CNXC Stock Forecast & Price Target

Concentrix Corporation shows a positive outlook due to anticipated improvements in gross margins driven by increased technology integration into its products and offshore human agent delivery. The company's total revenue demonstrated resilience with a 4% year-over-year increase and an upward revision in revenue guidance, projecting constant currency growth for the full year to be between 1.75-2.0%. Additionally, a strong sales pipeline across multiple industries and regions, bolstered by significant adoption of proprietary AI solutions, positions Concentrix for continued revenue and non-GAAP EPS growth in the upcoming years.

Concentrix Corp experienced a decline in adjusted EBITDA margins year-over-year, falling from 16.3% to 14.5%, alongside a decrease in adjusted operating margins from 13.9% to 12.3% in fiscal Q3/25, indicating challenges in maintaining profitability. The company's revised guidance reflects a projected decrease in non-GAAP operating income and earnings per share, with estimates lowered from $1,300-1,320 million to $1,250-1,260 million and from $11.53-11.76 to $11.11-11.23, respectively. Additionally, a significant drop in commoditized revenue, now expected to normalize closer to 5%, combined with adjustments to onshore and offshore delivery, has affected financial performance and raised concerns about the company's growth trajectory.