IBEX (IBEX) has put up another solid quarter, with Q3 2026 revenue of US$164.4 million and basic EPS of US$0.99, while trailing twelve month revenue sits at US$626.9 million and EPS at US$3.52 against year over year earnings growth of about 27.1%. Over recent quarters the company has seen revenue move from US$140.7 million in Q2 2025 to US$164.4 million in Q3 2026, with basic EPS rising over the same stretch from US$0.61 to US$0.99 as trailing net profit margin improved from 6.9% to 7.5%. Taken together, these results point to a business converting steady revenue growth into firmer margins. This is the key thread investors will be watching in this earnings release.

See our full analysis for IBEX.

With the latest numbers on the table, the next step is to see how this margin story lines up with the widely held narratives around IBEX and where the figures start to either support or push back on those views.

TTM earnings growth of 27.1% vs 5.2% revenue growth

• Over the last twelve months, IBEX generated US$626.9 million in revenue with earnings of US$47.2 million, which lines up with trailing earnings growth of about 27.1% a year against revenue growth of 5.2% a year.
• What is interesting for the more bullish crowd is that this gap between faster earnings growth and slower 5.2% revenue growth sits alongside a trailing net margin of 7.5%, which is higher than the prior 6.9%. Yet cautious investors may question how durable that mix is if top line growth continues to trail the referenced 11.4% US market figure.
  • Supporters of a bullish view can point to the move from US$36.9 million to US$47.2 million in trailing earnings as evidence that the business is turning revenue into profit at a healthier rate.
  • More conservative voices may highlight that US$626.9 million in trailing revenue compares to US$535.7 million a year earlier, so growth is present but not as quick as the broader 11.4% market benchmark.

P/E of 9.3x against higher industry multiples

• IBEX is trading on a trailing P/E of 9.3x, which sits well below the 18.9x average for US Professional Services and the 16.8x peer average, while the share price of US$32.76 is far below the stated DCF fair value of US$164.55.
• Bulls often argue that a lower P/E combined with that DCF fair value gap signals a mispriced stock, and the current figures give them some support but also raise questions around why the discount exists at all.
  • On the supportive side, the combination of 27.1% trailing earnings growth and a 7.5% net margin can look out of sync with a single digit P/E when compared to higher industry multiples.
  • On the other hand, the 5.2% revenue growth rate relative to the 11.4% US market benchmark provides a clear data point that may explain why some investors are not willing to pay peer level valuations today.

Investors who want to see how this valuation story fits into a broader picture of growth and risk can review what other market participants are saying in one place through the Curious how numbers become stories that shape markets? Explore Community Narratives.

Quarterly EPS progression from US$0.61 to around US$0.99

• Looking back to Q2 2025, basic EPS in the data set moves from US$0.61 in that quarter to US$0.99 in Q3 2026, paired with net income (excluding extra items) stepping from US$9.3 million to US$13.3 million over those reported quarters.
• What stands out for investors weighing a more optimistic stance is that this EPS progression comes with trailing earnings growth of about 27.1% and an uplift in net margin to 7.5%, which gives concrete numbers behind the idea that profitability has been strengthening across the reported periods.
  • The quarterly revenue figures in the inputs, from US$140.7 million in Q2 2025 to US$164.4 million in Q3 2026, help explain how higher earnings are being supported by a larger revenue base rather than only cost cuts.
  • At the same time, the fact that trailing revenue growth of 5.2% is lower than the 11.4% US market benchmark is a clear counterpoint for anyone assuming that the EPS trend alone guarantees similar momentum ahead.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on IBEX's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this mix of stronger margins and slower revenue growth leaves you on the fence, do not wait to form your own view using the same figures investors are watching. To weigh up both sides of the story, start with the 2 key rewards and 1 important warning sign.

See What Else Is Out There

IBEX pairs 27.1% trailing earnings growth with only 5.2% revenue growth and a discount P/E, which raises questions about how dependable its growth profile is.

If you are uneasy about that slower top line and want companies where pricing looks more clearly supported by fundamentals, check out the 51 high quality undervalued stocks today to compare alternatives side by side.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.