What Happened?
Shares of data analytics and digital solutions company ExlService Holdings (NASDAQ:EXLS) jumped 7.5% in the morning session after the company reported strong second-quarter results that beat analyst expectations and raised its full-year financial forecast. The data and analytics company announced revenue of $514.5 million, a 14.7% increase year-over-year, while its adjusted earnings per share jumped 20.3% to $0.49, surpassing consensus estimates. Citing strong momentum and visibility, EXL boosted its full-year 2025 revenue guidance and lifted its adjusted EPS outlook. The company also revealed a new $125 million accelerated share repurchase program, signaling confidence to its investors. Adding to the positive sentiment, EXL announced a strategic collaboration with Genesys to enhance AI-driven customer engagement, underscoring the company's focus on its data and AI capabilities, which its CEO credited for the strong performance.
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What Is The Market Telling Us
EXL’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 5.8% on the news that stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains. Also, President Trump said he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn). For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets.
EXL is up 1.3% since the beginning of the year, but at $44.69 per share, it is still trading 13.7% below its 52-week high of $51.80 from February 2025. Investors who bought $1,000 worth of EXL’s shares 5 years ago would now be looking at an investment worth $3,483.
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