with low-quality revenue.
-
indeed, exlservice noted in a recent research report that approximately, 90% of organizations changed operating models to accommodate ai, with companies expecting over half their processes to include ai within a year.throughout 2025, momentum came from the launch of exldata.ai aimed at addressing data accessibility challenges across the market.
-
in addition, double-digit revenue growth in the healthcare and life sciences segment was a plus.
-
what's more, a client-retention rate that exceeded 90%, and the successful transition of digital operations into data and ai-led services (56% of total revenue as of the third quarter) helped to boost exlservice's performance in 2025.
-
the outlook for 2026 and 2027 is compelling.readers should keep in mind that, from 2026 onward, performance will be tracked using adjusted (non-gaap) earnings figures rather than gaap results, in an effort to emphasize continuing operations that exclude one-time charges and stock-based compensation, among other non-recurring items.
-
operationally, data and ai-led revenue acceleration continues apace, expanding from 56% of total revenue (third quarter of 2025) to an anticipated 60%+ mix by the end 2026 as enterprises deploy more ai tools.also, the health and life sciences business shows runway for sustained double-digit expansion through 2027, given the sector's data-intensive nature and regulatory complexity.
source: company earnings report, 2026
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What could go wrong
the #1 risk is client spending slowing in insurance, healthcare, and banking. EXLS sells into regulated industries that do not cut mission-critical work first, but they do stretch budgets when volumes soften.
med
end-market budget pressure
All $2.1B of revenue ultimately depends on enterprise clients continuing to spend on analytics, automation, and operations support.
If insurance claims volumes, healthcare admin budgets, or banking project spend slow, growth compresses first and the 26.5x multiple likely follows.
med
margin slippage in a people-heavy model
This page flags a 20.5% operating margin to watch. In a services business, wage costs and pricing pressure show up here fast.
One point of margin on $2.1B of revenue is about $21M. You do not need a collapse for earnings to feel it.
med
valuation without room for disappointment
A 26.5x trailing p/e is not wild, but it is not cheap for a company that underperformed the market over the last three years.
If growth falls materially below 13.6% or earnings estimates keep drifting under the last reported $2.15 full-year EPS, the market can re-rate this lower without any drama.
the combined risk picture is simple: when you pay 26.5x earnings for a $2.1B services business, you need client demand and margins to stay steady at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
watch whether revenue can stay near the recent 13.6% growth pace and whether the 20.5% operating margin holds.
metric
full-year EPS versus the $2.15 base
this page shows a $1.90 EPS estimate against a recent $2.15 full-year result. you want that gap explained or closed.
risk
client budgets in banking and healthcare
if regulated-industry clients pause projects, EXLS feels it through slower volume before it shows up in headline margin numbers.
trend
institutional flow staying positive
three straight quarters of net buying is constructive. if that reverses while growth slows, the stock loses an important support beam.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts are not seeing a strong near-term signal either way.
risk profile
average
stability score 3 means typical risk for a public stock — not especially defensive, not especially fragile.
chart momentum
average
technical score 3 says the chart is behaving like the broader market. No obvious trend edge is showing up.
earnings predictability
90 / 100
management has been reliable. You usually are not walking into a surprise circus here.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 249 buyers vs. 228 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$35
$79
$40
current price
$57
target midpoint · +43% from current · 3-5yr high: $90 (+125% · 22% ann'l return)
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