CNXC

This article first appeared on GuruFocus. Revenue Growth: 0.6% in constant currency terms, nearly 2% as reported. Non-GAAP Operating Income: $292 million, with a margin of 11.9%. Adjusted EBITDA: $347 million, with a margin of 14.1%. Non-GAAP EPS: $2.63, up $0.02 from the first quarter of 2026. Adjusted Free Cash Flow: $242 million, highest level for a second quarter since 2020. Total Net Debt Reduction: Reduced by $228 million to approximately $4.32 billion. Cash and Cash Equivalents: $263 million at the end of the second quarter. Third Quarter Revenue Guidance: $2.465 billion to $2.490 billion. Third Quarter Non-GAAP Operating Income Guidance: $295 million to $305 million. Third Quarter Non-GAAP EPS Guidance: $2.65 to $2.77 per share. Full Year Revenue Guidance: $9.925 billion to $10.025 billion. Full Year Non-GAAP Operating Income Guidance: $1,200 million to $1,230 million. Full Year Non-GAAP EPS Guidance: $10.83 to $11.18 per share. Full Year Adjusted Free Cash Flow Guidance: $630 million to $650 million. Warning! GuruFocus has detected 6 Warning Signs with CNXC. Is CNXC fairly valued? Test your thesis with our free DCF calculator. Release Date: June 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Concentrix Corp (NASDAQ:CNXC) achieved a record level of contract signings for its iX Suite of technology, with a 400% year-over-year increase in the number of deals. The company reported a record second-quarter cash flow, demonstrating strong financial management. Revenue per non-billable headcount increased by 14% year over year, indicating improved operational efficiency. Concentrix Corp (NASDAQ:CNXC) is on track to double its iX Suite revenue by the end of the fiscal year, aiming to surpass $120 million in annual recurring revenue. The company is effectively executing its strategy and making the right investments for long-term shareholder value, with a focus on AI and technology integration. The company experienced a 2% additional headwind going into the third quarter due to increased financial pressure on clients and offshoring. Revenue growth came in slightly below guidance at 0.6% in constant currency terms, reflecting challenges in certain sectors. There was a higher restructuring charge than anticipated, with an expectation to spend an additional $75 million in restructuring this year. The company reduced its full-year revenue growth expectation due to a continued acceleration of mix shift to offshore locations. Some clients are reallocating spending away from certain customer segments, resulting in reduced spend overall. Q: Can you help us understand the 2% headwinds for the year, specifically the mix of accelerated offshoring and client reallocation or reduced spend? A: Christopher Caldwell, President and CEO, explained that the headwinds are due to an increase in offshoring from an expected 2% to 3%, driven by client cost-saving pressures. Additionally, about 1% is due to clients reprioritizing their spend, particularly in high-cost markets, leading to reduced support for certain customer segments. The offshoring shift is expected to be gross profit neutral over the medium term. Q: How should we think about the headwinds playing out next year? Is this a temporary issue? A: Christopher Caldwell noted that while these changes are strategic, they are not expected to be permanent. Historically, clients have reconsidered such decisions when they see negative impacts on ARPU or client churn. The offshoring mix is expected to stabilize, with a finite amount of work that can be moved offshore. Q: What is driving the reduction in the full-year operating margin guidance, and what gives you confidence in margin improvement in the second half? A: Andre Valentine, CFO, attributed the reduction to lower revenue and duplicate costs from offshoring. Confidence in margin improvement comes from restructuring actions, reduced duplicate costs, and scaling technology solutions like the iX Suite, which are expected to generate more revenue in the latter half of the year. Q: Can you quantify the revenue per non-billable headcount growth and its impact? A: Christopher Caldwell highlighted a 14% growth in revenue per non-billable headcount due to internal AI and automation tools. This growth is driven by efficiency improvements, even as the company adds new technology roles. Q: How does the iX Suite contribute to revenue, and is it replacing legacy revenue or generating new spend? A: Christopher Caldwell stated that the iX Suite represents incremental revenue, with 11% of total revenue now influenced by it. The suite is driving higher growth and margin improvements, leading to more consolidation from competitors and additional work from clients' internal operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Concentrix Corporation CNXC used its second-quarter fiscal 2026 call to argue that the bigger story was not a slight miss versus the Zacks Consensus Estimate, but the way AI-led offerings, offshore delivery and internal cost actions are reshaping the business. Non-GAAP EPS of $2.63 missed the Zacks Consensus Estimate of $2.64. Revenues of $2.46 billion also lagged the consensus mark of $2.47 billion. Concentrix Corporation price-consensus-eps-surprise-chart | Concentrix Corporation Quote Management’s message centered on the mix shift. Executives pointed to stronger technology demand, a record cash flow quarter and a clearer path to margin improvement in the second half, even as revenue growth expectations came down. Chief executive officer Christopher Caldwell said the quarter marked an acceleration in the company’s evolution, led by its iX Suite platform and broader AI-enabled services strategy. He highlighted a 400% year-over-year increase in iX Suite deal count and said deals combining technology with services rose 25%, while those combining AI, technology and services climbed 80%. Caldwell said Concentrix closed almost 100 iX Suite deals in the quarter and is now trying to speed deployments to keep up with demand. He added that the company remains on track to double iX Suite revenues by the end of fiscal 2026 and surpass $120 million in annual recurring revenues. Caldwell also framed the platform as a margin and growth lever rather than a near-term revenue cannibalization issue. According to Caldwell, 11% of company revenues are now influenced by iX Suite deployments, and those clients are growing faster while carrying roughly 350 basis points better margin. Chief financial officer Andre Valentine said fiscal second-quarter non-GAAP operating income was $292 million, with a margin of 11.9%, while adjusted EBITDA reached $347.4 million, or 14.1% of revenues. Both margin measures improved sequentially from the fiscal first quarter, even as revenue growth stayed muted. This improvement came alongside heavier restructuring. Caldwell said management accelerated the use of AI internally and moved faster to align costs with higher-growth, higher-return areas, resulting in a larger restructuring charge than anticipated at the start of the quarter. The company now expects total restructuring expense of $175 million this year, including $45 million in the fiscal third quarter and $30 million in the fiscal fourth quarter. Valentine said the cash flow guide already absorbs that spending, underscoring management’s effort to pair cost discipline with continued investment in AI talent and deployment capacity. The main change in the quarter was in the revenue outlook. Concentrix now expects fiscal 2026 revenues of $9.93 billion to $10.03 billion, implying constant-currency growth of 0.25% to 1.25%, down from its prior view. Fiscal third-quarter revenues are projected at $2.47 billion to $2.49 billion, with constant-currency growth of flat to 1%. Management tied the reset to faster offshoring and customer spending changes rather than weakening demand in its AI-related offerings. Valentine said the primary driver was an acceleration in mix shift to offshore locations, now seen as nearly a 300-basis-point headwind, compared with the prior assumption of 200 basis points. Caldwell added that some clients are also