Concentrix (CNXC)
NASDAQIndustrialsInformation Technology ServicesSnapshot 2026-09-04
$32.16-2.10%
Close 2026-09-04 · 1-day change
NASDAQIndustrialsInformation Technology ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — Achieve EPS of $11.48 to $12.07 in FY 2026: Q1 EPS 2.32 vs 2.63 mid (-11.8%).
Concentrix aims to grow revenue to about $10.1 billion in 2026. AI-driven deals grew 400% year over year in Q2. The company maintains disciplined capital allocation with dividends and share buybacks. Profit margins and free cash flow targets support recovery.
Revenue guidance was recently cut, and EPS missed estimates. The stock has sold off sharply, reflecting market concerns. Capital allocation is mixed, with no share repurchases in Q2. The company remains loss-making with high risk.
The market prices in about 1% revenue growth and a very low valuation with a PE of 2.48. Our fair value is well above the Street median, reflecting more optimism on recovery and growth than current consensus.
Breaks if: AI-driven deal growth falls below 200% YoY in Q2 2026
Grow the business by winning long-term programs combining integrated AI technology solutions and services.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround opportunity in a high-risk environment. The current thesis state is cautious, as recent performance has been weak, but there is potential for improvement if management meets its targets.
The market appears to have priced in a low level of fragility, with CNXC considered cheap compared to its peers. However, the expectations for future performance are low, reflecting the recent weak financial results.
Management is on track to meet its revenue target for FY 2026, but adjusted free cash flow and EPS are still areas to watch. The recent financial performance has been weak, which raises concerns about the company's ability to maintain momentum.
The long-term thesis hinges on management's ability to deliver on revenue and cash flow targets. Additionally, the performance of sector bellwethers will be crucial, as their results could influence CNXC's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The primary reason is the significant share price decline, which indicates market concerns. Recent financial performance remains weak, sitting well below its industry cohort. The overall sector backdrop is a drag, working against the company.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 of last 2 quarters. Management emphasized AI-driven integrated solutions with iX Suite deals up 400% year-over-year in 2026-Q2. This indicates delivering growth and client value consistent with management's stated strategic focus.
“Our blended AI and services approach is delivering value to clients by lowering costs and increasing revenue.”
“We continue to help clients capture measurable value from AI by being a trusted partner for these solutions.”
Breaks if: Dividend cut or share repurchase authorization falls below $300M in FY 2026
Continue disciplined capital allocation with quarterly dividends and share repurchase programs.
Stated as a priority in 2 of last 2 quarters. Management maintained a quarterly dividend of $0.36 per share and a share repurchase authorization of $396.6 million. The company repurchased shares in Q1 but not in Q2, indicating ongoing disciplined capital allocation with consistent dividend payments.
“Paid $0.36 per share dividend; no shares repurchased in Q2; $396.6 million repurchase authorization remains.”
“Paid $0.36 per share dividend; repurchased ~1 million shares for $42 million; $396.6 million repurchase authorization remains.”
Breaks if: EPS falls below $11.48 in FY 2026
Breaks if: Full year revenue falls below $10.035B in FY 2026
Deliver full year reported revenue within the guided range of $10.035 billion to $10.180 billion for fiscal year 2026.
Stated as a priority in 2 of last 2 quarters. Management guided full year 2026 revenue between $10.035 billion and $10.180 billion in 2026-Q1 and reaffirmed a similar range in 2026-Q2 with reported revenue of $2.4625 billion in Q2. The trajectory shows revenue growth of 1.9% year-on-year in Q2, indicating delivery within the guided range.
“Full year reported revenue of $9.925 billion to $10.025 billion guidance reaffirmed.”
“Full year reported revenue of $10.035 billion to $10.180 billion.”
In the next 1 to 3 years, CNXC's performance will depend on management execution and industry trends. Not investment advice.