The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how business process outsourcing & consulting stocks fared in Q1, starting with Exponent (NASDAQ: EXPO).

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 7 business process outsourcing & consulting stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $137.4 million, flat year on year. This print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a mixed quarter for the company.

“Exponent’s first quarter results exceeded expectations, reinforcing both the resilience of our diversified business model and the value we deliver,” said Dr. Catherine Corrigan, President and Chief Executive Officer.

The stock is down 3.4% since reporting and currently trades at $75.10.

Read our full report on Exponent here, it’s free.

Best Q1: CRA (NASDAQ: CRAI)

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ: CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

CRA reported revenues of $181.9 million, up 5.9% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

CRA achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $179.15.

Is now the time to buy CRA? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 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 $1.21 billion, up 7.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a slight miss of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter meeting analysts’ expectations.

Genpact delivered the weakest full-year guidance update in the group. As expected, the stock is down 14% since the results and currently trades at $42.60.

Read our full analysis of Genpact’s results here.

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 $2.37 billion, down 1.3% year on year. This number was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also put up an impressive beat of analysts’ EPS estimates.

The stock is up 21% since reporting and currently trades at $55.32.

Read our full, actionable report on Concentrix here, it’s free.

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 $838 million, up 69.5% year on year. This print came in 2.6% below analysts' expectations. It was a slower quarter as it also recorded full-year revenue guidance missing analysts’ expectations.

CBIZ achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 10.9% since reporting and currently trades at $68.86.

Read our full, actionable report on CBIZ here, it’s free.

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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