reducing support for certain customer segments in high-cost markets, creating another drag. He described the overall demand environment as stable, but said client cost pressure is increasing urgency around automation and offshore delivery. Cash generation was one of the clearest positives. Concentrix reported $257.9 million in operating cash flow and a record fiscal second-quarter adjusted free cash flow of $242.3 million. Valentine said the company reduced net debt by $228 million in the quarter to about $4.32 billion. He added that Concentrix expects to repay more than $550 million of debt this year, including notes due in August 2026 and term loans maturing in December 2026. That capital allocation stance also explains why share repurchases stayed paused. The company paid its quarterly dividend, did not buy back stock in the quarter and reiterated its goal of ending fiscal 2026 with net leverage below 2.6 times adjusted EBITDA. Analyst questions focused on the durability of the revenue headwinds and the timing of margin benefits. A Canaccord Genuity analyst pressed management on how much of the updated outlook was driven by faster offshoring compared with outright client volume cuts. Caldwell responded that offshoring headwind assumptions moved closer to 3%, while spending reallocation away from certain customer segments accounted for about 1%. A BofA Securities analyst asked why the full-year margin view moved lower despite management still calling for second-half improvement. Valentine said the reduction was mainly tied to lower revenues and temporary duplicate costs from moving work offshore, while restructuring actions and stronger scale in tech solutions should drive a higher margin profile later in the year. Barrington Research also asked whether iX Suite revenues are replacing legacy business or adding new spend. Caldwell said the software revenues are incremental, while the broader benefit comes from faster client growth, better margins and additional wallet share as customers expand deployments. The tone coming out of the call was disciplined rather than promotional. Management acknowledged that faster offshoring and selective client spending cuts are weighing on near-term revenues, but it kept returning to the same points: AI demand is real, margin expansion is still expected in the back half and cash flow is strong enough to fund restructuring and debt reduction. That leaves Concentrix heading into the second half with a narrower growth outlook, but also with a more explicit operating playbook. The company is leaning into AI deployments, pushing internal efficiency harder and using cash generation to repair the balance sheet. CNXC carries a Zacks Rank #3 (Hold), which indicates a more neutral near-term earnings estimate revision profile than a Zacks Rank #1 (Strong Buy) or 2 (Buy). For investors using Style Scores alongside the rank, the stock’s Value Score of A, Growth Score of B, Momentum Score of B and VGM Score of A point to favorable underlying style characteristics, with the strongest signals coming from value and the combined VGM measure. You can see the complete list of today’s Zacks #1 Rank stocks here. The Style Score framework places greater weight on A and B grades, but it also treats the Zacks Rank as the first screen. A Zacks Rank #3 can still be held, especially when supported by stronger Style Scores, though the rank can change as estimate revisions move after the quarter’s results and guidance update. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Concentrix Corporation (CNXC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Concentrix Corporation (CNXC) came out with quarterly earnings of $2.63 per share, missing the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $2.7 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.19%. A quarter ago, it was expected that this company would post earnings of $2.64 per share when it actually produced earnings of $2.61, delivering a surprise of -1.14%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Concentrix, which belongs to the Zacks Business - Services industry, posted revenues of $2.46 billion for the quarter ended May 2026, missing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $2.42 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Concentrix shares have lost about 39.9% since the beginning of the year versus the S&P 500's gain of 7.4%. While Concentrix has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Concentrix was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.18 on $2.54 billion in revenues for the coming quarter and $11.65 on $10.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Healthcare Services (HCSG), has yet to report results for the quarter ended June 2026. This provider of housekeeping, laundry and dietary services to health care facilities is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -4.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Healthcare Services' revenues are expected to be $470.2 million, up 2.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Concentrix Corporation (CNXC) : Free Stock Analysis Report Healthcare Services Group, Inc. (HCSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue and profit within guidance as reported A record-high second quarter $258M in cash flow from operations, $242M in adjusted free cash flow iX Suite deals up 400% year over year NEWARK, Calif., June 29, 2026 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal second quarter ended May 31, 2026. Second Quarter Fiscal 2026 Highlights: Revenue of $2,462.5 million, an increase of 1.9% year-on-year on an as reported basis compared to revenue of $2,417.4 million in the prior year second quarter. The Company grew revenue 0.6% year-on-year on a constant currency basis. Operating income of $95.4 million, or 3.9% of revenue, compared to $148.3 million, or 6.1% of revenue, in the prior year second quarter. Non-GAAP operating income of $292.0 million, or 11.9% of revenue, compared with $303.7 million, or 12.6% of revenue in the prior year second quarter. Adjusted EBITDA of $347.4 million, or 14.1% of revenue, compared with $357.3 million, or 14.8% of revenue in the prior year second quarter. Cash flow provided by operations was $257.9 million in the quarter. Adjusted free cash flow(1) was $242.3 million in the quarter. Diluted earnings per common share (“EPS”) was $0.86 compared to $0.63 in the prior year second quarter. Non-GAAP diluted EPS was $2.63 compared to $2.70 in the prior year second quarter. “Our second quarter marked an acceleration in many areas in the evolution of our business,” said Chris Caldwell, President and CEO of Concentrix. “Our blended AI and services approach is delivering value to clients by lowering their costs and increasing their revenue, helping us differentiate ourselves in the marketplace." Quarterly Dividend and Share Repurchase Program: The Company paid a $0.36 per share quarterly dividend on May 5, 2026. The Company’s Board of Directors has declared a quarterly dividend of $0.36 per share payable on August 4, 2026, to shareholders of record at the close of business on July 24, 2026. The Company did not repurchase any shares under its share repurchase program during the second quarter of fiscal year 2026. At May 31, 2026, the Company’s remaining share repurchase authorization was $396.6 million. Business Outlook:The following statements are based on the Company’s current expectations for the third quarter and the full year fiscal 2026. Non-GAAP financial measures exclude the impact of acquisition-related, integration and restructuring expenses, amortization of intangible assets, depreciation, loss on held for sale, share-based compensation and the related tax effects thereon. The non-GAAP EPS guidance assumes no impact from changes in acquisition contingent consideration and foreign currency losses (gains), net included in other expense (income), net. These statements are forward-looking and actual results may differ materially. Third Quarter Fiscal 2026 Expectations: Third quarter reported revenue of $2.465 billion to $2.490 billion. Based