Concentrix (NASDAQ:CNXC) Issues Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Concentrix reported Q1 adjusted EPS of $2.61, missing estimates by $0.04 while revenue rose 5.4% to $2.50B; however, GAAP profitability weakened sharply (net margin -13.02%, net income down ~69%) and operating cash flow was negative, weighing on the stock (down ~2.5%).
• Management highlighted strong momentum in its AI/iX suite—AI-inclusive contract value more than doubled in Q1 and iX Hero ARR is expected to reach or exceed $100M by year-end—while pursuing ~$40M of annualized cost savings and targeting net leverage below 2.6x adjusted EBITDA.
• The board declared a quarterly dividend of $0.36 (about a 5.6% yield) and the company repurchased ~1M shares with ~$396.6M remaining on the buyback, even as analysts trimmed price targets and the consensus rating remains "Hold."

Concentrix (NASDAQ:CNXC - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $2.61 EPS for the quarter, missing analysts' consensus estimates of $2.65 by ($0.04), FiscalAI reports. The company had revenue of $2.50 billion for the quarter, compared to analysts' expectations of $2.49 billion. Concentrix had a positive return on equity of 16.91% and a negative net margin of 13.02%.The business's quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.79 EPS.

Here are the key takeaways from Concentrix's conference call:

• Our AI/iX suite momentum accelerated — wins with technology rose ~61% YoY, signed annual contract value for AI-inclusive solutions more than doubled in Q1, and management expects iX Hero ARR to reach or exceed $100M by year-end.
• Q1 revenue was approximately $2.5 billion (CC +1.9%), adjusted EBITDA was $348M (13.9% margin) and non-GAAP EPS was $2.61 in line with guidance; adjusted FCF was negative $145M due to seasonal AR timing but full-year FCF guidance remains $630M–$650M.
• Management is taking cost actions and restructuring to drive about $40M of annualized savings, expects sequential margin expansion in 2H26, and targets reducing net leverage to below 2.6x adjusted EBITDA by year-end.
• Performance was uneven by vertical — banking/BFSI grew ~13% and retail/travel ~6%, but technology/consumer electronics and healthcare each fell ~6% due to lighter volumes and onshore mix, posing short-term revenue risk in those areas.

Concentrix Stock Down 2.5%

NASDAQ:CNXC traded down $0.65 during midday trading on Wednesday, reaching $25.83. The company had a trading volume of 1,275,690 shares, compared to its average volume of 1,454,022. The firm has a market capitalization of $1.58 billion, a price-to-earnings ratio of -1.24, a PEG ratio of 0.35 and a beta of 0.50. The stock's fifty day simple moving average is $35.34 and its 200-day simple moving average is $40.33. Concentrix has a 12-month low of $24.27 and a 12-month high of $66.00. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.67.

Concentrix Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 5th. Stockholders of record on Friday, April 24th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 5.6%. The ex-dividend date is Friday, April 24th. Concentrix's dividend payout ratio (DPR) is presently -6.91%.

More Concentrix News

Here are the key news stories impacting Concentrix this week:

• Positive Sentiment: Company maintained full‑year and Q2 guidance and highlighted AI / iX Suite wins and banking growth, signaling continued commercial momentum and predictable revenue outlook. GlobeNewswire Q1 Release
• Positive Sentiment: Board declared a $0.36 quarterly dividend (5.3% yield) payable May 5 (ex‑dividend Apr 24) and the company repurchased ~1M shares in Q1 with ~$396.6M left on the authorization — shareholder returns that can support the stock. Dividend & Repurchase Details
• Neutral Sentiment: Top‑line held up: revenue increased 5.4% year‑over‑year ($2.50B) and roughly in line with consensus — a stabilizing data point even as margins slipped. Revenue & Guidance
• Negative Sentiment: GAAP profitability declined sharply: net income fell ~69% and diluted EPS fell to $0.33 from $1.04 year‑ago; operating margin and adjusted EBITDA margin contracted materially — profitability weakness is the main driver of the sell‑off. Q1 Results
• Negative Sentiment: Cash flow concerns: operating cash flow was negative and adjusted free cash flow was a use in the quarter, which raises near‑term liquidity/coverage questions despite the company’s guidance and buyback room. Cash Flow & Financials
• Negative Sentiment: Analysts trimmed price targets: Canaccord cut its target (from $80 to $55) while keeping a Buy rating and Robert W. Baird lowered its target (from $52 to $40) but kept an Outperform — PT cuts reduce upside expectations and can pressure the share price. Benzinga: Canaccord Benzinga: Baird
• Negative Sentiment: Market skepticism / bear commentary: critical investor pieces question valuation and execution despite low multiples, adding to investor caution (example: Seeking Alpha note). Seeking Alpha: Why I'm Not Buying

Insider Buying and Selling

In related news, CEO Christopher A. Caldwell purchased 1,000 shares of the business's stock in a transaction on Thursday, January 29th. The shares were bought at an average price of $37.07 per share, for a total transaction of $37,070.00. Following the acquisition, the chief executive officer directly owned 362,075 shares in the company, valued at $13,422,120.25. This trade represents a 0.28% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Concentrix

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LLC acquired a new position in shares of Concentrix in the 4th quarter valued at $289,000. Pacer Advisors Inc. raised its stake in Concentrix by 73.2% during the 4th quarter. Pacer Advisors Inc. now owns 16,099 shares of the company's stock worth $669,000 after acquiring an additional 6,804 shares in the last quarter. Invesco Ltd. lifted its position in Concentrix by 16.3% in the fourth quarter. Invesco Ltd. now owns 478,790 shares of the company's stock valued at $19,908,000 after acquiring an additional 67,036 shares during the last quarter. SummitTX Capital L.P. lifted its position in Concentrix by 268.0% in the fourth quarter. SummitTX Capital L.P. now owns 45,780 shares of the company's stock valued at $1,904,000 after acquiring an additional 33,340 shares during the last quarter. Finally, Twinbeech Capital LP acquired a new position in Concentrix in the fourth quarter valued at $964,000. 90.34% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently commented on CNXC. Robert W. Baird reduced their price target on Concentrix from $52.00 to $40.00 and set an "outperform" rating on the stock in a report on Wednesday. Weiss Ratings lowered shares of Concentrix from a "hold (c-)" rating to a "sell (d)" rating in a research note on Thursday, January 29th. Canaccord Genuity Group cut their target price on Concentrix from $80.00 to $55.00 and set a "buy" rating on the stock in a research report on Wednesday. Barrington Research decreased their price target on Concentrix from $62.00 to $38.00 and set an "outperform" rating on the stock in a research note on Wednesday. Finally, Wall Street Zen raised Concentrix from a "hold" rating to a "buy" rating in a research note on Saturday, February 14th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $48.50.

Concentrix Company Profile

Concentrix Inc NASDAQ: CNXC is a global business services company specializing in customer engagement solutions and technology‐driven business process outsourcing. The firm’s offerings encompass customer care delivered across voice and digital channels, back‐office processing, analytics and consulting, and automated workflow management. By integrating proprietary platforms, strategic partnerships and advanced automation, Concentrix helps clients enhance customer experiences and streamline operations.

Its capabilities extend to digital marketing and technology implementation, leveraging artificial intelligence, machine learning and data analytics to optimize customer journeys.