Q3 FY2026
Filed Sep 29, 2026Concentrix reported third-quarter revenue of $2,453.7 million, down (1.2) % year on year, while non-GAAP operating income rose to $309.0 million and adjusted free cash flow was $218.3 million.
Revenue declined on both an as-reported and constant-currency basis, and the company recorded a $1,050.0 million non-cash goodwill impairment that produced a GAAP operating loss and net loss. Underlying non-GAAP operating income, adjusted EBITDA, non-GAAP diluted EPS and adjusted free cash flow increased year on year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended August 31, 2026GAAP | $2.45B | – | (1.2) % |
| Constant currency revenue growth (decline), three months ended August 31, 2026non-GAAP | (0.5) % | – | (0.5) % |
| Cost of revenue, three months ended August 31, 2026GAAP | 1,604,800 | – | (1) % |
| Gross profit, three months ended August 31, 2026GAAP | 848,879 | – | (1) % |
| Selling, general and administrative expenses, three months ended August 31, 2026GAAP | 709,184 | – | — % |
| Impairment charge, three months ended August 31, 2026GAAP | 1,050,000 | – | NM |
| Operating income (loss), three months ended August 31, 2026GAAP | −$910.3M | – | NM |
| Operating margin, three months ended August 31, 2026GAAP | (37.1) % | – | NM |
| Non-GAAP operating income, three months ended August 31, 2026non-GAAP | $309M | – | 1.3 % |
| Non-GAAP operating margin, three months ended August 31, 2026non-GAAP | 12.6 % | – | 30 bps |
| Interest expense and finance charges, net, three months ended August 31, 2026GAAP | 64,856 | – | (10) % |
| Other expense (income), net, three months ended August 31, 2026GAAP | 4,603 | – | NM |
| Provision for income taxes, three months ended August 31, 2026GAAP | 8,349 | – | (64) % |
| Net income (loss), three months ended August 31, 2026GAAP | −$988.1M | – | NM |
| Non-GAAP net income, three months ended August 31, 2026non-GAAP | $186.5M | – | 1.8 % |
| Adjusted EBITDA, three months ended August 31, 2026non-GAAP | $363M | – | 1.1 % |
| Adjusted EBITDA margin, three months ended August 31, 2026non-GAAP | 14.8 % | – | 30 bps |
| Diluted earnings (loss) per common share, three months ended August 31, 2026GAAP | $(16.24) | – | NM |
| Non-GAAP diluted earnings per common share, three months ended August 31, 2026non-GAAP | $2.92 | – | 5.0 % |
| Net cash provided by operating activities, three months ended August 31, 2026GAAP | 268,206 | – | – |
| Free cash flow, three months ended August 31, 2026non-GAAP | 221,228 | – | – |
| Adjusted free cash flow, three months ended August 31, 2026non-GAAP | $218.3M | – | – |
| Revenue, nine months ended August 31, 2026GAAP | 7,416,543 | – | 2 % |
| Gross profit, nine months ended August 31, 2026GAAP | 2,521,885 | – | (1) % |
| Operating income (loss), nine months ended August 31, 2026GAAP | (696,325) | – | NM |
| Non-GAAP operating income, nine months ended August 31, 2026non-GAAP | 896,044 | – | – |
| Net income (loss), nine months ended August 31, 2026GAAP | (911,248) | – | NM |
| Non-GAAP net income, nine months ended August 31, 2026non-GAAP | 523,233 | – | – |
| Adjusted EBITDA, nine months ended August 31, 2026non-GAAP | 1,058,510 | – | – |
| Diluted earnings (loss) per common share, nine months ended August 31, 2026GAAP | $(14.99) | – | – |
| Non-GAAP diluted EPS, nine months ended August 31, 2026non-GAAP | $8.16 | – | – |
| Net cash provided by operating activities, nine months ended August 31, 2026GAAP | 442,878 | – | – |
| Free cash flow, nine months ended August 31, 2026non-GAAP | 293,824 | – | – |
| Adjusted free cash flow, nine months ended August 31, 2026non-GAAP | 316,029 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Technology and consumer electronics, three months ended August 31, 2026Not separately disclosed in the filing. | 603.5M | – | (10) % |
| Retail, travel and e-commerce, three months ended August 31, 2026Not separately disclosed in the filing. | 662.6M | – | 6 % |
| Communications and media, three months ended August 31, 2026Not separately disclosed in the filing. | 381.9M | – | (7) % |
| Banking, financial services and insurance, three months ended August 31, 2026Not separately disclosed in the filing. | 432.5M | – | 12 % |
| Healthcare, three months ended August 31, 2026Not separately disclosed in the filing. | 145.2M | – | (17) % |
