Investors with an interest in Business - Services stocks have likely encountered both Concentrix Corporation (CNXC) and UL Solutions Inc. (ULS). But which of these two stocks presents investors with the better value opportunity right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Concentrix Corporation reported Q3 FY26 revenue of $2.45B, down 1.2% y/y, missing estimates, and issued a $1B goodwill impairment charge. CNXC's profitability remains pressured, with operating loss of $910M, but adjusted operating margin improved 30bps to 12.6% and interest coverage is healthy at 5.5x. Q3 results disappointed, with weak segment performance and a significant cut to FY26 and Q4 revenue guidance, driving a >10% post-market share drop.
Concentrix Corporation (CNXC) Q3 2026 Earnings Call Transcript
Concentrix NASDAQ: CNXC said more than half of its revenue now comes from businesses generated over the past three years, underscoring the company's shift toward artificial intelligence-enabled services, transformed client programs and newer offerings such as risk and compliance.
Concentrix (CNXC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Concentrix NASDAQ: CNXC said its investments in artificial intelligence are reshaping its customer-experience business, with management emphasizing higher-margin technology and services revenue even as near-term sales growth faces pressure from accelerated offshoring and selected client spending changes.
The market fears that Concentrix Corporation faces existential AI disruption, though the company's operating results have been resilient. That said, the earnings trajectory has started to weaken a bit, and Q2 was another underwhelming report. Shares would be a value here if the company had a clean balance sheet. But, due to its massive leverage, this is a highly speculative situation.
The tech resurgence was running out of steam ahead of the open Tuesday but there were still plenty of AI and chip stocks on the move.
CNXC's AI push, offshore shift and cost cuts shape its margin path as management trims growth view but highlights stronger cash flow.
Concentrix Corporation (CNXC) Q2 2026 Earnings Call Transcript
Concentrix Corporation (CNXC) came out with quarterly earnings of $2.63 per share, missing the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $2.7 per share a year ago.