Concentrix Corp (CNXC)

Price$26.72Cached quoteAs of 2026-09-10 19:58 UTC

AI: Undervalued

Price checkShares imply an unusually low earnings multiple, but debt makes the bargain less simple.

SEC filings confirm Concentrix Corporation, common stock CNXC on the Nasdaq Stock Market. Using the September 9 close, shares trade at roughly 2.5 times management's fiscal 2026 non-GAAP EPS guide. Non-GAAP means management removes items including restructuring, acquired-intangible amortization and share compensation. Fiscal 2025 GAAP results also absorbed a $1.52 billion noncash goodwill impairment, highlighting acquisition risk. Market data puts enterprise value, which adds net debt to equity value, around $6.9 billion—about 11 times guided adjusted free cash flow. That looks inexpensive, but high leverage raises equity risk.

Big pictureCash generation remains real, yet weak first-half conversion and softer client budgets demand caution.

Fiscal 2025 generated $572.5 million of free cash flow and $626.4 million adjusted. In the first half of 2026, adjusted free cash flow fell to $97.7 million, although the second quarter produced $242.3 million. Free cash flow means operating cash after capital spending; Concentrix's adjusted measure also removes factoring timing, so it is not identical to cash freely available to shareholders. Management still guides to $630-$650 million for the year, helped by its usual fourth-quarter seasonality, leaving execution concentrated in the back half.

Business strengthDiversified clients and shareholder returns help, while leverage, labor exposure and dilution remain meaningful.

No client represented more than 10% of revenue or receivables, and banking plus retail/travel grew in Q2 while technology and healthcare declined. That diversification helps, but the labor-heavy model remains exposed to client volumes, wages and AI-led redesign. At May 31, liquidity was $1.50 billion against about $4.58 billion of reported debt; February refinancing extended $600 million to 2029. First-half buybacks repurchased 1.08 million shares, yet $54.8 million of share-based compensation remains an economic dilution cost. Share count still fell over the period.

What could change the storyThe valuation works if cash holds; sustained AI displacement or deleveraging failure would break it.

Bull case: constant-currency revenue growth returns to 2-3%, non-GAAP operating margin stabilizes near 12%, adjusted free cash flow stays above $600 million, and surplus cash reduces net debt. Bear case: client budgets stay tight, AI removes labor-based service volumes faster than Concentrix sells higher-value automation, margins keep slipping, and adjusted free cash flow falls below $450 million while refinancing stays expensive. The September 29 third-quarter report should test the revised 0-1% growth outlook and clarify the post-August debt position.

AI: News

CastleHill acquisitionConcentrix bought CastleHill to deepen governance, risk, compliance and AI-governance services.

On September 8, 2026, Concentrix announced the acquisition of CastleHill Managed Risk Solutions, adding governance, third-party risk and AI-governance capabilities to a specialized line it describes as fast growing. CastleHill also brings regulated-industry clients, particularly in banking and financial services. Transaction terms were not disclosed, so investors cannot yet judge the purchase price, near-term earnings contribution or additional leverage.

Third-quarter date setResults due September 29 will test revised growth guidance, margins, cash conversion and debt progress.

On September 8, 2026, Concentrix scheduled fiscal third-quarter results for September 29 after the market close. The release is an important near-term check because management previously guided to only 0-1% constant-currency revenue growth for the quarter. Investors should also look for margin stabilization, progress toward the annual adjusted free-cash-flow target, and an updated balance sheet after the August 2026 note maturity shown in the May filing.

Guidance cut after Q2Second-quarter revenue grew modestly, but margins softened and management reduced full-year revenue and adjusted EPS expectations.

