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TaskUs Q3 Adjusted EPS and income beat estimates driven by AI Services

By Reuters News


Overview

  • Outsourced digital services provider's fiscal Q3 revenue grew 5.4% yr/yr, driven by AI Services

  • Adjusted EPS and Adjusted Net Income for Q3 beat analyst expectations

  • Company raised full-year revenue and free cash flow outlooks on sales momentum


Outlook

  • TaskUs raises 2026 revenue outlook to $1.249 bln-$1.251 bln

  • Company expects Q4 2026 revenue between $319 mln and $321 mln

  • TaskUs sees full-year 2026 Adjusted EBITDA margin near 19%

  • Company expects full-year Adjusted Free Cash Flow of $115 mln-$125 mln


Result Drivers

  • AI SERVICES GROWTH - Co said 28% yr/yr growth in AI Services fueled Q3 momentum

  • CLIENT DIVERSIFICATION - Co said revenue growth excluding its largest client was nearly 20% yr/yr in Q3

  • DIGITAL CUSTOMER EXPERIENCE - Co said Digital Customer Experience business accelerated for third consecutive qtr to 7.1% growth yr/yr


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$0.34

$0.31 (8 Analysts)

Q3 Adjusted Net Income

Beat

$31.30 mln

$28.12 mln (6 Analysts)

Q3 Adjusted EBITDA

Beat

$59.10 mln

$56.27 mln (7 Analysts)

Q3 Adjusted EBITDA Margin

18.80%

Q3 Free Cash Flow

$22 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for Taskus Inc is $8.00, about 3.8% below its November 3 closing price of $8.32

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Nov 2 - Tempus AI Q3 revenue slightly beats estimates; raises guidance

  • Nov 2 - Calix reports profit beat in Q3, supported by AI-native subscriber growth

  • Nov 2 - Palantir Q3 revenue jumps 96%, beats analyst expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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