Concentrix reported fiscal third-quarter 2026 revenue of $2.45 billion, down 1.2% from $2.48 billion a year earlier and down 0.5% on a constant-currency basis.
The technology and services company reported a GAAP operating loss of $910.3 million compared with operating income of $147 million in the prior-year quarter. The loss included a $1.05 billion non-cash goodwill impairment charge primarily related to the recent trading range of Concentrix’s stock and its market capitalization.
Excluding specified items, non-GAAP operating income increased to $309 million from $305.1 million, while non-GAAP operating margin expanded 30 basis points to 12.6%.
Adjusted EBITDA rose to $363 million from $359.2 million, with adjusted EBITDA margin increasing to 14.8% from 14.5%.
Concentrix reported a GAAP net loss of $988.1 million, or $16.24 per diluted share, reflecting the goodwill impairment. Non-GAAP net income increased to $186.5 million, while non-GAAP diluted EPS increased 5% to $2.92.
Operating cash flow reached a record third-quarter level of $268.2 million, while adjusted free cash flow was $218.3 million.
Concentrix said approximately 50% of its revenue now comes from business won and deployed during the past three years following the broader emergence of AI. The company is repositioning its operations around integrated human and AI services while intentionally disrupting portions of its traditional business.
The company’s board increased its quarterly dividend to $0.37 per share from $0.36. The new dividend is payable November 3, 2026, to shareholders of record as of October 23.
For the fourth quarter, Concentrix expects reported revenue between $2.410 billion and $2.460 billion and non-GAAP operating income of $310 million to $320 million. Non-GAAP diluted EPS is expected between $2.86 and $2.98.
For the full fiscal year, the company expects reported revenue of $9.827 billion to $9.877 billion and non-GAAP operating income of $1.206 billion to $1.216 billion.
Full-year non-GAAP diluted EPS is projected between $10.97 and $11.09, while adjusted free cash flow is expected to total approximately $630 million to $650 million.
KEY QUOTES:
“This quarter, we reached an inflection point where 50% of our revenue is coming from business we have won and deployed within the last 3 years since the introduction of AI. While we are aggressively disrupting our own traditional business, the underlying new business is stronger and healthier as evidenced by our margin expansion, strong free cash flow and growth of our new services.”
Chris Caldwell, President and CEO of Concentrix
