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Conduent
(NASDAQ:CNDT)
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Rating:46Neutral
Price Target:
$1.50
▼(-10.71% Downside)
Action:Reiterated
Date:10/16/26
The score is held back primarily by weak financial performance (declining revenue, losses, and negative free cash flow) despite improved leverage. Technical signals are modestly bearish/neutral, offering limited support. The earnings call adds some offset via clearer strategic progress (divestiture-driven deleveraging, pipeline growth, and cost-savings execution), but near-term execution and cash-flow risks remain elevated.
Positive Factors
Portfolio simplification and deleveraging
Selling non-core transportation assets can simplify Conduent’s operating portfolio and direct capital toward its commercial and government businesses. The expected proceeds and lower surety obligations should improve financial flexibility, reduce balance-sheet risk, and support more focused execution over the next several quarters.
Negative Factors
Persistent revenue contraction
Declining revenue indicates that contract losses, roll-offs, and lower activity levels are currently outweighing new-business wins. This weakens operating leverage and makes it harder to absorb corporate costs, while the ongoing contraction raises the execution burden for pipeline conversion and portfolio repositioning.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio simplification and deleveraging
Selling non-core transportation assets can simplify Conduent’s operating portfolio and direct capital toward its commercial and government businesses. The expected proceeds and lower surety obligations should improve financial flexibility, reduce balance-sheet risk, and support more focused execution over the next several quarters.
Read all positive factors
Conduent (CNDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$230.17M
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth-10.31%
EPS Growth-2595.28%
CountryUS
Employees46,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-1.52
Shares Outstanding155,520,800
10 Day Avg. Volume917,919
30 Day Avg. Volume1,076,632
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.35
Price to Sales (P/S)0.09
P/FCF Ratio-1.86
Enterprise Value/Market Cap4.21
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda11.13
Forecast
1Y Price Target
$5.00Price Target Upside197.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$2.82B
Conduent Business Overview & Revenue Model
Company Description
Conduent Incorporated delivers a range of business process services, leveraging expertise in handling high-volume transactions, data analysis, and automated systems across North America, Europe, and other global markets. The company's operations a...
How the Company Makes Money
Conduent primarily makes money by providing business process outsourcing (BPO) and technology-enabled services under service contracts with enterprises and government agencies. Revenue is generally earned in the form of: (1) recurring fees for ong...
Conduent Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call balanced clear near-term headwinds—declining revenue, compressed margins, negative adjusted free cash flow and the impact of divestitures—with meaningful strategic progress: portfolio monetization that exceeded targets, a larger qualified pipeline ($3B, +11% YoY and Commercial pipeline +48% YTD), active cost-savings execution ($100M program) and measurable AI and operational wins (Conni performance, innovation award). Management articulated a credible plan to use proceeds to delever, reduce off-balance-sheet obligations and invest in higher-return areas, and reiterated long-term margin targets while admitting the gap vs. current results. Overall, the tone was constructive and forward-looking but acknowledged significant near-term execution risks.Positive Updates
Portfolio Monetization Exceeds Target
Announced sale of transit and tolling businesses expected to generate approximately $234 million in gross proceeds plus a retained 7% equity stake in Quarterhill; this surpasses the prior commitment of at least $200 million and is intended primarily to reduce debt and strengthen the balance sheet.
Negative Updates
Revenue Decline Year-over-Year
Q2 2026 revenue of $531 million, down 11.9% versus Q2 2025 ($603 million), reflecting contract roll-offs and volume declines across segments.
Read all updates
Q2-2026 Updates
Positive
Negative
Portfolio Monetization Exceeds Target
Announced sale of transit and tolling businesses expected to generate approximately $234 million in gross proceeds plus a retained 7% equity stake in Quarterhill; this surpasses the prior commitment of at least $200 million and is intended primarily to reduce debt and strengthen the balance sheet.
