Financial Data and Key Metrics Changes - The company reported revenue of approximately $2.5 billion, an increase of 1.9% on a constant currency basis and over 5% on a reported basis [8] - Non-GAAP operating income was $295 million, and adjusted EBITDA was $348 million, with a margin of 13.9% [9] - Non-GAAP diluted EPS was $2.61, in line with guidance [9] - Adjusted free cash flow was negative $145 million, reflecting an increase in accounts receivable [10] Business Line Data and Key Metrics Changes - Revenue from banking and financial services clients grew 13% year-over-year, while retail, travel, and e-commerce clients grew 6% [8] - Media and communications revenues grew 3%, primarily from clients outside the U.S. [8] - Technology and consumer electronics verticals decreased about 6%, driven by lighter volumes than expected [8] Market Data and Key Metrics Changes - The company noted a solid demand environment, with a significant increase in AI-related bookings, which more than doubled [5] - The pipeline of opportunities remains strong, indicating a shift towards a higher solution mix [5] Company Strategy and Development Direction - The company is focused on securing complex work and high-value services, leveraging proprietary AI technologies to differentiate in the market [6] - There is an emphasis on driving internal efficiencies to fuel continued investment in areas of new growth [6] - The company aims to reduce net leverage to below 2.6 times adjusted EBITDA by the end of fiscal 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive year-over-year profitability growth in the second half of 2026 [16] - The geopolitical situation has had minimal impact on client behavior, with exposure to such risks being about 1% of revenue [51] - Management expects margin improvement in the second half of the year due to cost actions and increased revenue [25][27] Other Important Information - The company returned approximately $65 million to shareholders, including share repurchases and dividends [11] - The company issued $600 million of 3-year senior notes to refinance existing debt [12] Q&A Session Summary Question: Revenue related to AI and iX suite - Management indicated that the iX Hello solution is priced by consumption, leading to initial negative margins that turn positive as scale increases [19] - The iX Hero product operates on a subscription basis, with expectations to reach or exceed $100 million in annual recurring revenue by the end of the fiscal year [20] Question: Margin improvement cadence - Management expects margins to be somewhat compressed in the first half, with sequential expansion in the second half driven by cost actions and additional revenue [25][27] Question: Impact of offshore movement on revenues - Approximately 15% of revenue is delivered from North America and Western Europe, with a projected 2-point headwind from onshore movement [29] Question: Philosophy behind divestitures - The divestitures of two small non-strategic businesses were made as they were not growing or accretive to overall margins, with no imminent plans for further divestitures [35] Question: Stability of banking and retail growth - Management expects sustained growth in banking and retail, driven by complex work and new solutions being offered [44][46]

Q1 2026 Investor Summary March 24, 2026 Safe Harbor Statement This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company's expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax ...

