Concentrix Corporation (CNXC) Q3 2026 Financial Results Summary
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Concentrix (CNXC) Q3 2026: Revenue Decline, Impairment Charge — Cautiously Disappointed
Concentrix Corporation (NASDAQ: CNXC) reported its fiscal third quarter results for 2026, revealing a revenue decline of $29.6 million or -1.2% year-over-year, down from $2,483.3 million in Q3 2025 to $2,453.7 million in Q3 2026. This performance, coupled with a significant operating loss due to a goodwill impairment charge, paints a challenging picture for shareholders.
Key Financial Metrics:
- Revenue: $2,453.7 million, down from $2,483.3 million, a decrease of $29.6 million or -1.2% YoY.
- Operating Income (Loss): $(910.3) million, compared to $147.0 million in Q3 2025, a change of NM (not meaningful) due to a non-cash goodwill impairment charge of $1,050.0 million.
- Non-GAAP Operating Income: $309.0 million, up from $305.1 million, an increase of $3.9 million or +1.3% YoY.
- Net Income (Loss): $(988.1) million, compared to $88.1 million in Q3 2025, a change of NM.
- Non-GAAP Net Income: $186.5 million, up from $183.2 million, an increase of $3.3 million or +1.8% YoY.
- Diluted EPS: $(16.24), compared to $1.34 in Q3 2025, a change of NM.
- Non-GAAP Diluted EPS: $2.92, up from $2.78, an increase of $0.14 or +5.0% YoY.
- Free Cash Flow: $268.2 million, with adjusted free cash flow of $218.3 million.
Analyst Opinion
This quarter is disappointing for shareholders primarily due to the substantial operating loss driven by the goodwill impairment charge. While the non-GAAP metrics show some resilience, the overall financial health of the company appears compromised. The reported operating loss of $(910.3) million is alarming, and the drastic drop in diluted EPS to $(16.24) raises concerns about profitability moving forward. The increase in non-GAAP diluted EPS to $2.92 is a positive note, but it does not offset the negative impact of the impairment charge.
Dividend and Share Buyback
Concentrix has declared a quarterly dividend increase from $0.36 to $0.37 per share, payable on November 3, 2026. This move may provide some reassurance to investors, indicating the company's commitment to returning value to shareholders despite the current challenges. However, it is noteworthy that the company did not repurchase any shares during the quarter, leaving a remaining authorization of $396.6 million.
Forward Guidance
Looking ahead, Concentrix has provided guidance for Q4 2026, expecting reported revenue between $2.410 billion and $2.460 billion, which implies a constant currency revenue decline of approximately -5.0% to -3.0%. The company anticipates an operating income of $174 million to $184 million and non-GAAP diluted EPS in the range of $2.86 to $2.98. Investors should closely monitor these projections, particularly in light of the ongoing challenges related to revenue generation and market conditions.
Conclusion
In summary, while Concentrix's non-GAAP results show some positive trends, the significant operating loss and goodwill impairment overshadow these metrics. The increase in the dividend is a positive sign, but the overall financial performance raises concerns for shareholders. Investors should watch for the company's ability to stabilize revenue and improve profitability in the upcoming quarter, as well as the impact of its strategic initiatives in AI and new service offerings.
Note: All amounts in the following tables are in thousands.
| Three Months Ended | August 31, 2026 | August 31, 2025 | % Change | Nine Months Ended | August 31, 2026 | August 31, 2025 | % Change |
|---|---|---|---|---|---|---|---|
| Revenue | $2,453,679 | $2,483,300 | -1.2 % | Revenue | $7,416,543 | $7,267,996 | 2.0 % |
| Operating Income (loss) | ($910,300) | $146,984 | NM | Operating Income (loss) | ($696,311) | $464,196 | NM |
| Impairment Charge | $1,050,000 | $-- | -- | Impairment Charge | $1,050,000 | $-- | -- |
| Acquisition related, integration and restructuring expenses | $42,493 | $18,619 | -- | Acquisition related, integration and restructuring expenses | $142,867 | $53,451 | -- |
| Step-up Depreciation | $2,626 | $2,704 | -- | Step-up Depreciation | $8,082 | $7,616 | -- |
| Amortization of Intangible Assets | $100,908 | $111,779 | -- | Amortization of Intangible Assets | $306,421 | $326,556 | -- |
| Loss on held for sale | $1,528 | $-- | -- | Loss on held for sale | $8,420 | $-- | -- |
| Share-based Compensation | $21,757 | $25,042 | -- | Share-based Compensation | $76,579 | $78,504 | -- |
| Non-GAAP Operating Income | $309,007 | $305,128 | -- | Non-GAAP Operating Income | $896,044 | $930,323 | -- |
| August 31, 2026 | November 30, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $244,692 | $327,347 |
| Accounts receivable, net | $1,969,848 | $1,999,021 |
| Assets held for sale | $212,959 | $-- |
| Other current assets | $489,238 | $758,135 |
| Total current assets | $2,916,737 | $3,084,503 |
| Property and equipment, net | $698,116 | $735,550 |
| Operating lease right-of-use assets, net | $864,749 | $857,025 |
| Goodwill | $2,636,667 | $3,671,746 |
| Intangible assets, net | $1,651,400 | $1,960,338 |
| Deferred tax assets | $346,058 | $317,453 |
| Other assets | $147,042 | $134,471 |
| Total assets | $9,260,769 | $10,761,086 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $221,495 | $244,771 |
| Current portion of long-term debt | $450,000 | $65,625 |
| Accrued compensation and benefits | $680,040 | $764,962 |
| Other accrued liabilities | $763,409 | $997,198 |
| Income taxes payable | $73,221 | $123,794 |
| Liabilities held for sale | $182,149 | $-- |
| Total current liabilities | $2,370,314 | $2,196,350 |
| Long-term debt, net | $3,925,373 | $4,572,889 |
| Other long-term liabilities | $949,867 | $950,983 |
| Deferred tax liabilities | $246,476 | $296,519 |
| Total liabilities | $7,492,030 | $8,016,741 |
| Stockholders’ equity: | ||
| Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of August 31, 2026 and November 30, 2025, respectively | $-- | $-- |
| Common stock, $0.0001 par value, 250,000 shares authorized; 70,679 and 70,316 shares issued as of August 31, 2026 and November 30, 2025, respectively, and 60,948 and 61,739 shares outstanding as of August 31, 2026 and November 30, 2025, respectively | $7 | $7 |
| Additional paid-in capital | $3,859,842 | $3,783,972 |
| Treasury stock, 9,731 and 8,577 shares as of August 31, 2026 and November 30, 2025, respectively | ($657,424) | ($610,162) |
| Retained deficit | ($1,157,782) | ($177,010) |
| Accumulated other comprehensive loss | ($275,904) | ($252,462) |
| Total stockholders’ equity | $1,768,739 | $2,744,345 |
| Total liabilities and stockholders’ equity | $9,260,769 | $10,761,086 |
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