on current exchange rates, these expectations assume an approximate 75-basis point negative impact of foreign exchange rates compared with the prior year period. The guidance implies constant currency revenue growth for the quarter ranging from 0.0% to 1.0%. Operating income of $121 million to $131 million and non-GAAP operating income of $295 million to $305 million. Non-GAAP diluted EPS of $2.65 to $2.77, assuming approximately 60.9 million diluted common shares outstanding and approximately 4.8% of net income attributable to participating securities. The effective tax rate is expected to be approximately 25%. Full Year 2026 Expectations: Full year reported revenue of $9.925 billion to $10.025 billion. Based on current exchange rates, these expectations assume an approximate 75-basis point positive impact of foreign exchange rates compared with the prior year. The guidance implies constant currency revenue growth for the full year of 0.25% to 1.25%. Operating income of $509 million to $539 million and non-GAAP operating income of $1,200 million to $1,230 million. Non-GAAP diluted EPS of $10.83 to $11.18, assuming approximately 61.1 million diluted common shares outstanding and approximately 4.8% of net income attributable to participating securities. The effective tax rate is expected to be approximately 24.5%. In addition, the Company expects to generate approximately $630.0 million to $650.0 million of adjusted free cash flow in fiscal year 2026. The Company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to (a) the inability to forecast future changes in acquisition contingent consideration, which is based, in part, on the future trading price of the Company’s common stock, and (b) the inability to forecast future foreign currency losses (gains), net included in other expense (income), net. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results. The Company believes that a quantitative reconciliation of the adjusted free cash flow outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to uncertainty related to the future changes in the Company’s factoring program and related timing of those changes. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results. Conference Call and WebcastThe Company will host a conference call for investors to review its second quarter fiscal 2026 results today at 5:00 p.m. (ET)/2:00 p.m. (PT). The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Company’s website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call. About Concentrix: Powering a World That WorksConcentrix Corporation (NASDAQ: CNXC), is the Fortune 500® technology and services company, helping the world's best brands create intelligent operations that perform in the real world. We design, build, and run integrated human and AI solutions, harnessing the insight from billions of real-world interactions to help 2,000+ of the world’s most complex organizations solve their toughest business challenges. Backed by 20+ years of operational experience and battle tested AI, we’re the intelligent transformation partner that helps clients across every major industry move from ambition to measurable, scalable performance. Virtually everywhere. To learn more, visit concentrix.com. Use of Non-GAAP InformationIn addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including: Constant currency revenue growth, which is revenue growth adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth is calculated by translating the revenue of each fiscal year in the billing currency to U.S. dollars using the comparable prior year’s currency conversion rate in comparison to prior year’s revenue. Generally, when the U.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates. Non-GAAP operating income, which is operating income, adjusted to exclude acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale and share-based compensation. Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue. Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation (exclusive of step-up depreciation). Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue. Non-GAAP net income, which is net income excluding the tax-effected impact of acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the Sellers’ Note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP net income also excludes the income tax effect of certain tax law changes. Free cash flow, which is cash flows from operating activities less capital expenditures, and adjusted free cash flow, which is free cash flow excluding the effect of changes in the outstanding factoring balance. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. We believe that adjusted free cash flow is a meaningful measure of cash flows because it removes the effect of factoring which changes the timing of the receipt of cash for certain receivables. However, free cash flow and adjusted free cash flow have limitations because they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and adjusted free cash flow do not incorporate payments for business acquisitions. Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax-effected impact of acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the Sellers’ Note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP EPS also excludes the per share income tax effect of certain tax law changes. Non-GAAP EPS also reflects a per share adjustment to exclude non-GAAP net income attributable to participating securities. We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors’ ability to compare our past financial performance with our current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP. Safe Harbor StatementThis news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax rate, leverage and liquidity, capital expenditures and anticipated investment costs, the Company’s stock price and market capitalization, the future growth and success of, and demand for, the Company’s services and products, the potential benefits associated with use of the Company’s artificial intelligence (“AI”) solutions and other products, share repurchase and dividend activity, capital allocation, debt repayment and obligations, business strategy, product launches, foreign currency exchange rate fluctuations, and statements that include words such as believe, expect, intend, plan, may, will, anticipate, provide, could, should, target, estimate, outlook, and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks related to general economic and geopolitical conditions and their effects on our clients’ businesses and demand for our services, including consumer demand, interest rates, inflation, the price of oil and other petroleum-based products, international tariffs and global trade policies, supply chains, and the conflicts in the Middle East and Ukraine; cyberattacks on the Company’s or its clients’ networks and information technology systems; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of AI, including agentic and generative AI; the failure of the Company’s staff and contractors to adhere to the Company’s and its clients’ controls and processes; the inability to protect personal and proprietary information; the effects of communicable diseases or other public health crises, natural disasters and adverse weather conditions; geopolitical, economic and climate- or weather-related risks in regions with a significant concentration of the Company’s operations; the ability to successfully execute the Company’s strategy; the timing and success of product launches; competitive conditions in the Company’s industry and consolidation of its competitors; variability in demand by the Company’s clients or the early termination of the Company’s client contracts; the level of business activity of the Company’s clients and the market acceptance and performance of their products and services; the demand for end-to-end solutions and technology; damage to the Company’s reputation through the actions or inactions of third parties; changes in law, regulations, or regulatory guidance, or changes in their interpretation or enforcement, including changes in law and policy that