Concentrix Corporation (CNXC)

Concentrix reported third-quarter fiscal 2026 revenue of $2,453.7 million, down 1.2 percent from a year earlier, for the quarter ended 31 August 2026 1.

A non-cash goodwill impairment charge of $1,050.0 million turned the quarter into a net loss of $988.1 million 1.

The company said the charge primarily resulted from the recent trading range for its stock, not from a change in how the business operates 1.

Without such items, non-GAAP operating income was $309.0 million, or 12.6 percent of revenue 1.

Chief executive Chris Caldwell said 50 percent of revenue now comes from business won and deployed within the last 3 years since AI was introduced 1.

For the fourth quarter the company expects revenue of $2.410 billion to $2.460 billion, a constant currency decline of 3.0 to 5.0 percent 1.

Concentrix traces its roots to 2004, when SYNNEX Corporation, now TD SYNNEX, bought BSA Sales, a company of 20 employees selling outsourced sales and marketing services 3.

In 2006 TD SYNNEX combined New York-based Concentrix with BSA Sales under the Concentrix name 3.

In December 2020 Concentrix was separated from TD SYNNEX through a tax-free distribution of its shares, and it began trading on Nasdaq on 1 December 2020 3.

It then grew by acquisition: Convergys in October 2018, PK in December 2021, ServiceSource in July 2022, Webhelp in September 2023 and SAI Digital in September 2025 3.

The Webhelp purchase closed on 25 September 2023 at consideration of about $3,774.8 million, net of cash and restricted cash acquired 3.

Revenue reached $9,825.8 million in fiscal 2025, up 2.2 percent, mainly on retail, travel and e-commerce, communications and media, and banking, financial services and insurance clients 3.

Banking, financial services and insurance revenue rose 5.5 percent on more business from the majority of clients in that vertical 3.

Technology and consumer electronics revenue fell 0.3 percent, partly on a decrease in underlying business with one client 3.

Gross margin, the share of revenue left after the cost of delivering the work, slipped from 35.9 percent to 35.0 percent 3.

In fiscal 2025 the company recorded a non-cash goodwill impairment charge of $1,523.3 million, and operating income of $596.4 million became an operating loss of $918.2 million 3.

In February 2026 it sold $600 million of 6.500 percent senior notes due 2029 and used the money to redeem $600 million of its 6.650 percent notes due 2026 2.

What it sells

Concentrix sells outsourced customer experience work: it runs customer support, sales and back-office tasks for other companies, with more than 2,000 clients 3.

It groups clients into five verticals: technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, and healthcare 3.

In the nine months to 31 August 2026 technology and consumer electronics brought in $1,862.8 million and retail, travel and e-commerce $1,952.8 million 2.

Healthcare revenue in the third quarter was $145.2 million against $174.1 million a year earlier 2.

Software and AI products

In September 2024 it launched its Intelligent Experience (iX) suite, which includes iX Hello, a GenAI-powered self-service application, and iX Hero, an agentic AI application used with a human in the loop 3.

MarketBeat reported that Caldwell said the company is on pace to exit fiscal 2026 with about $120 million in annual recurring revenue from software licensing 5.

It also reported that 61 opportunities went live on the iX Suite in the quarter, involving more than 30,000 advisors 5.

Places and people

About 455,000 employees work across approximately 483 locations in 74 countries, with a significant presence in the Philippines and India 3.

Those sites cover about 25.4 million square feet, of which about 1.4 million is owned, and the Newark, California headquarters is leased 3.

Chris Caldwell is president and chief executive and Andre Valentine is chief financial officer 5.

Cormac Twomey, executive vice president of customer success, agreed to step down effective 31 December 2026 and to consult for 60 days after 4.

Cost reduction actions affected approximately 30,000 employees, with severance costs of $91.7 million in the nine months to 31 August 2026 2.

Rivals and problems

The annual report says it competes with a variety of companies, including the in-house operations of existing and potential clients 3.

Clients can end contracts for any reason, typically on 30 to 90 days' notice 3.

MarketBeat reported management said two hyperscale clients are accelerating decisions to stop support for certain customer sets 5.

The umbrella, in words

The company owns Webhelp, a customer experience business bought in September 2023 3.

The annual report's subsidiaries exhibit lists subsidiaries as of 30 November 2025, such as Concentrix (Canada) Limited in Ontario and a customer experience company in Spain 7.

BlackRock, Inc. reported beneficial ownership of 12.3 percent of the common stock, as a passive holder filing a Schedule 13G amendment 6.

For fiscal 2026 the company expects revenue of $9.827 billion to $9.877 billion and non-GAAP diluted earnings per share of $10.97 to $11.09 1.

It expects to generate approximately $630.0 million to $650.0 million of adjusted free cash flow in fiscal 2026 1.

MarketBeat reported that management expects to repay more than $550 million of gross debt in fiscal 2026 and bring net debt to about $3.8 billion by year end 5.

It also plans to repay $375 million of term loan borrowings maturing in December 2026 from free cash flow and existing liquidity 5.

The board declared a quarterly dividend of $0.37 per share payable on 3 November 2026, and $396.6 million remained under the repurchase authorization at 31 August 2026 1.

Management said the two hyperscale client decisions create a larger impact in the fourth quarter than first expected and some effect in the first half of 2027 5.

It expects growth momentum to be weighted toward the back half of next year, without formal 2027 guidance 5.

The remaining severance cash payments are expected to be substantially completed by 30 November 2026 2.