EXL Schedules Fourth Quarter and Full-Year 2025 Financial Results Conference Call

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 data & business process services stocks fared in Q3, starting with EXL .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 10 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

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

EXL

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

EXL reported revenues of $529.6 million, up 12.2% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ revenue estimates.

Chairman and Chief Executive Officer Rohit Kapoor said, “I am pleased to report another strong quarter as we delivered revenue growth of 12% and increased our adjusted diluted EPS by 11%. Our sustained double-digit growth demonstrates the strength of our competitive position as a global data and AI company. EXL’s recognized industry expertise and leadership in embedding AI in the workflow is resonating strongly with the market and fueling our growth with new and existing clients.”

Interestingly, the stock is up 2.8% since reporting and currently trades at $42.64.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Planet Labs scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 26.2% since reporting. It currently trades at $16.52.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.5% since the results and currently trades at $219.47.

Read our full analysis of Verisk’s results here.

TransUnion

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

TransUnion reported revenues of $1.17 billion, up 7.8% year on year. This print beat analysts’ expectations by 3.2%. Overall, it was a strong quarter as it also produced revenue guidance for next quarter beating analysts’ expectations and an impressive beat of analysts’ revenue estimates.

The stock is up 5.1% since reporting and currently trades at $84.80.

Read our full, actionable report on TransUnion here, it’s free for active Edge members.

SS&C

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

SS&C reported revenues of $1.57 billion, up 7% year on year. This result topped analysts’ expectations by 1.2%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ billings estimates.

SS&C had the weakest full-year guidance update among its peers. The stock is up 7.1% since reporting and currently trades at $86.59.

Read our full, actionable report on SS&C here, it’s free for active Edge members.

Toll Brothers’ third quarter results were met with a negative market reaction, as the company reported revenue ahead of Wall Street expectations but missed on non-GAAP profit forecasts. Management attributed the mixed performance to persistent affordability challenges in the broader housing market, which were partially offset by the firm’s focus on wealthier buyers less affected by higher mortgage rates. CEO Douglas Yearley noted that, despite the environment, “our luxury business is differentiated as we serve a more affluent customer who is less impacted by the affordability pressures that continue to impact the broader housing market.” The delay in closing the Apartment Living business sale also weighed on earnings per share, a factor management cited for the shortfall.

Is now the time to buy TOL? Find out in our full research report (it’s free for active Edge members).

Toll Brothers (TOL) Q3 CY2025 Highlights:

• Revenue: $3.42 billion vs analyst estimates of $3.32 billion (2.7% year-on-year growth, 3.2% beat)
• Adjusted EPS: $4.58 vs analyst expectations of $4.88 (6.1% miss)
• Adjusted EBITDA: $627.1 million vs analyst estimates of $702.2 million (18.3% margin, 10.7% miss)
• Operating Margin: 17.7%, down from 19% in the same quarter last year
• Backlog: $5.5 billion at quarter end, down 15% year on year
• Market Capitalization: $13.19 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Toll Brothers’s Q3 Earnings Call

• Stephen Kim (Evercore): Asked about the outlook for the active adult and move-down buyer segments. CEO Douglas Yearley explained that active adult buyers remain resilient due to their financial strength, and land acquisition remains disciplined with a focus on future community growth.

• John Lovallo (UBS): Inquired whether Toll Brothers’ guidance leaves room for upside if the market improves. Yearley responded that the outlook is intentionally conservative, assuming no improvement in housing market conditions or incentive reductions.

• Mike Dahl (RBC Capital Markets): Sought clarification on delivery guidance and the role of spec homes. Yearley detailed the breakdown of backlog, spec homes under construction, and new community openings, emphasizing confidence in their ability to meet delivery targets.

• Trevor Allinson (Wolfe Research): Questioned the drivers of stronger-than-usual order growth, especially in the North region. CFO Gregg Ziegler credited broad geographic strength and noted that future order commentary would be limited to observed deposit trends.

• Richard Reid (Wells Fargo): Probed the factors behind higher SG&A expenses. Yearley attributed increases to lower fixed cost leverage, wage inflation, and higher sales commissions, but reaffirmed efforts to control overhead costs.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will monitor (1) the pace of community count expansion and successful opening of new communities, (2) whether gross margins remain stable despite persistent incentive levels and a high mix of spec deliveries, and (3) continued resilience among luxury buyers, especially in core East Coast and coastal California markets. Execution on the planned exit from multifamily and redeployment of proceeds into homebuilding will also be key milestones.

Toll Brothers currently trades at $139.43, up from $136.10 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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SentinelOne’s third quarter was marked by solid top-line growth and improving profitability, but the market responded negatively to the results. Management attributed the company’s performance to strong customer adoption of its emerging AI, data, and cloud security offerings, as well as greater expansion among existing clients. CEO Tomer Weingarten emphasized the rapid uptake of the Purple AI and data solutions, which contributed to a record average recurring revenue per customer and demonstrated the platform’s differentiation. The quarter also featured continued strength in international markets and meaningful progress in operational efficiency.

Is now the time to buy S? Find out in our full research report (it’s free for active Edge members).

