Concentrix (NASDAQ:CNXC) Releases Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Concentrix (NASDAQ:CNXC) posted its quarterly earnings results on Tuesday. The company reported $2.92 earnings per share for the quarter, beating analysts’ consensus estimates of $2.71 by $0.21, reports. Concentrix had a positive return on equity of 19.82% and a negative net margin of 13.16%.The firm had revenue of $2.45 billion for the quarter, compared to the consensus estimate of $2.48 billion. During the same period in the previous year, the business earned $2.78 earnings per share. The company’s revenue for the quarter was down 1.2% compared to the same quarter last year. 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 Performance

Shares of CNXC opened at $24.88 on Wednesday. Concentrix has a 52-week low of $19.12 and a 52-week high of $49.37. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.46. The firm has a market cap of $1.52 billion, a price-to-earnings ratio of -1.17, a PEG ratio of 0.47 and a beta of 0.47. The business’s 50 day moving average is $27.01 and its two-hundred day moving average is $26.53.

Concentrix Increases Dividend

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

Wall Street Analyst Weigh In

A number of equities research analysts have commented on CNXC shares. Canaccord Genuity Group reduced their target price on Concentrix from $55.00 to $45.00 and set a “buy” rating for the company in a report on Tuesday, June 30th. Barrington Research dropped their target price on shares of Concentrix from $38.00 to $30.00 and set an “outperform” rating for the company in a report on Tuesday, June 30th. Robert W. Baird cut their price objective on shares of Concentrix from $40.00 to $30.00 and set an “outperform” rating for the company in a research report on Tuesday, June 30th. Bank of America reduced their target price on Concentrix from $32.00 to $26.00 and set a “neutral” rating on the stock in a research report on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Concentrix in a research report on Friday, July 24th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Concentrix currently has a consensus rating of “Hold” and a consensus target price of $32.75.

Key Headlines Impacting Concentrix

Here are the key news stories impacting Concentrix this week:

• Positive Sentiment: Concentrix exceeded its quarterly profitability guidance and generated record third-quarter operating cash flow of $268 million, including $218 million in adjusted free cash flow. Concentrix Reports Third Quarter 2026 Results
• Positive Sentiment: The company raised its quarterly dividend 2.8% to $0.37 per share, or $1.48 annually, representing an indicated yield of approximately 5.9%. The dividend is payable November 3 to shareholders of record October 23.
• Positive Sentiment: Concentrix expects new-business revenue to exceed $6 billion in 2027 and is targeting net leverage of 2.2 times, signaling confidence in future bookings and balance-sheet improvement. Concentrix 2027 Outlook
• Neutral Sentiment: Concentrix reported third-quarter adjusted earnings of $2.92 per share according to Zacks, above its $2.71 consensus estimate, while other reports cited EPS of $2.57. The differing figures likely reflect differing accounting measures or data sets, but the broader earnings reaction centered on revenue and forward guidance.
• Negative Sentiment: Third-quarter revenue of roughly $2.45 billion to $2.46 billion came in below analysts’ approximately $2.48 billion–$2.47 billion expectations. Reports also indicated that the shift toward AI-related business is weighing on current revenue growth, despite about half of revenue now coming from business won since the company introduced AI tools three years ago. Concentrix Stock Falls After Earnings
• Negative Sentiment: Fourth-quarter EPS guidance of $2.86–$2.98 and revenue guidance of $2.4–$2.5 billion were below consensus estimates of $3.08 and $2.5 billion, respectively. Full-year revenue guidance of $9.8–$9.9 billion also trailed the $10 billion consensus, offsetting the modestly above-consensus full-year EPS outlook. Concentrix Q3 Earnings Coverage

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.