Concentrix (NASDAQ:CNXC) Stock Price Up 6.4% After Earnings Beat

Key Points

• Concentrix shares rose 6.4% after the company reported adjusted EPS of $2.92, beating the $2.71 analyst consensus and increasing from $2.78 a year earlier.
• Despite the earnings beat, revenue fell 1.2% year over year to $2.45 billion, missing estimates, while fourth-quarter and full-year revenue guidance also trailed consensus amid concerns about demand during its AI transition.
• The company generated record third-quarter operating free cash flow of $268 million and raised its quarterly dividend to $0.37 per share; analysts’ average rating remains “Hold,” with a $32.75 price target.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report) shot up 6.4% during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $26.66 and last traded at $26.4670. 1,416,056 shares changed hands during trading, a decline of 13% from the average daily volume of 1,631,991 shares. The stock had previously closed at $24.88.

The company reported $2.92 earnings per share for the quarter, topping analysts' consensus estimates of $2.71 by $0.21. The firm had revenue of $2.45 billion during the quarter, compared to the consensus estimate of $2.48 billion. Concentrix had a positive return on equity of 19.82% and a negative net margin of 13.16%.The business's revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.78 EPS. Concentrix has set its FY 2026 guidance at 10.970-11.090 EPS and its Q4 2026 guidance at 2.860-2.980 EPS.

Concentrix Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 3rd. Shareholders of record on Friday, October 23rd will be given a dividend of $0.37 per share. This is a boost from Concentrix's previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Friday, October 23rd. This represents a $1.48 annualized dividend and a yield of 5.6%. Concentrix's payout ratio is presently -6.75%.

Key Stories Impacting Concentrix

Here are the key news stories impacting Concentrix this week:

• Positive Sentiment: Concentrix reported adjusted earnings of $2.92 per share, exceeding the $2.71 analyst consensus and increasing from $2.78 a year earlier. The company also exceeded its profitability guidance. Concentrix Corporation Q3 Earnings Beat Estimates
• Positive Sentiment: Cash generation was strong, with record third-quarter operating free cash flow of $268 million and adjusted free cash flow of $218 million. Concentrix also raised its quarterly dividend from $0.36 to $0.37 per share, equivalent to a $1.48 annualized payout and an approximately 5.9% yield. Concentrix Reports Third Quarter 2026 Results
• Neutral Sentiment: Management expects new-business revenue to exceed $6 billion in 2027 and is targeting net leverage of 2.2 times, suggesting confidence in future growth but also continued attention to debt reduction. Concentrix 2027 New Business and Leverage Targets
• Negative Sentiment: Third-quarter revenue was $2.45 billion, below the $2.48 billion estimate and down 1.2% year over year. The revenue shortfall overshadowed the EPS beat and raised concerns about demand during the company’s transition toward AI-enabled services. Concentrix Stock Falls After Earnings as AI Transition Weighs on Revenue
• Negative Sentiment: Fourth-quarter guidance calls for EPS of $2.86–$2.98 and revenue of $2.4–$2.5 billion, below consensus estimates of $3.08 and $2.5 billion, respectively. Full-year revenue guidance of $9.8–$9.9 billion also trails the $10 billion estimate, although full-year EPS guidance of $10.97–$11.09 is above consensus. Concentrix Provides Fiscal 2026 Guidance

Analysts Set New Price Targets

CNXC has been the topic of several analyst reports. Zacks Research upgraded Concentrix from a "strong sell" rating to a "hold" rating in a report on Monday, August 31st. Barrington Research lowered their price target on Concentrix from $38.00 to $30.00 and set an "outperform" rating on the stock in a research report on Tuesday, June 30th. Canaccord Genuity Group dropped their price objective on Concentrix from $55.00 to $45.00 and set a "buy" rating on the stock in a research note on Tuesday, June 30th. Bank of America decreased their target price on shares of Concentrix from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Concentrix in a research report on Friday, July 24th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Concentrix currently has an average rating of "Hold" and an average price target of $32.75.

Institutional Investors Weigh In On Concentrix

Several hedge funds have recently added to or reduced their stakes in the business. Engineers Gate Manager LP bought a new position in shares of Concentrix in the second quarter valued at about $228,000. Arizona State Retirement System boosted its holdings in shares of Concentrix by 14.8% during the 2nd quarter. Arizona State Retirement System now owns 11,783 shares of the company's stock worth $264,000 after buying an additional 1,523 shares during the period. Nykredit A S bought a new stake in shares of Concentrix during the 2nd quarter worth about $29,000. Corient Private Wealth LP grew its stake in Concentrix by 321.6% in the 2nd quarter. Corient Private Wealth LP now owns 121,597 shares of the company's stock valued at $2,724,000 after buying an additional 92,752 shares during the last quarter. Finally, Amundi raised its holdings in Concentrix by 46.2% in the 2nd quarter. Amundi now owns 33,437 shares of the company's stock valued at $749,000 after acquiring an additional 10,572 shares during the period. Institutional investors and hedge funds own 90.34% of the company's stock.

Concentrix Price Performance

The stock has a market capitalization of $1.61 billion, a price-to-earnings ratio of -1.25, a P/E/G ratio of 0.47 and a beta of 0.47. The company's 50-day simple moving average is $27.01 and its 200-day simple moving average is $26.53. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.18 and a quick ratio of 1.18.

About Concentrix

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.

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