Concentrix (CNXC) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 3.38%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 3.40%
• EPS Growth: 53.13%
• Country: US
• Employees: 450,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.95
• Shares Outstanding: 61,366,966
• 10 Day Avg. Volume: 1,459,418
• 30 Day Avg. Volume: 1,291,193
• PEG Ratio: <0.01
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 4.02
• Enterprise Value/Market Cap: 3.16
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: -8.72
• 1Y Price Target: $62.00
• Price Target Upside: 89.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 12.19
• Revenue Forecast (FY): $10.16B

• Rating: 49 Neutral
• Price Target: $30.00 ▼(-8.54% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by the sharp deterioration in GAAP profitability and elevated leverage, alongside weak technicals (price below major moving averages with negative momentum). Offsetting these risks are solid and improving cash generation and a constructive FY26 outlook for free cash flow and margin recovery, with a supportive dividend yield.

Positive Factors

Strong Free Cash Flow

Sustained and growing free cash flow (FY2025 up 32% to ~$626M) provides durable internal funding for debt reduction, technology investment, and shareholder returns. Positive cash conversion despite a GAAP loss indicates operating programs and working-capital actions can fund strategic priorities over the next 2–6 months.

AI/Technology Revenue Traction

The IXSuite AI platform reaching >$60M annualized revenue and breakeven signals a structural shift toward higher-value, technology-enabled services. Greater tech attach rates and company-owned IP improve margins, differentiation, and cross-sell potential, supporting more resilient revenue mix and sustainable margin expansion.

Large Scale & Commercial Momentum

Material scale (nearly doubled revenue 2020–2025) and measurable commercial gains (higher AOV, new wins, cross-sell) provide durable competitive advantages: diversified client base, pricing leverage in complex work, and the ability to invest in automation and offshore capacity to protect margins over the medium term.

Negative Factors

Elevated Leverage

Leverage materially increased (net debt ~$4.31B, D/E ~1.7x), constraining financial flexibility. Higher interest and principal obligations reduce free cash flow available for growth investments and increase refinancing risk, making balance-sheet execution a multi-quarter constraint on strategic options and ratings sensitivity.

Large Goodwill Impairment

A $1.52B noncash goodwill write-down and resulting GAAP loss reflect prior overpayment risk or weaker-than-expected cash generation in acquired businesses. Such impairments shrink equity, can signal persistent business-model shortfalls in parts of the portfolio, and may limit M&A appetite and investor confidence over several quarters.

Moderate Growth & Margin Pressure

Low-single-digit revenue guidance and non-GAAP margins beneath historical peaks reflect structural headwinds: deliberate cuts to non-complex work, resolutioning impacts, onshore-to-offshore transitions and competitive pricing in commoditized CX. These factors can temper margin recovery and top-line expansion over the medium term.

Concentrix Business Overview & Revenue Model

Company Description

Concentrix Corporation provides technology-infused customer experience (CX) solutions worldwide. The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services. It also offers customer lifecycle management; customer experience/user experience strategy and design; digital transformation; and voice of the customer and analytics solutions. The company's clients include consumer electronics, technology, e-commerce, and health insurance companies, as well as global IPOs, social brands, and banks. Concentrix Corporation was incorporated in 2009 and is based in Fremont, California.

How the Company Makes Money

Concentrix generates revenue primarily through its customer experience services, which encompass business process outsourcing (BPO), customer support, technical support, and digital marketing solutions. The company operates on a fee-for-service model, charging clients based on the volume of services rendered or through fixed contracts for specific projects. Key revenue streams include multi-channel customer engagement services, analytics services, and technology solutions that help clients optimize their customer interactions. Additionally, partnerships with technology providers and platforms can enhance service offerings and expand market reach, contributing to Concentrix's overall earnings.

Concentrix Financial Statement Overview

Summary

Mixed fundamentals: strong and improving operating/free cash flow (operating cash flow ~$807M; free cash flow ~$572M in 2025) offsets a major profitability break with a large 2025 GAAP net loss (-$1.28B) and weakening balance-sheet flexibility from higher leverage (debt-to-equity ~1.7x) and a shrinking equity base.

Income Statement

Revenue has grown steadily over the period (from ~$4.7B in 2020 to ~$9.8B in 2025), but profitability deteriorated sharply in the most recent year. 2025 shows a large net loss (-$1.28B) and negative operating profitability, versus positive net income in 2021–2024. Gross margin has been relatively stable (~35–36%), so the pressure appears below the gross profit line, driving a meaningful swing from modest profits to a significant loss—an important red flag despite the top-line scale.

