Conduent (CNDT) AI Stock Analysis

• Market Cap: $179.46M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -12.45%
• EPS Growth: -142.77%
• Country: US
• Employees: 53,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.09
• Shares Outstanding: 154,709,170
• 10 Day Avg. Volume: 1,563,058
• 30 Day Avg. Volume: 1,588,777
• PEG Ratio: 0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -2.17
• Enterprise Value/Market Cap: 4.39
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 8.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.51
• Revenue Forecast (FY): $3.04B

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-59.84% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weak financial performance (declining revenue, volatile profitability, and negative operating/free cash flow) and a bearish technical trend (price below key moving averages with negative MACD). Offsetting factors include a more constructive earnings call centered on early turnaround indicators (ACV/pipeline and adjusted EBITDA margin improvement), though execution and cash flow risks remain.

Positive Factors

Large qualified ACV pipeline

A $3.2B qualified ACV pipeline and improving new ACV provide multi‑period revenue visibility and a base to stabilize revenues. Government pipeline growth (up ~29% YoY) reduces cyclicality and, if conversion rates hold, supports durable contracted revenues and upsell opportunities.

Adjusted EBITDA and margin expansion

Rising adjusted EBITDA and expanding margins indicate tangible operating leverage from cost programs and better sales mix. Sustained margin improvement increases free cash flow potential if revenue conversion continues and supports reinvestment or debt reduction over the medium term.

Improved balance sheet leverage and capital discipline

Meaningful reduction in leverage and an explicit emphasis on using sale proceeds to pay down debt improve financial flexibility. Lower leverage reduces refinancing and interest burden risk, enabling the company to fund transformation initiatives with less dependence on external financing.

Negative Factors

Multi-year revenue decline

A multi-year top-line decline erodes scale benefits and makes fixed-cost absorption harder, limiting margin sustainability. Persistent revenue losses suggest structural client or market share issues that require durable new-business wins and portfolio fixes to reverse the trend over the medium term.

Weak cash generation and negative FCF

Consecutive negative operating and free cash flows reduce internal funding for investments and debt paydown, increasing reliance on balance sheet capacity. Structural working capital timing and implementation receipts create uncertainty in sustaining investment and prolong recovery without clear recurring cash conversion improvements.

Commercial segment concentration and underperformance

Heavy reliance on a few large commercial clients raises revenue volatility and client concentration risk. Material declines from top clients highlight retention and pricing pressure issues; commercial underperformance constrains the company’s ability to achieve stable, broad-based growth and margin recovery.

Conduent Business Overview & Revenue Model

Company Description

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries; and end-user customer experience management, transaction processing services, healthcare and human resource, and learning services. The Government Services segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services; medical management and fiscal agent care management services; and government healthcare, payment solutions, child support, and federal services. The Transportation segment offers systems and support comprising mission-critical mobility and payment solutions to government clients. This segment also provides electronic tolling, urban congestion management, and mileage-based user solutions; transit solutions; citation and permit administration, parking enforcement, and curbside demand management solutions; and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated was founded in 2016 and is headquartered in Florham Park, New Jersey.

How the Company Makes Money

Conduent primarily makes money by contracting with enterprises and public-sector entities to operate business processes and deliver technology-enabled services over time. Its revenue model is largely service-contract driven and typically includes: (1) recurring fees for ongoing outsourced operations (e.g., running customer care/contact-center programs and other managed business process services) that are billed based on contract terms; (2) transaction- and volume-based fees tied to the number of interactions or units processed (for example, fees linked to customer contacts handled, claims/transactions processed, or other high-volume administrative and citizen services); and (3) technology-related revenue where clients pay for access to Conduent’s platforms and solutions (which may include implementation, configuration, and ongoing support/maintenance components depending on the contract structure). The company’s earnings are influenced by winning and retaining multi-year contracts, meeting service-level requirements, and the volumes of transactions/contacts processed under those contracts. Specific material partnerships or the exact mix of pricing structures by segment: null.

Conduent Financial Statement Overview

Summary

Weak overall fundamentals: multi-year revenue decline, a return to net losses in 2025 after a one-year profit in 2024, and deteriorating cash generation with negative operating cash flow and free cash flow in 2024–2025. Balance sheet leverage has improved versus 2023, but profitability and cash flow volatility remain a major overhang.

Income Statement

Revenue has been in a multi-year decline (down from ~$4.16B in 2020 to ~$3.04B in 2025), signaling persistent top-line pressure. Profitability is volatile: net income swung from a strong profit in 2024 ($426M; ~12.7% margin) back to a sizable loss in 2025 (-$170M; ~-5.6% margin). Margins have generally compressed over time (gross margin ~24% in 2021 vs ~18% in 2025), and operating profitability is inconsistent, limiting confidence in earnings quality and durability.

Balance Sheet

Leverage has improved meaningfully versus 2023 (debt-to-equity ~2.37x in 2023 down to ~0.95x in 2025), reflecting balance sheet repair and reduced financial risk. However, equity has also trended down from 2021–2024 levels, and returns to shareholders are unstable (negative return on equity in multiple years, including 2025). Overall, the balance sheet looks more manageable today than in prior years, but profitability volatility still creates risk around capital strength.

