Conduent (CNDT)
NASDAQ:CNDT
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Conduent
(NASDAQ:CNDT)
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Rating:51Neutral
Price Target:
$2.00
▼(-19.68% Downside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak financial fundamentals, especially negative operating/free cash flow and ongoing losses, despite improved leverage. Technical momentum is improving and management’s guidance outlines a credible margin and cash-generation path, but valuation remains constrained by loss-making earnings and revenue headwinds, particularly in the Commercial segment.
Positive Factors
Government segment strength
The Government business is producing durable, high-margin cash flow: mid-single-digit revenue growth and a 26% adjusted EBITDA margin show mission-critical contracts and strong operating leverage in public-sector work. That segment's higher margins and pipeline growth provide a stable earnings base as Commercial recovers.
Negative Factors
Negative cash generation
The company’s persistent negative operating and free cash flow constrains its ability to self-fund investments, service debt, or absorb contract delays. Even with improvement trends, continued negative cash conversion undermines durable liquidity and requires either asset sales, external financing, or sustained margin gains to restore financial stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Government segment strength
The Government business is producing durable, high-margin cash flow: mid-single-digit revenue growth and a 26% adjusted EBITDA margin show mission-critical contracts and strong operating leverage in public-sector work. That segment's higher margins and pipeline growth provide a stable earnings base as Commercial recovers.
Read all positive factors
Conduent (CNDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$291.58M
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-5.40%
EPS Growth-172.56%
CountryUS
Employees53,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-1.03
Shares Outstanding155,096,820
10 Day Avg. Volume1,939,117
30 Day Avg. Volume1,315,109
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 Cap3.15
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit1.81
Enterprise Value/Ebitda6.86
Forecast
1Y Price Target
$5.00Price Target Upside100.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.53
Revenue Forecast (FY)$2.92B
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a mix of improving profitability and operational discipline alongside ongoing top-line pressure concentrated in the Commercial segment. Management highlighted clear operational actions: cost savings targeting $100 million, $200M+ expected divestiture proceeds, a growing $3.5B pipeline, and AI initiatives delivering tangible benefits. However, the company faces a year-over-year revenue decline (down 3.7%) and a meaningful 10.2% drop in Commercial revenue, plus a negative Transportation EBITDA and remaining negative free cash flow in Q1. Taken together, the progress on margins, pipeline, cost actions and portfolio optimization present a constructive outlook that appears to outweigh near-term revenue headwinds.Positive Updates
Improved Adjusted EBITDA and Margins
Adjusted EBITDA was $49 million in Q1 2026 versus $37 million in Q1 2025; adjusted EBITDA margin improved to 6.8%, up 190 basis points year-over-year and up 30 basis points sequentially.
Negative Updates
Overall Revenue Decline
Total revenue for Q1 2026 was $723 million versus $751 million in Q1 2025, a decline of 3.7% year-over-year.
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Adjusted EBITDA and Margins
Adjusted EBITDA was $49 million in Q1 2026 versus $37 million in Q1 2025; adjusted EBITDA margin improved to 6.8%, up 190 basis points year-over-year and up 30 basis points sequentially.
