Concentrix (CNXC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $2.46B, up 1.9% year-over-year as reported, with constant currency growth of 0.6%, driven by retail, travel, e-commerce, and banking, while technology and healthcare declined.

• iX Suite AI solution deals increased 400% year-over-year, fueling momentum in BFSI, Travel, and Retail, and driving margin expansion and market differentiation.

• Adjusted free cash flow hit a record $242.3M, up $42M from Q2 2025.

• Margin expansion continued on a non-GAAP basis, but gross and operating margins declined due to higher restructuring and severance costs.

• Focused on debt reduction, restructuring for efficiency, and investing in AI and technology-led solutions for long-term growth.

Financial highlights

• Non-GAAP operating income was $292M (11.9% margin), down 3.9% year-over-year; adjusted EBITDA was $347M (14.1% margin), down 2.8% year-over-year.

• Net income for the quarter was $55.3M, with diluted EPS of $0.86; non-GAAP net income was $168.6M, non-GAAP diluted EPS $2.63.

• Adjusted free cash flow was $242.3M, a record for Q2 since 2020.

• Returned $23M to shareholders via dividend; no share repurchases in Q2.

• Net debt reduced by $230.2M year-over-year to $4.32B; total liquidity at quarter-end was nearly $1.5B.

Outlook and guidance

• Q3 2026 revenue expected at $2.465–$2.490B, with constant currency growth of 0–1%.

• Q3 non-GAAP operating income guidance: $295–$305M (margin 12.0–12.2%).

• FY 2026 revenue guidance: $9.925–$10.025B, with constant currency growth of 0.25–1.25%.

• FY 2026 non-GAAP operating income expected at $1.2–$1.23B (margin 12.1–12.3%); non-GAAP diluted EPS at $10.83–$11.18.

• Adjusted free cash flow for FY 2026 projected at $630–$650M; net leverage targeted below 2.6x by year-end.