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Conduent
(NASDAQ:CNDT)
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Rating:50Neutral
Price Target:
$1.50
▼(-10.71% Downside)
Action:Reiterated
Date:08/10/26
CNDT scores 50 primarily due to weak financial performance (declining revenue, losses, and negative free cash flow) despite some balance-sheet leverage improvement. Technicals are moderately supportive with the stock trading above key moving averages and a positive MACD. The latest earnings call adds cautious optimism via improved 2026 outlook, cost-savings execution, and pipeline growth, but near-term revenue/margin pressure and negative free cash flow keep the overall score restrained.
Positive Factors
Portfolio Simplification and Deleveraging
Selling non-core transit and tolling assets can simplify operations, reduce surety obligations and provide cash for debt reduction. A less complex portfolio and stronger balance sheet may improve financial flexibility and earnings predictability over time.
Negative Factors
Persistent Revenue Decline and Client Roll-Offs
Declining revenue reduces operating leverage and makes it harder to absorb fixed delivery costs. The upcoming large-client termination adds concentration and renewal risk, requiring new wins to replace lost volume and limiting the durability of near-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Simplification and Deleveraging
Selling non-core transit and tolling assets can simplify operations, reduce surety obligations and provide cash for debt reduction. A less complex portfolio and stronger balance sheet may improve financial flexibility and earnings predictability over time.
Read all positive factors
Conduent (CNDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$253.50M
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)―
Beta (1Y)1.41
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. Volume862,377
30 Day Avg. Volume1,115,169
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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 makes money primarily by providing services and software-enabled operations to enterprises and government entities under contractual arrangements. Its revenue model is largely recurring and contract-based, with payments typically structur...
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 | 81.00M | 82.00M | 76.00M | 240.00M | 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
Positive
1.68
Price Trends
1.53
Positive
1.56
Positive
1.62
Positive
Market Momentum
0.01
Negative
58.03
Neutral
85.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Positive. The current price of 1.68 is above the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.53, and above the 200-day MA of 1.62, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 85.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.26B | 10.85 | 22.91% | 2.29% | 6.89% | 11.22% | |
72 Outperform | $729.83M | 6.51 | 24.65% | ― | 11.38% | 69.06% | |
67 Neutral | $278.38M | 16.91 | 22.15% | 4.94% | -9.12% | 5.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $387.38M | -0.40 | -161.29% | 3.88% | 25.64% | 35.99% | |
50 Neutral | $253.50M | -1.11 | -30.45% | ― | -10.31% | -2595.28% | |
47 Neutral | $196.14M | -0.44 | 134.79% | ― | -0.61% | -405.05% |
* Technology Sector Average
CNDT
Conduent
1.74
-1.06
-37.86%
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37.53
-6.62
-15.00%
HCKT
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11.18
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-44.07%
UIS
Unisys
2.72
-1.20
-30.61%
XRX
Xerox
2.97
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TASK
TaskUs
8.21
-3.13
-27.60%
Conduent Corporate Events
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...
Executive/Board Changes
Conduent Announces Upcoming Resignation of General Counsel
Neutral
Jul 2, 2026
On July 2, 2026, Conduent announced that Michael Krawitz, its Executive Vice President, General Counsel and Corporate Secretary, will resign effective July 31, 2026. He will remain in his role through the end of July to support an orderly leadersh...
Business Operations and StrategyM&A Transactions
Conduent to Sell Tolling Solutions Business to Quarterhill
Positive
Jun 30, 2026
On June 29, 2026, Conduent entered into an asset purchase agreement to sell and assign certain assets and liabilities of its tolling solutions business, a division of Conduent Transportation, to Canada‑based Quarterhill Inc. The consideratio...
Business Operations and StrategyM&A Transactions
Conduent to Divest Public Transit Business to Modaxo
Positive
May 21, 2026
On May 21, 2026, Conduent agreed to sell its Public Transit business, including transit fare management and fleet management solutions under Conduent Transportation, to Modaxo for a purchase price of $164 million. The transaction, which remains su...
Business Operations and StrategyExecutive/Board Changes
Conduent Adds AI-Focused Venture Capitalist to Board
Positive
May 20, 2026
On May 14, 2026, Conduent’s board of directors elected Adam Demuyakor, founder and managing partner of venture capital firm Wilshire Lane Capital, to join the board effective June 1, 2026. He will serve on the Compensation, Risk Oversight an...
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.