5 revealing analyst questions from EXL’s Q3 earnings call

EXL's third quarter performance showcased robust momentum across its core business lines, as management highlighted broad-based growth in data and AI-driven solutions. CEO Rohit Kapoor credited the acceleration to strong client demand for AI implementation expertise and deep domain knowledge, particularly as enterprises sought partners to help solve complex workflow challenges. The quarter also saw a deliberate migration of clients from traditional operations to AI-enhanced offerings, with Kapoor noting, "Our deep understanding of client workflows and domain context, combined with our competencies in data and AI engineering, is creating a tailwind as we help clients solve the acute challenge of making AI work effectively in the enterprise."

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EXL (EXLS) Q3 2026 highlights:

• Revenue$634 million vs S&P analysts' estimates of $614.5 million (19.7% year-on-year growth, 3.2% beat)

• Adjusted EPS$0.62 vs S&P analysts' estimates of $0.56 (11% beat)

• Adjusted EBITDA$135 million vs analyst estimates of $126 million (21.3% margin, 7.2% beat)

• Revenue guidanceThe company lifted its revenue guidance for the full year to $2.44 billion at the midpoint from $2.40 billion, a 1.4% increase

• Adjusted EPS guidanceManagement raised its full-year adjusted EPS guidance to $2.35 at the midpoint, a 3.5% increase

• Operating margin14%, in line with the same quarter last year

• Market capitalization$6.14 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our top 5 analyst questions from EXL's Q3 earnings call

• Bryan Bergin (TD Cowen)asked about the sustainability of growth and pipeline visibility versus the prior year. CEO Rohit Kapoor noted stronger pipeline growth and faster deal cycles, especially in data and AI-led services, and highlighted international markets as a growing opportunity.

• Puneet Jain (JPMorgan)inquired whether recent outperformance was due to broader AI adoption or company-specific drivers. Kapoor attributed growth to both broad-based segment demand and acceleration in the Data and AI-led portfolio, citing high success rates with AI client engagements.

• Maggie Nolan (William Blair)sought clarification on margin impacts from shifting clients into AI-led offerings. Kapoor said the transition is proactive, aiming for higher efficiency and value, though margin benefits will depend on evolving client contracts.

• David Koning (Robert W. Baird & Co.)questioned the potential for margin expansion as employee cost leverage improves. CFO Maurizio Nicolelli explained that investments in technology and infrastructure will likely keep margins stable, with some mix shift toward AI and integration costs.

• Vincent Colicchio (Barrington Research)asked about capturing efficiency gains as AI model costs decline. Kapoor said that while some costs are decreasing, others—such as system assurance and compliance—are rising, so margin impacts will balance out over time.