Conduent (CNDT) AI Stock Analysis

• Market Cap: $225.88M
• Dividend Yield: N/A
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• 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: 1,559,702
• 30 Day Avg. Volume: 1,636,703
• 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: 3.46
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 8.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.33
• Revenue Forecast (FY): $3.11B

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-39.76% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

CNDT scores low primarily due to weakening financial performance (declining revenue, volatile earnings, and negative recent operating/free cash flow) and bearish technicals (price below all key moving averages with weak momentum). The score is partially supported by improved leverage and a cautiously constructive earnings-call narrative centered on early turnaround progress and margin improvement.

Positive Factors

Contracted ACV & Pipeline

A $3.2B qualified ACV pipeline and rising new-ACV trends indicate a durable backlog of contracted revenue and improving sales conversion. If converted, this recurring contract base can stabilize top-line trends, support predictable cash flows, and de-risk growth versus one-off deals.

Improving EBITDA and Margins

Consistent EBITDA growth and material margin expansion signal better cost discipline and operational leverage. Sustained margin gains, if maintained, enhance earnings durability, improve free cash flow conversion potential, and provide buffer while management pursues revenue stabilization and portfolio optimization.

Balance Sheet Repair / Lower Leverage

Meaningful leverage reduction and a more manageable debt profile reduce refinancing and solvency risk. Improved balance-sheet flexibility supports investment in product/AI initiatives, funds potential portfolio rationalization proceeds to pay down debt, and provides capacity to absorb timing-related cash shortfalls.

Negative Factors

Multi-year Revenue Decline

A sustained top-line decline over multiple years highlights structural demand pressure and client churn risk. Without durable revenue recovery, margin gains are harder to scale and fixed-cost absorption is limited, making long-term profitability and reinvestment capacity uncertain despite operational fixes.

Weak Cash Generation

Repeated negative operating and free cash flow increases reliance on balance sheet or asset monetization to fund operations. Persistent cash deficits constrain strategic flexibility, elevate refinancing and liquidity risk, and mean turnaround plans must prove they convert EBITDA gains into sustainable cash.

Commercial Concentration & Tech Disruption Risk

Heavy reliance on a few large commercial clients and meaningful exposure to AI-driven disruption create execution risk. The company must rapidly upgrade go-to-market and technology or lose share and margin; concentration also magnifies downside if large clients further reduce volumes or delay payments.

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 generates revenue primarily through a combination of service contracts, transaction-based fees, and software licensing. Key revenue streams include business process services, where the company manages operations for clients, particularly in sectors like healthcare and government. Additionally, Conduent earns money from technology solutions that offer software for data management, analytics, and customer engagement. The company also participates in performance-based contracts, where revenues are linked to the success of the services provided. Significant partnerships with government agencies and large corporations further enhance their earnings by providing stable, long-term contracts and access to a broader client base.

Conduent Financial Statement Overview

Summary

Overall fundamentals are weak: revenue has declined for multiple years, profitability is volatile (profit in 2024 followed by a sizable loss in 2025), and cash generation deteriorated with negative operating cash flow and negative free cash flow in 2024–2025. The main offset is improved leverage versus prior years, reducing balance-sheet stress but not fixing earnings/cash-flow instability.

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	789.00M	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: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.45, above the 50-day MA of 1.72, and above the 200-day MA of 2.30, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 54.66 is Neutral, 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	$6.75B	12.69	22.37%	1.41%	7.40%	-14.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TASK	53 Neutral	$960.24M	9.66	18.65%	―	19.88%	51.03%
HCKT	52 Neutral	$370.61M	29.70	10.27%	2.41%	0.68%	-67.84%
XRX	47 Neutral	$231.48M	-0.22	-105.65%	17.14%	3.67%	29.09%
UIS	45 Neutral	$173.29M	-0.51	―	―	-4.93%	18.65%
CNDT	44 Neutral	$225.88M	―	-18.81%	―	-12.45%	-142.77%

Conduent Corporate Events

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.