Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 18

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 costs and certain other charges, namely stock-based compensation and amortization of acquired intangibles. We compensate for this limitation by providing specific information on the GAAP amounts excluded from AOI.

61

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 nine months ended September 30, 2024 and 2025:

 Nine months endedSeptember 30,20242025(dollars in millions)Net income$371.8 $409.4 Foreign exchange gains, net(4.4)(5.3)Interest (income) expense, net36.2 37.7 Income tax expense122.5 131.9 Stock-based compensation expense47.3 64.1 Amortization and impairment of acquired intangible assets20.0 16.9 Acquisition-related expenses— 1.3 Adjusted income from operations$593.3 $655.9 

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

Nine months endedSeptember 30,Percentage Change Increase/(Decrease)202420252025 vs. 2024(dollars in millions)Financial Services$158.4 $185.6 17.2 %Consumer and Healthcare212.0 218.6 3.1 %High Tech and Manufacturing224.8 271.3 20.7 %Total reportable segment$595.2 $675.5 13.5 %Unallocated corporate expenses(1.9)(19.6)NM*Adjusted income from operations$593.3 $655.9 10.6 %

*Not Meaningful

AOI of our Financial Services segment and High Tech and Manufacturing segment increased