This little-known company is leveraging AI to provide solutions to its customers.
Shares of little-known company Ibex (IBEX 36.38%) went parabolic today, shooting 41.1% higher in early-morning trading. The stock was still trading around 33% up at 1:15 p.m. ET Friday.
Ibex is a business process outsourcing company, providing a wide array of services such as customer and technical support, lead generation, surveys, and business intelligence and analytics.
Turns out, Ibex’s efforts to build a digital business have already started to pay off, and that is drawing attention to the stock today. The keyword here is artificial intelligence (AI).
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AI-driven growth
Ibex reported numbers for its 2025 fourth quarter and fiscal year (ended June 30) after the Sept. 11 market close. Ibex’s Q4 revenue jumped 18% year over year to $147 million, driven by strong growth in its top three markets: retail and e-commerce; healthcare; and travel, transportation, and logistics.
The real deal, however, is what Ibex’s full earnings report looked like:
- Record fourth-quarter and full-year revenue
- Highest revenue growth in 11 quarters
- Fastest revenue growth in three years for the full year
- Record free cash flow
These are big milestones, but they’re not really why Ibex stock is going to the moon. It’s these words from CEO Bob Dechant: “Importantly, this quarter marked the shift from proof of concept for our AI solutions to full-scale deployments, setting the table for future growth.”
Ibex is “transforming into a digital-first business” by leveraging AI through its Wave iX platform, which uses generative AI to improve customer experiences. Earlier this month, Ibex said it is targeting the government sector now.
What’s next for Ibex stock?
The company’s capital expenditures more than doubled to $18.4 million in 2025, driven by capacity expansion. Ibex generated record free cash flow of $27.3 million in the year and repurchased nearly 3.9 million shares, almost 23% of its outstanding shares.
Following Ibex’s strong earnings report, analysts at RBC Capital were quick to raise their price target on the stock to $39 per share from $31 a share. Ibex stock already hit an all-time high of $42.99 per share today.
With Ibex projecting 7.5% revenue growth at the midpoint for FY 2026 and capital expenditure of $20 million to $25 million on further expansions, this is one stock you should have on your radar.
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.