The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Genpact (NYSE: G) and the rest of the business process outsourcing & consulting stocks fared in Q2.

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 8 business process outsourcing & consulting stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.1% since the latest earnings results.

Genpact (NYSE: G)

Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE: G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Genpact reported revenues of $1.25 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ revenue estimates.

Genpact delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6.6% since reporting and currently trades at $38.95.

Is now the time to buy Genpact? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: TaskUs (NASDAQ: TASK)

Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.

TaskUs reported revenues of $294.1 million, up 23.6% year on year, outperforming analysts’ expectations by 8.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

TaskUs achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.8% since reporting. It currently trades at $13.32.

Is now the time to buy TaskUs? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Concentrix (NASDAQ: CNXC)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.48 billion, up 4% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 19% since the results and currently trades at $44.55.

Read our full analysis of Concentrix’s results here.

Exponent (NASDAQ: EXPO)

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Exponent reported revenues of $132.9 million, flat year on year. This number beat analysts’ expectations by 1.5%. However, it was a slower quarter as it produced revenue guidance for next quarter slightly missing analysts’ expectations.

The stock is down 1% since reporting and currently trades at $68.25.

Read our full, actionable report on Exponent here, it’s free for active Edge members.

CBIZ (NYSE: CBZ)

With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.

CBIZ reported revenues of $683.5 million, up 62.7% year on year. This print came in 2.6% below analysts' expectations. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

CBIZ pulled off the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates among its peers. The stock is down 31.4% since reporting and currently trades at $52.26.

Read our full, actionable report on CBIZ here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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