Concentrix Corporation designs, builds, and operates integrated customer experience (CX) solutions worldwide. It offers CX process optimization, technology innovation and design engineering, front- and back-office automation, analytics, and business transformation services across industries including technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, and healthcare. The company also provides customer lifecycle management, CX and user experience strategy and design, data analytics, enterprise intelligence, AI readiness, digital operations such as B2B sales and performance marketing, and GenAI and agentic AI technologies. Founded in 2004, it is based in Newark, California.
Concentrix: AI transition cuts revenue, but new AI-era work and cash flow hold up
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AI is both shrinking old work and building new work Concentrix says AI automation is reducing billable call-center work, and two big tech clients are ending some support sooner than planned, pushing fourth-quarter revenue down 3% to 5%. But half of revenue now comes from work won in the past three years, growing about 30% at better margins.
This is the core force behind the revenue decline and the offsetting new-business growth.
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Q3 results and weak guidance knocked the stock down Third-quarter revenue of $2.45 billion missed expectations, and the fourth-quarter revenue forecast also came in below estimates. Shares fell about 9.5% and then 7.5% on the news, leaving the stock down roughly 40% for the year.
It explains the sharp negative price reaction this period.
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$1.05 billion accounting charge and heavy debt spook investors Concentrix recorded a $1.05 billion non-cash goodwill write-down, producing a $988 million reported loss, because its market value fell below what it paid for past acquisitions. Net debt is about $4.1 billion, with $375 million of loans due in December.
The impairment and debt load are the main reasons the stock trades at a very low earnings multiple.
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Profit, cash flow and dividend still grew Underlying profit beat guidance: adjusted operating margin rose to 12.6%, adjusted earnings per share rose 5% to $2.92, and free cash flow hit a record for a third quarter. The dividend was raised to $0.37, and full-year free cash flow is guided to about $630-650 million.
It is the real counterweight showing the business still generates cash despite the headline loss.
Q3 2026
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Concentrix: AI transition cuts revenue, but new AI-era work and cash flow hold up
◆
AI is both shrinking old work and building new work Concentrix says AI automation is reducing billable call-center work, and two big tech clients are ending some support sooner than planned, pushing fourth-quarter revenue down 3% to 5%. But half of revenue now comes from work won in the past three years, growing about 30% at better margins.
This is the core force behind the revenue decline and the offsetting new-business growth.
▼
Q3 results and weak guidance knocked the stock down Third-quarter revenue of $2.45 billion missed expectations, and the fourth-quarter revenue forecast also came in below estimates. Shares fell about 9.5% and then 7.5% on the news, leaving the stock down roughly 40% for the year.
It explains the sharp negative price reaction this period.
▼
$1.05 billion accounting charge and heavy debt spook investors Concentrix recorded a $1.05 billion non-cash goodwill write-down, producing a $988 million reported loss, because its market value fell below what it paid for past acquisitions. Net debt is about $4.1 billion, with $375 million of loans due in December.
The impairment and debt load are the main reasons the stock trades at a very low earnings multiple.
▲
Profit, cash flow and dividend still grew Underlying profit beat guidance: adjusted operating margin rose to 12.6%, adjusted earnings per share rose 5% to $2.92, and free cash flow hit a record for a third quarter. The dividend was raised to $0.37, and full-year free cash flow is guided to about $630-650 million.
It is the real counterweight showing the business still generates cash despite the headline loss.
News & notes movingCNXC
United States
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Concentrix Trades at Forward P/E of 2.68 After $1.05 Billion Goodwill Impairment
Concentrix Corporation is trading at a forward P/E of 2.68 as of October 2, a valuation that reflects deep skepticism about the customer experience company's earnings durability. The company reported a $988.1 million GAAP net loss for the quarter, driven primarily by a $1.05 billion non-cash goodwill impairment tied to where its stock traded, while adjusted EPS came in at $2.92 and adjusted operating margin expanded 30 basis points to 12.6%. Third-quarter revenue of $2.45 billion fell 0.5% in constant currency, slightly below the low end of guidance, and management guided fourth-quarter constant currency revenue down 3% to 5% as two hyperscale clients end support for certain customer groups sooner than planned and AI automation shrinks billable work. Management said half of quarterly revenue now comes from business won and deployed over the past three years, ahead of its own expectations, with that newer work expected to grow about 30% this year at better margins and four times better client retention than the traditional book. Net debt sits near $4.119 billion, with $375 million of term loans due in December that management plans to repay from cash flow and existing liquidity while also funding the CastleHill acquisition, and no shares were repurchased in the quarter. Hedge fund ownership fell to 21 funds from 25 a quarter earlier, short interest stands at 16.55% of the float, and the company has issued no fiscal 2027 guidance.
