Concentrix Corporation (CNXC)
NASDAQ:CNXC
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Concentrix
(NASDAQ:CNXC)
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Rating:52Neutral
Price Target:
$28.00
▼(-0.99% Downside)
Action:ReiteratedDate:04/03/26
The score is held back primarily by weak profitability and elevated leverage despite continued positive cash generation. Technically, the stock shows bearish momentum versus key moving averages, while valuation is mixed—supported by a high dividend yield but not notably cheap on P/E. Earnings-call commentary was constructive with reaffirmed full-year guidance, AI traction, and cost/leverage plans, partially offset by near-term margin pressure and high net debt.
Positive Factors
Consistent Cash Generation
Sustained positive operating and free cash flow and a reiterated $630M–$650M FCF target provide durable funding for debt reduction, operational investment, and shareholder returns. Reliable cash flow cushions cyclical volume swings in CX services and supports execution of long-term deleveraging plans.
Negative Factors
Elevated Leverage
High absolute and relative debt levels materially raise refinancing and interest-rate sensitivity, constraining strategic flexibility. Even with planned terming-out actions, sustained leverage near current levels amplifies downside risk from margin shocks and limits capacity for acquisitions or R&D investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Sustained positive operating and free cash flow and a reiterated $630M–$650M FCF target provide durable funding for debt reduction, operational investment, and shareholder returns. Reliable cash flow cushions cyclical volume swings in CX services and supports execution of long-term deleveraging plans.
Read all positive factors
Concentrix (CNXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.76B
Dividend Yield3.38%
Average Volume (3M)1.69M
Price to Earnings (P/E)23.3
Beta (1Y)1.24
Revenue Growth3.40%
EPS Growth53.13%
CountryUS
Employees450,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.61
Shares Outstanding61,004,826
10 Day Avg. Volume1,454,600
30 Day Avg. Volume1,690,557
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.84
Price to Sales (P/S)0.23
P/FCF Ratio4.02
Enterprise Value/Market Cap3.58
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit1.93
Enterprise Value/Ebitda-6.66
Forecast
1Y Price Target
$44.33Price Target Upside56.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)11.71
Revenue Forecast (FY)$10.11B
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 service...
How the Company Makes Money
Concentrix primarily makes money by providing outsourced customer experience and business process services to enterprise clients under service contracts, generating revenue from delivering client programs at scale across its global delivery networ...
Concentrix Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Positive
The call presented a constructive picture: modest revenue growth, strong AI and solution momentum (61% YoY technology wins, bookings doubled QoQ, enterprise iX deals), and profitability in line with guidance. Management outlined clear actions to improve margins (cost savings ~ $40M, capacity absorption, and ramp of transformational deals) and reiterated robust full-year adjusted free cash flow guidance ($630M–$650M) and a plan to reduce net leverage. Key near-term negatives were two verticals down ~6% YoY, a seasonal negative free cash flow in Q1 (-$145M), one-time sale loss and restructuring charges, and a still-elevated net debt level. Overall, highlights substantially outweigh the lowlights given the strength in AI traction, guidance affirmation, and planned margin/leveraging actions.Positive Updates
Free Cash Flow and Full-Year FCF Guidance
Adjusted free cash flow was negative $145 million in 1Q (seasonal), but management reiterated full-year adjusted FCF guidance of $630M–$650M and noted that receivables causing the quarter's negative FCF were collected in early March.
Negative Updates
Sequential Weakness in Two Verticals
Technology & consumer electronics and health care verticals each decreased about 6% YoY in the quarter, attributed to lighter-than-expected volumes and shore mix shifts (automation and offshoring effects).
Read all updates
Q1-2026 Updates
Positive
Negative
Free Cash Flow and Full-Year FCF Guidance
Adjusted free cash flow was negative $145 million in 1Q (seasonal), but management reiterated full-year adjusted FCF guidance of $630M–$650M and noted that receivables causing the quarter's negative FCF were collected in early March.
