Monitor H2 revenue trajectory and cost-savings execution; the maintained FY guidance implies modest sequential improvement. Divestiture proceeds of $234M should strengthen the balance sheet, but the core business continues to shrink. Next quarter's results will be critical to assess whether the transformation is gaining traction.
Price Chart
Executive Summary
Conduent reported Q2 2026 revenue of $531M, down 11.9% YoY, with adjusted EBITDA margin compressing to 3.0% from 3.8%. Adjusted EPS of -$0.18 slightly beat consensus of -$0.19, but GAAP diluted EPS from continuing operations worsened to -$0.46 from -$0.27. The company announced $234M in expected divestiture proceeds and maintained FY 2026 guidance, but the operating deterioration—especially the loss of its largest Commercial segment customer—dominates the near-term narrative.
Key Financial Metrics
Key Facts
- Revenue from continuing operations fell 11.9% YoY to $531M
- Adjusted EBITDA margin contracted 80 bps to 3.0%
- GAAP diluted EPS from continuing ops was -$0.46 vs -$0.27 a year ago
- Adjusted diluted EPS of -$0.18 beat consensus of -$0.19 by 5.3%
- Signed divestitures of Transit and Tolling businesses expected to generate $234M in gross proceeds
- FY 2026 guidance maintained: revenue $2.15B-$2.25B, Adj. EBITDA $140M-$170M
- Cash flow from operations improved to $7M from -$15M YoY
- Restructuring costs of $20M in the quarter related to transformation plan
Financial Impact
Revenue decline of $72M YoY; adjusted EBITDA down $7M; GAAP net loss from continuing ops widened by $27M
Risk Factors
- Continued revenue erosion from loss of largest Commercial customer
- Execution risk on $100M annualized cost-savings program
- Potential further margin compression if revenue declines outpace cost reductions
- Uncertainty around timing and use of divestiture proceeds
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3341798 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 4w ago | 8-K | $1.72 $1.58 | ▼ −8.14% | ▼ −7.95% | $1.63 (−4.94%) |
Aug 10, 2026 7w ago | 8-K | $1.56 $1.65 | ▼ −5.77% | ▼ −6.68% | $1.63 (−4.81%) |
Aug 10, 2026 7w ago | Press Release | $1.56 $1.65 | ▼ −5.77% | ▼ −6.68% | $1.63 (−4.81%) |
Jul 2, 2026 13w ago | 8-K | $1.51 $1.58 | ▲ +4.64% | ▲ +5.05% | $1.63 (+8.28%) |
Jun 30, 2026 13w ago | 8-K | $1.46 $1.51 | ▲ +3.42% | ▲ +4.45% | $1.63 (+11.99%) |
May 21, 2026 19w ago | 8-K | $1.88 $1.34 | ▼ −28.99% | ▼ −27.57% | $1.63 (−13.03%) |
May 11, 2026 20w ago | 8-K | $1.49 $1.35 | ▼ −9.40% | ▼ −7.67% | $1.63 (+9.73%) |
Apr 3, 2026 26w ago | DEFA14A | $1.44 $1.70 | ▲ +18.06% | ▲ +9.07% | $1.63 (+13.54%) |
Feb 28, 2026 30w ago | Institutional Cluster | $1.47 $1.32 | ▼ −10.20% | ▼ −2.27% | $1.63 (+11.22%) |
US Market Status
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