CI&T (NYSE:CINT) Issues Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• CI&T delivered record second-quarter revenue of $142.8 million, up 21.9% organically and ahead of estimates, prompting management to raise full-year revenue guidance to approximately $566 million–$578 million.
• AI demand is accelerating, with the commercial pipeline up 40% year over year and roughly 35%–40% of demand related to agentic software development. Value-based pricing also lifted adjusted gross margin to 32.4% from 30.6% sequentially.
• Profitability lagged expectations: adjusted EPS was $0.07 versus the $0.09 consensus, while adjusted EBITDA margin fell to 13.3% due to higher sales investment and currency pressure. Several analysts retained positive ratings but lowered their price targets.

CI&T (NYSE:CINT - Get Free Report) released its earnings results on Tuesday. The company reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.02), FiscalAI reports. CI&T had a net margin of 7.90% and a return on equity of 13.19%. The business had revenue of $142.82 million during the quarter, compared to the consensus estimate of $140.05 million.

Here are the key takeaways from CI&T's conference call:

• Q2 revenue reached a record $142.8 million, up 21.9% organically and above guidance, marking the company’s seventh consecutive quarter of double-digit organic growth. Management raised full-year revenue guidance to $566 million–$578 million, or 15.5%–18% organic growth.
• AI deployment demand is broadening, with the commercial pipeline up 40% year over year and approximately 35%–40% of demand tied to agentic software development initiatives. The Anthropic Claude Partner Network and Mistral AI partnerships are intended to support new enterprise wins and vertical solutions.
• New value-based pricing models are improving monetization, with 30% of first-half new engagements using these structures and adjusted gross margin expanding sequentially from 30.6% to 32.4%. Management said these models can generate margins 3–15 percentage points above traditional time-and-materials work as adoption increases.
• Adjusted EBITDA margin fell to 13.3% as CI&T increased commercial spending to capture AI demand, while Brazilian real appreciation created an additional headwind; adjusted EPS declined to $0.07 from $0.09 year over year. Management expects sequential margin improvement and guided to a full-year adjusted EBITDA margin of 15%–17%, but acknowledged that a portion of the higher sales investment will remain structural.
• Growth was broad-based, led by Latin America, financial services, and technology and telecommunications, while consumer goods declined 9% and North American growth slowed to 10.2% amid what management characterized as temporary seasonality and contract-renewal timing.

CI&T Stock Performance

Shares of NYSE CINT traded down $0.09 during mid-day trading on Wednesday, reaching $3.55. 124,074 shares of the company were exchanged, compared to its average volume of 143,269. The stock has a market capitalization of $477.76 million, a P/E ratio of 11.45 and a beta of 0.81. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.18. The company's 50-day simple moving average is $3.53 and its 200-day simple moving average is $4.24. CI&T has a twelve month low of $3.03 and a twelve month high of $5.88.

CI&T News Roundup

Here are the key news stories impacting CI&T this week:

• Positive Sentiment: CI&T reported 21.9% organic revenue growth in the second quarter, driven by momentum across geographies, industries and its client base. Revenue totaled $142.8 million, exceeding analysts’ $140.1 million estimate. CI&T second-quarter results
• Positive Sentiment: Full-year revenue guidance of $565.5 million to $577.8 million is broadly in line with the $570.0 million consensus estimate, suggesting management continues to expect solid growth. CI&T earnings and guidance
• Neutral Sentiment: TD Cowen, JPMorgan and UBS each maintained a bullish stance—Buy, Overweight and Buy, respectively—but lowered their price targets. The firms’ revised targets still indicate substantial potential upside from recent trading levels. Analyst rating and price-target updates
• Negative Sentiment: Adjusted earnings were $0.07 per share, below estimates ranging from $0.09 to $0.10 and flat with the year-earlier result. The miss raises concerns about profitability despite the revenue beat. CI&T earnings miss
• Negative Sentiment: TD Cowen cut its target to $5.00 from $6.00, JPMorgan reduced its target to $5.00 from $6.00, and UBS lowered its target to $6.20 from $7.20. Although the ratings remain positive, the coordinated reductions signal more cautious expectations following the quarterly results. CI&T analyst target revisions

Institutional Investors Weigh In On CI&T

A number of institutional investors have recently made changes to their positions in CINT. State Street Corp grew its position in shares of CI&T by 6.4% during the 4th quarter. State Street Corp now owns 62,242 shares of the company's stock worth $253,000 after purchasing an additional 3,719 shares in the last quarter. Franklin Resources Inc. raised its holdings in CI&T by 45.7% in the 4th quarter. Franklin Resources Inc. now owns 15,892 shares of the company's stock valued at $65,000 after acquiring an additional 4,983 shares in the last quarter. Wedbush Securities Inc. lifted its position in shares of CI&T by 50.6% during the 4th quarter. Wedbush Securities Inc. now owns 16,975 shares of the company's stock valued at $69,000 after acquiring an additional 5,700 shares during the period. Russell Investments Group Ltd. lifted its position in shares of CI&T by 176.3% during the 2nd quarter. Russell Investments Group Ltd. now owns 11,684 shares of the company's stock valued at $67,000 after acquiring an additional 7,456 shares during the period. Finally, Jane Street Group LLC grew its holdings in shares of CI&T by 41.3% during the 4th quarter. Jane Street Group LLC now owns 38,497 shares of the company's stock worth $157,000 after purchasing an additional 11,248 shares in the last quarter. Institutional investors own 92.45% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Wall Street Zen downgraded CI&T from a "buy" rating to a "hold" rating in a research report on Saturday, June 13th. Wedbush lowered CI&T from an "outperform" rating to a "neutral" rating and lowered their price target for the stock from $7.00 to $4.00 in a research report on Tuesday, July 21st. UBS Group dropped their price objective on CI&T from $7.20 to $6.20 and set a "buy" rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. decreased their target price on shares of CI&T from $6.00 to $5.00 and set an "overweight" rating for the company in a research note on Wednesday. Finally, Weiss Ratings downgraded shares of CI&T from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, June 29th. Seven equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, CI&T has a consensus rating of "Hold" and a consensus price target of $6.08.

About CI&T

CI&T Inc NYSE: CINT is a global digital solutions and technology services provider specializing in end-to-end digital transformation. The company partners with clients across industries such as financial services, retail, healthcare and technology to deliver tailored software products, agile development practices and customer-centric design. Its core offerings include digital strategy consulting, user experience and interface design, cloud-native application development, data engineering and full-cycle product lifecycle management.

Leveraging a proprietary agile framework, CI&T helps organizations accelerate time-to-market and improve operational efficiency through continuous delivery and DevOps automation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source