CNXC · Capital · Negative Reported a $988.1M GAAP net loss driven by a $1.05B non-cash goodwill impairment, with Q4 revenue guided down 3-5%.
CNXC · Demand · Negative Two hyperscale clients ending support for certain customer groups sooner than planned and AI automation shrinking billable work weigh on revenue.
Concentrix, Huron and TaskUs Jump as Accenture Lifts IT Services Peers
Shares of business process outsourcing and consulting firms Concentrix, Huron and TaskUs surged after Accenture's stronger-than-expected results and above-consensus fiscal 2027 outlook lifted IT consulting and business-services peers. Accenture guided fiscal 2027 revenue growth of 3% to 6% after a fourth-quarter revenue beat of roughly $18.7 billion, easing fears that AI would hollow out traditional consulting and outsourcing demand and sparking a read-across rally in Cognizant, IBM, Salesforce and Indian IT ADRs Infosys and Wipro. Concentrix jumped 10.8%, Huron rose 7.3% and TaskUs gained 6.3%. Separately, IBM announced a self-hosted deployment option for IBM Bob aimed at enterprise AI sovereignty and governance, letting enterprises run AI-driven software delivery and modernization inside customer-controlled environments including on-premises, sovereign clouds, private clouds and air-gapped setups, and expanded its IBM Bob Premium Package for Z with that self-hosted capability and deeper application intelligence tools targeting mainframe modernization under strict compliance and data-sovereignty standards. Concentrix is down 33.2% since the start of the year and, at $27.52 per share, trades 43% below its 52-week high of $48.26 from October 2025.
ACN · Capital · Positive Accenture's stronger-than-expected Q4 revenue beat and above-consensus fiscal 2027 revenue growth outlook of 3%-6% lifted IT consulting peers.
CNXC · Competition · Positive Concentrix jumped 10.8% in a read-across rally after Accenture's results eased fears that AI would hollow out traditional consulting and outsourcing demand.
HURN · Competition · Positive Huron rose 7.3% as Accenture's upbeat results and outlook lifted business-services and consulting peers.
TASK · Competition · Positive TaskUs gained 6.3% in the read-across rally after Accenture's results eased AI-disruption fears for outsourcing demand.
IBM · Technology · Positive IBM announced a self-hosted deployment option for IBM Bob for enterprise AI sovereignty and expanded its IBM Bob Premium Package for Z targeting mainframe modernization.
FactSet, Concentrix Beat Estimates; HPE Inks $1.2 Billion Vultr Deal; Mattel Names New CEO
FactSet Research Systems posted fourth-quarter fiscal 2026 adjusted earnings of $4.52 per share, beating the Zacks Consensus Estimate of $4.32 per share, and its shares advanced 3.8%. Concentrix Corp. reported third-quarter fiscal 2026 adjusted earnings of $2.92 per share, outpacing the Zacks Consensus Estimate of $2.71 per share, with its shares rising 0.3%. Hewlett Packard Enterprise Co. entered into a $1.2 billion deal with Vultr, sending its shares up 3.9%. Mattel, Inc. appointed Roger Lynch as its new CEO and chairman, and its shares tumbled 4.2%.
Concentrix Posts $988.1 Million Net Loss on $1.05 Billion Goodwill Impairment
Concentrix reported a net loss of $988.1 million, or $(16.24) per diluted share, for its third quarter, driven primarily by a $1,050.0 million non-cash goodwill impairment charge. The customer experience solutions provider recorded an operating loss of $910.3 million, while adjusted results showed non-GAAP operating income of $309.0 million and non-GAAP earnings of $2.92 per share. Sales fell 1.2% year on year to $2.45 billion, coming in slightly below Wall Street estimates, as President and Chief Executive Officer Christopher Caldwell cited accelerating client artificial intelligence deployments and decisions by two hyperscale clients to reduce support for certain accounts. Chief Financial Officer Andre Valentine said client shifts toward offshore delivery created an approximate 3% revenue headwind, though adjusted free cash flow reached a third-quarter record of $218.3 million and non-GAAP operating margin expanded 30 basis points to 12.6%. Shares rose 4% in the morning session before cooling to $25.73, up 1% from the previous close.