| Other, three months ended August 31, 2026Not separately disclosed in the filing. | 228.0M | – | 4 % |
| Technology and consumer electronics, nine months ended August 31, 2026Not separately disclosed in the filing. | 1.86B | – | (6) % |
| Retail, travel and e-commerce, nine months ended August 31, 2026Not separately disclosed in the filing. | 1.95B | – | 9 % |
| Communications and media, nine months ended August 31, 2026Not separately disclosed in the filing. | 1.17B | – | (1) % |
| Banking, financial services and insurance, nine months ended August 31, 2026Not separately disclosed in the filing. | 1.29B | – | 13 % |
| Healthcare, nine months ended August 31, 2026Not separately disclosed in the filing. | 475.9M | – | (12) % |
| Other, nine months ended August 31, 2026Not separately disclosed in the filing. | 670.4M | – | 4 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter Fiscal 2026 and Full Year 2026 outlook
- RevenueFourth quarter reported revenue of $2.410 billion to $2.460 billion; full year reported revenue of $9.827 billion to $9.877 billion.
- Tax rateThe effective tax rate is expected to be approximately 24%.
- NoteFourth quarter operating income of $174 million to $184 million and non-GAAP operating income of $310 million to $320 million.
- NoteFourth quarter non-GAAP diluted EPS of $2.86 to $2.98, assuming approximately 61.2 million diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities.
- NoteFourth quarter guidance implies constant currency revenue decline ranging from (5.0)% to (3.0)% and assumes an approximate 65-basis point negative impact of foreign exchange rates compared with the prior year period.
- NoteFull year operating loss of $(522) million to $(512) million and non-GAAP operating income of $1,206 million to $1,216 million.
- NoteFull year non-GAAP diluted EPS of $10.97 to $11.09, assuming approximately 61.1 million diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities.
- NoteFull year guidance implies constant currency revenue decline of (0.8)% to (0.3)% and assumes an approximate 80-basis point positive impact of foreign exchange rates compared with the prior year.
- NoteAdjusted free cash flow of approximately $630.0 million to $650.0 million in fiscal year 2026.
Capital returns
- The Company paid a $0.36 per share quarterly dividend on August 4, 2026.
- The Board of Directors declared a quarterly dividend of $0.37 per share payable on November 3, 2026, to shareholders of record at the close of business on October 23, 2026.
- The Company did not repurchase any shares under its share repurchase program during the third quarter of fiscal year 2026.
- At August 31, 2026, the remaining share repurchase authorization was $396.6 million.
What drove it
- Revenue decreased by (0.5)% year on year on a constant currency basis.
- Retail, travel and e-commerce revenue grew 6 % year on year in the quarter, and banking, financial services and insurance revenue grew 12 %.
- The company stated that 50% of revenue is coming from business won and deployed within the last 3 years since the introduction of AI.
- Non-GAAP operating margin increased to 12.6 % from 12.3 %, while adjusted EBITDA margin increased to 14.8 % from 14.5 %.
- Third-quarter acquisition-related, integration and restructuring expenses primarily included restructuring costs associated with recent cost reduction initiatives, including severance and employee-related costs, as well as facilities consolidation costs including lease terminations.
Concerns
- Reported revenue declined (1.2) % year on year and constant currency revenue declined (0.5) %.
- Technology and consumer electronics, communications and media, and healthcare revenue declined (10) %, (7) %, and (17) %, respectively.
- The company recorded a non-cash goodwill impairment charge of $1,050.0 million, primarily resulting from the recent trading range for its stock price and market capitalization.
- The goodwill balance was 2,636,667 at August 31, 2026, versus 3,671,746 at November 30, 2025.
- Fourth-quarter guidance implies constant currency revenue decline ranging from (5.0)% to (3.0)%.
What to watch
- Execution against fourth-quarter reported revenue guidance of $2.410 billion to $2.460 billion and implied constant currency revenue decline of (5.0)% to (3.0)%.
- Whether non-GAAP operating income reaches the fourth-quarter guided range of $310 million to $320 million.
