Customer experience solutions provider Concentrix (NASDAQ:CNXC) reported Q3 CY2025 results exceeding the market’s revenue expectations , with sales up 4% year on year to $2.48 billion. Guidance for next quarter’s revenue was better than expected at $2.54 billion at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $2.78 per share was 3.1% below analysts’ consensus estimates.
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Revenue: $2.48 billion vs analyst estimates of $2.46 billion (4% year-on-year growth, 1% beat)
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Adjusted EPS: $2.78 vs analyst expectations of $2.87 (3.1% miss)
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Adjusted EBITDA: $359.2 million vs analyst estimates of $382.2 million (14.5% margin, 6% miss)
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Revenue Guidance for Q4 CY2025 is $2.54 billion at the midpoint, roughly in line with what analysts were expecting
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Management lowered its full-year Adjusted EPS guidance to $11.17 at the midpoint, a 4.1% decrease
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Operating Margin: 5.9%, in line with the same quarter last year
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Market Capitalization: $2.96 billion
Concentrix’s third quarter results were met with a negative market reaction, reflecting concerns about margin performance despite revenue growth. While leadership pointed to ongoing share gains and traction with AI-integrated solutions, margins came under pressure due to excess capacity tied to clients impacted by recent tariffs and a slower-than-expected consolidation of client volumes. CEO Christopher Caldwell acknowledged these issues, stating, “Margins were below plan in the quarter,” and CFO Andre Valentine attributed the majority of the shortfall to operational inefficiencies related to these specific clients. Management emphasized the company’s growing presence in banking, financial services, and media, as well as the ramp-up of its IX AI suite, but did not shy away from acknowledging near-term profitability challenges.
Looking ahead, Concentrix’s forward guidance is shaped by expectations for gradual margin recovery as the company addresses excess capacity and continues to scale its AI-driven offerings. Management remains focused on transitioning more business to higher-margin integrated solutions, with Caldwell highlighting, “We are in a strong position to make [growth] happen.” While the company anticipates that margin headwinds will persist in the near term, it expects profitability to improve sequentially as new client volumes materialize and the IX AI suite becomes accretive. Valentine cautioned that it may take several quarters to fully resolve these issues but expressed confidence in the longer-term financial profile as AI adoption grows.
Customer experience solutions provider Concentrix (NASDAQ:CNXC) reported Q3 CY2025 results exceeding the market’s revenue expectations , with sales up 4% year on year to $2.48 billion. Guidance for next quarter’s revenue was better than expected at $2.54 billion at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $2.78 per share was 3.1% below analysts’ consensus estimates.
Is now the time to buy CNXC? Find out in our full research report (it’s free).
-
Revenue: $2.48 billion vs analyst estimates of $2.46 billion (4% year-on-year growth, 1% beat)
-
Adjusted EPS: $2.78 vs analyst expectations of $2.87 (3.1% miss)
-
Adjusted EBITDA: $359.2 million vs analyst estimates of $382.2 million (14.5% margin, 6% miss)
-
Revenue Guidance for Q4 CY2025 is $2.54 billion at the midpoint, roughly in line with what analysts were expecting
-
Management lowered its full-year Adjusted EPS guidance to $11.17 at the midpoint, a 4.1% decrease
-
Operating Margin: 5.9%, in line with the same quarter last year
-
Market Capitalization: $2.96 billion
Concentrix’s third quarter results were met with a negative market reaction, reflecting concerns about margin performance despite revenue growth. While leadership pointed to ongoing share gains and traction with AI-integrated solutions, margins came under pressure due to excess capacity tied to clients impacted by recent tariffs and a slower-than-expected consolidation of client volumes. CEO Christopher Caldwell acknowledged these issues, stating, “Margins were below plan in the quarter,” and CFO Andre Valentine attributed the majority of the shortfall to operational inefficiencies related to these specific clients. Management emphasized the company’s growing presence in banking, financial services, and media, as well as the ramp-up of its IX AI suite, but did not shy away from acknowledging near-term profitability challenges.
Looking ahead, Concentrix’s forward guidance is shaped by expectations for gradual margin recovery as the company addresses excess capacity and continues to scale its AI-driven offerings. Management remains focused on transitioning more business to higher-margin integrated solutions, with Caldwell highlighting, “We are in a strong position to make [growth] happen.” While the company anticipates that margin headwinds will persist in the near term, it expects profitability to improve sequentially as new client volumes materialize and the IX AI suite becomes accretive. Valentine cautioned that it may take several quarters to fully resolve these issues but expressed confidence in the longer-term financial profile as AI adoption grows.
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