ExlService targets double-digit growth with new enterprise AI push

ExlService Holdings Inc. (NASDAQ: EXLS) outlined a strategy centered on enterprise artificial intelligence to achieve sustained double-digit growth, arguing its data and operations expertise positions it to capitalize on a market struggling with fragmented data and legacy systems.

"The shift toward AI-led operations is accelerating as payers seek to enhance quality, payment accuracy, and member outcomes," Vivek Kumar, practice director at Everest Group, said in a recent report where EXL was named a leader in healthcare payer operations.

The push follows a challenging year for the stock, which has fallen over 33% year-to-date to $27.48 despite a 38% return over the last five years. The company's strategy hinges on expanding its data analytics and digital operations segments, which were recently bolstered by the appointment of Bhupender Singh to lead international growth.

With a current price-to-earnings ratio of 16.7x, below its fair ratio of 20.2x according to some analyses, EXL is betting that its AI-led strategy will persuade investors that its valuation is an opportunity, despite other narratives suggesting the stock could be significantly overvalued.

AI-Led Operations Take Center Stage

During its 2026 Investor Day on May 16, executives from ExlService laid out their case for capturing the enterprise AI market. The company, which provides data analytics and digital operations solutions, sees a significant opportunity in helping clients, particularly in sectors like healthcare and insurance, move beyond legacy systems.

The strategy was recently validated by an Everest Group report that named EXL a "Leader" in Healthcare Payer Intelligent Operations, placing it ahead of 32 other providers. The report highlighted the company's CareRadius™ platform, which integrates analytics and AI to automate workflows in utilization management and population health. "EXL is advancing its data and AI-led strategy through a mix of functional BPaaS, analytics, and platforms," Kumar of Everest Group noted.

A Stock at a Crossroads

The ambitious growth targets come as EXL's stock faces headwinds. Shares are down 33.32% in 2026, closing recently at $27.48. This performance contrasts with a five-year total shareholder return of 37.70%. The valuation picture is murky; while its P/E ratio of 16.7x appears reasonable against an industry average of around 18x, at least one quantitative analysis cited by Simply Wall St suggests a fair value of just $12.70, implying the stock is overvalued by more than 100%.

"Amid rising medical costs, regulatory changes and increased administrative complexity, data management, analytics and AI have become vital tools for health plans," said Vivek Jetley, EXL's President of Insurance, Healthcare and Life Sciences. This highlights the company's focus on turning these industry pain points into growth drivers. The recent appointment of Bhupender Singh as President and Head of International Growth Markets is a clear move to expand its footprint beyond North America and accelerate this strategy in EMEA and APAC.

For investors, the question is whether EXL's deep domain expertise in industries like healthcare—demonstrated by its leadership in the Everest PEAK Matrix®—can translate into the sustained double-digit growth promised. The company's ability to execute its AI-led vision will be critical to closing the gap between its current stock performance and its long-term ambitions.

This article is for informational purposes only and does not constitute investment advice.