Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 10

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 AOI.

We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, (v) acquisition-related expenses, and (vi) income tax expense, as we believe that our results after considering these adjustments more accurately reflect our ongoing operations. To calculate AOI margin, we divided AOI (as calculated above) by net revenue. For additional information, see Note 18—“Segment reporting” under Part I, Item 1—“Unaudited Consolidated Financial Statements” above.

The following table shows the reconciliation of AOI to net income, the most directly comparable GAAP measure, for the three months ended June 30, 2024 and 2025:

 Three months endedJune 30,20242025(dollars in millions)Net income$122.0 $132.7 Foreign exchange gains, net(2.5)(0.4)Interest (income) expense, net13.5 13.5 Income tax expense40.4 44.0 Stock-based compensation expense18.4 21.8 Acquisition-related expenses— 1.3 Amortization of acquired intangible assets6.5 4.3 Adjusted income from operations$198.4 $217.3 

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The following table sets forth our AOI by segment for the three months ended June 30, 2024 and 2025: 

Three months endedJune 30,Percentage Change Increase/(Decrease)202420252025 vs. 2024(dollars in millions)Financial Services$53.1 $63.5 19.5 %Consumer and Healthcare70.7 76.0 7.5 %High Tech and Manufacturing74.6 90.0 20.7 %Total reportable segment$198.4 $229.5 15.7 %Unallocated corporate expenses— (12.2)NM*Adjusted income from operations$198.4 $217.3 9.5 %

*Not Meaningful

AOI of our Financial Services and High Tech and Manufacturing segments increased by 19.5% and 20.7%, respectively, primarily driven by higher revenues and operating efficiency in the second quarter of 2025 compared to the second quarter of 2024