Company: G
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001398659-25-000059
Chunk: 86

Company: Genpact LTD
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 86
---
 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.

We calculate AOI as net income, excluding (i) stock-based compensation expense, (ii) amortization and impairment of acquired intangible assets, (iii) foreign exchange gains, net, (iv) interest (income) expense, net, and (v) 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 17—“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 March 31, 2024 and 2025:

 Three months endedMarch 31,20242025(dollars in millions)Net income$116.9 $130.9 Foreign exchange gains, net(0.8)(1.3)Interest (income) expense, net10.2 11.4 Income tax expense39.4 44.4 Stock-based compensation expense9.2 20.0 Amortization and impairment of acquired intangible assets6.9 4.3 Adjusted income from operations$181.9 $209.7 

50

The following table sets forth our AOI by segment for the three months ended March 31, 2024 and 2025: 

Three months endedMarch 31,Percentage Change Increase/(Decrease)202420252025 vs. 2024(dollars in millions)Financial Services$47.0 $58.2 23.8 %Consumer and Healthcare66.8 70.3 5.3 %High Tech and Manufacturing69.0 80.1 16.0 %Total reportable segment182.8 208.6 14.1 %Unallocated corporate expenses(1.0)1.1 NM*Adjusted income from operations181.8 209.7 15.3 %

*Not Meaningful

AOI of our Financial Services segment increased to $58.2 million in the first quarter of 2025 from $47.0 million in the first quarter of 2024, primarily