CNXC Stock Forecast & Price Target

Concentrix Corp is anticipated to experience an improvement in gross margins due to an increased integration of technology into its offerings and a strategic shift towards offshore human agent delivery. The company is expected to achieve year-over-year revenue growth driven by sectors such as retail, travel, and ecommerce, as well as banking, financial services, and insurance, with both segments projected to grow by 5% YOY. Additionally, total revenue growth has shown resilience, increasing 4% year-over-year and 3% sequentially on a reported basis, with updated guidance suggesting a positive trend in constant currency revenue growth for the full year.

Concentrix Corp experienced a year-over-year decline in adjusted EBITDA and operating margins, with adjusted EBITDA margins dropping from 16.3% to 14.5% and adjusted operating margins decreasing from 13.9% to 12.3% in fiscal Q3/25. The company's non-GAAP EPS of $2.78 fell short of forecasts and consensus expectations, attributed to lower-than-expected operating margins and increased net interest costs. Furthermore, the guidance for future revenue and EPS was lowered, indicating a potential revenue range of $9.798-9.823 billion and a non-GAAP EPS decrease to $11.11-11.23, reflecting ongoing operational challenges.