Concentrix posted Q1 FY2026 Non-GAAP EPS of $2.61 vs. the consensus estimate of $2.64, a slight miss of 1.1%. Revenue came in at $2.50 billion, up 5.4% year over year and fractionally above some estimates. The stock dropped roughly 9-12% immediately following the announcement as weaker-than-expected forward guidance overshadowed the in-line revenue print.
About Concentrix
Concentrix Corporation (NASDAQ: CNXC), a Fortune 500 company headquartered in Newark, California, is a global technology and services leader that designs, builds, and runs integrated end-to-end business transformation solutions for more than 2,000 clients worldwide.
Founded in 2006 and operating across 70+ markets, the company is positioned at the intersection of customer experience (CX), AI-enabled automation, and business process outsourcing (BPO). Its iX Suite of proprietary AI products, including iX Hello and iX Hero, are gaining significant enterprise traction, with management reporting a 61% year-over-year surge in technology-driven deal wins during Q1 2026.
As of late March 2026, Concentrix carries a market capitalization of approximately $1.59–$2.06 billion, reflecting a decline of nearly 48% over the past year. The company employs hundreds of thousands globally and generates trailing twelve-month revenue of approximately $9.83 billion. Its P/E ratio stands at approximately 8.3x on a trailing basis, and the dividend yield reflects a $0.36 quarterly dividend per share declared for May 2026 payment.
Top Financial Highlights
- Total Revenue of $2,500.4 million, an increase of 5.4% year over year (1.9% on a constant currency basis)
- GAAP Net Income of $21.6 million, a sharp decline of 69.3% compared to $70.3 million in Q1 2025
- GAAP Diluted EPS of $0.33, down from $1.04 in the prior year quarter, a drop of 68.3%
- Non-GAAP Diluted EPS of $2.61, compared to $2.79 in Q1 2025, a decline of 6.5%
- Non-GAAP Operating Income of $295.0 million, or 11.8% of revenue, down from 13.6% in the year-ago period
- Adjusted EBITDA of $348.2 million, representing a 13.9% margin, down 190 basis points year over year
- Gross Profit of $849.7 million, down approximately 0.7% year over year
- Banking, Financial Services and Insurance revenue grew 15% year over year to $421.6 million
- Retail, Travel and E-commerce revenue grew 11% year over year to $649.4 million
- Technology and Consumer Electronics revenue declined 3% to $635.1 million
- Healthcare revenue declined 6% to $178.8 million
- Cash and Cash Equivalents of $222.7 million as of February 28, 2026
- Adjusted Free Cash Flow was a use of $144.6 million in the quarter
- Q2 FY2026 Revenue Guidance set between $2.460 billion and $2.485 billion
- Full Year FY2026 Revenue Guidance of $10.035 billion to $10.180 billion, midpoint of $10.11 billion
- Share repurchases totaled approximately 1 million shares at a cost of $42.0 million in Q1, at an average price of $40.06
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Total Revenue | $2,500.4M | ~$2,490M–$2,542M | Slight beat to in-line; Zacks shows +0.51% revenue surprise |
| Non-GAAP Diluted EPS | $2.61 | $2.64–$2.70 | Miss by $0.03–$0.09 (-1.1% to -3.3%) |
| Adjusted EBITDA | $348.2M | ~$351.4M | 0.9% miss |
| Q2 FY2026 Revenue Guidance | $2.46B–$2.485B | ~$2.487B | 0.6% below analyst consensus midpoint |
| Full Year FY2026 Non-GAAP EPS | $11.48–$12.07 | ~$11.04–$11.78 | Full-year EPS midpoint slightly missed |
| Non-GAAP Operating Margin | 11.80% | N/A | Down 180 bps vs. 13.6% in Q1 2025 |
What Leadership Is Saying?
CEO Chris Caldwell on AI-driven strategy and long-term program wins:
“We continue to help clients capture measurable value from AI by being a trusted partner for these solutions. Our focus continues to be on winning the right long-term programs, combining integrated technology solutions and services.”
CFO Andre Valentine on financial trajectory and leverage reduction:
“Despite the earnings miss, we are on track to achieve our fiscal targets and continue to reduce our leverage.”
