ExlService Holdings (EXLS) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and EXL published the results on October 27, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. EXL reports EPS two ways: GAAP, under the accounting rules every US filer follows, and adjusted, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• EXL completed its acquisition of iMerit, an AI model training company, on July 31, 2026, so Q3 2026 includes two months of iMerit results. EXL reports iMerit across three of its four segments.
• EXL's release reports the income statement in thousands. Revenue of $634.0 million is $634.0 million, and net income of $68.8 million is $68.8 million.

Source: EXL Q3 2026 results, October 27, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How EXL splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• EXL's Insurance revenue was $209 million in Q3 2026, up 16% from $181 million in Q3 2025, 33% of total revenue.
• EXL's Healthcare and Life Sciences revenue was $160 million in Q3 2026, up 19% from $135 million in Q3 2025, 25% of total revenue.
• EXL's Banking, Capital Markets and Diversified Industries revenue was $154 million in Q3 2026, up 27% from $121 million in Q3 2025, 24% of total revenue.
• EXL's International Growth Markets revenue was $112 million in Q3 2026, up 20% from $92.8 million in Q3 2025, 18% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

In its Q3 2026 release, EXL said:

“Revenue of $2.430 billion to $2.440 billion, representing an increase of 16% to 17% on a reported basis, and 15% on an organic constant currency basis from 2025.”

“Adjusted diluted earnings per share of $2.34 to $2.36, representing an increase of 20% to 21% from 2025.”

Source: EXL Q3 2026 release, Oct 27, 2026.

This is the company's own guidance as of Oct 27, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the EXLS forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP revenue and GAAP diluted EPS, each as first reported in that quarter's release.

We do not hold a confirmed date for EXL's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Oct 27, 2026

EXL reports revenue in four industry segments. In Q3 2026 Insurance brought in $208.5 million of the $634.0 million total, Healthcare and Life Sciences $160.4 million, Banking, Capital Markets and Diversified Industries $153.5 million and International Growth Markets $111.6 million. Total revenue rose 19.7% from $529.6 million, or 19.9% on a constant currency basis. (EXL Q3 2026 release, Oct 27, 2026)

EXL also splits revenue by type of work. Data and AI-led revenue, which covers data management, analytics and AI services and solutions plus integrated operations such as payment integrity, was $406.9 million against $298.5 million a year earlier. Digital operations, managed services that run clients' business functions, was $227.1 million against $231.1 million. (EXL Form 10-Q, Q3 2026, Oct 27, 2026)

Most of the growth came from existing clients, by EXL's own breakdown. Insurance grew 15.5%, with 14.7% from existing clients. Banking, Capital Markets and Diversified Industries grew 26.8%, of which 10.2% came from the iMerit acquisition, which closed on July 31, 2026. Healthcare and Life Sciences grew 18.6% and International Growth Markets 20.3%. (EXL Form 10-Q, Q3 2026, Oct 27, 2026)

EXL's clients are mainly in North America, which generated 82.2% of Q3 2026 revenue, and the United Kingdom and Europe, which generated 15.0%. The top ten clients accounted for 33.3% of revenue, against 34.5% a year earlier, and no single customer accounted for more than 10%. (EXL Form 10-Q, Q3 2026, Oct 27, 2026)

EXL's GAAP diluted EPS was $0.45 in Q3 2026 and its adjusted diluted EPS was $0.62. The adjusted figure adds back $25.5 million of stock-based compensation, $6.3 million of amortization of acquisition-related intangibles, $1.8 million of acquisition-related expenses and amortization of prior service cost from India's new Labor Codes, less the tax effect of those items. (EXL Q3 2026 release, Oct 27, 2026)

Net income rose to $68.8 million from $58.2 million, and EPS grew faster than net income because the share count fell. Diluted weighted average shares were 152,570,075, against 161,714,486 a year earlier, after an accelerated share repurchase with Morgan Stanley that EXL entered into on March 16, 2026 and settled on May 13, 2026. (EXL Q3 2026 release, Oct 27, 2026; EXL Form 10-Q, Q3 2026, Oct 27, 2026)

The effective tax rate was 20.7%, down from 22.1% a year earlier. Operating margin narrowed to 14.0% from 14.4%, and EXL attributed the rise in cost of revenues mainly to $56.1 million of higher employee-related costs from headcount growth, wage inflation and the iMerit acquisition. (EXL Form 10-Q, Q3 2026, Oct 27, 2026; EXL Q3 2026 release, Oct 27, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

EXL publishes a full-year outlook in its release and raised it with these results. It now expects 2026 revenue of $2.430 billion to $2.440 billion, up from $2.390 billion to $2.415 billion, and adjusted diluted EPS of $2.34 to $2.36, up from $2.25 to $2.29. (EXL Q3 2026 release, Oct 27, 2026)

The outlook assumes a U.S. dollar to Indian rupee exchange rate of 95, a pound sterling to dollar rate of 1.33 and a dollar to Philippine peso rate of 63. EXL gives EPS guidance only on an adjusted basis, saying it cannot reasonably predict future stock-based compensation, acquisition intangibles amortization and currency effects. (EXL Q3 2026 release, Oct 27, 2026)

A consensus figure is the average of the models published by the analysts who cover EXL, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones EXL's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning EXLS is on is EXLS a buy or a sell?, what analysts expect next is on the EXLS forecast, and what the company does is on the ExlService Holdings (EXLS) stock page.

Every number on this page can be traced to a document EXL published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.