Conduent (CNDT) AI Stock Analysis

• Market Cap: $256.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: 152,889,500
• 10 Day Avg. Volume: 1,202,425
• 30 Day Avg. Volume: 1,139,639
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -6.96
• Enterprise Value/Market Cap: 3.40
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 22.96
• 1Y Price Target: $7.00
• Price Target Upside: 181.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-39.76% Downside)

The score is held down primarily by weak financial performance (declining revenue, margin pressure, and negative operating/free cash flow) and a bearish technical setup (price below major moving averages with negative MACD). Partially offsetting this are modestly improved EBITDA margin and reaffirmed guidance from the earnings call, plus constructive leadership/board changes; valuation is difficult to assess given the negative P/E and no dividend yield provided.

Positive Factors

AI-enabled software licensing

Shifting from pure services to licensed AI-enabled software builds proprietary IP and recurring revenue potential. Over months this can improve gross margins, diversify revenue away from transaction fees, and create scalable product-led growth opportunities versus labor-intensive outsourcing.

Growing qualified ACV pipeline

A larger qualified pipeline improves visibility into future contract wins and revenue conversion over multiple quarters. For a services firm, a robust pipeline supports backlog growth, steadier revenue streams, and cross-sell of software, enhancing medium-term revenue recovery prospects.

Strengthened leadership and governance

Installing an experienced CEO and independent chair plus equity-linked incentives signals governance and accountability improvements. Durable leadership alignment can sharpen strategy execution, improve client relationships and capital allocation, and sustain multi-quarter operational turnaround efforts.

Negative Factors

Declining revenue and segment weakness

Consecutive declines in core Commercial and Government segments reduce recurring revenue scale and predictability. Completion and delays in implementations suggest structural demand timing and client concentration risks, challenging sustainable top-line growth without new contract wins.

Negative operating and free cash flow

Persistent negative operating and free cash flow impairs the firm's ability to self-fund investments, service debt, and absorb contract timing issues. Over months this reduces financial flexibility, raises refinancing or working capital risks, and limits capacity for strategic hiring or product investment.

Compressed margins and reduced profitability

Material margin compression and a negative net margin indicate structural cost or pricing pressure. Sustained low profitability undermines return on equity and cash generation, meaning the company must either raise prices, cut costs, or scale higher-margin products to restore durable profitability.

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

Weak fundamentals: revenue is declining (-1.29% TTM), margins have compressed (gross margin down to 16.42% TTM), and profitability has deteriorated (net margin negative TTM). Leverage looks more controlled (debt-to-equity 0.82 TTM), but liquidity is pressured by negative operating cash flow and still-negative free cash flow despite improvement.

Income Statement

Conduent's income statement shows declining revenue with a negative revenue growth rate of -1.29% TTM. The gross profit margin has decreased from 18.65% in 2024 to 16.42% TTM, indicating pressure on profitability. The net profit margin has turned negative TTM, reflecting a challenging operating environment. EBIT and EBITDA margins have also declined, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.82 TTM, which is an improvement from previous years, indicating better leverage management. However, the return on equity has significantly decreased to 2.07% TTM, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows negative operating cash flow TTM, indicating liquidity challenges. Although free cash flow has improved by 20% TTM, it remains negative, which is concerning. The operating cash flow to net income ratio is negative, highlighting cash generation issues, while the free cash flow to net income ratio is positive, suggesting some efficiency in managing cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.36B	3.72B	3.86B	4.14B	4.16B
Gross Profit	544.00M	626.00M	834.00M	840.00M	1.00B	954.00M
EBITDA	38.00M	76.00M	240.00M	187.00M	382.00M	424.00M
Net Income	-149.00M	426.00M	-296.00M	-182.00M	-28.00M	-118.00M
Balance Sheet
Total Assets	2.50B	2.60B	3.16B	3.57B	4.04B	4.26B
Cash, Cash Equivalents and Short-Term Investments	264.00M	366.00M	498.00M	582.00M	415.00M	450.00M
Total Debt	882.00M	829.00M	1.49B	1.53B	1.67B	1.80B
Total Liabilities	1.64B	1.61B	2.53B	2.65B	2.90B	3.07B
Stockholders Equity	859.00M	981.00M	629.00M	917.00M	1.13B	1.19B
Cash Flow
Free Cash Flow	-119.00M	-106.00M	-4.00M	-9.00M	163.00M	22.00M
Operating Cash Flow	-71.00M	-50.00M	89.00M	144.00M	243.00M	161.00M
Investing Cash Flow	28.00M	795.00M	-93.00M	173.00M	-142.00M	-134.00M
Financing Cash Flow	-96.00M	-877.00M	-81.00M	-131.00M	-132.00M	-74.00M

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 1.90, above the 50-day MA of 1.94, and above the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 30.80 is Neutral, neither overbought nor oversold. The STOCH value of 5.23 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	78 Outperform	$7.84B	14.66	22.32%	1.41%	7.40%	-14.45%
HCKT	65 Neutral	$529.32M	50.56	10.27%	2.41%	0.68%	-67.84%
TASK	62 Neutral	$1.02B	12.49	15.40%	―	19.88%	51.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNDT	47 Neutral	$256.85M	-1.62	-15.87%	―	-12.45%	-142.77%
UIS	45 Neutral	$203.22M	-0.60	―	―	-4.93%	18.65%
XRX	39 Underperform	$284.25M	-0.27	-93.23%	17.14%	3.67%	29.09%

Conduent Corporate Events

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.

Conduent Reports Q3 Financial Results with Key Milestones

On November 7, 2025, Conduent announced its third-quarter financial results, highlighting a revenue of $767 million and a pre-tax loss of $38 million. The company achieved significant milestones, including debt refinancing, AI enhancements, and new business signings, despite challenges like government funding cycles and a federal shutdown. Conduent’s focus on operational efficiency led to improved Adjusted EBITDA margins, and it remains committed to cash generation and expanding opportunities within its client base.

The most recent analyst rating on (CNDT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.

Conduent Appoints Michael J. Fucci to Board

Conduent Incorporated announced the election of Michael J. Fucci, former Executive Chairman of Deloitte U.S. LLP, to its Board of Directors, effective October 27, 2025. Fucci brings over 40 years of leadership experience, having played a pivotal role in Deloitte’s growth and governance. His appointment is expected to provide strategic insight and support Conduent’s growth strategy, enhancing value for shareholders, clients, and associates.

The most recent analyst rating on (CNDT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Conduent stock, see the CNDT Stock Forecast page.