Concentrix Q3 swings to loss on goodwill impairment charge
CNXC•Concentrix reported a $1.05 billion non-cash goodwill impairment charge that drove a large GAAP net loss as Q3 revenue fell 1.2% year over year. Adjusted EPS rose 5% to $2.92 on revenue of $2.45 billion.
1. Impairment drives loss
Concentrix recorded a $1.05 billion non-cash goodwill impairment charge, tied primarily to its stock-price trading range and market capitalization, resulting in an operating loss. Q3 revenue declined 1.2% year over year to $2.45 billion, while adjusted EPS increased 5% to $2.92; adjusted net income was $186.5 million and adjusted operating margin was 12.6%.
2. Outlook and revenue mix
The company forecast Q4 revenue of $2.41 billion to $2.46 billion and non-GAAP diluted EPS of $2.86 to $2.98. It projected 2026 revenue of $9.83 billion to $9.88 billion. Concentrix said 50% of revenue now comes from business won and deployed in the last three years since the introduction of AI, which management said contributed to margin expansion and strong free cash flow.
3. Sector performance
Revenue declined in technology and consumer electronics, communications and media, and healthcare, while banking, financial services and insurance, and retail, travel and e-commerce grew.
