Conduent (CNDT) Investor Day 2026 summary

Strategic priorities and transformation

• Executed a reset and stabilization phase, followed by portfolio simplification and concentration on high-ROI segments, notably through divestitures in Transit and Tolling, unlocking over $250M in value and focusing on healthcare, financial, and enterprise operations.

• Launched the ASCEND 2026-28 framework, emphasizing standardization of operations, specialization in core solutions, and scaling go-to-market efforts, with AI-driven solutions at the center.

• Strengthened leadership with a new senior team and board, instilling accountability, transparency, and a disciplined execution culture.

• Strategic priorities include converting pipeline to growth, reducing cost structure, enforcing financial discipline, increasing speed and accountability, and optimizing the portfolio.

Financial guidance and outlook

• Revenue guidance for 2026–2028 is $2.15B–$2.35B, with Adjusted EBITDA expected to grow from $140–$170M in 2026 to $210–$250M in 2028, targeting a margin expansion from 6.5–7.6% to 9.3–10.6%.

• Free cash flow is projected to turn positive in 2027, with steady improvement to 15–20% of Adjusted EBITDA by 2028.

• $120M in annual cost savings identified, spanning commercial, government, and shared functions, with $30M to be realized in 2026.

• Divestiture proceeds are directed to deleveraging and funding core growth, with a credible path to topline growth and ~10% Adjusted EBITDA margin.

Business developments and AI strategy

• AI is central to the transformation, with proprietary platforms and automation embedded across solutions, driving efficiency, differentiation, and new client outcomes.

• Commercial and government segments are focused on standardizing operations, building differentiated AI-enabled solutions, and scaling sales and go-to-market strategies.

• AI-powered platforms like Conni and VeriSight are delivering measurable results in healthcare and government, including improved fraud detection and member engagement.

• Strategic partnerships with major technology providers accelerate AI innovation and deployment.