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

Concentrix (NASDAQ:CNXC) announced 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 negative net margin of 13.16% and a positive return on equity of 19.82%. The business had revenue of $2.45 billion for the quarter, compared to the consensus estimate of $2.48 billion. During the same period last year, the company posted $2.78 EPS. Concentrix’s revenue for the quarter was down 1.2% on a year-over-year basis. 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 Trading Down 2.2%

Shares of NASDAQ CNXC opened at $24.88 on Wednesday. Concentrix has a 1-year low of $19.12 and a 1-year high of $49.37. The company has a 50-day moving average of $27.01 and a two-hundred day moving average of $26.53. The company has a market cap of $1.52 billion, a PE ratio of -1.17, a P/E/G ratio of 0.47 and a beta of 0.47. 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 Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 3rd. Stockholders of record on Friday, October 23rd will be paid a $0.37 dividend. The ex-dividend date is Friday, October 23rd. This is a positive change from Concentrix’s previous quarterly dividend of $0.36. This represents a $1.48 dividend on an annualized basis and a dividend yield of 5.9%. Concentrix’s dividend payout ratio is presently -6.75%.

Wall Street Analysts Forecast Growth

CNXC has been the subject of a number of research reports. Zacks Research upgraded Concentrix from a “strong sell” rating to a “hold” rating in a research report on Monday, August 31st. Barrington Research cut 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. Robert W. Baird dropped their price objective on Concentrix from $40.00 to $30.00 and set an “outperform” rating for the company in a report on Tuesday, June 30th. Canaccord Genuity Group cut their target price on Concentrix from $55.00 to $45.00 and set a “buy” 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 report on Friday, July 24th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Concentrix presently has a consensus rating of “Hold” and a consensus target price of $32.75.

More Concentrix News

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

Concentrix Company Profile

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.