Concentrix Corporation ($CNXC) Stock: Q3 Earnings Miss Pressures Shares

TLDR

Concentrix Q3 2025 EPS of $2.78 missed estimates by 3.1%. Revenue rose 4% year over year to $2.48 billion, beating expectations. Full-year EPS guidance lowered to $11.17 midpoint. Shares fell 13.3% on September 26, closing at $47.66. Stock down 5.1% over the past year despite YTD gain of 12.2%.

On September 26, 2025, Concentrix Corporation (NASDAQ: CNXC) stock closed at $47.66, down 13.33% after releasing its third-quarter results.

Concentrix Corporation (CNXC)

The company reported adjusted earnings of $2.78 per share, falling short of the Zacks Consensus Estimate of $2.87. This compares with $2.87 in the same quarter last year, representing a decline of 3.1%.

Revenue for the quarter came in at $2.48 billion, up 4% from $2.39 billion a year ago and slightly ahead of analyst projections of $2.46 billion. Despite the revenue beat, the EPS miss weighed heavily on investor sentiment.

Concentrix, $CNXC, Q3-25. Results:

📊 Adj. EPS: $2.78 🔴
💰 Revenue: $2.48B 🟢
📈 Net Income: $88.1M
🔎 Revenue came in above guidance; company raises full-year growth outlook amid strong demand for integrated solutions. pic.twitter.com/lzdDEJ6r8D

— EarningsTime (@Earnings_Time) September 25, 2025

Profit and Margin Trends

GAAP earnings for the quarter rose to $88.11 million, or $1.34 per share, from $16.63 million, or $0.25 per share, last year. Adjusted net income reached $183.23 million. Operating margin stood at 5.9%, unchanged from the prior year. Free cash flow margin improved to 6.4% from 5.4%, reflecting stronger cash generation.

While revenue continues to grow, profitability has been pressured. Over the last five years, Concentrix’s operating margin has trended lower, averaging 8.2%. Rising costs have weighed on leverage, limiting earnings expansion despite healthy top-line growth.

Guidance and Outlook

Management issued Q4 2025 guidance for revenue between $2.525 billion and $2.550 billion, with EPS expected in the range of $2.85 to $2.96. For the full fiscal year, adjusted EPS was revised downward to $11.11–$11.23, below Wall Street’s $11.66 forecast. Revenue guidance for the year was set at $9.798 billion to $9.823 billion.

The outlook signals slower growth ahead. Analysts now project Concentrix’s revenue to rise 2.8% over the next 12 months, a deceleration from its 22.1% annualized growth over the last two years.

Stock Performance and Industry Context

Despite the weak quarterly results, Concentrix shares remain up 12.18% year-to-date, compared with the S&P 500’s 12.96% gain. However, over the past year, the stock has dropped 5.13% against the benchmark’s 15.64% increase. Longer-term returns have been more concerning, with a three-year decline of 55.75% versus an 81.77% gain for the S&P 500.

Concentrix operates in the Business Services sector, which currently ranks in the top 28% of Zacks industries. Historically, companies in the top half of industries have outperformed those in the bottom half. Despite this favorable sector position, the company faces near-term earnings pressure.

Key Takeaway

Concentrix delivered revenue growth in Q3 2025 but missed earnings expectations and lowered guidance. While long-term fundamentals remain supported by its scale and global customer experience solutions, slowing growth and margin pressure remain challenges. The stock’s near-term performance will depend on how effectively management executes cost discipline and sustains demand momentum.

 

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