CI&T (NYSE:CINT) reported record third-quarter revenue of $146.3 million, up 14.9% from a year earlier, as the technology services company said a shift toward AI-enabled delivery and outcome-based contracts helped expand its margins.
Revenue growth was entirely organic and exceeded the company’s outlook of at least $145.7 million. Growth was 11.2% at constant currency. CI&T raised the low end of its full-year revenue forecast, while management said uncertainty around currency movements and the timing of pipeline conversion contributed to a range of roughly $10 million in its fourth-quarter outlook.
Adjusted gross margin rose to 36.6%, up 420 basis points from the second quarter and 270 basis points from a year earlier. Adjusted EBITDA was $22.6 million, up 19.1% sequentially, with the margin increasing to 15.5% from 13.3%.
AI Pricing Helps Lift Margins
Founder and CEO Cesar Gon attributed the gross margin improvement primarily to AI monetization. CI&T said 40% of new engagements signed in the third quarter used value-based commercial models, up from 30% in the first half. Those contracts pay the company for output or outcomes rather than billed hours.
During the question-and-answer session, Gon said the figure was 75% for sales to new clients. He also said work under the new delivery models carries gross margins averaging 8 to 10 percentage points above traditional time-and-materials contracts.
Founder and President Bruno Guicardi said revenue per AI builder reached $82,500 over the last 12 months, up 10% from a year earlier. CI&T ended the quarter with about the same number of AI builders as a year earlier, while revenue increased, he said. CFO Stanley Rodrigues said total headcount grew 1.8% year over year.
Adjusted EBITDA fell 3.9% from the prior-year quarter, which Rodrigues attributed to the stronger Brazilian real. On a currency-neutral basis, he said, adjusted EBITDA would have risen 3.4% to $24.3 million.
Selling expenses rose to 14% of revenue from 11.9% in the second quarter as CI&T expanded its commercial organization and invested in scaling agentic software development. Rodrigues said the targeted investment concluded during the quarter and that selling expenses should decline as a percentage of revenue from third-quarter levels.
Growth Extends Beyond Largest Clients
Revenue from clients outside CI&T’s top 10 increased 17.1% year over year, compared with 12.2% growth among its 10 largest accounts. Rodrigues said it was the third consecutive quarter in which the broader client base grew faster than the largest accounts.
By region, Latin American revenue grew 20%, new markets grew 17.6%, and North America increased 8.7%. Financial services revenue rose 26.1%, while technology and telecom grew 40.2%.
Adjusted profit increased 2% to $11.5 million, and adjusted diluted earnings per share rose 4.5% to $0.09. The company repurchased $2.9 million of shares in the quarter and $9.1 million in the first nine months. Operating cash flow was $22.4 million for the quarter.
Outlook and Pipeline
CI&T forecast fourth-quarter revenue of $142.3 million to $152.0 million. At the midpoint, that implies growth of 9.6% in U.S. dollars, or 9.3% at constant currency. For 2026, the company raised the low end of its revenue outlook to $568 million and maintained a high end of $578 million. It continues to expect an adjusted EBITDA margin of 15% to 17%.
Gon said the company’s sales pipeline was 50% larger than a year earlier. About 70% came from existing clients and 30% from potential new clients, he said. He attributed the low end of the fourth-quarter range to macroeconomic uncertainty and foreign exchange volatility, while the high end depends on how quickly the pipeline converts to revenue.
Gon declined to provide a 2027 forecast, saying the company would address it on its next earnings call. Guicardi said partnerships were attached to about 20% of deals in 2026, although newer partnerships with AI model developers were not yet a significant contributor to third-quarter revenue.
About CI&T (NYSE:CINT)
CI&T is a global technology and digital transformation company that helps organizations develop and improve digital products, services and operations. Its offerings include technology consulting, product design, software development, data and artificial intelligence solutions, cloud services and modernization of existing systems. Founded in Brazil in 1995, the company serves clients across multiple industries and geographies, including North America, Latin America and Europe. CI&T works with organizations on initiatives ranging from digital strategy and customer experiences to the design and implementation of technology platforms.
