Conduent (CNDT)
NASDAQ:CNDT
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Conduent
(NASDAQ:CNDT)
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Rating:44Neutral
Price Target:
$1.50
▼(-39.76% Downside)
Action:ReiteratedDate:03/26/26
CNDT scores low primarily due to weak financial performance (declining revenue, volatile earnings, and recent negative operating/free cash flow) and a bearish technical setup (price below key moving averages with negative MACD). The earnings call adds some support via improving ACV/pipeline and EBITDA margin progress, but valuation signals are not clearly positive given losses and no dividend yield data.
Positive Factors
Large, growing qualified ACV pipeline
A $3.2B qualified ACV backlog and a materially stronger government pipeline create durable recurring revenue optionality. Higher-quality pipeline improves revenue visibility and the likelihood of multi-year contract conversions, supporting mid‑term revenue stabilization and service scale.
Negative Factors
Multi‑year revenue decline
Sustained top‑line contraction erodes scale and operating leverage, making margin recovery harder to sustain. Declining revenue reduces bargaining power, pressures fixed‑cost absorption, and increases dependence on portfolio optimization and new sales to restore durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, growing qualified ACV pipeline
A $3.2B qualified ACV backlog and a materially stronger government pipeline create durable recurring revenue optionality. Higher-quality pipeline improves revenue visibility and the likelihood of multi-year contract conversions, supporting mid‑term revenue stabilization and service scale.
Read all positive factors
Conduent (CNDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$216.59M
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth-12.45%
EPS Growth-142.77%
CountryUS
Employees53,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.09
Shares Outstanding154,709,170
10 Day Avg. Volume1,072,642
30 Day Avg. Volume1,415,736
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.35
Price to Sales (P/S)0.09
P/FCF Ratio-2.17
Enterprise Value/Market Cap3.81
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda8.77
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.51
Revenue Forecast (FY)$3.04B
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,...
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:...
Conduent Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive tone: tangible operational progress (notably ACV growth, deal activity, EBITDA improvement, margin expansion in government and transportation, and reduced corporate costs) contrasts with ongoing challenges (top-line revenue decline, a negative full-year free cash flow of $130M, commercial segment weakness, and working capital timing issues). Management emphasized an active turnaround plan (cost reduction, portfolio rationalization, stronger sales conversion and AI partnerships) and committed to further transparency and guidance in Q1. Given the material cash flow and revenue challenges alongside clear early profitability and pipeline improvements, the picture is balanced with both meaningful positives and notable risks.Positive Updates
Strong ACV and Pipeline Momentum
Qualified ACV at $3.2B, up ~4% year-over-year; Q4 new business ACV $152M (up 11% vs Q4 2024); full-year 2025 new business ACV $517M (up 6% vs 2024). Government qualified pipeline up ~29% YoY and in-year 2026 qualified pipeline nearly double vs start of 2025.
Negative Updates
Full-Year Revenue Decline
Adjusted revenue for full year 2025 was $3.04B versus $3.18B in 2024, a decline of ~4.2% year-over-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong ACV and Pipeline Momentum
Qualified ACV at $3.2B, up ~4% year-over-year; Q4 new business ACV $152M (up 11% vs Q4 2024); full-year 2025 new business ACV $517M (up 6% vs 2024). Government qualified pipeline up ~29% YoY and in-year 2026 qualified pipeline nearly double vs start of 2025.
Read all positive updates
Company Guidance
The call laid out a turnaround roadmap focused on faster execution, financial discipline, cost reduction, portfolio rationalization (fix/sell/grow) and improving conversion of a qualified ACV pipeline of $3.2B, with an Analyst Day planned and sale proceeds to be used to pay down debt; near‑term metrics cited included Q4 new business ACV of $152M (+11% vs Q4‑24) and full‑year new ACV $517M (+6% Y/Y), new capability ACV +60%, 14 new logos/20 new capabilities in Q4 (41 logos/87 capabilities FY), new business TCV +16% FY, qualified ACV pipeline +4% Y/Y (government +29% Y/Y; 2026 in‑year pipeline ~2x start‑of‑2025), adjusted revenue $3.04B (vs $3.18B, down 4.2%), Q4 segment growth (Government +1.8%, Transportation ~+1.9%), adjusted EBITDA $164M (vs $124M) with adj. EBITDA margin 5.4% (+150 bps Y/Y) and Q4 margin 6.5% (+250 bps Y/Y, +130 bps QoQ), Commercial adj. revenue $1.50B (‑5.9%) with $154M adj. EBITDA (10.2% margin), Government adj. revenue $922M (‑0.3%) with $221M adj. EBITDA (24% margin, +270 bps), Transportation adj. revenue ~$609M (+3.9%) with $18M adj. EBITDA (3% margin, +300 bps), unallocated costs $229M (‑10.2%), cash ~$243M, adjusted free cash flow (FCF) ‑$130M (Q4 FCF +$28M; timing receipts expected Q1/Q2), net leverage 2.8x, capex ~3.4% of revenue, and a medium‑term target to materially lift steady‑state margins (management cited a floor of ~8–10% and a laser focus on converting EBITDA to sustainable free cash flow), with full 2026 guidance to be provided with Q1 results in early May.Conduent Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
28
Negative
| 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
Neutral
2.49
Price Trends
1.38
Positive
1.66
Negative
2.13
Negative
Market Momentum
<0.01
Negative
52.81
Neutral
78.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Neutral. The current price of 2.49 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.38, and above the 200-day MA of 2.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNDT.
Conduent Risk Analysis
Conduent disclosed 33 risk factors in its most recent earnings report. Conduent reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conduent Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.80B | 14.72 | 21.81% | 1.41% | 7.40% | -14.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $585.93M | 10.43 | 18.33% | ― | 19.88% | 51.03% | |
52 Neutral | $313.74M | 42.13 | 12.82% | 2.41% | 0.68% | -67.84% | |
47 Neutral | $156.91M | -0.29 | -107.19% | 17.14% | 3.67% | 29.09% | |
45 Neutral | $144.65M | 2.63 | 126.78% | ― | -4.93% | 18.65% | |
44 Neutral | $216.59M | -1.68 | -20.84% | ― | -12.45% | -142.77% |
* Technology Sector Average
CNDT
Conduent
1.40
-0.72
-33.96%
G
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34.18
-13.04
-27.62%
HCKT
The Hackett Group
12.44
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-51.57%
UIS
Unisys
2.00
-1.90
-48.72%
XRX
Xerox
1.22
-2.50
-67.22%
TASK
TaskUs
6.47
-1.84
-22.13%
Conduent Corporate Events
Business Operations and StrategyExecutive/Board Changes
Conduent Announces Leadership Change in Technology Organization
Negative
Mar 25, 2026
Conduent Incorporated announced that the employment of Mark Prout, its Executive Vice President and Chief Information and Technology Officer, was terminated without cause, effective March 24, 2026. Under the terms of his departure, Prout will rece...
Business Operations and StrategyExecutive/Board Changes
Conduent Adds New Director to Strengthen Board Governance
Positive
Mar 6, 2026
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 f...
Business Operations and StrategyFinancial Disclosures
Conduent Reports 2025 Results Amid Turnaround Initiatives
Negative
Feb 12, 2026
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 ...
Business Operations and StrategyExecutive/Board Changes
Conduent appoints Harsha Agadi as new chief executive
Positive
Jan 23, 2026
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 withou...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.