Concentrix (CNXC) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $2,453.7M, down 1.2% year-over-year as reported and 0.5% in constant currency.

• 50% of revenue came from business won and deployed in the last three years; new revenue sources grew 30% in FY26 and had 4x the retention rate of traditional business.

• Non-GAAP operating income was $309M and adjusted EBITDA was $363M; both margins rose 30 bps year-over-year.

• Non-GAAP diluted EPS was $2.92 versus $2.78; a $1,050M non-cash goodwill impairment drove a GAAP net loss of $988.1M.

• Record Q3 operating cash flow of $268.2M and adjusted free cash flow of $218.3M.

Financial highlights

• Q3 gross profit was $848.9M, down 0.7%; gross margin rose to 34.6% from 34.4%.

• Adjusted net income was $186.5M versus $183.2M; adjusted diluted EPS was $2.92 versus $2.78.

• Nine-month revenue rose 2.0% to $7,416.5M; nine-month adjusted EBITDA was $1,058.5M versus $1,090.7M.

• Nine-month adjusted free cash flow was $316.0M versus $339.3M; free cash flow was $293.8M versus $291.3M.

• Q3 net debt fell $211M; total debt was $4,375M and net debt was $4,119M.

Outlook and guidance

• Q4 revenue guidance: $2.41B–$2.46B, a 3%–5% year-over-year decline in constant currency.

• FY26 revenue guidance: $9.827B–$9.877B, a 0.3%–0.8% year-over-year decline in constant currency.

• Q4 non-GAAP operating income guidance: $310M–$320M; non-GAAP diluted EPS: $2.86–$2.98.

• FY26 non-GAAP operating income guidance: $1,206M–$1,216M; non-GAAP diluted EPS: $10.97–$11.09.

• FY26 adjusted free cash flow expected at $630M–$650M.