Genpact

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 7 Aug 2026 and 4 later 8-Ks.

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• A substantial portion of our assets, employees and operations is located in India and we are subject to regulatory, economic, social and political uncertainties in India.

  Additionally, we are currently subject to an investigation by the India Enforcement Directorate (“ED”) relating to certain intercompany debt created as part of a 2015 restructuring transaction undertaken by the Company. On February 3, 2026, the ED issued an order relating to this investigation in connection with which a lien was placed on a building owned by us in Gurgaon, India. We are in the process of taking appropriate steps in relation to this order. We have not received any demand from the ED in relation to this matter. If the ED issues a demand and ultimately prevails in this matter, it would likely have a material adverse effect on our results of operations and financial condition.

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• Our business could be materially and adversely affected if we do not protect our intellectual property or if our solutions or services are found to infringe on the intellectual property of others.

  Could happen

  Our success depends in part on certain methodologies, practices, tools and technical expertise we utilize in designing, developing, implementing and maintaining applications and other proprietary intellectual property rights. Our success also depends on our ability to develop and protect intellectual property rights in our AI-enabled solutions, including proprietary AI models, algorithms, and methodologies. In order to protect our rights in these various intellectual properties, we rely upon a combination of nondisclosure and other contractual arrangements as well as patent, trade secret, copyright and trademark laws. We also generally enter into confidentiality agreements with our employees, consultants, vendors, clients and potential clients, partners and potential partners, and limit access to and distribution of our proprietary information. We operate across multiple jurisdictions with varying intellectual property frameworks, including evolving AI-specific regulations. While international treaties such as the Berne Convention provide certain baseline protections, the regulatory landscape governing AI and intellectual property is rapidly evolving. The U.S. Patent and Trademark Office and Copyright Office continue issuing guidance on AI-related inventions, and patentability questions involving machine-generated outputs remain unsettled. There can be no assurance that the laws, rules, regulations and treaties in effect in the United States, India and the other jurisdictions in which we operate and the contractual and other protective measures we take, are adequate to protect us from misappropriation or unauthorized use of our intellectual property, or that such laws will not change. We may not be able to detect unauthorized use and take appropriate steps to enforce our rights, and any such steps may not be successful. Infringement by others of our intellectual property, including the costs of enforcing our intellectual property rights, may have a material adverse effect on our business, results of operations and financial condition.

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• Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and we are or may become subject to government investigations, regulatory examinations and enforcement actions worldwide that could harm our business.

  Could happen

  The global nature of our operations and the expanding compliance perimeter associated with increased regulatory complexity increases the difficulty of compliance. Compliance with diverse legal requirements is costly, time-consuming and requires significant resources. Regulatory proceedings, inquiries and investigations can be disruptive to our operations, may divert significant management attention and resources, and may require us to respond to extensive document requests, implement remedial measures, modify business practices, or undertake changes to our internal controls and compliance programs. Given the complexity and scope of our global operations, we are subject to numerous ongoing regulatory and governmental investigations and examinations across the jurisdictions in which we do business, and at any time we could become subject to additional investigations or enforcement actions. Any such investigation or proceeding, alone or in combination with others across jurisdictions, could have a material adverse effect on our business. Violations of any regulations in the conduct of our business, or adverse outcomes of any such investigations or enforcement actions, could result in significant fines or penalties, criminal sanctions against us and/or our employees, restrictions or prohibitions on our ability to conduct business or carry on certain activities, breach of contract damages and harm to our reputation, any of which could have a material adverse effect on our business, results of operations and financial condition. Such consequences may arise even if we are ultimately not found to have violated applicable law, and the existence of any such inquiry or investigation, regardless of outcome, could damage our relationships with existing clients, impair our ability to win new business, and adversely affect our share price. In addition, our insurance may be inadequate to cover, or we may not have insurance coverage for, costs and damages sustained if we become liable in relation to regulatory enforcement actions. Finally, due to the varying degrees of development of the legal systems of the countries in which we operate, local laws may not be well developed or provide sufficiently clear guidance and may be insufficient to protect our rights.

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• Restrictions on entry or work visas may affect our ability to compete for and provide services to clients, which could have a material adverse effect on our business and financial results.

  A portion of our business depends on the ability of our employees to obtain the necessary visas and work or entry permits to travel to and do business in the countries where our clients and, in some cases, our delivery centers, are located. In recent years, in response to terrorist attacks, geopolitical tensions, and political developments, immigration authorities, particularly in the United States, have increased scrutiny in granting, extending, and renewing visas. The current U.S. presidential administration's immigration agenda has created increased uncertainty surrounding U.S. immigration policy. Recent executive orders impose a $100,000 fee on certain new H-1B entries, expand travel restrictions, intensify Department of Labor investigations, and eliminate automatic employment authorization extensions. Our operating subsidiaries in the U.S. use skilled workers holding H-1B and L-1 visas, and it has become more expensive, time-consuming, and legally complex to utilize existing U.S. visa programs. Additional executive or legislative action restricting the use of foreign personnel could materially increase our operating expenses, restrict our access to qualified workers, adversely affect our ability to recruit and retain critical talent, and place us at a competitive disadvantage relative to companies with greater resources. Visa processing delays or further restrictions could also disrupt our ability to staff client engagements, delay key projects, and reduce operational efficiency. Overall, ongoing changes in immigration laws and enforcement priorities have created significant uncertainty that makes workforce planning more difficult and could have a material adverse effect on our business and results of operations.

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• Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and we are or may become subject to government investigations, regulatory examinations and enforcement actions worldwide that could harm our business.

  Could happen

  In the EU, the GDPR imposes privacy and data security compliance obligations and significant penalties for noncompliance. The GDPR presents numerous privacy-related changes for companies operating in the EU, including rights guaranteed to data subjects, requirements for data portability for EU consumers, data breach notification requirements and significant fines for noncompliance. In GDPR enforcement matters, companies have faced fines for violations of certain provisions. Fines can reach as high as 4% of a company’s annual total revenue, potentially including the revenue of a company’s international affiliates. EU regulations impose increasing obligations on businesses that collect and process commercial, personal and health data. For example, the EU Data Act effective as of September 12, 2025, requires data holders to provide broader rights for data subjects to access information generated through their use of certain networked devices. The EU’s European Health Data Space Regulation effective as of March 2025 established a comprehensive regulatory regime for sharing health data within and among EU member states. Additionally, governments outside of the EU are also taking steps to fortify their data privacy laws and regulations. For example, some countries in Africa, Asia and Latin America, including Brazil and South Africa, where we have operations, have implemented or are considering data protection laws. India recently enacted a data protection law, the Digital Personal Data Protection Act (the "DPDP Act"), that will impact how we handle vendor and employee data in India and will require us to develop new controls governing our processing of employee data. Given the size and scope of our operations in India, the costs of compliance with the DPDP Act, and any fines or penalties for breaches thereof, could be significant and could have a material adverse effect on our business, financial condition and results of operations. As privacy laws and regulations around the world continue to evolve, these changes and others could adversely affect our business operations, websites and mobile applications that are accessed by residents in the applicable countries.

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