Read all positive updates
Company Guidance
Concentrix guided Q2 revenue of $2.46–$2.485 billion (implying ~1–2% constant‑currency growth with an approximate +75 bps FX benefit), non‑GAAP operating income of $290–$300 million (non‑GAAP operating margin 11.8%–12.1%), and non‑GAAP EPS of $2.57–$2.69 assuming ~$67 million of interest expense, ~60.9 million diluted shares and ~4.9% attributable to participating securities, with a Q2 non‑GAAP tax rate of ~25%. The company reiterated unchanged full‑year non‑GAAP metrics, continues to expect $630–$650 million of adjusted free cash flow in FY2026, anticipates aggregate asset‑sale proceeds of about $40 million, and remains committed to reducing net leverage to below 2.6x adjusted EBITDA by year‑end; note Q1 adjusted free cash flow was negative $145 million (seasonal timing of receivables, collected in early March). Additional balance‑sheet context provided: cash and cash equivalents ~$234 million, total debt ~ $4.75 billion (net debt ~$4.51 billion), off‑balance sheet factored AR ~$129 million, and liquidity near $1.4 billion including an undrawn $1.1 billion revolver; management also issued $600 million of 3‑year notes at a 6.50% coupon to refinance 6.65% paper due Aug‑2026 (with $200 million of the 6.65% notes remaining to be repaid from expected strong free cash flow).Concentrix Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
43
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.95B | 9.83B | 9.62B | 7.11B | 6.32B | 5.59B |
| Gross Profit | 3.27B | 3.44B | 3.45B | 2.58B | 2.26B | 1.97B |
| EBITDA | -944.67M | -241.77M | 1.33B | 997.53M | 984.62M | 855.92M |
| Net Income | -1.33B | -1.28B | 251.22M | 313.84M | 435.05M | 405.58M |
Balance Sheet | ||||||
| Total Assets | 10.67B | 10.76B | 11.99B | 12.49B | 6.67B | 5.05B |
| Cash, Cash Equivalents and Short-Term Investments | 222.70M | 327.35M | 429.60M | 516.49M | 157.46M | 183.01M |
| Total Debt | 4.75B | 4.64B | 5.60B | 5.79B | 2.72B | 1.31B |
| Total Liabilities | 7.89B | 8.02B | 7.95B | 8.35B | 3.97B | 2.43B |
| Stockholders Equity | 2.79B | 2.74B | 4.04B | 4.14B | 2.70B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 484.56M | 572.47M | 428.73M | 497.48M | 460.70M | 365.10M |
| Operating Cash Flow | 722.34M | 806.97M | 667.49M | 678.01M | 600.72M | 514.18M |
| Investing Cash Flow | -249.85M | -250.38M | -244.27M | -2.11B | -1.84B | -78.65M |
| Financing Cash Flow | -575.24M | -491.44M | -492.53M | 1.80B | 1.24B | -401.87M |
Concentrix Technical Analysis
Neutral
28.28
Price Trends
31.42
Negative
35.37
Negative
42.02
Negative
Market Momentum
-1.11
Negative
48.60
Neutral
64.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNXC, the sentiment is Neutral. The current price of 28.28 is above the 20-day moving average (MA) of 28.14, below the 50-day MA of 31.42, and below the 200-day MA of 42.02, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNXC.
Concentrix Risk Analysis
Concentrix disclosed 28 risk factors in its most recent earnings report. Concentrix 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
Concentrix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.15B | 14.72 | 21.81% | 1.41% | 7.40% | -14.45% | |
73 Outperform | $56.71B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
68 Neutral | $28.88B | 17.90 | 14.84% | 1.46% | 7.44% | -4.57% | |
68 Neutral | $6.78B | 30.32 | 10.27% | ― | 14.26% | -15.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $1.76B | 23.28 | -37.51% | 3.38% | 3.40% | 53.13% |
* Technology Sector Average
CNXC
Concentrix
28.81
-17.28
-37.50%
CTSH
Cognizant
60.39
-8.39
-12.20%
EPAM
Epam Systems
128.42
-18.86
-12.81%
G
Genpact
36.24
-10.71
-22.81%
INFY
Infosys
14.31
-1.86
-11.52%
Concentrix Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Concentrix Shareholders Back Directors, Pay and Stock Plan
Positive
Mar 27, 2026
On March 25, 2026, Concentrix stockholders held their Annual Meeting, where they elected nine directors to the board for terms expiring at the 2027 annual meeting and ratified Ernst Young LLP as the independent registered public accounting firm f...
Business Operations and StrategyPrivate Placements and Financing
Concentrix Expands and Extends Accounts Receivable Securitization Facility
Positive
Mar 23, 2026
On March 20, 2026, Concentrix Corporation amended its accounts receivable securitization facility, under which its subsidiary Concentrix Receivables, Inc. serves as borrower and PNC Bank, National Association acts as administrative agent, together...
Business Operations and StrategyPrivate Placements and Financing
Concentrix Refinances Debt with New 2029 Senior Notes
Positive
Feb 24, 2026
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 proce...
Business Operations and StrategyPrivate Placements and Financing
Concentrix Issues New Senior Notes to Refinance Debt
Positive
Feb 13, 2026
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 ex...
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.