Concentrix (NASDAQ:CNXC) Issues Earnings Results, Beats Estimates By $0.21 EPS

Concentrix (NASDAQ:CNXC) posted its quarterly earnings data on Tuesday. The company reported $2.92 EPS for the quarter, topping analysts’ consensus estimates of $2.71 by $0.21, reports. The firm had revenue of $2.45 billion during the quarter, compared to analyst estimates of $2.48 billion. Concentrix had a negative net margin of 23.99% and a positive return on equity of 22.78%. The company’s revenue was down 1.2% on a year-over-year basis. During the same quarter last year, the business posted $2.78 EPS. Concentrix updated its FY 2026 guidance to 10.970-11.090 EPS and its Q4 2026 guidance to 2.860-2.980 EPS.

Here are the key takeaways from Concentrix’s conference call:

• AI-driven and transformed revenue surpassed 50% of total revenue, with new business revenue expected to exceed $6 billion in 2027. Management said these offerings are growing faster, carry higher margins, and have substantially stronger retention than the traditional business.
• Third-quarter profitability exceeded guidance, with non-GAAP operating income of $309 million, a 12.6% margin, and adjusted EBITDA of $363 million; both margins improved 30 basis points year over year. Adjusted free cash flow reached a record third-quarter level of $218 million.
• Revenue declined 0.5% year over year on a constant-currency basis, and management expects a steeper 3%-5% constant-currency decline in the fourth quarter. Reduced support from two hyperscaler clients, accelerated AI automation, and a roughly 3% headwind from offshore mix are weighing on near-term growth.
• Concentrix reduced net debt by approximately $211 million in the quarter and expects to lower net leverage to about 2.6 times adjusted EBITDA by fiscal year-end and roughly 2.2 times by the end of fiscal 2027. The company also raised its quarterly dividend to $0.37 per share and expects 2027 free cash flow to exceed 2026 levels.
• GAAP results included a $1.05 billion non-cash goodwill impairment charge, triggered by the company’s stock trading range during the quarter. Management also expects 2027 growth to be weighted toward the second half, with automation and client-transition effects likely to continue affecting the first half.

Concentrix Stock Up 0.3%

Concentrix stock opened at $24.95 on Thursday. The company has a market capitalization of $1.52 billion, a P/E ratio of -0.64, a P/E/G ratio of 0.46 and a beta of 0.47. The firm’s fifty day simple moving average is $27.04 and its 200-day simple moving average is $26.48. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.46. Concentrix has a 1-year low of $19.12 and a 1-year high of $49.37.

Concentrix Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 3rd. Stockholders of record on Friday, October 23rd will be paid a dividend of $0.37 per share. This is a positive change from Concentrix’s previous quarterly dividend of $0.36. The ex-dividend date is Friday, October 23rd. This represents a $1.48 annualized dividend and a dividend yield of 5.9%. Concentrix’s dividend payout ratio (DPR) is currently -6.75%.

Wall Street Analyst Weigh In

CNXC has been the topic of several research analyst reports. Robert W. Baird lowered their target price on Concentrix from $40.00 to $30.00 and set an “outperform” rating on the stock in a research note on Tuesday, June 30th. Canaccord Genuity Group restated a “buy” rating and set a $45.00 price target on shares of Concentrix in a report on Wednesday. Bank of America dropped their price objective on shares of Concentrix from $32.00 to $26.00 and set a “neutral” rating on the stock in a research note on Tuesday, June 30th. Barrington Research decreased their target price on shares of Concentrix from $38.00 to $30.00 and set an “outperform” rating for the company in a research note on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Concentrix in a research note on Friday, July 24th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Concentrix currently has a consensus rating of “Hold” and a consensus target price of $32.75.

Concentrix News Roundup

Here are the key news stories impacting Concentrix this week:

• Positive Sentiment: Adjusted third-quarter EPS was $2.92, above the $2.71 analyst consensus and up from $2.78 a year earlier. Concentrix also generated record third-quarter operating free cash flow of $268 million and adjusted free cash flow of $218 million. Concentrix Corporation Q3 Earnings Beat Estimates
• Positive Sentiment: The company increased its quarterly dividend to $0.37 per share from $0.36, equal to a $1.48 annualized payout and an approximately 5.6% yield. Canaccord Genuity also reaffirmed its buy rating with a $45 price target. Concentrix Reports Third Quarter 2026 Results
• Neutral Sentiment: Management said artificial intelligence is reshaping the business, with roughly 50% of revenue now coming from work won since the company introduced AI tools three years ago. The transition is intended to support future margin expansion, but it is also changing the revenue mix. Concentrix Stock Falls After Earnings as AI Transition Weighs on Revenue
• Negative Sentiment: Revenue fell 1.2% year over year to $2.45 billion, missing the $2.48 billion consensus estimate. Concentrix recorded a $1.05 billion goodwill impairment, producing a GAAP operating loss of $910.3 million and a 37.1% operating margin, although non-GAAP operating income was $309 million. Concentrix Posts Quarterly Loss After Goodwill Charge
• Negative Sentiment: Fourth-quarter guidance calls for EPS of $2.86–$2.98 and revenue of $2.4–$2.5 billion, below consensus estimates of $3.08 and $2.5 billion, respectively. Full-year revenue guidance of $9.8–$9.9 billion also trails the $10.0 billion consensus, reinforcing investor concerns about slower growth and AI-related transition pressures. Concentrix Shares Fall Amid Lower Revenue Outlook

About Concentrix

Concentrix Corporation is a global technology and services company that helps organizations manage customer experience, business operations and digital transformation. Its offerings include customer care, technical support, sales and marketing services, back-office support, analytics, artificial intelligence and automation solutions.

The company serves clients across industries such as technology and consumer electronics, retail, banking and financial services, healthcare, communications and media, travel, and automotive.