Earnings PerformanceConcentrix reported fiscal Q2/25 non-GAAP EPS of $2.70, which was less than our forecast of $2.75 and less than the FactSet consensus forecast of $2.78.
Macroeconomic ConditionsThere are headwinds from weak macroeconomic conditions and potential risks associated with Generative AI.
Operating MarginDespite the revenue beat, the operating margin missed guidance due to negative operating leverage from holding labor intact for paused client programs and investments for future growth.