Valentine further noted on a conference call that the overall demand landscape remains robust, adding that Concentrix is navigating recent market challenges and remains optimistic about achieving year-over-year profitability improvement in the second half of fiscal 2026.
Historical Performance
Concentrix Q1 2026 vs Q1 2025
| Category | Q1 FY2026 (Feb 28, 2026) | Q1 FY2025 (Feb 28, 2025) | Change (%) |
| Total Revenue | $2,500.4M | $2,372.2M | 5.40% |
| GAAP Net Income | $21.6M | $70.3M | -69.30% |
| Non-GAAP Net Income | $168.2M | $188.1M | -10.60% |
| GAAP Diluted EPS | $0.33 | $1.04 | -68.30% |
| Non-GAAP Diluted EPS | $2.61 | $2.79 | -6.50% |
| Operating Income (GAAP) | $118.6M | $168.9M | -29.80% |
| Non-GAAP Operating Income | $295.0M | $321.5M | -8.20% |
| Adjusted EBITDA | $348.2M | $374.2M | -6.90% |
| GAAP Operating Margin | 4.70% | 7.10% | -240 bps |
| Non-GAAP Operating Margin | 11.80% | 13.60% | -180 bps |
| Adjusted EBITDA Margin | 13.90% | 15.80% | -190 bps |
| Adjusted Free Cash Flow | -$144.6M | -$39.8M | Worsened |
| Cost of Revenue | $1,650.7M | $1,516.3M | 8.90% |
| Gross Profit | $849.7M | $855.9M | -0.70% |
Competitor Performance Comparison
The following table compares Concentrix against key CX and BPO sector peers using the most recent reported periods available. Concentrix reports on a fiscal year ending November 30, so Q1 FY2026 corresponds to December 2025 through February 2026. Peer periods shown are the closest comparable recent quarters.
| Category | Concentrix (CNXC) Q1 FY2026 | Teleperformance (TEP) FY2025 Full Year | TaskUs (TASK) Q4 CY2025 | TTEC Holdings (TTEC) Q4 CY2025 |
| Revenue | $2,500.4M (+5.4% YoY) | EUR 10,209M (-0.7% YoY) | $313.0M (+14.1% YoY) | $570M (approx., beat est.) |
| Net Income | $21.6M (-69.3% YoY) | EUR 497M (-4.97% YoY) | $29.7M (net margin 9.5%) | Improving trend; Q4 EPS $0.47 |
| EBITDA / Adj. EBITDA Margin | 13.90% | ~14.8% (ex-currency) | 19.60% | 10.6% in Q1 2025 |
| YoY Revenue Change | +5.4% reported (+1.9% constant currency) | -0.69% (FY2025 vs FY2024) | +14.1% | Revenue recovering from -7.4% in Q1 2025 |
| Operating Margin | 4.7% GAAP; 11.8% Non-GAAP | ~14.5% EBIT margin | Not separately disclosed | 10.6% adj. EBITDA in prior quarter |
| Key Theme | AI-driven deals up 61% YoY; margin pressure | Portfolio review underway; AI data services growing | Record revenues; generative AI expansion | EPS beat; recovery from restructuring |
TaskUs stands out as the fastest-growing peer, with 14.1% revenue growth in Q4 2025 and a full-year 2025 revenue of $1.184 billion, both company records. Teleperformance crossed the EUR 10 billion revenue threshold for FY2025, maintaining adjusted EBITDA margins near 14.8%, even as net profit slipped modestly. TTEC Holdings is in a recovery phase following significant losses in 2024, posting a Q4 2025 EPS beat at $0.47 vs. the $0.34 estimate.
How the Market Reacted?
Concentrix shares fell sharply following the Q1 2026 earnings announcement. The stock dropped approximately 9–12%, hitting a new all-time low near $29.00–$30.14 in the session immediately following the release. As of March 25, 2026, shares traded near $25.81, reflecting ongoing investor concern. The reaction was driven not by the revenue number, which was roughly in line with or fractionally above most estimates, but by the softer Q2 guidance and the continued compression of margins across GAAP and non-GAAP metrics.
The stock’s market cap has now declined approximately 47.76% over the prior twelve months, placing it firmly in small-cap territory at roughly $1.59 billion. Despite the stock selloff, eight Wall Street analysts maintain a bullish consensus with a median price target of $62.00, implying meaningful upside from current levels.
