<div id="readability-page-1"><div><p>ExlService Holdings (EXLS) has wrapped up FY 2025 with fourth quarter revenue of US$542.6 million and basic EPS of US$0.38, while trailing twelve month figures show revenue at about US$2.1 billion and EPS at US$1.56, alongside 26.6% earnings growth over the past year. The company has seen quarterly revenue move from US$481.4 million in Q4 2024 to US$542.6 million in Q4 2025, with basic EPS shifting from US$0.31 to US$0.38 over the same period. This sets up a story in which improving net profit margins and solid top line scale are central to how investors read this earnings print.</p> <p>See our full analysis for ExlService Holdings.</p><p>With the headline figures on the table, the next step is to see how these results line up with the prevailing market stories about EXLS and where the numbers might challenge those views.</p> <p>See what the community is saying about ExlService Holdings</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/82b17408-41f3-4753-af60-eec15110d07f/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTAyLTI1?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/82b17408-41f3-4753-af60-eec15110d07f/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTAyLTI1"/><figcaption>NasdaqGS:EXLS Earnings &amp; Revenue History as at Feb 2026</figcaption></figure> <h2>TTM profit of US$251 million backs higher margin story</h2> <ul> <li>On a trailing twelve month basis, EXLS reported net income of US$251.0 million on revenue of about US$2.1b, which lines up with a 12% net margin compared with 10.8% a year earlier.</li> <li>Supporters with a bullish view point out that this 26.6% earnings growth over the past year and the higher margin fit the idea of data and AI driven services lifting profitability. However, the margin at 12% is still close to the 12.2% level analysts in the narrative expect in three years, so the room for further margin expansion they talk about is fairly tight based on these figures.</li> </ul> <h2>Revenue above US$2.0b tests growth expectations</h2> <ul> <li>Trailing twelve month revenue of US$2.1b sits ahead of the US$1.8b level a year earlier, while the narrative data points to forecast revenue growth of about 10.4% per year and an assumed path to US$2.7b by around 2028.</li> <li>Looking at the cautious or bearish angle, critics highlight risks from AI automation, regulation and wage inflation possibly weighing on long term revenue stability. Yet the current 26.6% earnings growth and higher net margin mean those headwinds are not visible in the trailing numbers, which creates a gap between the concern about future pressure and the solid revenue and profit picture reported over the last twelve months.</li> </ul><p> High level worries about margins being squeezed by costs and competition are clear in the bearish narrative, but trailing revenue and net income trends give you concrete numbers to compare against that concern over time. <strong>🐻 ExlService Holdings Bear Case</strong></p><h2>Share price at US$28.67 versus TTM growth and targets</h2> <ul> <li>The current share price of US$28.67 implies a P/E of 17.9x that is referenced as being under both industry and peer averages. It is also well under the DCF fair value of US$39.66 and the analyst target of US$47.86 mentioned in the analysis set.</li> <li>For investors who lean bullish, the combination of 26.6% earnings growth, a 12% net margin and that gap between price, DCF fair value and the US$47.86 target is often cited as support for upside potential. Yet the numbers also imply that any bullish case depends on earnings continuing to track the roughly 11.2% growth path laid out in the narrative, which is not guaranteed by past performance alone.</li> </ul><p> If you want to see how optimistic investors connect this margin profile and valuation gap into a full thesis, the detailed bull and bear write ups can help you pressure test your own view before making any moves. <strong>🐂 ExlService Holdings Bull Case</strong></p><h2>Next Steps</h2> <p>To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ExlService Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.</p> <p>After all of this, do you feel the story skews more bullish or cautious for EXLS, and are you ready to move fast and test that view against the numbers and commentary in full, including 5 key rewards and 1 important warning sign?</p> <h2>See What Else Is Out There</h2> <p>For all the TTM earnings growth, the tight gap between current and projected margins and reliance on optimistic forecasts leaves limited room if expectations slip.</p> <p>If you are uneasy about that narrow margin for error and want ideas with more valuation cushion today, check out our 52 high quality undervalued stocks that could offer a wider buffer.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if ExlService Holdings might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

EXLS

<p>ExlService Holdings (EXLS) reported FY 2025 Q4 revenue of $542.6 million and EPS of $0.38, with a trailing twelve-month revenue of $2.1 billion and EPS of $1.56, reflecting 26.6% earnings growth. The net margin improved to 12%, but concerns about future margin expansion persist. The current share price of $28.67 suggests a P/E of 17.9x, below industry averages, with a DCF fair value of $39.66 and an analyst target of $47.86. Investors are divided between bullish growth potential and bearish risks from AI automation and wage inflation.</p>

ExlService Holdings (EXLS) Margin Improvement Supports Bullish Narratives In FY 2025 Earnings