Concentrix (CNXC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 5.4% year-over-year to $2.5 billion, in line with guidance, driven by strong execution, AI-enabled solutions, and significant iX Suite enterprise wins.

• Non-GAAP operating income was $295 million, with non-GAAP diluted EPS of $2.61; GAAP diluted EPS was $0.33, both down year-over-year.

• AI-related annual contract value more than doubled quarter-on-quarter, with nearly 60 enterprise iX suite deals closed, including major contracts with Fortune 50 clients.

• Continued investment in proprietary technology and efficiency initiatives is expected to support long-term revenue and margin growth.

• CEO emphasized focus on long-term programs and measurable client value from AI.

Financial highlights

• Q1 2026 revenue was $2.5 billion, up 5.4% year-over-year (1.9% constant currency); non-GAAP operating income was $295 million; adjusted EBITDA was $348.2 million with a 13.9% margin.

• Non-GAAP diluted EPS was $2.61, compared to $2.79 in Q1 2025; GAAP diluted EPS was $0.33, down from $1.04.

• Adjusted free cash flow was negative $144.6 million, primarily due to seasonal factors and timing of cash receipts.

• Net debt at quarter-end was $4.51 billion; liquidity was nearly $1.4 billion.

• Returned $65–66.3 million to shareholders in Q1 via share repurchases and dividends.

Outlook and guidance

• Q2 2026 revenue expected between $2.46 billion and $2.485 billion, with constant currency growth of 1% to 2%.

• Q2 non-GAAP operating income guidance is $290 million to $300 million, with a margin of 11.8% to 12.1%; non-GAAP EPS expected between $2.57 and $2.69.

• Full-year 2026 revenue guidance is $10.035 billion to $10.18 billion, with constant currency growth of 1.5% to 3.0%.

• Full-year adjusted free cash flow guidance reaffirmed at $630 million to $650 million; net leverage targeted below 2.6x adjusted EBITDA by year-end.

• FY2026 non-GAAP operating income guidance: $1.24 billion to $1.29 billion.