CI&T Inc

CI&T reported Q2 2026 net revenue of $142.8 million, up 21.9% year over year on an entirely organic basis and 14.1% at constant currency above guidance of at least $140 million. Adjusted gross margin rose sequentially to 32.4% from 30.6% in Q1; management said it declined year over year due to FX headwinds and the resumption of payroll tax. Adjusted EBITDA was $19 million, with a 13.3% margin, while adjusted profit was $8.7 million and adjusted diluted EPS was $0.07 versus $0.09 last year. For Q3 2026, the company expects revenue of at least $145.7 million, up 14.4% year over year or 12.3% at constant currency. For full-year 2026, revenue guidance was raised to $566 million to $578 million, implying organic growth of 15.5% to 18%, and adjusted EBITDA margin is expected in the 15% to 17% range. Management also said the revised outlook includes about 400 basis points of positive FX impact.

Cesar Nivaldo Gon framed the quarter around the gap between AI spend and actual business returns, arguing CI&T sits in the part of the market where enterprises need help deploying AI into operations, not just experimenting. He said the company is building around AI deployment and AI monetization, with value-based models meant to capture more of the productivity created for clients. His tone was confident and strategic, emphasizing seven straight quarters of double-digit organic growth, no M&A, and a long-term focus on compounding profitable growth through 2027 and beyond.

Stanley Rodrigues highlighted record net revenue of $142.8 million, adjusted gross margin of 32.4%, adjusted EBITDA of $19 million, and adjusted diluted EPS of $0.07. He said EBITDA margin compression was driven mainly by Brazilian real appreciation versus the U.S. dollar and deliberate 2026 investment in the commercial engine, including Agentic SDLC; on an FX-neutral basis, EBITDA would have been $20.8 million, or a 15.6% margin. He also noted $2.8 million of share repurchases, a 3.6% year-over-year reduction in weighted average diluted share count, and said the company expects sequential EBITDA margin improvement as the heavier Q2 investment eases and gross margin continues to expand.

Analysts pressed management on the margin outlook, asking how much of the pressure was FX versus investment and whether sales spending would stay elevated. Stanley said part of the Agentic SDLC spend should ease in coming quarters, but some commercial expansion is structural, with sales expense moving from 8% of net revenue last year to 12% in Q2 and expected to normalize around 10% long term. Questions also focused on vertical strength and geography: management said financial services grew 36% year over year, tech and telecom 68%, and North America’s slower Q2 growth was attributed to seasonality and renewal timing rather than a competitive issue. Analysts asked about Agentic SDLC pipeline mix and deal size; management said roughly 35% to 40% of demand is articulated as Agentic SDLC and deal sizes have been larger in the last two quarters, though it was too early to call that a trend.