Concentrix Books $1.05B Goodwill Impairment, Swings to $988M Q3 Loss; Non-GAAP EPS Tops Views
CNXC sits 29% above its 52-week low of $19.12.
Summary
A $1.05B goodwill impairment charge drove a $988M Q3 GAAP loss, while non-GAAP EPS of $2.92 beat expectations and the company raised its dividend. Q3 revenue fell 1.2% to $2.45B, with 50% of revenue now from business won in the last 3 years.
Updated with a Reuters report · What changed
Updates
· Reuters — Q3 adjusted EPS rose 5% to $2.92, and 2026 revenue is forecast at $9.83 billion to $9.88 billion.
- Earnings — Adjusted EPS for Q3 rose 5% year-over-year to $2.92.
- Goodwill Impairment — The non-cash goodwill impairment charge was $1.05 billion.
- New Business Impact — New business won in the last 3 years contributed to margin expansion and strong free cash flow; 50% of revenue now comes from business won and deployed in the last 3 years since the introduction of AI.
- Sector Performance — Q3 revenue declined in technology, consumer electronics, communications, media, and healthcare sectors, but grew in banking, financial services, insurance, retail, travel, and e-commerce sectors.
- 2026 Forecast — Concentrix forecasts 2026 revenue of $9.83 billion to $9.88 billion.
All 8 details
- Adjusted EPS for Q3 rose 5% year-over-year.
- The non-cash goodwill impairment charge was $1.05 billion.
- New business won in the last 3 years contributed to margin expansion and strong free cash flow.
- Q3 revenue declined in technology, consumer electronics, communications, media, and healthcare sectors.
- Q3 revenue grew in banking, financial services, insurance, retail, travel, and e-commerce sectors.
- Q3 Adjusted EPS was $2.92.
- Concentrix forecasts 2026 revenue of $9.83 billion to $9.88 billion.
- 50% of revenue now comes from business won and deployed in the last 3 years since the introduction of AI
Key Events · Earnings and Guidance · CNXC
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New · · Reuters
Q3 Revenue Falls 1.2% to $2.45B
Q3 revenue fell 1.2% to $2.45B, with 50% of revenue now from business won in the last 3 years. Revenue declined in technology, consumer electronics, communications, media, and healthcare sectors, while growing in banking, financial services, insurance, retail, travel, and e-commerce sectors.
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New · · Reuters
New Business Drives Margin and Cash Flow
New business won in the last 3 years contributed to margin expansion and strong free cash flow.
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Updated · · Reuters
Non-GAAP EPS Beats at $2.92
Non-GAAP operating income rose 1.3% to $309.0M (12.6% margin), non-GAAP net income was $186.5M, and adjusted EBITDA was $363.0M. Adjusted EPS for Q3 rose 5% year-over-year to $2.92.
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Updated · · Reuters
Q4 and FY2026 Guidance
Q4 non-GAAP EPS guided to $2.86-$2.98 on revenue of $2.410B-$2.460B; full-year non-GAAP EPS of $10.97-$11.09 and adjusted free cash flow of $630M-$650M. Concentrix forecasts 2026 revenue of $9.83 billion to $9.88 billion.
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$1.05B Goodwill Impairment Charge
Non-cash impairment primarily driven by the trading range of the company's stock price and market capitalization, reducing goodwill from $3.67B to $2.64B.
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Q3 GAAP Loss of $988M
GAAP diluted EPS of $(16.24) versus $1.34 a year ago, driven entirely by the impairment charge; operating margin fell to (37.1)%.
Analysis · CNXC · Trade & Services
A $1.05 billion non-cash goodwill impairment charge, driven by the company's depressed stock price and market capitalization, pushed Q3 GAAP results to a $988 million net loss and $(16.24) diluted EPS. The charge erases roughly 60% of the company's $1.77 billion stockholders' equity and signals management's acknowledgment that prior acquisition values are no longer supported by the market. Against that backdrop, the underlying business showed resilience: non-GAAP operating income rose 1.3% to $309 million, non-GAAP EPS of $2.92 beat the prior year's $2.78, and record adjusted free cash flow of $218 million supports the dividend increase to $0.37 per share. Q3 revenue fell 1.2% to $2.45 billion, with 50% of revenue now coming from business won and deployed in the last 3 years since the introduction of AI; revenue declined in technology, consumer electronics, communications, media, and healthcare sectors, while growing in banking, financial services, insurance, retail, travel, and e-commerce sectors. The company guided Q4 non-GAAP EPS to $2.86-$2.98 and full-year adjusted free cash flow to $630-$650 million, but revenue is expected to decline 3-5% on a constant currency basis, reflecting continued pressure in technology and healthcare verticals. Concentrix forecasts 2026 revenue of $9.83 billion to $9.88 billion.
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In the 30 days to Oct 1, 2026, 36.1% of the 1052 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CNXC was trading at $24.60 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $19.12 to $49.37. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.