Concentrix Corporation (NASDAQ:CNXC) experienced a sharp decline in after-hours trading on Monday, with shares falling 22.5% to $19.55, following the release of a fiscal 2026 outlook that fell short of analyst expectations. The stock had closed regular trading at $25.23, up 0.9%.
The company lowered its fiscal 2026 adjusted earnings per share (EPS) guidance to a range of $10.83 to $11.18, below the $11.97 consensus estimate cited by Benzinga. Revenue guidance was also cut to approximately $9.93 billion to $10.03 billion, compared to the $10.14 billion estimate. For the third quarter, Concentrix guided non-GAAP EPS of $2.65 to $2.77 and revenue of $2.465 billion to $2.490 billion, both below analyst projections of $3.04 and $2.54 billion, respectively.
Despite the disappointing outlook, the company reported improved cash flow in its second quarter. Adjusted free cash flow rose to $242.3 million from $200.3 million in the same period last year. Total revenue increased 1.9% to $2.46 billion, but operating income fell 35.7% to $95.4 million, and non-GAAP EPS declined to $2.63 from $2.70.
A key factor in the market’s reaction was the shift in Concentrix’s revenue mix. Retail, travel, and e-commerce overtook technology and consumer electronics as the company’s largest reported vertical, contributing $640.8 million in revenue, up 10% year-over-year. In contrast, technology and consumer electronics revenue fell 6% to $624.2 million. Banking, financial services, and insurance also grew 13% to $432.4 million, while healthcare declined 14% to $151.9 million. The two stronger verticals added about $105 million in revenue year-over-year, but tech and healthcare cuts wiped out $63 million, leaving total quarterly growth at just $45 million.
The company’s guidance for third-quarter constant-currency revenue growth of 0% to 1% further underscored the weakness in its core markets. CEO Chris Caldwell highlighted the company’s “blended AI and services approach” and noted a 400% increase in iX Suite deals from a year earlier, but the market remained focused on the downward revisions.
At the after-hours price, Concentrix’s common equity value stood at approximately $1.19 billion. The company’s fiscal 2026 adjusted free cash flow guidance of $630 million to $650 million represented roughly 54% of that equity value, but only about 12% of enterprise value after accounting for debt. The company had $650 million in current long-term debt, $3.93 billion in long-term debt, and $255.6 million in cash as of May 31.
Concentrix declared a quarterly dividend of 36 cents per share, payable on August 4, and did not repurchase any shares in the second quarter. The remaining buyback authorization stood at $396.6 million, equivalent to about one-third of the company’s after-hours market cap.