The strong EPS beat and margin expansion signal turnaround progress, but revenue contraction and Commercial weakness are headwinds. Monitor Commercial segment stabilization and progress on $200M+ divestiture proceeds and $100M+ cost savings for sustained improvement.
Price Chart
Executive Summary
Conduent reported Q1 2026 revenue of $723M (down 3.7% YoY) but significantly improved profitability with adjusted EBITDA up 32% to $49M and adjusted EPS of $(0.07) beating consensus of $(0.19) by 63%. The company maintained FY2026 guidance and provided a positive FY2027 outlook, but continued revenue decline and Commercial segment weakness temper the outlook.
Key Financial Metrics
Key Facts
- Revenue $723M, down 3.7% YoY from $751M
- GAAP diluted EPS $(0.23) vs $(0.33) YoY
- Adjusted diluted EPS $(0.07) vs consensus $(0.19) – 63% beat
- Adjusted EBITDA $49M, up 32.4% YoY; margin 6.8% vs 4.9%
- Operating cash flow improved to $(8)M from $(58)M YoY
- FY2026 outlook: revenue $2,800M-$2,900M, Adj. EBITDA $160M-$190M
- FY2027 outlook: Adj. EBITDA $190M-$220M, revenue flat to positive
- Commercial revenue down 10.2% YoY; Government +4.6%, Transportation +2.3%
Financial Impact
Adjusted EPS beat consensus by $0.12 (63%), driven by cost efficiencies and favorable mix; revenue decline of $28M YoY
Risk Factors
- Revenue continued to decline 3.7% YoY, with Commercial down 10.2%
- High leverage: net debt/EBITDA 2.8x; $144M drawn on revolver
- Restructuring costs of $8M and former CEO separation costs
- Dependence on cost cuts and divestiture proceeds for cash flow improvement
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001677703-26-000061 |
| Document: cndtq12026earningsreleas.htm | 0001677703-26-000061 |
| Document: cndt-20260511.htm | 0001677703-26-000061 |
| Document: 0001677703-26-000061-index-headers.html | 0001677703-26-000061 |
| Document: 0001677703-26-000061-index.html | 0001677703-26-000061 |
| Document: 0001677703-26-000061.txt | 0001677703-26-000061 |
| 8-K Data (Synthetic) | 0001677703-26-000061 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 4w ago | 8-K | $1.72 $1.58 | ▼ −8.14% | ▼ −7.95% | $1.65 (−4.07%) |
Aug 10, 2026 7w ago | 8-K | $1.56 $1.65 | ▼ −5.77% | ▼ −6.68% | $1.65 (−5.77%) |
Aug 10, 2026 7w ago | Press Release | $1.56 $1.65 | ▼ −5.77% | ▼ −6.68% | $1.65 (−5.77%) |
Jul 2, 2026 13w ago | 8-K | $1.51 $1.58 | ▲ +4.64% | ▲ +5.05% | $1.65 (+9.27%) |
Jun 30, 2026 13w ago | 8-K | $1.46 $1.51 | ▲ +3.42% | ▲ +4.45% | $1.65 (+13.01%) |
May 21, 2026 19w ago | 8-K | $1.88 $1.34 | ▼ −28.99% | ▼ −27.57% | $1.65 (−12.23%) |
May 11, 2026 20w ago | 8-K | $1.49 $1.35 | ▼ −9.40% | ▼ −7.67% | $1.65 (+10.74%) |
Apr 3, 2026 26w ago | DEFA14A | $1.44 $1.70 | ▲ +18.06% | ▲ +9.07% | $1.65 (+14.58%) |
Feb 28, 2026 30w ago | Institutional Cluster | $1.47 $1.32 | ▼ −10.20% | ▼ −2.27% | $1.65 (+12.24%) |
US Market Status
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