ExlService: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Oct. 28, 2026, ExlService (NASDAQ:EXLS) raised its full-year financial outlook after third-quarter revenue grew 20% year over year to $634 million. Clients are shifting routine workflows to artificial intelligence applications, accelerating growth and deepening customer relationships. That expansion builds a stickier base of recurring business. Three takeaways from management explain where the business is headed.

1. Data and AI Offerings Drive Mainstream Growth

Clients are migrating beyond early experimentation into full operational deployments. As enterprises embed artificial intelligence directly into back-office workflows, revenue from data-led contracts now accounts for the majority of business.

Data and AI-led revenue grew 36% on a reported basis and 31% organically in the third quarter, now representing almost 2/3 of EXL's total revenue.
-- Rohit Kapoor, Chairman and Chief Executive Officer

2. The iMerit Acquisition Unlocks Full Stack Capability

Management acquired iMerit to secure data labeling and model training services, expanding its reach into data foundation and model validation. That capability lets the business manage every phase of enterprise artificial intelligence adoption.

With iMerit, EXL now operates across the full AI stack, building the data foundation, training and fine-tuning models, and embedding AI into the workflows that we run for our clients.
-- Rohit Kapoor, Chairman and Chief Executive Officer

3. Expanded Debt Facilities Support Strategic M&A

Management expanded borrowing capacity to $1 billion through a term loan and revolving line of credit. The liquidity funds targeted acquisitions to acquire specialized talent while maintaining share buybacks.

This expanded debt capacity gives us the flexibility to extend our competitive advantage through targeted mergers and acquisitions while continuing to return capital to our shareholders under our $500 million share repurchase authorization.
-- Maurizio Nicolelli, Chief Financial Officer

Looking Ahead

Organic growth is accelerating across every operating unit, and full-year financial forecasts are moving higher across the board.

The strength of our third quarter performance gives us the confidence to raise our full-year outlook.
-- Rohit Kapoor, Chairman and Chief Executive Officer

Deep workflow access, high client retention, and proprietary domain knowledge give the business a durable advantage as software automation expands. Leadership is watching deal velocity, contract structure evolution, and disciplined acquisition integration to protect long-term margins.

Our durable and adaptable business model positions us well to sustain this momentum through the remainder of the year and sets us up well for 2027.
-- Maurizio Nicolelli, Chief Financial Officer

The Motley Fool recommends ExlService. The Motley Fool has a disclosure policy.