CNXC · Capital · Negative Concentrix posted a $988.1M net loss driven by a $1.05B non-cash goodwill impairment charge, with sales down 1.2% and missing estimates.
CNXC · Demand · Negative CEO cited accelerating client AI deployments and two hyperscale clients reducing support for certain accounts, plus a ~3% offshore-delivery revenue headwind.
Robinhood Plans Weekend Equities Trading as Cal-Maine and Concentrix Slide
Robinhood plans to offer weekend trading for equities, a first for modern US markets, allowing customers to trade a selected list of stocks and exchange-traded funds over the weekend, and it will also allow trading of perpetual futures on select cryptocurrencies and contracts linked to financial earnings. Cal-Maine shares fell 7.5% after the egg producer reported first-quarter net sales that missed the average analyst estimate and said it won't pay a cash dividend in the first quarter, with CEO Sherman Miller citing an industrywide supply imbalance and pressure on pricing. Concentrix shares slid 7.5% after the call center operator's fourth-quarter revenue forecast missed the average analyst estimate amid concerns that AI-assisted automation tools will reshape the business; about 50% of Concentrix revenue now comes from business earned since introducing AI tools, and the company expects free cash flow to rise to about 630 to 650 million dollars in fiscal 2026, though the stock is down 40% year to date.
CALM · Supply · Negative Cal-Maine reported Q1 net sales missing estimates and no dividend, with CEO citing an industrywide supply imbalance and pricing pressure.
Boeing secured a $20 billion contract with the defense department to develop the next generation of fighter jets, sending its shares up 2% premarket. The deal covers development of the Sixth-Generation F/A-XX Strike Fighter, while Northrop Grumman, reportedly also in contention for the contract, tumbled 3.5%. Robinhood Markets rose 2% after announcing an in-app AI agent for its traders, plans to launch 24/7 trading for certain stocks, and the introduction of perpetual futures to its U.S. users soon. Moderna declined more than 6% after Citi downgraded the stock to sell, with analysts setting a price target 60% below Tuesday's closing price and saying the current valuation can't be justified. Concentrix fell 9.5% after fiscal third-quarter revenue came in slightly below expectations, with non-GAAP earnings per share and current-quarter revenue guidance also below estimates, and the company said on its earnings call that its AI transition is pressuring revenues. Cal-Maine Foods tumbled more than 6.5% after reporting a wider-than-expected fiscal first-quarter loss of $1.26 per share versus the 77-cent loss analysts polled by FactSet expected, while FormFactor rose 1% after Deutsche Bank initiated coverage with a buy rating, citing rising chip testing intensity and its position as the second source of probe cards for Nvidia's GPUs at TSMC.
BA · Demand · Positive Boeing won a $20 billion defense contract to develop the Sixth-Generation F/A-XX Strike Fighter.
CALM · Capital · Negative Cal-Maine reported a wider-than-expected fiscal Q1 loss of $1.26 per share versus the 77-cent loss expected.
CNXC · Capital · Negative Concentrix fiscal Q3 revenue missed expectations and EPS and current-quarter guidance also came in below estimates.
FORM · Capital · Positive Deutsche Bank initiated coverage of FormFactor with a buy rating, citing rising chip testing intensity and its probe-card position for Nvidia GPUs at TSMC.
HOOD · Technology · Positive Robinhood announced an in-app AI agent for traders, plans for 24/7 trading on certain stocks, and perpetual futures for U.S. users.
MRNA · Capital · Negative Citi downgraded Moderna to sell with a price target 60% below the prior close, citing unjustifiable valuation.
Concentrix Q3 Earnings Due September 29 With $2.70 EPS Estimate
Concentrix is scheduled to report its Q3 earnings results on Tuesday, September 29th, after market close. The consensus EPS estimate is $2.70, down 2.9% year over year, while the consensus revenue estimate is $2.48B, flat year over year. Over the last two years, Concentrix has beaten EPS estimates 50% of the time and revenue estimates 63% of the time. Over the last three months, EPS estimates have seen 0 upward revisions and 3 downward, and revenue estimates have also seen 0 upward revisions and 3 downward.
CNXC · Capital · Negative Q3 EPS estimate of $2.70 is down 2.9% YoY with 3 downward estimate revisions and no upward revisions in the last three months.