restrict offshoring or travel or visas between countries in which we have operations; the operability of the Company’s communication services and information technology systems and networks; the loss of key personnel or the inability to attract and retain staff across all geographies with the skills and expertise needed for the Company’s business; increases in the cost of labor, including minimum wage rates in the countries in which the Company operates; the inability to successfully identify, complete, and integrate strategic acquisitions or investments or realize anticipated benefits within the expected timeframe; higher than expected tax liabilities; currency exchange rate fluctuations; investigative or legal actions; and other factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2025 filed with the Securities and Exchange Commission (“SEC”) and subsequent documents filed with or furnished to the SEC. The Company does not undertake a duty to update forward-looking statements, which speak only as of the date on which they are made, except as required by law. Copyright 2026 Concentrix Corporation. All rights reserved. Concentrix, the Concentrix logo, and all other Concentrix company, product, and services word and design marks and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries. Other names and marks are the property of their respective owners. From Fortune ©2026 Fortune Media (USA) Corporation. All rights reserved. Used under license. Fortune and Fortune 500 are registered trademarks of Fortune Media (USA) Corporation and are used under license. Fortune and Fortune Media (USA) Corporation are not affiliated with, and do not endorse products or services of, Concentrix. Investor Contact:Elise BrassellConcentrix [email protected] (1) For the three and six months ended May 31, 2026, acquisition-related, integration and restructuring expenses primarily included restructuring costs associated with our recent cost reduction initiatives, including severance and employee-related costs. Restructuring expenses also included costs associated with facilities consolidation, including lease terminations. For the three and six months ended May 31, 2025, acquisition-related, integration and restructuring costs primarily included integration costs associated with our combination with Webhelp and restructuring expenses. These costs primarily included severance and employee-related costs, costs associated with facilities consolidation, including lease terminations to integrate the businesses, and information technology system consolidation costs. (2) For the six months ended May 31, 2026, debt costs included debt extinguishment costs associated with our early redemption of $600 million of our senior notes due in August 2026. For the three and six months ended May 31, 2025, debt costs included debt extinguishment costs associated with our restated credit agreement and our voluntary prepayment of a portion of our outstanding term loans. (3) For the three and six months ended May 31, 2025, legal settlement costs consist of amounts incurred to settle certain litigation arising outside of the ordinary course of business. (4) Foreign currency losses (gains), net are included in other expense (income), net and primarily consist of gains and losses recognized on the revaluation and settlement of foreign currency transactions and realized and unrealized gains and losses on derivative contracts that do not qualify for hedge accounting. (5) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented. (6) Diluted EPS is calculated using the two-class method, which is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Restricted stock awards and certain restricted stock units granted to employees are considered participating securities. For the purposes of calculating diluted EPS, net income attributable to participating securities was approximately 5.0% and 4.8% of net income, respectively, for the three months ended May 31, 2026 and 2025 and 5.0% and 4.8% of net income, respectively, for the six months ended May 31, 2026 and 2025. (7) For the purposes of calculating non-GAAP net income attributable to common shareholders and non-GAAP diluted EPS, non-GAAP net income attributable to participating securities was approximately 5.0% and 4.8% of non-GAAP net income, respectively, for the three months ended May 31, 2026 and 2025, and 5.0% and 4.8% of non-GAAP net income, respectively, for the six months ended May 31, 2026 and 2025, and was excluded from non-GAAP net income attributable to common shareholders to calculate non-GAAP diluted EPS.

Image source: The Motley Fool. Tuesday, March 24, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Christopher Caldwell Chief Financial Officer — Andre Valentine Chris Caldwell, our President and Chief Executive Officer; and Andre Valentine, our Chief Financial Officer. Chris will provide a summary of our operating performance and growth strategy, and Andre will cover our financial results and business outlook. Then we'll open the call for your questions. Now I'll turn the call over to Chris. Christopher Caldwell: Thank you, Elise. Hello, everyone, and thank you for joining us for our first quarter 2026 earnings call. Today, I'd like to start by giving you an overview of how we're thinking about the quarter, and then I'll turn it over to Andre to talk more about the specifics of our results. Overall, in the first quarter, we continue to win the right business, drive the right revenue mix and execute on our strategy, allowing us to come within our guide for both revenue and profit. Our solutions are driving value both from automating work or when combined with the human to drive performance. Our overall wins with technology are up more than 61% year-over-year in the first quarter, highlighting the shift in our go-to-market offerings and client acceptance. When we look at our bookings quarter-on-quarter, our signed annual contract value for solutions, including AI, more than doubled, and we're seeing sequential increases in expanding AI license consumption across our client base. Our pipeline of opportunities to continue to be solid and represent a continued progression and shift to a higher solution mix. Our proprietary iX suite of AI products our third-party technology partners and our deep domain expertise continue to be differentiators that open the door for us to win larger, more transformative deals with our clients. While this might initially compress some existing revenue and margin, when these programs reach scale and full production, the margin is accretive, and we generally see revenue growth across our portfolio of services into these clients. As an example, we closed, close to 60 enterprise iX suite deals in the quarter including our largest iX Hero contracts to date with 2 Fortune 50 companies. Both clients will use our proprietary AI technologies to modernize their ability to create more efficient personalized and effective interactions with their customers while allowing us to sell additional solutions into these accounts. Looking forward, we are continuing with our focus of securing complex work and high-value services in our client base, growing our share of wallet, using our extended offerings, allowing clients to consolidate work with us, leveraging our own IP and third-party platforms to differentiate ourselves in the market and driving internal efficiencies to fuel continued investment in areas of new growth. In summary, we delivered another quarter with revenue growth, and we are on track to meet our expectations for the year. We are winning the right business and successfully executing while making the right investments in the business for long-term revenue and margin growth. I would like to thank our game changers for their tireless pursuit of excellence with our clients and their trust and partnership that we have with our clients. With that, Andre, I'll turn it over to you. Andre Valentine: Well, thanks, Chris, and good morning. I'll review the details of the first quarter and then discuss our outlook for the second quarter, remainder of 2026. We