Concentrix Corporation

Concentrix reported Q3 revenue of approximately $2.45 billion, down 0.5% on a constant-currency basis. Non-GAAP operating income was $309 million; adjusted EBITDA was $363 million; non-GAAP operating margin was 12.6%; adjusted EBITDA margin was 14.8%, both up 30 basis points year over year. Non-GAAP diluted EPS was $2.92, up $0.14 from Q3 2025. Adjusted free cash flow was $218 million. For Q4, the company guided to revenue of $2.41 billion to $2.46 billion, non-GAAP operating income of $310 million to $320 million, and non-GAAP EPS of $2.86 to $2.98. For fiscal 2026, it guided to revenue of $9.827 billion to $9.877 billion, non-GAAP operating income of $1,206 million to $1,216 million, and non-GAAP EPS of $10.97 to $11.09. It continues to expect adjusted free cash flow of $630 million to $650 million in 2026.

Chris Caldwell framed the quarter as proof that Concentrix is successfully reshaping its business around AI and higher-value services. He said 50% of revenue now comes from businesses generated in the last three years, and he emphasized that this new revenue is growing faster, is more profitable, and has 4x higher retention. His tone was confident and upbeat, while still acknowledging near-term disruption from automation, hyperscaler client changes and offshoring.

Andre Valentine highlighted margin outperformance and cash generation, saying Q3 non-GAAP operating income of $309 million was above the high end of June guidance and adjusted free cash flow of $218 million was the highest Q3 since the spin-off. He also pointed to $211 million of net debt reduction in the quarter, ending Q3 with about $256 million in cash, $4.375 billion of total debt, and nearly $1.5 billion of liquidity including an undrawn $1.1 billion revolver. He reiterated full-year adjusted free cash flow of $630 million to $650 million, debt paydown of over $550 million this year, and year-end net leverage of about 2.6x, with 2027 net debt expected below $3.3 billion and leverage around 2.2x.

Analysts focused on the back-half weighting of 2027 growth, asking what was driving it and whether offshoring would continue to weigh on revenue. Management said the timing is being affected by two specific hyperscaler clients ending certain support work by Q4, plus faster-than-expected deployment of AI automation that creates near-term revenue headwinds before later benefits. Questions also touched on Meta’s Muse and broader agentic AI; management said it is seeing growing adoption, has built similar internal tools, and believes iX Suite spending is lower while the platform’s revenue and margin contribution continue to expand.