Genpact reported second-quarter revenue of $1.34 billion, up 7.1% year over year and 0.8% above analyst expectations, yet its stock has fallen 6.7% since the report to $33.75. The company also beat EPS estimates and raised its full-year guidance for Advanced Technology Solutions revenue growth to at least 25%, the highest guidance raise among the eight business process outsourcing and consulting stocks tracked. Huron Consulting Group posted the strongest results, with revenue of $475 million, up 15.4% year over year and 3.2% above expectations, and its stock rose 23.8% to $150.24. Concentrix was the weakest performer, reporting revenue of $2.46 billion, up 1.9% year over year and in line with expectations, while missing next-quarter EPS guidance and slightly missing full-year revenue guidance, leaving its stock flat at $25. TaskUs reported revenue of $308.9 million, up 5% year over year and 3.9% above expectations, with its stock up 9.1% to $6.90. FTI Consulting reported revenue of $993.5 million, up 5.3% year over year and meeting expectations, but missed EPS estimates significantly and its stock fell 10.5% to $152.60.
Concentrix to Present at Ai4 2026 on Scaling Enterprise AI
Concentrix Corporation announced it will offer new insights into making AI work in business during Ai4 2026, taking place August 4-6 at The Venetian in Las Vegas. Kathryn Harrison, Global Vice President of Strategy and AI Platforms at Concentrix, will join a panel titled "The Generative AI Playbook: Setting Your Enterprise Up for Success" on Tuesday, August 4 at 2:10 PM PDT, moderated by Fast Company contributor Rob Pegoraro. Harrison will discuss why AI initiatives that perform well in demos often stall when scaling in the enterprise, citing governance gaps and the long gap between a good idea and disciplined execution. Concentrix will also showcase its proprietary iX technology at booth #1562, which orchestrates people, AI, data, and workflows based on insights from billions of real-world interactions.
Service companies deploy AI automation to defend margins
Companies across healthcare services, insurance, and cloud-managed services are deploying AI-driven automation to protect margins. Travelers disclosed that more than half of all claims are eligible for straight-through processing, with customers adopting it about two-thirds of the time, and framed efficiency gains as something that can fall to the bottom line through expense ratio flexibility. Concentrix reported its proprietary AI platform is running at an approximately $60 million run-rate on total spend of a little over $50 million, with expected margin improvement as it works through overcapacity and duplicate costs. Option Care Health is using AI to streamline patient onboarding workflows, aiming to scale patient census without proportional labor-force growth. DarioHealth expects its proprietary AI engine DarioIQ to increase recurring revenue from existing customers by 10 to 15 percent, with ROI tied to higher engagement and lifetime value without proportional acquisition cost growth.
Concentrix Stock Rebounds 11.9% After Prior Session's Sharp Sell-Off
Shares of Concentrix jumped 11.9% in afternoon trading, recovering from a steep decline in the previous session that followed disappointing second-quarter results and a sharply reduced financial forecast. The company reported adjusted earnings of $2.63 per share and revenue of $2.46 billion, both narrowly missing analyst expectations. Concentrix lowered its full-year 2026 adjusted earnings per share forecast to a range of $10.83 to $11.18, down from a prior range of $11.48 to $12.07, and its third-quarter guidance of $2.65 to $2.77 per share fell far short of Wall Street estimates. The prior day's 17.5% drop was driven by the weakened outlook, which included a 1.3% cut to full-year revenue guidance and a 6.5% reduction in the adjusted EPS midpoint to $11.00. The stock remains down 39.1% year-to-date and is trading 59.5% below its 52-week high of $62 from July 2025.
CNXC · Capital · Negative Disappointing Q2 results and sharply reduced FY2026 EPS and revenue guidance triggered sell-off, though stock rebounded 11.9% in the session.
Concentrix falls on earnings miss, AeroVironment surges on beat
Concentrix shares tumbled 11.2% after the company reported second-quarter 2026 earnings of $2.63 per share, missing the Zacks Consensus Estimate of $2.64 per share. AeroVironment shares surged 18.8% after reporting fourth-quarter fiscal 2026 earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.53 per share. NVIDIA gained 2.6% amid a broader chip rally, while Applied Materials rose 4.1% on a broader tech rally.
Concentrix Stock Still Looks Reasonable As Shares Fell 85%
Concentrix shares have fallen about 84.8% over the past five years, yet the stock now trades at a price-to-sales ratio of roughly 0.1x, well below the industry average of 0.9x and a Simply Wall St fair P/S estimate of 0.7x. The company screens as undervalued in five of six areas on Simply Wall St's broader valuation checks, suggesting the current market price leans cheap against several fundamental measures. Recent news around expanding iX Suite contracts and strong cash generation support the earnings and cash flow story, while a weaker outlook and reduced growth expectations may keep pressure on the multiple. The key question is whether the discount reflects overdone pessimism or a fair handicap on integration, growth and guidance risks.