delivered revenue of approximately $2.5 billion, an increase of 1.9% on a constant currency basis and over 5% on a reported basis. Looking at constant currency growth by vertical. Revenue from banking and financial services clients grew 13% year-over-year. Revenue from retail, travel and e-commerce clients grew 6% largely driven by growth with travel and e-commerce clients. Media and Communications revenues grew 3%, largely with clients outside the U.S. and global entertainment and media companies. Our technology and consumer electronics vertical and our health care vertical both decreased about 6% driven by lighter volumes than clients expected and shore mix. Turning to profitability. Our non-GAAP operating income was $295 million. The midpoint of the guidance range we provided on our last call. Adjusted EBITDA in the quarter was $348 million, a margin of 13.9%. Non-GAAP diluted EPS was $2.61 in line with the guidance range we provided in January. GAAP results for the first quarter reflect a $6 million loss on the sale of 2 small nonstrategic businesses. One of these sales closed in the quarter with the second expected to close later this year. The assets and liabilities of the pending sale are reflected in the balance sheet as assets held for sale. Total net proceeds from the 2 sales will be approximately $20 million. Our GAAP results for the first quarter and our expectations for GAAP results for the second quarter also reflect restructuring charges related to cost actions that we're taking to align our cost structure and invest in higher growth and higher profit areas. We expect the combination of the actions taken in the first and second quarters of 2026 to drive approximately $40 million in annualized savings over and above investments in growth. This will contribute to sequential profitability growth in the second half of 2026. Complete reconciliations of non-GAAP measures to the comparable GAAP measures are provided in today's earnings release. Adjusted free cash flow was negative $145 million [ in the ] quarter, reflects an increase in accounts receivable at the end of the quarter, resulting from the timing of cash receipts. The related receivables were all collected in the first week of March. As a reminder, free cash flow in our business is seasonal with negative free cash flow in the first quarter and robust free cash flow generation in each subsequent quarter. This pattern is expected to recur in fiscal year 2026. We're confident in repeating our previous guidance for between $630 million and $650 million in adjusted free cash flow this year. We returned approximately $65 million to shareholders in the quarter, which included repurchasing $42 million of our common shares or approximately 1.05 million shares at an average price of approximately $40 per share. The remaining $23 million in shareholder return was in the form of our quarterly dividend. In February, we issued $600 million of 3-year senior notes maturing March 1, 2029. The new notes carry an interest rate coupon of 6.50%. The proceeds from the new notes were used to retire $600 million of 6.65% senior notes that mature in August 2026. $200 million of the 6.65% senior notes maturing in August 2026 remain outstanding, and we expect to repay them with strong free cash flow in the second and third quarters. At the end of the first quarter, cash and cash equivalents were $234 million and total debt was approximately $4.75 billion, bringing our net debt to $4.51 billion. Our off-balance sheet factored accounts receivable borrowings were approximately $129 million at the end of the quarter. At the end of the quarter, our liquidity was nearly $1.4 billion including our $1.1 billion revolving credit facility, which was undrawn. To summarize, in the first quarter, we delivered revenue and profitability in line with our guidance range. We also took proactive steps to manage upcoming debt maturities while continuing to invest in growth. Now I'll turn to our outlook. For the second quarter, we expect the following: second quarter revenue of $2.46 billion to $2.485 billion. Based on current exchange rates, we expect an approximate 75 basis points positive impact of foreign exchange rates compared with the prior period. The guidance implies constant currency revenue growth for the quarter, ranging from 1% to 2%. As we've said, our goal is to be conservative in our revenue guidance, and we are being prudent with the current geopolitical situation. We expect second quarter non-GAAP operating income of $290 million to $300 million, this implies a non-GAAP operating margin of 11.8% to 12.1%. Second quarter non-GAAP earnings per share will be expected to be $2.57 to $2.69 per share, assuming approximately $67 million in interest expense, 60.9 million in diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities. The non-GAAP effective tax rate is expected to be approximately 25% for the second quarter. Our expectations for the full year non-GAAP metrics remain unchanged from our earnings call in January and can be found in today's release. As I mentioned earlier, we continue to expect to generate between $630 million and $650 million in adjusted free cash flow this year. In addition to our strong free cash flow, we expect aggregate proceeds for approximately $40 million from asset sales, including the sale of the 2 businesses I mentioned earlier. The remaining proceeds will come from the sale of owned properties that are no longer being utilized. We are committed to reducing our net leverage to below 2.6x adjusted EBITDA by the end of fiscal 2026. In summary, our overall demand environment remains solid. The margin headwinds we have seen in recent quarters are being managed, and we are confident in our ability to drive year-over-year profitability growth in the second half of 2026. We're confident in the continued strong free cash flow generation of the business and our plan to reduce net leverage over the balance of the year and we are in a strong competitive position to drive long-term outperformance. Now operator, please open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Ruplu Bhattacharya with Bank of America. Ruplu Bhattacharya: Chris, can you specify approximately how much revenue in 1Q was related to AI and the iX suite? And how are you pricing these solutions? And can you give us an idea of how you're looking at investments related to AI in 2026? Christopher Caldwell: So let me answer the questions in a bit of a backwards way. So just in terms of how we're pricing these solutions, our iX Hello solution, which is the fully autonomous solution that we have basically is priced by consumption. So we put it in for very small or de minimis fees. And then based on how many contacts that are fully automated, we get paid for. And so as you can imagine, when we put it in, we see a negative margin for the first little while. And then as it scales and grows, we see a positive margin similar to what you'd expect from a SaaS or software type of business. On our Hero product, it is a subscription basis, where we sell on a per-seat subscription of how many humans are actually using the product to drive the business. And as we talked about, at the end of last year, we ended Q4 at $60 million of ARR. We continue to add to that. We're not releasing numbers on a quarterly basis, but our expectation is to be at or above $100 million by the end of this fiscal year. If we reach that sooner, we will update you on that. But so far, we're actually a little ahead of plan from where we expected based on what we've sold within the first quarter. And we have a very, very strong pipeline going into the second quarter that we've already started to see some good uptake with -- on our proprietary AI products. In terms of the percentage of our business with AI within our business in Q1. Ruplu, the challenge that we have is that what we're seeing in the marketplace is that as you think about AI solutions, we're seeing clients adopt more than one AI solution, and sometimes they're adopting more than one AI solution from us. Sometimes, they're doing some things