Concentrix delivered Q4 results that slightly surpassed Wall Street’s revenue and non-GAAP profit expectations, marking another quarter of steady top-line growth. Management attributed this performance to increased adoption of technology-enabled services, expansion in complex and high-value work, and enhanced cross-selling within its client base. CEO Christopher A. Caldwell highlighted that “more than 40% of our new business includes some form of our own technology,” reflecting the company’s push toward differentiated offerings. Strategic investments in automation and shifting client work offshore also played a role, though these transitions led to some short-term margin compression.
Is now the time to buy CNXC? Find out in our full research report (it’s free for active Edge members).
Concentrix (CNXC) Q4 CY2025 Highlights:
- Revenue: $2.55 billion vs analyst estimates of $2.53 billion (4.3% year-on-year growth, 0.7% beat)
- Adjusted EPS: $2.95 vs analyst estimates of $2.91 (1.4% beat)
- Adjusted EBITDA: $378.6 million vs analyst estimates of $384.9 million (14.8% margin, 1.6% miss)
- Revenue Guidance for Q1 CY2026 is $2.49 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $11.78 at the midpoint, missing analyst estimates by 3.9%
- Operating Margin: -54.1%, down from 5.9% in the same quarter last year
- Market Capitalization: $2.66 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Concentrix’s Q4 Earnings Call
- Ruplu Bhattacharya (BofA) asked about AI investment metrics and spend discipline; CEO Christopher A. Caldwell explained the focus on accretive growth, variable OpEx, and leveraging returns from both AI and go-to-market spending.
- Bhattacharya (BofA) also probed how Concentrix manages customer deals requiring upfront investment if client volumes fall short. Caldwell emphasized qualitative assessments of client longevity and strategic fit, seeking long-term relationships over transactional deals.
- Bhattacharya (BofA) inquired about M&A strategy post-WebHelp acquisition; Caldwell said integrations exceeded expectations, drove synergies, and future acquisitions will be opportunistic and client-focused.
- David Koning (Baird) sought clarity on margin trajectory; CFO Andre S. Valentine confirmed margin improvement is expected as overcapacity and duplicate costs are addressed, with sequential gains in the year’s second half.
- Luke Moore Morrison (Canaccord Genuity) questioned persistent headwinds from low-complexity work and offshoring; Caldwell explained these effects will lessen, with most future growth tied to high-value services and optimization of the existing portfolio.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of client adoption and revenue contribution from the IXSuite AI platform, (2) progress in margin recovery as duplicate costs are eliminated and automation scales, and (3) continued success in cross-selling and upselling high-value solutions to existing clients. We will also watch for any developments in the competitive landscape and strategic M&A activity.
Concentrix currently trades at $42.88, up from $40.48 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
Our Favorite Stocks Right Now
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
