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Concentrix
(NASDAQ:CNXC)
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Rating:60Neutral
Price Target:
$36.00
▲(29.22% Upside)
Action:Reiterated
Date:10/23/26
CNXC scores as a moderate-risk setup: resilient free cash flow and constructive earnings-call outlook (margin expansion, debt reduction, and strong cash guidance) support the rating, but they are tempered by sharp TTM revenue deterioration, ongoing losses, and elevated balance-sheet leverage. Technically, the trend is strong, though overbought signals add near-term volatility risk.
Positive Factors
AI-Enabled Business Mix
The growing contribution from newer, AI-influenced and higher-value services can improve Concentrix’s business mix beyond traditional support. These offerings are described as more profitable and faster growing, creating a durable path toward stronger margins and better retention.
Negative Factors
Revenue Contraction
Revenue contraction indicates that automation, client support reductions, and other demand changes are currently offsetting growth from newer offerings. A shrinking top line can limit operating leverage, make margin recovery harder, and increase execution dependence on later-period growth.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-Enabled Business Mix
The growing contribution from newer, AI-influenced and higher-value services can improve Concentrix’s business mix beyond traditional support. These offerings are described as more profitable and faster growing, creating a durable path toward stronger margins and better retention.
Read all positive factors
Concentrix (CNXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.02B
Dividend Yield4.39%
Average Volume (3M)1.90M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth2.56%
EPS Growth-918.98%
CountryUS
Employees455,000
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-38.89
Shares Outstanding61,105,440
10 Day Avg. Volume1,085,758
30 Day Avg. Volume1,901,711
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.84
Price to Sales (P/S)0.23
P/FCF Ratio4.02
Enterprise Value/Market Cap3.32
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda-4.29
Forecast
1Y Price Target
$34.67Price Target Upside24.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)11.07
Revenue Forecast (FY)$9.86B
Concentrix Business Overview & Revenue Model
Company Description
Concentrix Corporation operates globally, specializing in providing technology-enhanced solutions to optimize customer experiences (CX). The company's services encompass a wide array of offerings, including streamlining CX processes, driving techn...
How the Company Makes Money
Concentrix makes money primarily by selling outsourced customer experience and business process services to corporate clients under commercial contracts that are generally structured as recurring service arrangements. Revenue is chiefly generated ...
Concentrix Earnings Call Summary
Earnings Call Date:Sep 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 19, 2027
Earnings Call Sentiment Positive
The call was positive overall. Management highlighted the milestone that 50% of revenue now comes from newer, faster-growing and more profitable businesses, accelerating AI adoption, margin expansion, record third-quarter free cash flow, substantial debt reduction, and strong liquidity. These positives outweighed revenue declines, hyperscaler-related support reductions, offshoring and shore-mix headwinds, the $1.05 billion noncash goodwill impairment, and the expectation that 2027 growth will be weighted toward the back half of the year.Positive Updates
New Business Reached 50% of Revenue
Concentrix crossed the milestone that 50% of revenue now comes from businesses generated in the last three years. This includes $3 billion from transformed or AI-influenced client revenue, $1.3 billion of net revenue from compressing traditional services through the iX Suite AI platform, and $700 million from new high-value services such as risk and compliance. This revenue is expected to grow 30% year-over-year in fiscal 2026, is more profitable, and has a revenue retention rate 4x higher than the traditional business.
Negative Updates
Third-Quarter Revenue Declined
Third-quarter revenue was approximately $2.45 billion, representing a 0.5% decrease on a constant-currency basis and landing slightly below the lower end of the guidance provided in June. Management attributed the quarter's revenue performance to accelerated AI deployments for clients and client decisions to reduce support for certain customer sets.
Read all updates
Q3-2026 Updates
Positive
Negative
New Business Reached 50% of Revenue
Concentrix crossed the milestone that 50% of revenue now comes from businesses generated in the last three years. This includes $3 billion from transformed or AI-influenced client revenue, $1.3 billion of net revenue from compressing traditional services through the iX Suite AI platform, and $700 million from new high-value services such as risk and compliance. This revenue is expected to grow 30% year-over-year in fiscal 2026, is more profitable, and has a revenue retention rate 4x higher than the traditional business.