SentinelOne (S) Q3 CY2025 Highlights:

• Revenue: $258.9 million vs analyst estimates of $256.1 million (22.9% year-on-year growth, 1.1% beat)
• Adjusted EPS: $0.07 vs analyst estimates of $0.05 (31.5% beat)
• Adjusted Operating Income: $17.67 million vs analyst estimates of $10.2 million (6.8% margin, 73.2% beat)
• Revenue Guidance for Q4 CY2025 is $271 million at the midpoint, below analyst estimates of $273.2 million
• Operating Margin: -28.3%, up from -42.3% in the same quarter last year
• Customers: 1,572 customers paying more than $100,000 annually
• Annual Recurring Revenue: $1.06 billion vs analyst estimates of $1.05 billion (22.8% year-on-year growth, in line)
• Billings: $281.6 million at quarter end, up 36.6% year on year
• Market Capitalization: $5.18 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From SentinelOne’s Q3 Earnings Call

• Saket Kalia (Barclays) asked which non-endpoint products are driving new business. CEO Tomer Weingarten identified data solutions and Purple AI as leading contributors, with Flex licensing enabling broader adoption.
• John DiFucci (Guggenheim) questioned the cautious revenue guidance. CFO Barbara Larson explained it was due to prudent assumptions on deal timing and macroeconomic uncertainty, affirming commitment to steady execution.
• Brian Essex (JPMorgan) inquired about factors behind gross margin compression. Larson cited investments in cloud infrastructure and global expansion as drivers, with margins expected to remain in the high 70s.
• Meta Marshall (Morgan Stanley) sought details on Flex deal momentum. Weingarten described Flex as key to landing larger, multi-solution deals and improving ARR per customer.
• Adam Tindle (RJF) referenced a competitor’s claims of partner displacements. Weingarten countered that SentinelOne’s partner ecosystem remains robust, with significant multi-year commitments and no meaningful disruption observed.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be tracking (1) adoption rates and revenue contributions from emerging AI, data, and cloud security products, (2) the effectiveness of the Flex licensing model in driving larger multi-product deals, and (3) the impact of ongoing investments in cloud infrastructure and recent acquisitions on both growth and operating margins. Leadership continuity and successful execution through the CFO transition will also be closely monitored.

SentinelOne currently trades at $15.19, down from $17.10 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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Macy’s third quarter results met Wall Street’s revenue expectations and outperformed on adjusted profit, reflecting the early momentum of the company’s Bold New Chapter strategy. Management credited better-than-expected same-store sales growth to improvements in curated assortments, store upgrades, and a more seamless omnichannel experience. CEO Tony Spring specifically highlighted strong customer response to the refreshed Reimagine 125 store locations and the continued growth of the luxury-focused Bloomingdale’s and Bluemercury banners.

Is now the time to buy M? Find out in our full research report (it’s free for active Edge members).

Macy's (M) Q3 CY2025 Highlights:

• Revenue: $4.91 billion vs analyst estimates of $4.75 billion (flat year on year, 3.4% beat)
• Adjusted EPS: $0.09 vs analyst estimates of -$0.13 (significant beat)
• Adjusted EBITDA: $281 million vs analyst estimates of $210.5 million (5.7% margin, 33.5% beat)
• The company lifted its revenue guidance for the full year to $21.55 billion at the midpoint from $21.3 billion, a 1.2% increase
• Management raised its full-year Adjusted EPS guidance to $2.10 at the midpoint, a 12% increase
• Operating Margin: 0.9%, in line with the same quarter last year
• Locations: 685 at quarter end, down from 735 in the same quarter last year
• Same-Store Sales rose 2.5% year on year (-2.4% in the same quarter last year)
• Market Capitalization: $5.98 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Macy's’s Q3 Earnings Call

• Matthew Boss (JPMorgan) asked about the traction of reimagined stores and November trends. CEO Tony Spring explained that both traffic and average basket size improved, with continued strength into early Q4.
• Brooke Roach (Goldman Sachs) inquired about sustaining momentum and EBITDA margin prospects. Spring cited product variety and omnichannel balance, while CFO Tom Edwards highlighted ongoing tariff mitigation and disciplined reinvestment.
• Blake Anderson (Jefferies) questioned the behavior of aspirational customers and SG&A savings from store closures. Spring said customer breadth is increasing in Q4, and Edwards noted SG&A leverage from closures but stressed reinvestment for growth.
• Charles Grom (Gordon Haskett) sought clarity on consumer confidence and traffic drivers. Spring responded that guidance reflects a prudent outlook given a more choiceful consumer, while Edwards confirmed positive traffic and average unit retail (AUR) trends.
• Alex Straton (Morgan Stanley) asked about the competitive landscape and gross margin outlook. Spring asserted Macy’s is better positioned than peers, and Edwards attributed Q4 margin pressure mainly to tariffs and promotional flexibility.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch for (1) sustained traffic gains and customer satisfaction in Reimagine 125 and other upgraded stores, (2) measurable improvements in digital sales and fulfillment speed from the China Grove distribution center, and (3) ongoing progress in luxury banners and credit card revenues. Execution on cost containment and inventory discipline will also be critical indicators of Macy’s ability to meet its updated guidance.

Macy's currently trades at $22.53, in line with $22.70 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).