Watch for continued margin pressure and cash flow trends in upcoming quarters — if margin compression and negative FCF persist, this could signal operational or client mix issues. Monitor management’s explanation of the $420M share buyback and dividend increase as positive signals, but underlying financials show declining profitability and cash burn.26
Price Chart
Executive Summary
Concentrix reported Q1 fiscal 2026 revenue of $2.50 billion, up 5.4% year-over-year, but non-GAAP EPS of $2.61 declined 6.5% from the prior year. Profitability metrics including operating income, non-GAAP operating margin, and adjusted EBITDA all declined. The company maintained its full-year guidance, projecting non-GAAP EPS of $11.48–$12.07, but cash flow used in operations was $83.2 million, raising concerns about working capital or factoring impacts.
Key Financial Metrics
Key Facts
- Q1 revenue: $2.50 billion, up 5.4% YoY (1.9% constant currency)
- GAAP EPS: $0.33 vs. $1.04 in prior year (-68.3%)
- Non-GAAP EPS: $2.61 vs. $2.79 in prior year (-6.5%)
- Non-GAAP operating margin declined 180 bps to 11.8%
- Adjusted EBITDA: $348.2 million (-6.9% YoY), margin down 190 bps to 13.9%
- Cash flow used in operations: $83.2 million; adjusted free cash flow used $144.6 million
- Company repurchased $42.0 million in shares during the quarter
- Full-year 2026 non-GAAP EPS guidance maintained at $11.48–$12.07
Financial Impact
Revenue growth of 5.4% but profitability deteriorated significantly — non-GAAP EPS down 6.5%, adjusted EBITDA down 6.9%, and operating margin down 180 bps. Negative operating cash flow of $83.2 million raises concerns about working capital or factoring changes.
Risk Factors
- Ongoing margin compression may continue if cost structure changes are not managed
- Negative operating cash flow raises concerns about working capital management or client concentration risk
- Diluted shares outstanding increased from 61.3M to 61.3M, suggesting potential share count impact from share buybacks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3261106 |
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|---|---|---|---|---|---|
Oct 21, 2026 4d ago | SC 13G/A | $33.88 $33.00 | ▼ −2.60% | ▼ −2.08% | $32.01 (−5.52%) |
Sep 29, 2026 27d ago | Press Release | $24.95 $27.01 | ▼ −8.26% | ▼ −8.08% | $32.01 (−28.30%) |
Sep 22, 2026 4w ago | Institutional Cluster | $30.51 $30.21 | ▼ −0.98% | ▼ −0.26% | $32.01 (+4.92%) |
Jun 29, 2026 17w ago | Press Release | $22.41 $24.41 | ▼ −8.95% | ▼ −9.08% | $32.01 (−42.87%) |
Jun 10, 2026 19w ago | Press Release | $26.27 $26.20 | ▼ −0.27% | ▼ −0.81% | $32.01 (+21.85%) |
May 27, 2026 21w ago | Press Release | $26.25 $26.48 | ▲ +0.88% | ▲ +0.32% | $32.01 (+21.94%) |
May 1, 2026 25w ago | 8-K | $23.51 $23.85 | ▲ +1.45% | ▲ +0.65% | $32.01 (+36.15%) |
Mar 27, 2026 30w ago | 3 | $26.06 $26.32 | ▲ +0.98% | ▲ +1.34% | $32.01 (+22.81%) |
Mar 24, 2026 30w ago | Press Release | $26.12 $24.34 | ▲ +6.84% | ▲ +7.40% | $32.01 (−22.53%) |
Mar 5, 2026 33w ago | Press Release | $34.04 $34.69 | ▲ +1.91% | ▲ +3.23% | $32.01 (−5.95%) |
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