TaskUs (NASDAQ:TASK) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

TaskUs (NASDAQ:TASK) posted its earnings results on Wednesday. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.03, FiscalAI reports. The business had revenue of $314.75 million for the quarter, compared to analyst estimates of $303.64 million. TaskUs had a net margin of 8.75% and a return on equity of 27.02%.

Here are the key takeaways from TaskUs’ conference call:

• TaskUs posted record Q3 revenue of $314.7 million, up 5.4% year over year and $12.7 million above the top of its guidance range; adjusted EBITDA margin of 18.8% also slightly exceeded expectations. The company raised its 2026 revenue outlook to $1.249 billion–$1.251 billion and its adjusted free cash flow outlook to $115 million–$125 million.
• Growth outside the largest client accelerated: revenue excluding that client rose nearly 20%, while the top 2–20 client group grew 37%. Digital Customer Experience grew 7.1%, and management expects the rest of the business to maintain nearly 20% growth in Q4.
• AI Services revenue climbed 27.7% to $75 million, its eighth consecutive quarter of growth above 25%, and became TaskUs’ second-largest service line. Management said autonomous vehicle and robotics revenue is expected to exceed $100 million in 2026—more than triple 2025—and sees AI Services as its fastest-growing service line into 2027.
• Automation and cost reductions at the largest client continue to weigh on results: its share of revenue fell to 17% from 27% a year earlier, and Trust & Safety revenue declined 15.8%. TaskUs expects a larger year-over-year Trust & Safety decline in Q4 and difficult comparisons at the large client into early 2027.
• Adjusted EPS declined to $0.34 from $0.42 a year earlier, primarily due to higher interest expense and cost of services. Management also expects increased AI and growth investments, alongside a lower-margin onshore mix, to pressure margins in the near term.

TaskUs Stock Up 7.2%

Shares of NASDAQ TASK opened at $9.25 on Thursday. The stock has a market cap of $848.22 million, a PE ratio of 7.98 and a beta of 1.93. The company has a current ratio of 2.95, a quick ratio of 2.95 and a debt-to-equity ratio of 1.56. TaskUs has a 12-month low of $4.47 and a 12-month high of $13.73. The company has a 50-day moving average of $8.18 and a 200 day moving average of $7.75.

Analyst Ratings Changes

A number of brokerages have recently issued reports on TASK. Wall Street Zen upgraded TaskUs from a “hold” rating to a “buy” rating in a research report on Saturday, October 24th. Wedbush decreased their price objective on shares of TaskUs from $12.00 to $9.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Morgan Stanley lifted their target price on shares of TaskUs from $6.00 to $7.00 and gave the company an “equal weight” rating in a research report on Tuesday, August 11th. Robert W. Baird set a $12.00 price target on shares of TaskUs in a research report on Thursday, August 6th. Finally, Weiss Ratings upgraded TaskUs from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, October 19th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, TaskUs has a consensus rating of “Hold” and a consensus price target of $9.60.

About TaskUs

TaskUs, Inc (NASDAQ: TASK) is a provider of digital outsourcing and customer experience services for technology companies and other high-growth businesses. The company helps clients manage customer interactions, back-office operations and other business processes through a combination of trained personnel, technology and data-driven workflows.

Its services include customer care, technical support, content moderation, trust and safety, fraud prevention, artificial intelligence operations and back-office support.