Concentrix lowered its full-year 2026 revenue growth guidance to just 0.25% to 1.25% in constant currency, implying sales of US$9.925 billion to US$10.025 billion, and the stock dropped 7.9%. The company reported second-quarter revenue of US$2,462.47 million with higher net income and earnings per share, declared a US$0.36 dividend, and completed a multi-year share repurchase program. It also shifted from the Russell 1000 and Midcap indices into several Russell 2000 benchmarks and highlighted strong growth in its iX Suite technology contracts and cash flow. The sharply lower guidance challenges earlier expectations that Webhelp synergies and AI adoption would quickly boost growth and margins, raising the bar for technology offerings to offset sluggish core outsourcing demand.
Stock Index Futures Gain at Quarter-End Ahead of JOLTS Data and Nike Earnings
U.S. stock index futures edged higher on Tuesday, putting major indexes on track for their strongest quarterly gains in years, as investors awaited the JOLTS job openings report and earnings from Nike. September S&P 500 E-Mini futures rose 0.10% and Nasdaq 100 E-Mini futures added 0.16%. Economists forecast May JOLTS job openings at 7.280 million, down from 7.618 million in April. The Conference Board's consumer confidence index for June is expected at 94.4, up from 93.1. Nike and Constellation Brands are set to report quarterly results. In pre-market trading, AeroVironment surged over 23% on strong results, while Concentrix tumbled more than 24% after cutting guidance. European markets hit a record high, with the Euro Stoxx 50 up 1.04%, as French and Italian inflation slowed more than expected. Asian stocks also closed higher, with Japan's Nikkei 225 up 0.86%, capping its strongest quarter since 1965.
Concentrix targets $630M-$650M FY2026 adjusted free cash flow while aiming to surpass $120M iX Suite ARR
Concentrix is targeting $630 million to $650 million in adjusted free cash flow for fiscal 2026 and expects to surpass $120 million in annual recurring revenue for its iX Suite. During the second quarter earnings call, President and CEO Christopher Caldwell highlighted a record level of iX Suite contract signings, up 400% year-over-year in deal count, with nearly 100 deals closed in the quarter. Executive VP and CFO Andre Valentine guided third quarter revenue to $2.465 billion to $2.490 billion and full-year revenue to $9.925 billion to $10.025 billion, while noting that an acceleration in client offshoring and spending reallocation has increased the constant-currency headwind to nearly 300 basis points. Non-GAAP operating income was $292 million in the second quarter, with margins up 10 basis points sequentially, and the company reduced total net debt by $228 million to approximately $4.32 billion. Management expects sequential margin improvement through the second half of the year, driven by restructuring actions, the burn-off of duplicate costs from offshore transitions, and scaling iX Suite deployments.
Concentrix Corporation Misses Q2 Earnings and Revenue Estimates
Concentrix Corporation reported quarterly earnings of $2.63 per share, missing the Zacks Consensus Estimate of $2.64 per share by 0.19%. Revenue came in at $2.46 billion, below the consensus estimate of $2.47 billion. Earnings per share declined from $2.70 a year ago, while revenue increased from $2.42 billion. The company has beaten revenue estimates three times in the past four quarters but has surpassed earnings estimates only once in that period. Shares have fallen about 39.9% year to date, compared with a 7.4% gain for the S&P 500.
Business Process Outsourcing Stocks Post Mixed Q1 as Genpact Revenue Beats Estimates
Business process outsourcing and consulting stocks reported mixed first-quarter results, with the group's revenues beating analyst consensus estimates by 1.5% while next-quarter revenue guidance came in 0.7% below expectations. Genpact reported revenues of $1.30 billion, up 6.7% year on year and exceeding estimates by 0.5%, though its stock fell 16.9% since the release. CBIZ posted revenues of $848.6 million, up 1.3% year on year but missing estimates by 0.6%, yet delivered the highest full-year guidance raise among peers. Concentrix recorded revenues of $2.5 billion, up 5.4% year on year and in line with expectations, but missed EPS estimates and saw its stock drop 24.4%. CRA International reported revenues of $201 million, up 10.5% year on year and beating estimates by 3.7%, the biggest beat among peers, while Huron Consulting Group posted revenues of $451.8 million, up 11.8% year on year and exceeding estimates by 0.7%. On average, share prices of the eight tracked companies are down 13.8% since their latest earnings results.
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