- Performance in technology and consumer electronics and healthcare, which declined (10) % and (17) % year on year in the third quarter.
- Delivery of fiscal 2026 adjusted free cash flow guidance of approximately $630.0 million to $650.0 million.
- The November 3, 2026 quarterly dividend payment and use of the $396.6 million remaining share repurchase authorization.
Balance sheet and cash flow
- Cash and cash equivalents were $ 244,692 as of August 31, 2026, compared with $ 327,347 as of November 30, 2025.
- Accounts receivable, net were 1,969,848 as of August 31, 2026, compared with 1,999,021 as of November 30, 2025.
- Current portion of long-term debt was 450,000 as of August 31, 2026, compared with 65,625 as of November 30, 2025.
- Long-term debt, net was 3,925,373 as of August 31, 2026, compared with 4,572,889 as of November 30, 2025.
- Total assets were $ 9,260,769 as of August 31, 2026, compared with $ 10,761,086 as of November 30, 2025.
- Total liabilities were 7,492,030 as of August 31, 2026, compared with 8,016,741 as of November 30, 2025.
- Total stockholders’ equity was 1,768,739 as of August 31, 2026, compared with 2,744,345 as of November 30, 2025.
- Net cash provided by operating activities was $268.2 million in the third quarter; adjusted free cash flow was $218.3 million.
Analysis
Third-quarter revenue was $2,453.7 million, down (1.2) % year on year on an as-reported basis and down (0.5) % on a constant currency basis. The reported revenue decline reflected contractions in technology and consumer electronics, communications and media, and healthcare. Retail, travel and e-commerce, banking, financial services and insurance, and other revenue increased year on year. Banking, financial services and insurance was the largest reported growth contributor among the disclosed verticals, rising 12 %.
GAAP results were dominated by a $1,050.0 million non-cash goodwill impairment charge, which management said primarily resulted from the recent trading range for the company’s stock price and market capitalization. The charge drove a $(910.3) million operating loss, $(988.1) million net loss, and $(16.24) diluted loss per common share. Excluding the disclosed non-GAAP adjustments, operating income increased to $309.0 million from $305.1 million, non-GAAP operating margin increased 30 bps to 12.6 %, and adjusted EBITDA margin increased 30 bps to 14.8 %.
Cash generation improved in the quarter. Net cash provided by operating activities was $268.2 million, free cash flow was 221,228, and adjusted free cash flow was $218.3 million, compared with 178,805 in the prior-year quarter. The company did not repurchase shares during the quarter, retained $396.6 million of repurchase authorization, paid a $0.36 per share dividend, and raised the declared quarterly dividend to $0.37 per share. Cash and cash equivalents were $ 244,692 at August 31, 2026, while long-term debt, net was 3,925,373.
The fourth-quarter outlook calls for reported revenue of $2.410 billion to $2.460 billion, including an approximate 65-basis point negative foreign-exchange impact, and implies constant currency revenue decline of (5.0)% to (3.0)%. The company guided to fourth-quarter non-GAAP operating income of $310 million to $320 million and non-GAAP diluted EPS of $2.86 to $2.98. For fiscal 2026, it expects reported revenue of $9.827 billion to $9.877 billion, non-GAAP operating income of $1,206 million to $1,216 million, non-GAAP diluted EPS of $10.97 to $11.09, and adjusted free cash flow of approximately $630.0 million to $650.0 million.
Management, verbatim
This quarter, we reached an inflection point where 50% of our revenue is coming from business we have won and deployed within the last 3 years since the introduction of AI.
Chris Caldwell, President and CEO of Concentrix
While we are aggressively disrupting our own traditional business, the underlying new business is stronger and healthier as evidenced by our margin expansion, strong free cash flow and growth of our new services.
Chris Caldwell, President and CEO of Concentrix
Not in the filing
stated, not guessed- Previous-release outlook was not provided; comparisons of actual results with prior guidance are unavailable.
- Quarter-over-quarter comparisons were not reported for the operating metrics or segments.
- GAAP gross margin was not reported.
- Segment-level profitability metrics were not reported.
- A quantitative GAAP reconciliation for the non-GAAP EPS outlook was not provided because the company stated it could not forecast future foreign currency losses (gains), net without unreasonable efforts.
- A quantitative reconciliation for adjusted free cash flow outlook was not provided because the company stated it could not forecast future changes in its factoring program and the timing of those changes without unreasonable efforts.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.