Balance Sheet

Leverage is elevated and has worsened versus earlier years. Debt-to-equity rose from low levels in 2021 (~0.3x) to a high level in 2025 (~1.7x), while equity declined from ~$4.0B in 2024 to ~$2.7B in 2025. Returns on equity turned deeply negative in 2025, consistent with the net loss. The balance sheet still carries substantial asset scale, but the combination of higher leverage and weakening equity base reduces financial flexibility.

Cash Flow

Cash generation is a relative strength. Operating cash flow increased to ~$807M in 2025 (up from ~$667M in 2024), and free cash flow rose to ~$572M with strong growth versus the prior year. Importantly, free cash flow remained positive even in the loss year, suggesting non-cash charges and/or working-capital benefits supported cash results. That said, cash flow coverage versus reported earnings looks strained given the sizable net loss, so investors should watch sustainability of cash conversion.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	9.83B	9.62B	7.11B	6.32B	5.59B
Gross Profit	3.44B	3.45B	2.58B	2.26B	1.97B
EBITDA	-241.77M	1.33B	997.53M	984.62M	855.92M
Net Income	-1.28B	251.22M	313.84M	435.05M	405.58M
Balance Sheet
Total Assets	10.76B	11.99B	12.49B	6.67B	5.05B
Cash, Cash Equivalents and Short-Term Investments	327.35M	429.60M	516.49M	157.46M	183.01M
Total Debt	4.64B	5.60B	5.79B	2.72B	1.31B
Total Liabilities	8.02B	7.95B	8.35B	3.97B	2.43B
Stockholders Equity	2.74B	4.04B	4.14B	2.70B	2.62B
Cash Flow
Free Cash Flow	572.47M	428.73M	497.48M	460.70M	365.10M
Operating Cash Flow	806.97M	667.49M	678.01M	600.72M	514.18M
Investing Cash Flow	-250.38M	-244.27M	-2.11B	-1.84B	-78.65M
Financing Cash Flow	-491.44M	-492.53M	1.80B	1.24B	-401.87M

Concentrix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXC, the sentiment is Negative. The current price of 32.8 is below the 20-day moving average (MA) of 34.53, below the 50-day MA of 38.47, and below the 200-day MA of 45.89, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNXC.

Concentrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$57.87B	18.61	32.85%	2.58%	4.62%	1.06%
G	73 Outperform	$6.75B	12.70	22.37%	1.41%	7.40%	-14.45%
CTSH	68 Neutral	$30.81B	14.13	15.16%	1.46%	7.44%	-4.57%
EPAM	68 Neutral	$7.63B	20.95	10.34%	―	14.26%	-15.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNXC	49 Neutral	$2.01B	-1.58	-37.82%	3.38%	3.40%	53.13%

Concentrix Corporate Events

Concentrix Refinances Debt with New 2029 Senior Notes

On February 24, 2026, Concentrix issued and sold $600 million of 6.500% Senior Notes due 2029 in a registered public offering, with interest payable semi-annually and subject to adjustment based on credit rating changes. The company used the proceeds, along with other funds, to redeem $600 million of its higher-coupon 6.650% Senior Notes due August 2, 2026, and the new notes are governed by an indenture that includes customary covenants and redemption options, reflecting an effort to manage refinancing risk and optimize its capital structure.

The Notes may be redeemed by Concentrix before or after the February 1, 2029 par call date under specified make-whole and par pricing terms, providing the company flexibility to respond to future interest rate and market conditions. The indenture’s restrictions on liens, sale-leasebacks, and major corporate transactions aim to protect noteholders and signal a standard investment-grade style structure that could support Concentrix’s access to debt markets and financial stability.

The most recent analyst rating on (CNXC) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Concentrix stock, see the CNXC Stock Forecast page.

Concentrix Issues New Senior Notes to Refinance Debt

On February 12, 2026, Concentrix Corporation entered into an underwriting agreement with a syndicate led by BofA Securities, Inc. and J.P. Morgan Securities LLC for a public offering of $600 million of 6.500% Senior Notes due 2029, with closing expected on February 24, 2026, subject to customary conditions. The company plans to use the proceeds, together with other funds, to redeem or repay a substantial portion of its 6.650% Senior Notes due August 2, 2026, and on February 13, 2026 it notified holders that it will redeem $600 million of the $800 million outstanding, effectively terming out part of its debt and refining its capital structure.

The transaction highlights Concentrix’s ongoing balance sheet management as it replaces near-term, slightly higher-cost obligations with longer-dated debt at a comparable coupon, smoothing its maturity profile. For bondholders and other stakeholders, the move reduces refinancing risk ahead of the 2026 due date while maintaining access to public capital markets through an SEC-registered shelf program and a broad underwriting syndicate.

The most recent analyst rating on (CNXC) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Concentrix stock, see the CNXC Stock Forecast page.