internally. So the way we look at it is of the revenue we service -- of the clients we service, how much of that has AI involved in it? And the reality is it's the vast majority of our clients are using our AI, their own AI, some other bits and pieces of AI. What we also look at is our success rate of AI implementations because in the marketplace, there's a lot of people who are talking about AI, but they're not getting the success rate. And we're seeing very, very high success rates. Very, very high success rates on our AI implementations driving real tangible value for clients. And so that's what we're very excited about as we're going into the second quarter. Ruplu Bhattacharya: Okay. details there, Chris. For my follow-up, Andre, can I ask you a question related to the cadence of margin improvement. If we look at the guidance, the implied operating margins go from 11.8% this quarter to about 12.5% in the -- for the full fiscal year. You mentioned a couple of things like there's cost reduction actions you're taking. I think Chris mentioned like the pipeline indicates a better mix. And I think you also said that margins improve over time in contracts. Can you help us get comfortable with how we should think about this margin progression? It looks like the EPS guide for next quarter is slightly below the Street estimates. So can you help us just think about how you're thinking about the ramp and what's giving you confidence that you can get to 12.5%, which would mean above 13% operating margin for the fourth quarter? Andre Valentine: Sure. Happy to do that, Ruplu. And the guidance is very much consistent with what we said entering the year, which was we thought that margins would be somewhat compressed in the first half, and then we would see sequential margin expansion in the second half of the year that would get us to year-over-year margin increases in the second half of the year. Driving that is certainly the result of the cost actions that we're taking in the first half. Other drivers are -- if you look at the revenue guide, there's roughly, depending on where you are in the guide, $100 million to $150 million of additional revenue coming online in the second half of the year over the first half. That's going to flow through at absorb the capacity that we've added into the business and will certainly drive revenue at a fairly high flow through as we go forward. Then you have some of the transformational deals, as Chris alluded to, getting to kind of full scale and full production and reaching the intended margins on those projects. And then that's really it. And so we have a great deal of confidence in our ability to drive the expansion in margin that begins. First, you see kind of stable to slightly expanding margin here in Q2, a bigger uptick in Q3 as we go sequentially, thanks to revenue coming online and the cost actions and then a further step up in the fourth quarter, which is kind of a traditional pattern of a step-up in margin as you go from Q3 to Q4. Ruplu Bhattacharya: If I can just ask a clarification on that. Andre, you had also mentioned in prior quarters that some customers, both in Europe as well as North America. We're looking to move operations offshore, and that was impacting revenues in the near term and the margins would have improved over time. Can you update us on how that is impacting results currently? Also, you had talked about supporting some customers whose volumes were not materializing and you had laid out 2 or 3 options that you had. Can you give us an update on where that stands? And are customer volumes coming back as you had expected? Or are you taking some remedial actions? Andre Valentine: Sure. Happy to do that. Well, yes, absolutely, the trend towards moving work offshore continues. As we talked about, I believe, on the last call, we have as we see it roughly 15% of our revenue is delivered out of North America and Western Europe that we think over time, as the capacity to perhaps move offshore, we provided in our revenue guide entering the year. for roughly a 2-point headwind from shore movement. We think we're still in line with that. And as we think about what that means from a margin perspective, particularly the commentary that I made about utilizing capacity that we've built ahead of revenue. A big piece of that is that shift offshore filling up capacity that we've added over the last couple of quarters in advance of that revenue. So that is how we would think about the impact of shore movement. Obviously, when those programs get offshore, margins are improved. When they get -- when the programs get the full run rate. Back to the commentary about volumes not materializing. As you recall last year, second half of the year, actually starting in the second quarter, we saw impacts from tariffs, delaying some programs. We said that, that would eventually -- we've worked that through the system through either having the volumes materialize or shedding the excess capacity that we've added in advance of those programs. That is pretty much playing out in line with our expectation. We saw improvement in that situation as we expected in Q1, and we think that's fully out of our system kind of as we exit Q2. Operator: Your next question comes from the line of Luke Morison with Canaccord Genuity. Lucas Morison: Starting with Andre. So you sold those 2 small nonstrategic businesses in the quarter for, I think you said, $20 million combined, obviously, pretty small, but can you just talk about the philosophy behind those divestitures? Is this potentially the beginning of a more active portfolio pruning effort? Were those more opportunistic? Are there other parts of the portfolio that you consider noncore? Just any help there. Andre Valentine: Yes, happy to do that. Yes, so we're not really looking to shed anything else at this point in time. We're always kind of looking at the portfolio of what we have in the business. These 2 businesses were quite small, not strategic, not growing, not accretive to overall margins. And so it just made sense to exit those. We'll continue to look at the portfolio over time and see if there are other things that make sense, but I wouldn't expect certainly nothing imminent there and nothing really that we're working on. Lucas Morison: Got it. Helpful. And then, Andre, the 2 verticals you mentioned that were down 6% in the quarter. I wonder if that was related to the customers that you were referencing in your last question. And then maybe double-clicking there. You attributed that to lighter volumes than clients expected and shore mix. Can you just help us disaggregate those 2 factors and then whether or not you have line of sight to those verticals stabilizing in the back half of this year? Andre Valentine: Yes. So I'll bifurcate the 2 because they're not exactly the same. So health care, we actually saw lighter volumes than expected, largely related to changes in Medicare membership for some of our clients as well as participation in the Affordable Care Act program. And so that impacted our revenues in the health care vertical. We don't see that really returning to growth here for a couple of quarters. And so that is kind of where that vertical stands. With respect to tech and consumer electronics, there -- the impact is a little bit around underlying volumes. Even as we consolidate a share within some of those clients, underlying volumes are down, a little bit of impact of automation there. That's about half of the revenue change there and then shore mix being the other half of that kind of 6% constant currency reduction. That vertical, you've seen some volatility in the past 8 quarters. Some quarters we grow a little bit, some we shrink. We think that could go up or down as we go through the second half of 2026 based on what we see in the pipeline and opportunities to continue to gain share within the client base. Operator: Your next question comes from the line of David Koning with Baird. David Koning: I guess my first question, just longer-term margins. I know you've had some puts and takes, but if we think back to, I think, '22 to '24, you had 14% or so margins. We're lower than that now. And I know there's some factors. But things that should make it go up, the Webhelp synergies, scale, shift to AI, offshore, like all those should be positive tailwinds can those tailwinds drive margins back to at least where margins have been or hopefully higher? And how fast could they get there? Christopher Caldwell: David, it's Chris. You're right. I mean when we look at the business and kind of some of those AI; implementation, the transformational implementation and look at sort of programs that are running at scale, running the way we'd expect and everything else that kind of goes along with it. We're in that range. And our expectation is we continue to build on that as we get some of these other programs up to scale as we put in the new AI. A lot of the Webhelp synergies we've invested in developing our AI and changing our go-to-market platform, which we talked about last year and this year. And as we talked about in the prepared remarks in terms of the annual contract values effectively doubling as we went into Q1 as we talk about sort of our attach rates increasing, all of those are going to kind of give us some momentum and leverage. I don't want to guide past 2026, but it's very clear to Andre and I, that our expectations is we get this back to historical margins and then we can progress past there. Timeline, I think, as earlier question around where we see our margins at the end of Q4 this year, you can start to see kind of how we're incrementing up to get back to those historic margins. David Koning: Yes. Okay. That's helpful on that. And then, I guess, banking was very strong in the quarter as was the retail segment. Maybe just refresh a little bit on those, is growth in those 2 sustainable? And is it some market factors happening right now or any one-off impacts that are happening? Maybe just kind of walk through those again. Christopher Caldwell: Yes. So banking, you saw last quarter was quite strong, and we expect there to be fairly strong strength through the course of the year, sort of high single-digit, low double-digit growth based. And what we like about it is that it's very widespread. We're doing very well in banking, BFSI across both fintechs, top kind of 200 global banks, sort of the traditional enterprise banks and some new entrants who are trying to disrupt the market. And so really, we're seeing broad-based success in that. What's really driving a lot of the growth is actually this combination of the solutions of the banks now coming to us for more complex work. So very large transformational deal we won last year that we talked about is in the BFSI. That's starting to come through to fruition this year and driving the performance and profitability as we expected. And we're seeing more of that coming through where traditionally, we haven't been able to sell some of our tech solutions into the banking and BFSI sector, and now we are. So we see that kind of sustained growth. In the travel, transportation and e-commerce sector, it's really both e-commerce and travel that are doing well. In the e-commerce side, we see that quite sustainable. We are winning net new clients as well as consolidating share in that. And again, it's a mix of the new solutions we're bringing to the table as well as people looking at our footprint and seeing benefit in how we can deliver consistently around the world. And then on the travel side, we've got a strong travel portfolio, both in short-term stays portfolio to longer stay portfolio to airlines, to consolidators to e-commerce platforms that deal with travel. And again, we're seeing broad-based support. And what we like is what's going into those accounts is, again, these kind of complete solution sets that's allowing us to get spend that historically hasn't been outsourced. Technology spend, which historically hasn't come to us and then consolidation as well. So we see that as sustainable as well. Don't ask me if jet fuel goes up to $200 a barrel. But at this point, we're very confident in what we can see with the pipeline in that -- in those verticals. Operator: Your next question comes from the line of Vincent Colicchio with Barrington Research. Vincent Colicchio: Chris, did you see any change or any signs of sentiment change or client behavior once the geopolitical issues started recently here? Christopher Caldwell: Yes. So Vince, we've talked to a significant amount of our clients. Some are being impacted, but very de minimisly so far, things have been fairly robust. Our exposure to this is about 1% of revenue, give or take, which is sort of our Middle Eastern operations. And so far, we haven't seen sort of an impact at this point in time. I think people are just being very, very cautious right now. But so far, it's fairly steady. Vincent Colicchio: And Andre, to what extent did excess capacity negatively impact margin this quarter? Andre Valentine: Yes. It's in the 20 to 40 basis point range. And so that as we think about opportunities to improve profitability as we get into the second half of the year, we think that -- and here I'm just really talking about the physical capacity mostly. As we grow into the physical capacity, we think we see a 20 to 40 basis point improvement in second half. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Concentrix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Concentrix wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Concentrix (CNXC) Q1 2026 Earnings Transcript was originally published by The Motley Fool

In recent months, Concentrix reported fiscal Q1 2026 results showing revenue growth but weaker operating and net income, prompting margin and profitability concerns among investors. At the same time, FMR LLC disclosed a passive stake of about 6.9% and management increased conference appearances, signaling an effort to engage institutional investors amid questions over returns on invested capital. We’ll now examine how margin pressure highlighted in the latest results could influence Concentrix’s existing investment narrative around AI, synergies, and capital deployment. This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality. To stay invested in Concentrix right now, you need to believe that its AI, Webhelp integration, and capital deployment can eventually translate revenue growth into healthier margins, despite recent profitability pressure. The sharp drop in operating and net income in Q1 FY2026, and the share price reaction, keep margin stabilization as the key near term catalyst and sustainment of returns on invested capital as the biggest risk. The latest news does not materially change that focus. The most relevant recent development here is Concentrix’s Q1 FY2026 earnings release, which paired higher revenue with weaker margins and triggered a more than 25% share price decline. This result directly intersects with the investment case around AI and Webhelp synergies, because it raises questions about how quickly those initiatives can offset cost inflation and integration expenses, and whether current capital deployment, including buybacks and dividends, remains appropriate while margins are under such pressure. Yet beneath the AI and integration story, the pressure on returns from weaker margins is something investors should be acutely aware of, because... Read the full narrative on Concentrix (it's free!) Concentrix's narrative projects $10.6 billion revenue and $1.7 billion earnings by 2029. This requires 2.3% yearly revenue growth and a $3.0 billion earnings increase from -$1.3 billion today. Uncover how Concentrix's forecasts yield a $41.25 fair value, a 62% upside to its current price. Before this setback, the most pessimistic analysts still expected revenue to reach about US$10.8 billion by 2028, but they were already worried that slower AI monetization and soft utilization could hold earnings near US$327.7 million, reminding you that reasonable people can read the same data and reach very different conclusions that may now need revisiting. Explore 5 other fair value estimates on Concentrix - why the stock might be worth over 3x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Concentrix research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Our free Concentrix research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Concentrix's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. Capitalize on the AI infrastructure supercycle with our selection of the 40 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. The future of work is here. Discover the 32 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. 