On June 29, 2026, Concentrix reported 1.9% Q2 revenue growth, while non-GAAP operating margin fell to 11.9% from 12.6%. Management lowered fiscal 2026 revenue guidance to $9.925-$10.025 billion and adjusted EPS guidance to $10.83-$11.18, while keeping adjusted free cash flow at $630-$650 million. Reuters reported that clients under financial pressure were trimming spending, reinforcing the risk that this business remains sensitive to corporate budgets even as automation demand rises.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$9.83B	$9.62B	$7.11B	$6.32B	$5.59B	$4.72B	$4.71B
Gross profit	$3.44B	$3.45B	$2.58B	$2.26B	$1.97B	$1.66B	$1.75B
Gross margin	34.96%	35.86%	36.23%	35.69%	35.25%	35.21%	37.14%
Operating expenses	$4.35B	$2.85B	$1.92B	$1.62B	$1.40B	$1.35B	$1.45B
Operating income	−$918.2M	$596.4M	$661.3M	$640.2M	$572.4M	$308.8M	$294.3M
Operating margin	−9.34%	6.20%	9.30%	10.12%	10.25%	6.54%	6.25%
EBITDA	−$257.8M	$1.30B	$1.05B	$949.7M	$849.6M	$438.0M	$433.5M
EBITDA margin	−2.62%	13.54%	14.75%	15.02%	15.21%	9.28%	9.21%
Net income	−$1.28B	$251.2M	$313.8M	$435.0M	$405.6M	$164.8M	$117.2M
Net profit margin	−13.02%	2.61%	4.41%	6.88%	7.26%	3.49%	2.49%
Basic EPSper basic share	-$20.36	$3.72	$5.72	$8.34	$7.78	$3.19	$2.27
Diluted EPSper diluted share	-$20.36	$3.71	$5.70	$8.28	$7.70	$3.19	$2.27

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

10.95%of listed shares

BlackRock, Inc.6.68M shares · Jun 30, 2026

View holders

Top 20 reported holders of CNXC
Holder	% owned
BlackRock, Inc.	10.95%6.68M shares
FMR LLC	9.36%5.71M shares
PZENA INVESTMENT MANAGEMENT LLC	5.59%3.41M shares
AQR CAPITAL MANAGEMENT LLC	5.36%3.27M shares
Kopernik Global Investors, LLC	5.20%3.18M shares
UBS Group AG	5.19%3.17M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.68%2.86M shares
Groupe Bruxelles Lambert	4.55%2.77M shares
DIMENSIONAL FUND ADVISORS LP	4.31%2.63M shares
FIL Ltd	4.00%2.44M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.66%2.23M shares
1832 Asset Management L.P.	3.52%2.15M shares
STATE STREET CORP	3.13%1.91M shares
FULLER & THALER ASSET MANAGEMENT, INC.	3.11%1.9M shares
MORGAN STANLEY	2.32%1.42M shares
LYRICAL ASSET MANAGEMENT LP	2.27%1.39M shares
GEODE CAPITAL MANAGEMENT, LLC	1.97%1.2M shares
CAPITAL MANAGEMENT CORP /VA	1.78%1.09M shares
JUPITER ASSET MANAGEMENT LTD	1.77%1.08M shares
PRUDENTIAL FINANCIAL INC	1.60%979.08K shares

Percentages use 61.02M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$421.9K disclosed value

Sells (SEC code S)30$139.80M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 29, 2026Form 4	GBL Verwaltung S.A. +4TenPercentOwner	SellCommon Stock · indirect	6.00M	$22.25	$133.50M	2.77M
Apr 9, 2026Form 4	Valentine Andre SChief Financial Officer	BuyCommon Stock	2.5K	$27.95	$69.9K	89.1K
Mar 26, 2026Form 4	Caldwell Christopher APresident and CEO	BuyCommon Stock	1.0K	$26.97	$27.0K	357.4K
Jan 29, 2026Form 4	Caldwell Christopher APresident and CEO	BuyCommon Stock	1.0K	$37.07	$37.1K	362.1K
Nov 28, 2025Form 4 · 10b5-1	Twomey Cormac JEVP, Global Ops & Delivery	SellCommon Stock	500	$35.50	$17.8K	35.1K