Sep 29, 2026, 4:10 PM ETTechnology

Concentrix — Third Quarter 2026 Earnings Summary

CNXCCONCENTRIX CORP

Financial Performance

Reported revenue of $2,453.7 million for the quarter ended August 31, 2026, a 1.2% decrease year-over-year; constant currency revenue declined 0.5%.
Reported operating loss of $(910.3) million, or (37.1)% of revenue, compared to operating income of $147.0 million in the prior year quarter; this includes a non-cash goodwill impairment charge of $1,050.0 million.
Non-GAAP operating income was $309.0 million, or 12.6% of revenue, compared to $305.1 million (12.3% margin) in the prior year quarter.
Adjusted EBITDA was $363.0 million, or 14.8% of revenue, compared to $359.2 million (14.5% margin) in the prior year quarter.
Reported net loss was $(988.1) million, or $(16.24) per diluted share, compared to net income of $88.1 million, or $1.34 per diluted share, in the prior year quarter.
Non-GAAP net income was $186.5 million, or $2.92 per diluted share, compared to $183.2 million, or $2.78 per diluted share, in the prior year quarter.
Cash flow provided by operations was $268.2 million; adjusted free cash flow was $218.3 million.
Total assets were $9,260.8 million as of August 31, 2026, down from $10,761.1 million as of November 30, 2025.
Total liabilities were $7,492.0 million as of August 31, 2026, down from $8,016.7 million as of November 30, 2025.
Long-term debt, net, was $3,925.4 million as of August 31, 2026, down from $4,572.9 million as of November 30, 2025.
Cash and cash equivalents were $244.7 million as of August 31, 2026, down from $327.3 million as of November 30, 2025.

Fourth quarter 2026 revenue is expected to be $2.410 billion to $2.460 billion, implying a constant currency revenue decline of (5.0)% to (3.0)%.
Fourth quarter 2026 non-GAAP operating income is expected to be $310 million to $320 million.
Fourth quarter 2026 non-GAAP diluted EPS is expected to be $2.86 to $2.98.
Full year 2026 revenue is expected to be $9.827 billion to $9.877 billion, implying a constant currency revenue decline of (0.8)% to (0.3)%.
Full year 2026 non-GAAP operating income is expected to be $1,206 million to $1,216 million.
Full year 2026 non-GAAP diluted EPS is expected to be $10.97 to $11.09.
Full year 2026 adjusted free cash flow is expected to be $630.0 million to $650.0 million.
The effective tax rate is expected to be approximately 24% for both the fourth quarter and the full year 2026.

Technology and consumer electronics revenue was $603.5 million, a 10% decrease year-over-year.
Retail, travel and e-commerce revenue was $662.6 million, a 6% increase year-over-year.
Communications and media revenue was $381.9 million, a 7% decrease year-over-year.
Banking, financial services and insurance revenue was $432.5 million, a 12% increase year-over-year.
Healthcare revenue was $145.2 million, a 17% decrease year-over-year.
Other revenue was $228.0 million, a 4% increase year-over-year.
Management noted that 50% of revenue is now derived from business won and deployed within the last three years since the introduction of AI.

The company is actively disrupting its traditional business while reporting that underlying new business is stronger and healthier, evidenced by margin expansion and growth in new services.
The goodwill impairment charge was primarily driven by the trading range of the company's stock price and market capitalization.

The company faces risks related to foreign currency exchange rate fluctuations, which impacted reported revenue and guidance.
The inability to forecast future foreign currency losses (gains) and changes in the factoring program prevents the company from providing a quantitative reconciliation of GAAP EPS and adjusted free cash flow outlooks.
Forward-looking statements involve risks including general economic conditions, geopolitical conflicts, cyberattacks, adoption of new technologies like AI, labor cost increases, and potential client contract terminations.

Chris Caldwell, President and CEO, stated the company reached an "inflection point" with 50% of revenue coming from AI-driven business won in the last three years.
Management highlighted that despite disrupting traditional business, the new business is "stronger and healthier" as evidenced by margin expansion and strong free cash flow.

The Board of Directors declared a quarterly dividend of $0.37 per share, payable on November 3, 2026, an increase from the $0.36 per share paid on August 4, 2026.
The company did not repurchase any shares during the third quarter of fiscal 2026; remaining share repurchase authorization was $396.6 million as of August 31, 2026.
Goodwill decreased from $3,671.7 million to $2,636.7 million due to the impairment charge.
Assets held for sale were $212.9 million as of August 31, 2026, compared to zero in the prior period.
The company incurred $42.5 million in acquisition-related, integration, and restructuring expenses for the quarter.