Financial Performance - Revenue for Q1 2026 was $2,500.4 million, a 5.4% increase year-on-year from $2,372.2 million in Q1 2025[3] - Operating income decreased to $118.6 million, representing 4.7% of revenue, down from $168.9 million or 7.1% in the prior year[3] - Non-GAAP operating income was $295.0 million, or 11.8% of revenue, compared to $321.5 million, or 13.6% in Q1 2025[3] - Adjusted EBITDA for the quarter was $348.2 million, with a margin of 13.9%, down from $374.2 million and 15.8% in the previous year[3] - Net income fell to $21.6 million, a 69.3% decrease from $70.3 million in Q1 2025[3] - Non-GAAP diluted earnings per share (EPS) was $2.61, down from $2.79 in the prior year, reflecting a 6.5% decline[3] - Total revenue for the three months ended February 28, 2026, was $2,500,391, representing a 5% increase compared to $2,372,222 for the same period in 2025[30] - Net income for the three months ended February 28, 2026, was $21,589, a decrease of 69% from $70,257 in the same period last year[30] - Operating income fell by 30% to $118,559 compared to $168,867 in the prior year[30] - Non-GAAP operating income for the three months ended February 28, 2026, was $295,023, down from $321,486 in the same period in 2025[32] - Adjusted EBITDA for the three months ended February 28, 2026, was $348,181, compared to $374,207 in the same period last year[32] - For the three months ended February 28, 2026, diluted earnings per share (EPS) was $0.33, a decrease from $1.04 in the same period of 2025[34] - Non-GAAP diluted EPS for the same period was $2.61, down from $2.79 year-over-year[34] Revenue Guidance - The company expects Q2 2026 revenue between $2.460 billion and $2.485 billion, implying constant currency growth of 1.0% to 2.0%[13] - Full year 2026 revenue guidance is set at $10.035 billion to $10.180 billion, indicating constant currency growth of 1.5% to 3.0%[13] - Revenue forecast for the three months ending May 31, 2026, is between $2,460,000 thousand and $2,485,000 thousand, reflecting a growth rate of 1.75% to 2.75%[35] - The fiscal year revenue forecast ranges from $10,035,000 thousand to $10,180,000 thousand, indicating a growth of 2.1% to 3.6%[35] Cash Flow and Dividends - The company anticipates generating approximately $630.0 million to $650.0 million of adjusted free cash flow in fiscal year 2026[10] - A quarterly dividend of $0.36 per share was declared, with a share repurchase of approximately 1 million shares at a cost of $42.0 million in Q1 2026[12] - Net cash used in operating activities was $(83,220) thousand, compared to $1,408 thousand in the prior year[34] - Free cash flow for the three months ended February 28, 2026, was $(137,122) thousand, significantly lower than $(49,210) thousand in 2025[34] Sector Performance - Revenue from the Banking, Financial Services, and Insurance sector increased by 15% to $421,605, while Technology and Consumer Electronics revenue decreased by 3% to $635,089[30] Balance Sheet - Total current liabilities increased to $2,575,333 as of February 28, 2026, from $2,196,350 as of November 30, 2025[28] - Cash and cash equivalents decreased to $222,699 as of February 28, 2026, from $327,347 as of November 30, 2025[28] - The company’s total assets decreased to $10,674,622 as of February 28, 2026, from $10,761,086 as of November 30, 2025[28] Other Financial Activities - Acquisition-related, integration, and restructuring expenses for the three months ended February 28, 2026, included costs associated with recent cost reduction initiatives[35] - The company incurred debt extinguishment costs of $600 million related to the early redemption of senior notes due in August 2026[35] - Foreign currency losses for the three months ended February 28, 2026, amounted to $0.20, compared to a gain of $(0.07) in the previous year[34]

Core Insights - Concentrix Corporation reported financial results for the fiscal first quarter ended February 28, 2026, showing a revenue increase of 5.4% year-on-year, but significant declines in operating income and net income [1][6][29]. Financial Performance - Revenue for the first quarter was $2,500.4 million, up from $2,372.2 million in the prior year [2][6]. - Operating income decreased to $118.6 million, representing 4.7% of revenue, down from $168.9 million (7.1% of revenue) in the previous year [2][6]. - Non-GAAP operating income was $295.0 million, or 11.8% of revenue, compared to $321.5 million (13.6% of revenue) in the prior year [2][6]. - Net income fell to $21.6 million, a 69.3% decrease from $70.3 million in the same quarter last year [2][6]. - Non-GAAP net income was $168.2 million, down 10.6% from $188.1 million in the prior year [2][6]. - Adjusted EBITDA was $348.2 million, or 13.9% of revenue, compared to $374.2 million (15.8% of revenue) in the previous year [2][6]. Shareholder Returns - The company declared a quarterly dividend of $0.36 per share, payable on May 5, 2026 [6]. - Approximately 1 million shares were repurchased at a cost of $42.0 million during the first quarter [6]. Business Outlook - The company maintains a consistent full-year outlook and expects to generate approximately $630.0 million to $650.0 million of adjusted free cash flow in fiscal year 2026 [5][10]. - For the second quarter, revenue is expected to be between $2.460 billion and $2.485 billion, with constant currency revenue growth projected at 1.0% to 2.0% [15][31]. - Full-year revenue guidance is set between $10.035 billion and $10.180 billion, implying constant currency growth of 1.5% to 3.0% [15][31]. Segment Performance - Revenue from the Technology and Consumer Electronics segment was $635.1 million, down 3% year-on-year [27]. - The Retail, Travel, and E-commerce segment saw an 11% increase in revenue to $649.4 million [27]. - The Banking, Financial Services, and Insurance segment grew by 15% to $421.6 million [27].

