Concentrix saw a 6% year-over-year revenue decline in both its technology & consumer electronics and healthcare verticals in Q1 2026, attributing decreases to lighter volumes and onshore delivery mix. Margin compression is expected through the first half of the fiscal year, with sequential expansion beginning in Q2 and accelerating in Q3 and Q4.

The company ended Q4 with $60 million of annual recurring revenue from its AI iX suite, including consumption-priced iX Hello and subscription-based Hero offerings. Management is targeting $100 million in AI ARR by the end of fiscal 2026, noting widespread client adoption and strong success rates in AI implementations.

Concentrix is aiming for a full-year operating margin of 12.5%, expecting compression in H1 due to investments and lower volumes. A planned shift of approximately 15% of revenue offshore is intended to improve capacity utilization, drive cost savings and resolve volume timing by the end of Q2.

The banking vertical delivered high single-digit to low double-digit growth, while the retail segment, particularly e-commerce and travel, showed sustainable gains thanks to new solutions and global delivery capabilities. Two small, nonstrategic businesses were divested to streamline the portfolio, with no immediate plans for additional sales.