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. Companies discussed in this article include CNXC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the professional services stocks, including Concentrix (NASDAQ:CNXC) and its peers. The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled talent and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly. The 4 professional services stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line. While some professional services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results. With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ:CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers. Concentrix reported revenues of $2.5 billion, up 5.4% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and a miss of analysts’ EPS guidance for next quarter estimates. “We continue to help clients capture measurable value from AI by being a trusted partner for these solutions,” said Chris Caldwell, President and CEO of Concentrix. Concentrix achieved the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 1.4% since reporting and currently trades at $29.37. Is now the time to buy Concentrix? Access our full analysis of the earnings results here, it’s free. With roots dating back to 1871 and a presence in over 130 countries, Marsh (NYSE:MRSH) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses. Marsh reported revenues of $7.60 billion, up 7.6% year on year, outperforming analysts’ expectations by 2.9%. The business had a strong quarter with an impressive beat of analysts’ revenue estimates and a narrow beat of analysts’ organic revenue estimates. Marsh pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.4% since reporting. It currently trades at $172.47. Is now the time to buy Marsh? Access our full analysis of the earnings results here, it’s free. Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE:MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services. ManpowerGroup reported revenues of $4.51 billion, up 10.3% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates. Interestingly, the stock is up 2.5% since the results and currently trades at $31.50. Read our full analysis of ManpowerGroup’s results here. Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE:EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses. Equifax reported revenues of $1.65 billion, up 14.3% year on year. This number beat analysts’ expectations by 2%. Zooming out, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates. Equifax pulled off the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is down 9.7% since reporting and currently trades at $179.25. Read our full, actionable report on Equifax here, it’s free. Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

This article first appeared on GuruFocus. Revenue: Approximately $2.5 billion, an increase of 1.9% on a constant currency basis and over 5% on a reported basis. Non-GAAP Operating Income: $295 million. Adjusted EBITDA: $348 million, with a margin of 13.9%. Non-GAAP Diluted EPS: $2.61. Adjusted Free Cash Flow: Negative $145 million, due to an increase in accounts receivable. Shareholder Returns: $65 million, including $42 million in share repurchases and $23 million in dividends. Debt and Liquidity: Total debt approximately $4.75 billion, cash and cash equivalents $234 million, and liquidity nearly $1.4 billion. Second Quarter Revenue Guidance: $2.46 billion to $2.485 billion, with constant currency growth of 1% to 2%. Second Quarter Non-GAAP Operating Income Guidance: $290 million to $300 million. Second Quarter Non-GAAP EPS Guidance: $2.57 to $2.69 per share. Full Year Adjusted Free Cash Flow Guidance: $630 million to $650 million. Warning! GuruFocus has detected 5 Warning Signs with CNXC. Is CNXC fairly valued? Test your thesis with our free DCF calculator. Release Date: March 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Concentrix Corp (NASDAQ:CNXC) reported a 61% year-over-year increase in technology wins, highlighting a successful shift in their go-to-market offerings. The company's AI-related bookings more than doubled, indicating strong client acceptance and a growing pipeline of opportunities. Revenue from banking and financial services clients grew by 13% year-over-year, showcasing robust performance in this vertical. Concentrix Corp (NASDAQ:CNXC) successfully closed close to 60 enterprise iX suite deals, including significant contracts with two Fortune 50 companies. The company is on track to meet its expectations for the year, with a focus on securing complex work and high-value services to drive long-term growth. Revenue from the technology and consumer electronics vertical and the healthcare vertical both decreased by about 6%, driven by lighter volumes and shore mix. Adjusted free cash flow was negative $145 million in the quarter, reflecting an increase in accounts receivable. GAAP results for the first quarter included a $6 million loss on the sale of two small nonstrategic businesses. The company faces margin compression in the first half of the year, with expectations for improvement only in the second half. Concentrix Corp (NASDAQ:CNXC) is experiencing a 2-point headwind from the movement of work offshore, impacting revenue growth. Q: Can you specify approximately how much revenue in Q1 was related to AI and the iX suite? How are you pricing these solutions, and what are your investment plans for AI in 2026? A: Our iX Hello solution is priced by consumption, with initial de minimis fees that grow as usage scales, similar to a SaaS model. Our Hero product is subscription-based. We ended Q4 with $60 million of ARR and aim to reach $100 million by the end of this fiscal year. Most of our clients are using AI in some form, and we are seeing high success rates in AI implementations, driving tangible value. Q: Can you explain the expected cadence of margin improvement and how you plan to achieve the 12.5% operating margin for the full fiscal year? A: We expect margins to be compressed in the first half but to expand sequentially in the second half due to cost actions, additional revenue, and transformational deals reaching full scale. We anticipate stable to slightly expanding margins in Q2, with a bigger uptick in Q3 and further improvement in Q4. Q: How is the trend of moving operations offshore impacting your results, and are customer volumes returning as expected? A: The trend towards moving work offshore continues, with about 15% of our revenue potentially moving offshore. This shift is in line with our expectations and will help fill capacity, improving margins. The issue of volumes not materializing is resolving as expected, with improvements seen in Q1 and full resolution anticipated by the end of Q2. Q: What was the rationale behind the divestiture of two small nonstrategic businesses, and are there plans for further portfolio pruning? A: The divestitures were of small, nonstrategic, non-growing businesses that were not accretive to margins. We are not actively looking to shed more parts of the portfolio but will continue to evaluate our holdings. Q: Can you provide an update on the performance of the banking and retail segments, and is their growth sustainable? A: Banking has shown strong growth, expected to continue at high single-digit to low double-digit rates, driven by broad-based success across fintechs and traditional banks. The retail segment, particularly e-commerce and travel, is also performing well, with sustainable growth due to new solutions and global delivery capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.