Overview

• US technology services firm's fiscal Q2 revenue up 1.9%, slightly missed analyst expectations

• Adjusted EPS for fiscal Q2 missed analyst expectations

• Company reported record-high Q2 cash flow from operations

Outlook

• Concentrix expects Q3 revenue of $2.465 bln to $2.490 bln

• Company sees full-year 2026 revenue of $9.925 bln to $10.025 bln

• Concentrix forecasts 2026 non-GAAP diluted EPS of $10.83 to $11.18

Result Drivers

• SEGMENT PERFORMANCE - Growth in banking, financial services and insurance, and retail, travel and e-commerce offset declines in technology and consumer electronics, and healthcare

• COSTS AND RESTRUCTURING - Higher acquisition-related, integration and restructuring expenses weighed on operating income

• AI AND SERVICES STRATEGY - CEO said blended AI and services approach is helping differentiate the company by lowering client costs and increasing revenue

Company press release: ID:nGNX90H6Ty

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Slight Miss*	$2.46 bln	$2.47 bln (4 Analysts)
Q2 Adjusted EPS	Miss	$2.63	$2.64 (4 Analysts)
Q2 Adjusted Net Income		$168.60 mln
Q2 Adjusted Operating Margin		11.90%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Concentrix Corp is $40.00, about 60% above its June 26 closing price of $25.00

• The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

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