EXL Boosts Revenue Guidance on Strong AI Demand and iMerit Acquisition — ExlService Holdings, Inc.

Event summary

EXL reported Q2 2026 revenue of $594.8M, up 15.6% YoY and 4.3% sequentially.
Adjusted diluted EPS rose 22.3% YoY to $0.59, while GAAP EPS increased 4.9% to $0.42.
EXL raised full-year revenue guidance to $2.39B–$2.41B (14–16% growth) due to iMerit acquisition and strong pipeline.
iMerit deal, expected to close July 31, 2026, adds $28M–$32M in anticipated revenue.
EXL won 17 new clients in Q2 and deepened partnerships with Databricks, OpenAI, and Snowflake.

The big picture

EXL’s strong Q2 performance reflects accelerating demand for enterprise AI solutions, particularly in insurance, healthcare, and banking. The iMerit acquisition reinforces its leadership in foundation models, while partnerships with OpenAI and Snowflake position it to capitalize on the next wave of AI-driven digital transformation. With revenue guidance raised to 14–16% growth, EXL is betting heavily on scaling its AI capabilities amid heightened competition.

What we're watching

Integration Risk: How EXL will integrate iMerit’s foundation model expertise without disrupting existing operations.
AI Adoption Pace: Whether enterprise AI demand can sustain EXL’s 13–14% organic revenue growth guidance.
Competitive Positioning: The impact of partnerships with OpenAI, Anthropic, and NVIDIA on EXL’s differentiation in the AI services market.