Group 1 - The article does not provide any relevant information regarding the company or industry [1]

Core Insights - Concentrix Corporation is expected to report Q1 2026 earnings with an EPS of $2.65 and revenue of $2.49 billion, reflecting a slight decrease in EPS from $2.79 in the same period last year [1][6] - Despite the anticipated drop in EPS, revenue is projected to rise from $2.37 billion in the previous year to $2.49 billion, indicating a positive trend in financial performance [2][6] Financial Metrics - The company offers an annual dividend yield of 4.68%, with a quarterly dividend of 36 cents per share, requiring an investment of approximately $128,260 for $500 monthly dividends or $25,640 for $100 monthly dividends [3][6] - Concentrix has a price-to-sales ratio of 0.20, meaning investors pay 20 cents for every dollar of sales, and an enterprise value to sales ratio of 0.64, indicating a moderate valuation [4] - The debt-to-equity ratio stands at 1.69, suggesting significant use of debt compared to equity, while the current ratio is 1.40, indicating a reasonable level of liquidity to cover short-term liabilities [5]

Core Viewpoint - Analysts expect Concentrix to report quarterly earnings of $2.65 per share, a decrease from $2.79 per share in the same period last year, with a consensus revenue estimate of $2.49 billion compared to $2.37 billion last year [1] Group 1: Earnings and Revenue - Concentrix is projected to report earnings of $2.65 per share for the upcoming quarter, down from $2.79 per share year-over-year [1] - The expected quarterly revenue for Concentrix is $2.49 billion, an increase from $2.37 billion reported in the previous year [1] Group 2: Dividend Information - Concentrix currently has an annual dividend yield of 4.68%, translating to a quarterly dividend of 36 cents per share, or $1.44 annually [2] - To generate $500 monthly from dividends, an investment of approximately $128,260 or around 4,167 shares is required, while $100 monthly would need about $25,640 or 833 shares [2] - The dividend yield can fluctuate based on changes in the stock price and dividend payments [3][5] Group 3: Stock Price Impact on Dividend Yield - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can change as the stock price fluctuates [3][4] - For instance, if a stock with a $2 annual dividend is priced at $50, the yield is 4%, but if the price rises to $60, the yield drops to 3.33% [4] - Conversely, if the stock price falls to $40, the yield increases to 5% [4]

Core Viewpoint - Concentrix Corporation (CNXC) is currently viewed as a superior value opportunity compared to UL Solutions Inc. (ULS) based on various valuation metrics [1][7]. Valuation Metrics - CNXC has a forward P/E ratio of 2.70, significantly lower than ULS's forward P/E of 38.67 [5]. - The PEG ratio for CNXC is 0.31, indicating a favorable valuation relative to its expected earnings growth, while ULS has a PEG ratio of 3.16 [5]. - CNXC's P/B ratio stands at 0.72, compared to ULS's P/B of 13.01, further highlighting CNXC's undervaluation [6]. Earnings Outlook - Both CNXC and ULS have a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3].

Core Insights - The article discusses the importance of various valuation metrics, particularly the price-to-book (P/B) ratio, in identifying low-priced stocks with high-growth potential [1][5][9] Valuation Metrics - Price-to-earnings (P/E) and price-to-sales (P/S) ratios are commonly used for stock selection, while the P/B ratio is also effective for identifying undervalued stocks [1][5] - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to assess whether a stock is under- or overvalued [2][5] Book Value - Book value represents the total value left for shareholders if a company were to liquidate its assets after settling liabilities, calculated by subtracting total liabilities from total assets [3][4] P/B Ratio Analysis - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued [5] - Conversely, a P/B ratio greater than one may indicate overvaluation, but could also suggest the stock is a takeover target [7] Limitations of P/B Ratio - The P/B ratio is particularly useful for companies in finance, investments, and manufacturing but may be misleading for firms with high R&D expenditures or negative earnings [8] Stock Picks - Ford, USANA Health Sciences, Strategic Education, Patria Investments, and Concentrix are highlighted as low P/B stock picks with strong growth potential [9][15][16][17][18][19] - Ford has a projected 3-5 year EPS growth rate of 27.4% and a Zacks Rank of 2 [15] - USANA Health Sciences has a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [16] - Strategic Education has a projected EPS growth rate of 15% and a Zacks Rank of 1 [17] - Patria Investments has a projected EPS growth rate of 15.76% and a Zacks Rank of 2 [18] - Concentrix has a projected EPS growth rate of 8.76% and a Zacks Rank of 2 [19]

Group 1 - Concentrix Corporation plans to release its first quarter 2026 financial results on March 24, 2026, before market open [1] - A conference call and webcast will be held on the same day at 8:30 a.m. Eastern Time to discuss the financial results and answer analyst questions [1][2] - The live conference call will be available in listen-only mode on the Concentrix website, with a replay accessible afterward [2] Group 2 - Concentrix Corporation is a Fortune 500 company and a global leader in technology and services, providing integrated solutions to over 2,000 clients [3] - The company focuses on delivering outcomes across various industries in more than 70 markets, leveraging unique data, insights, and advanced technology [3]