Conduent (NASDAQ:CNDT) Issues Earnings Results, Misses Estimates By $0.01 EPS

Conduent (NASDAQ:CNDT) released its quarterly earnings results on Monday. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of ($0.17) by ($0.01), FiscalAI reports. The company had revenue of $531.00 million for the quarter, compared to analyst estimates of $702.00 million. Conduent had a negative return on equity of 8.50% and a negative net margin of 8.17%.

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

• Portfolio divestitures of the transit and tolling businesses are expected to generate approximately $234 million in gross proceeds plus a 7% stake in Quarterhill, with most proceeds earmarked for debt reduction. The transactions should also cut off-balance-sheet obligations by about 80% and reduce working-capital and capital-expenditure requirements.
• Continuing-operations revenue fell 11.9% year over year to $531 million, while adjusted EBITDA declined to $16 million and the margin dropped to 3%. Commercial revenue was pressured by contract losses and volume declines, including the expected third-quarter expiration of the company’s largest commercial client contract.
• Management remains on track for the approximately $100 million annualized cost-savings program, with roughly 60%–70% expected from headcount actions and 30%–40% from technology and operating-model changes. The company said more than half of the savings have been identified and that commercial margins are expected to improve rapidly.
• Qualified new-business pipeline reached approximately $3 billion, up 11% year over year, while first-half new-business ACV was $188 million and included higher recurring-revenue signings. Management also highlighted expanding healthcare and government wins and expects a stronger second half of 2026.
• Conduent reaffirmed its longer-term ambition of achieving adjusted EBITDA margins above 10% and said leverage could decline toward approximately 1x within 18–24 months after divestiture proceeds and transformation benefits are realized. For 2026 continuing operations, guidance is now $2.15 billion–$2.25 billion of revenue and $140 million–$170 million of adjusted EBITDA.

Conduent Price Performance

CNDT opened at $1.58 on Wednesday. The firm has a market cap of $245.05 million, a price-to-earnings ratio of -1.04 and a beta of 1.44. Conduent has a fifty-two week low of $1.15 and a fifty-two week high of $2.98. The company’s 50-day moving average price is $1.51 and its 200 day moving average price is $1.50. The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 1.09.

Analyst Upgrades and Downgrades

CNDT has been the subject of several research analyst reports. Noble Financial upgraded Conduent to a “strong-buy” rating in a research note on Tuesday, May 12th. Zacks Research raised shares of Conduent from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Conduent in a research note on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating and one has issued a Sell rating to the company. According to MarketBeat, Conduent currently has a consensus rating of “Buy”.

Hedge Funds Weigh In On Conduent

Several institutional investors have recently made changes to their positions in CNDT. Global Retirement Partners LLC increased its position in Conduent by 28,720.0% in the fourth quarter. Global Retirement Partners LLC now owns 14,410 shares of the company’s stock worth $28,000 after buying an additional 14,360 shares during the period. Boothbay Fund Management LLC acquired a new position in shares of Conduent during the second quarter valued at $29,000. IHT Wealth Management LLC bought a new position in shares of Conduent during the second quarter worth about $34,000. Mercer Global Advisors Inc. ADV bought a new position in shares of Conduent during the third quarter worth about $42,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of Conduent in the 3rd quarter worth about $45,000. 77.28% of the stock is owned by institutional investors.

About Conduent

Conduent Incorporated is a global provider of diversified business process services with a focus on delivering digital platforms and automation solutions. The company serves clients across a variety of industries including healthcare, transportation, public sector, financial services and human resources. By combining technology-enabled services with data analytics and artificial intelligence, Conduent helps organizations streamline operations, enhance customer experiences and improve overall efficiency.

Key offerings from Conduent encompass customer engagement and transaction processing, digital payment solutions, eligibility and enrollment services for health and welfare programs, and workforce management tools.