Cash Flow

Cash generation has weakened sharply: operating cash flow turned negative in 2024 and 2025 (about -$50M and -$73M), and free cash flow is also negative in both years (-$106M and -$132M). While 2023–2022 showed positive operating cash flow, free cash flow has been inconsistent and recently deteriorated, increasing reliance on external funding or balance sheet capacity to support operations and investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.04B	3.36B	3.72B	3.86B	4.14B
Gross Profit	552.00M	626.00M	834.00M	840.00M	1.00B
EBITDA	82.00M	76.00M	240.00M	187.00M	382.00M
Net Income	-170.00M	426.00M	-296.00M	-182.00M	-28.00M
Balance Sheet
Total Assets	2.40B	2.60B	3.16B	3.57B	4.04B
Cash, Cash Equivalents and Short-Term Investments	233.00M	366.00M	498.00M	582.00M	415.00M
Total Debt	841.00M	829.00M	1.49B	1.53B	1.67B
Total Liabilities	1.57B	1.61B	2.53B	2.65B	2.90B
Stockholders Equity	827.00M	981.00M	629.00M	917.00M	1.13B
Cash Flow
Free Cash Flow	-132.00M	-106.00M	-4.00M	-9.00M	163.00M
Operating Cash Flow	-73.00M	-50.00M	89.00M	144.00M	243.00M
Investing Cash Flow	-28.00M	795.00M	-93.00M	173.00M	-142.00M
Financing Cash Flow	-39.00M	-877.00M	-81.00M	-131.00M	-132.00M

Conduent Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.49 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.55, and above the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 31.19 is Neutral, neither overbought nor oversold. The STOCH value of 5.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNDT.

Conduent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	73 Outperform	$6.41B	14.72	21.81%	1.41%	7.40%	-14.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TASK	54 Neutral	$978.06M	10.43	18.33%	―	19.88%	51.03%
HCKT	52 Neutral	$336.29M	42.13	10.27%	2.41%	0.68%	-67.84%
XRX	47 Neutral	$182.64M	-0.29	-107.19%	17.14%	3.67%	29.09%
UIS	45 Neutral	$164.18M	2.63	126.78%	―	-4.93%	18.65%
CNDT	43 Neutral	$179.46M	-1.68	-20.84%	―	-12.45%	-142.77%

Conduent Corporate Events

Conduent Adds New Director to Strengthen Board Governance

Conduent announced changes to its board leadership in early March 2026, as long‑time director Kathy Higgins Victor informed the company on March 2 that she will not stand for reelection at the 2026 Annual Meeting of Shareholders so she can focus on other professional commitments. She will continue to serve on the Board, including as Chair of the Compensation Committee and a member of the Risk Oversight Committee, until the meeting, and the company emphasized that her decision was not due to any disagreement with its operations or policies.

Effective March 4, 2026, the board elected Greta Van, Chief Audit Executive at financial technology provider Jack Henry & Associates, as a new director and member of Conduent’s Risk Oversight and Audit Committees. The company highlighted Van’s extensive background in audit, enterprise risk, governance and strategic operations at global public companies as a way to bolster its risk management and governance capabilities, with CEO Harsha V. Agadi framing her appointment as support for Conduent’s ongoing technology‑driven transformation and value‑creation efforts for clients and shareholders.

On March 6, 2026, Conduent publicly announced Van’s appointment in a press release, underscoring her track record in modernizing complex audit functions and enhancing board‑level reporting. Van said she sees Conduent at a pivotal point in its evolution and expects to help accelerate performance and strengthen governance, signaling a focus on tighter controls and strategic execution as the company continues its transformation agenda.

The most recent analyst rating on (CNDT) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.

Conduent Reports 2025 Results Amid Turnaround Initiatives

On February 12, 2026, Conduent reported its fourth-quarter and full-year 2025 results, with quarterly revenue of $770 million and full-year revenue of $3.04 billion, down 3.8% and 9.4% year over year respectively. Despite a full-year pre-tax loss of $160 million, driven largely by prior-year divestiture gains, the company improved adjusted EBITDA to $164 million and lifted margin to 5.4%, while ending 2025 with $243 million in cash and $223 million of undrawn credit capacity.

New business signings reached an annual contract value of $517 million for 2025, and management highlighted stronger trends in the Government and Transportation segments alongside ongoing challenges in the Commercial business. CEO Harsha V. Agadi framed the mixed execution as early evidence of a turnaround focused on cost reductions, portfolio optimization and better pipeline conversion, signaling an emphasis on financial discipline and operational simplification aimed at restoring growth and margin momentum.

The most recent analyst rating on (CNDT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.

Conduent appoints Harsha Agadi as new chief executive

On January 16, 2026, Conduent announced a leadership transition in which Chairman of the Board Harsha V. Agadi was appointed Chief Executive Officer, succeeding Cliff Skelton, who stepped down as President, CEO and director on the same date without any stated disagreements over company operations or policies. As part of the reshuffle, Agadi relinquished the chairmanship but remains on the board, while long-serving director Margarita Paláu-Hernández was named independent Chair, reinforcing an independent governance structure. Agadi, a veteran executive with more than 35 years of multi-sector leadership and prior CEO roles at several public and private companies, will receive a compensation package designed to align his incentives with shareholder value creation, including a substantial long-term equity grant heavily tied to Conduent’s stock price performance through 2028, signaling the board’s focus on driving growth and enhancing returns for clients, shareholders and employees during the company’s next phase of development.

The most recent analyst rating on (CNDT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.