Read all positive updates
Company Guidance
Conduent updated 2026 guidance (ex‑discontinued ops) to revenue of $2.15–$2.25 billion and adjusted EBITDA of $140–$170 million (midpoint ≈7% margin), reflecting recent divestitures expected to close by end of 2026 that will generate ~ $234 million gross proceeds plus a 7% equity stake in Quarterhill; Q2 results included revenue of $531 million, adjusted EBITDA of $16 million (3% margin), cash of ~$240 million and negative adjusted free cash flow of $8 million for the quarter (H1 adjusted FCF improved by $81 million YoY), adjusted net leverage of 2.1x (post‑proceeds basis), capex at 2.6% of revenue, and ~ $4 million of stranded costs in Q2; operational metrics feeding the outlook include a ~$3 billion qualified ACV pipeline (up 11% YoY and Commercial pipeline up 48% year‑to‑date), Q2 new‑business ACV of $99 million ($188 million YTD), $617 million of renewal TCV in the quarter, and progress on a ~$100 million annualized cost‑savings program expected to deliver the majority of savings this year.Conduent Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.79B | 3.04B | 3.36B | 3.72B | 3.86B | 4.14B |
| Gross Profit | 467.00M | 552.00M | 626.00M | 834.00M | 840.00M | 1.00B |
| EBITDA | 87.00M | 82.00M | 155.00M | 354.00M | 187.00M | 382.00M |
| Net Income | -228.00M | -170.00M | 426.00M | -296.00M | -182.00M | -28.00M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 2.40B | 2.60B | 3.16B | 3.57B | 4.04B |
| Cash, Cash Equivalents and Short-Term Investments | 228.00M | 233.00M | 366.00M | 498.00M | 582.00M | 415.00M |
| Total Debt | 840.00M | 841.00M | 829.00M | 1.49B | 1.53B | 1.67B |
| Total Liabilities | 1.58B | 1.57B | 1.61B | 2.53B | 2.65B | 2.90B |
| Stockholders Equity | 668.00M | 827.00M | 981.00M | 629.00M | 917.00M | 1.13B |
Cash Flow | ||||||
| Free Cash Flow | -60.00M | -154.00M | -106.00M | -4.00M | -9.00M | 163.00M |
| Operating Cash Flow | -1.00M | -73.00M | -50.00M | 89.00M | 144.00M | 243.00M |
| Investing Cash Flow | -69.00M | -28.00M | 795.00M | -93.00M | 173.00M | -142.00M |
| Financing Cash Flow | 14.00M | -39.00M | -877.00M | -81.00M | -131.00M | -132.00M |
Conduent Technical Analysis
Negative
1.68
Price Trends
1.61
Negative
1.56
Negative
1.56
Negative
Market Momentum
-0.05
Positive
43.76
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Negative. The current price of 1.68 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.61, and above the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNDT.
Conduent Risk Analysis
Conduent disclosed 34 risk factors in its most recent earnings report. Conduent reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conduent Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.58B | 11.57 | 22.91% | 1.86% | 6.89% | 11.22% | |
76 Outperform | $6.19B | 25.80 | 28.49% | ― | 13.63% | 9.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $2.34B | 20.26 | 4.06% | 5.60% | -2.42% | -65.01% | |
53 Neutral | $1.84B | -0.77 | -95.60% | 4.78% | 2.56% | -918.98% | |
46 Neutral | $230.17M | -0.97 | -30.45% | ― | -10.31% | -2595.28% | |
46 Neutral | $161.87M | -0.40 | 134.79% | ― | -0.61% | -405.05% |
* Technology Sector Average
CNDT
Conduent
1.49
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-42.47%
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Conduent Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Conduent Reaches Class Action Cybersecurity Settlement Agreement
Negative
Oct 16, 2026
On October 16, 2026, Conduent and certain subsidiaries entered into a Class Action Settlement Agreement to resolve a consolidated class action lawsuit in the U.S. District Court for the District of New Jersey arising from a January 2025 cybersecur...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Conduent Extends Revolving Credit Commitments Amid Refinancing
Positive
Oct 15, 2026
On October 14, 2026, Conduent and several subsidiaries entered into Amendment No. 4 to their October 15, 2021 credit agreement with Bank of America and certain revolving credit lenders. The amendment extends the maturity date of revolving credit c...
Business Operations and StrategyM&A Transactions
Conduent Sells Public Transit Business to Modaxo
Positive
Oct 6, 2026
On October 1, 2026, Conduent completed the $164 million sale of its Public Transit Business, including transit fare management and fleet management operations across multiple regions, to Modaxo. The business was held through Conduent Transport Sol...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Conduent Investor Day Highlights ASCEND Long-Term Strategy
Neutral
Sep 30, 2026
On September 30, 2026, Conduent held an Investor Day in New York and via webcast, where President and CEO Harsha V. Agadi and senior executives outlined the company’s long-term strategy and growth priorities. The event detailed Conduent̵...
Financial DisclosuresLegal Proceedings
Conduent Reaches Settlement in Major Cybersecurity Lawsuit
Neutral
Sep 10, 2026
Conduent disclosed that it faces multiple U.S. lawsuits stemming from notification letters sent to individuals whose personal information may have been affected by a cybersecurity incident in January 2025. These cases have been largely consolidate...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Conduent Reshapes Board Governance Following Director Departure
Neutral
Aug 28, 2026
Conduent’s board disclosed governance changes arising from its long-standing shareholders agreement with investor Darwin A. Deason, who died on December 2, 2025, and whose rights under the 2018 agreement were non-assignable. As part of its a...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Conduent Reports Q2 Results Amid Portfolio Reshaping Efforts
Negative
Aug 10, 2026
On August 10, 2026, Conduent reported second-quarter 2026 results that underscored both financial pressure and continued progress on its transformation plan. Revenue from continuing operations fell 11.9% year over year to $531 million, with GAAP n...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.