Genpact (NYSE: G), a global professional services firm, saw its shares plummet 7.39% in pre-market trading on Thursday, despite reporting better-than-expected first-quarter earnings. The sharp decline comes as JP Morgan cut its target price for the company, raising concerns among investors.
Genpact reported adjusted earnings of 84 cents per share for the quarter ended March 31, 2025, surpassing analysts' expectations of 79 cents per share. The company's revenue rose 7.4% to $1.21 billion, meeting Wall Street's projections. Additionally, Genpact posted a quarterly net income of $130.85 million, demonstrating solid financial performance.
However, the positive earnings report was overshadowed by JP Morgan's decision to lower its target price for Genpact from $55 to $49. This significant reduction in price target appears to have spooked investors, leading to the substantial pre-market sell-off. The disconnect between the company's strong financial results and the stock's negative performance suggests that market participants may be concerned about Genpact's future growth prospects or potential headwinds in the business support services sector.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.