Read all positive updates
Company Guidance
For Q4 and full year 2026, Concentrix expects revenue of $2.41 billion to $2.46 billion and $9.827 billion to $9.877 billion, respectively, with an approximate 65 basis point negative impact from foreign exchange rates in Q4, an approximate 80 basis point positive impact for the full year, a constant currency revenue decrease ranging from 3% to 5% in Q4 and a full-year decrease of 0.8% to 0.3%; Q4 non-GAAP operating income of $310 million to $320 million, full-year non-GAAP operating income of $1,206 million to $1,216 million, a Q4 non-GAAP operating income margin of approximately 12.9%, up 20 basis points, Q4 non-GAAP EPS of $2.86 to $2.98 and full-year non-GAAP EPS of $10.97 to $11.09, based on approximately $63.5 million and $265 million of interest expense, 61.2 million and approximately 61.1 million diluted common shares outstanding, and approximately 4.9% of net income attributable to participating securities; the non-GAAP effective tax rate is expected to be approximately 24% for both Q4 and the full year, adjusted free cash flow is expected to be between $630 million and $650 million, gross debt repayment is expected to be over $550 million, net debt is expected to be approximately $3.8 billion, and net leverage approximately 2.6x adjusted EBITDA at fiscal 2026 year-end. The company expects new business revenues to exceed $6 billion in 2027, growth momentum to be more in the back half of the year, stable to improved margins, and free cash generation to be above 2026 levels; while not providing guidance for 2027, it expects adjusted free cash flow to exceed the amount generated in 2026, gross debt reduction of over $550 million once again, net debt below $3.3 billion, or roughly 2.2x adjusted EBITDA, and offshoring to remain in the same sort of range, not higher, but possibly a touch lower than the about a 3-point headwind on growth expected this year.Concentrix Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.97B | 9.83B | 9.62B | 7.11B | 6.32B | 5.59B |
| Gross Profit | 3.23B | 3.44B | 3.45B | 2.58B | 2.26B | 1.97B |
| EBITDA | -1.56B | -231.44M | 1.33B | 997.53M | 984.62M | 855.92M |
| Net Income | -2.39B | -1.28B | 251.22M | 313.84M | 435.05M | 405.58M |
Balance Sheet | ||||||
| Total Assets | 9.26B | 10.76B | 11.99B | 12.49B | 6.67B | 5.05B |
| Cash, Cash Equivalents and Short-Term Investments | 244.69M | 327.35M | 429.60M | 516.49M | 157.46M | 183.01M |
| Total Debt | 4.38B | 4.64B | 5.60B | 5.79B | 2.72B | 1.31B |
| Total Liabilities | 7.49B | 8.02B | 7.95B | 8.35B | 3.97B | 2.43B |
| Stockholders Equity | 1.77B | 2.74B | 4.04B | 4.14B | 2.70B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 575.01M | 572.47M | 428.73M | 497.48M | 460.70M | 365.10M |
| Operating Cash Flow | 787.10M | 806.97M | 667.49M | 678.01M | 600.72M | 514.18M |
| Investing Cash Flow | -207.14M | -250.38M | -244.27M | -2.11B | -1.84B | -78.65M |
| Financing Cash Flow | -663.35M | -491.44M | -492.53M | 1.80B | 1.24B | -401.87M |
Concentrix Technical Analysis
Positive
27.86
Price Trends
27.54
Positive
25.91
Positive
27.96
Positive
Market Momentum
1.13
Negative
67.15
Neutral
88.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXC, the sentiment is Positive. The current price of 27.86 is above the 20-day moving average (MA) of 27.05, above the 50-day MA of 27.54, and below the 200-day MA of 27.96, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 67.15 is Neutral, neither overbought nor oversold. The STOCH value of 88.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNXC.
Concentrix Risk Analysis
Concentrix disclosed 28 risk factors in its most recent earnings report. Concentrix 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
Concentrix Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.83B | 12.01 | 22.91% | 1.79% | 6.89% | 11.22% | |
76 Outperform | $6.41B | 26.60 | 28.49% | ― | 13.63% | 9.52% | |
76 Outperform | $630.25M | 13.69 | 29.46% | ― | 15.37% | 34.60% | |
72 Outperform | $784.84M | 7.19 | 24.65% | 55.81% | 11.38% | 69.06% | |
60 Neutral | $2.02B | -0.85 | -95.60% | 4.39% | 2.56% | -918.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | $74.44M | -0.35 | -162.47% | 6.02% | -4.78% | -699.44% |
* General Sector Average
CNXC
Concentrix
33.00
-10.78
-24.62%
EXLS
Exlservice Holdings
42.30
0.83
2.00%
G
Genpact
40.83
2.09
5.40%
TTEC
TTEC Holdings
1.51
-1.97
-56.61%
IBEX
IBEX
47.23
9.05
23.70%
TASK
TaskUs
8.56
-0.76
-8.14%
Concentrix Corporate Events
Business Operations and StrategyExecutive/Board Changes
Concentrix Executive Vice President of Customer Success Departs
Neutral
Sep 18, 2026
On September 15, 2026, Concentrix announced that Executive Vice President of Customer Success Cormac Twomey will step down from his role, effective December 31, 2026, under a mutually agreed arrangement. Under an agreement dated the same day, Twom...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Concentrix Updates Executive Severance Plan After Review
Neutral
Jul 24, 2026
On July 23, 2026, Concentrix Corporation’s Board of Directors adopted an Amended and Restated Executive Severance Plan to replace its prior change-of-control severance program for executive officers. The revised plan follows the Compensation...
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.