TLDR: EXLService Holdings Inc. (NASDAQ: EXLS) has announced strong financial results for the second quarter of 2025, with revenue increasing by 15% year-over-year to $514.5 million and adjusted diluted earnings per share (EPS) rising by 20% to $0.49. The company attributes this impressive performance primarily to its strategic investments and leadership in data and artificial intelligence (AI) solutions, particularly within the healthcare and life sciences sectors. EXL has also raised its full-year 2025 revenue and adjusted EPS guidance, signaling continued confidence in its AI-driven growth trajectory.
NEW YORK – EXLService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, has reported a robust second quarter for 2025, demonstrating significant financial growth driven by its strategic focus on artificial intelligence and data solutions. For the quarter ended June 30, 2025, EXLService posted revenues of $514.5 million, marking a substantial 14.7% increase year-over-year. This performance surpassed analyst expectations by over $7 million. The company’s adjusted diluted earnings per share (EPS) reached $0.49, a 20.3% rise from $0.40 in the same period last year, also exceeding forecasts. GAAP diluted EPS stood at $0.40, up 43.9% from Q2 2024.
Chairman and Chief Executive Officer Rohit Kapoor expressed satisfaction with the results, stating, “I am pleased to report another strong quarter as we delivered revenue growth of 15% and increased our adjusted diluted EPS by 20%. Our sustained double-digit growth demonstrates the strength of our competitive position as a global data and AI company. EXL’s recognized leadership in embedding AI in the workflow is resonating strongly with our clients and fueling our growth.”
A significant driver of this growth is the company’s data and AI-led revenue segment, which saw a 17% year-over-year increase and now accounts for 54% of EXL’s total revenue. The Health Care and Life Sciences segment exhibited the fastest growth, with a 22% year-over-year increase, reaching $129.5 million in revenue, underscoring the rising demand for data and AI solutions in this sector. Executives have credited much of this momentum to successful AI integration across the business.
Despite the impressive revenue and EPS growth, the adjusted operating margin for the quarter was 19.6%, a slight decrease of 20 basis points year-over-year. This decline is primarily attributed to increased investments in new solutions, which are anticipated to drive future growth. Maurizio Blasi, EXL’s Chief Financial Officer, affirmed this strategy, stating, “We continue to accelerate our data and AI investments to generate future growth.”
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Looking ahead, EXLService has raised its full-year 2025 guidance. The company now expects revenue to be in the range of $2.050 billion to $2.070 billion, an increase from its prior guidance of $2.035 billion to $2.065 billion. This revised outlook represents a 12% to 13% year-over-year growth. Adjusted diluted EPS expectations have also been raised to a range of $1.86 to $1.90, indicating a 13% to 15% increase over 2024. The company anticipates a slightly lower growth rate in its digital operations business compared to its data and AI-led operations, reflecting its strategic shift towards higher-value, AI-powered services. Furthermore, EXL recently announced a partnership with Genesys to integrate its advanced data and AI capabilities into Genesys’s Contact Center as a Service platform, aiming to transform customer engagement across various industries.
