Overview

• Business process solutions provider's Q1 revenue fell 3.7% yr/yr, with growth in Government and Transportation

• Adjusted EPS improved yr/yr

• Adjusted EBITDA and margin rose, driven by cost reduction and technology optimization efforts

Outlook

• Conduent sees FY 2026 revenue between $2.8 bln and $2.9 bln

• Company expects FY 2026 adj EBITDA of $160 mln to $190 mln

• Conduent projects FY 2027 adj EBITDA of $190 mln to $220 mln

Result Drivers

• SEGMENT GROWTH - Revenue benefited from continued strength in Government and Transportation segments, with Government up about $10 mln and Transportation up about $3 mln yr/yr

• COST REDUCTION AND TECHNOLOGY OPTIMIZATION - Improved adjusted EBITDA margin attributed to cost reduction and technology optimization strategy, per CEO Harsha V. Agadi

• ABSENCE OF PRIOR-YEAR EVENT COSTS - Pre-tax income improvement primarily due to absence of discrete event-related costs from prior year

Company press release: ID:nGNX27NTpl

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Conduent Inc is $5.75, about 226.7% above its May 8 closing price of $1.76

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