Read all positive updates
Company Guidance
Conduent guided 2026 revenue of $2.8–$2.9 billion and adjusted EBITDA of $160–$190 million (quarterly cadence: strong Q1, softer Q2, H2 margins similar to Q1), and provided initial 2027 expectations of flat-to-positive revenue, adjusted EBITDA of $190–$220 million and positive cash generation. Management expects Government and Transportation revenue growth in 2026 while Commercial deteriorates, aims to exceed $200 million of divestiture proceeds in 2026, targets $100 million of cost reductions over the next 18 months and is driving toward sustained double‑digit EBITDA margins (management said “north of 10%”). Q1 metrics underpinning the guide include revenue of $723 million, adjusted EBITDA $49 million (6.8% margin, +190 bps YoY), signed ACV $114 million (+5% YoY), trailing four‑quarter ACV ≈+5% (Government +60% YoY), a qualified ACV pipeline of $3.5 billion (+10% YoY; Government +27%), cash ≈$251 million, net leverage 2.8x, adjusted free cash flow -$15 million (improved YoY) and capex at 2.2% of revenue.Conduent Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.01B | 3.04B | 3.36B | 3.72B | 3.86B | 4.14B |
| Gross Profit | 508.00M | 552.00M | 626.00M | 834.00M | 840.00M | 1.00B |
| EBITDA | 134.00M | 82.00M | 76.00M | 240.00M | 187.00M | 382.00M |
| Net Income | -152.00M | -170.00M | 426.00M | -296.00M | -182.00M | -28.00M |
Balance Sheet | ||||||
| Total Assets | 2.39B | 2.40B | 2.60B | 3.16B | 3.57B | 4.04B |
| Cash, Cash Equivalents and Short-Term Investments | 251.00M | 233.00M | 366.00M | 498.00M | 582.00M | 415.00M |
| Total Debt | 879.00M | 841.00M | 829.00M | 1.49B | 1.53B | 1.67B |
| Total Liabilities | 1.61B | 1.57B | 1.61B | 2.53B | 2.65B | 2.90B |
| Stockholders Equity | 783.00M | 827.00M | 981.00M | 629.00M | 917.00M | 1.13B |
Cash Flow | ||||||
| Free Cash Flow | -88.00M | -132.00M | -106.00M | -4.00M | -9.00M | 163.00M |
| Operating Cash Flow | -23.00M | -73.00M | -50.00M | 89.00M | 144.00M | 243.00M |
| Investing Cash Flow | -25.00M | -28.00M | 795.00M | -93.00M | 173.00M | -142.00M |
| Financing Cash Flow | 1.00M | -39.00M | -877.00M | -81.00M | -131.00M | -132.00M |
Conduent Technical Analysis
Positive
2.49
Price Trends
1.51
Positive
1.56
Positive
1.98
Negative
Market Momentum
0.03
Negative
58.75
Neutral
63.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNDT, the sentiment is Positive. The current price of 2.49 is above the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.51, and above the 200-day MA of 1.98, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 63.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.41B | 10.72 | 22.44% | 1.41% | 6.47% | 10.82% | |
67 Neutral | $564.12M | 6.26 | 21.23% | ― | 15.95% | 88.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $279.85M | 18.19 | 15.84% | 2.41% | -5.71% | -38.81% | |
52 Neutral | $379.26M | -0.40 | -135.32% | 17.14% | 20.00% | 21.06% | |
51 Neutral | $291.58M | -1.37 | -19.59% | ― | -5.40% | -172.56% | |
47 Neutral | $215.07M | -1.04 | 125.36% | ― | 0.15% | -359.97% |
* Technology Sector Average
CNDT
Conduent
1.79
-0.31
-14.76%
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Conduent Corporate Events
Business Operations and StrategyM&A Transactions
Conduent to Divest Public Transit Business to Modaxo
Positive
May 21, 2026
On May 21, 2026, Conduent agreed to sell its Public Transit business, including transit fare management and fleet management solutions under Conduent Transportation, to Modaxo for a purchase price of $164 million. The transaction, which remains su...
Business Operations and StrategyExecutive/Board Changes
Conduent Adds AI-Focused Venture Capitalist to Board
Positive
May 20, 2026
On May 14, 2026, Conduent’s board of directors elected Adam Demuyakor, founder and managing partner of venture capital firm Wilshire Lane Capital, to join the board effective June 1, 2026. He will serve on the Compensation, Risk Oversight an...
Executive/Board ChangesShareholder Meetings
Conduent Shareholders Back Board, Auditor and Executive Pay
Positive
May 14, 2026
On May 14, 2026, Conduent Incorporated held its Annual Meeting of Shareholders, where investors elected all nominated directors, including Harsha V. Agadi, Michael Fucci, Scott Letier, Margarita Paláu-Hernández and Greta Van, signaling c...
Business Operations and StrategyFinancial Disclosures
Conduent Reports Improved Q1 2026 Results, Highlights Transformation
Positive
May 11, 2026
On May 11, 2026, Conduent reported significantly improved first-quarter 2026 results, with revenue of $723 million, down 3.7% year over year, but with stronger performance in its Government and Transportation segments. The company narrowed its pre...
Executive/Board Changes
Conduent Announces Executive Leadership Change in Public Sector
Neutral
May 7, 2026
Conduent, a business services and solutions provider, reported a leadership change within its public sector segment. The company focuses on delivering technology-enabled services to government and public sector clients.On May 1, 2026, Executive Vi...
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...
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.