Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved a total revenue growth of 2.1% on a constant currency basis, exceeding guidance and outperforming many peers [23] - In Q4, revenue was approximately $2.55 billion, reflecting a constant currency growth of 3.1%, which was above the high end of previous guidance [19] - Non-GAAP operating income for the quarter was $323 million, with a margin of 12.7%, showing a sequential increase of 40 basis points [20] - Adjusted free cash flow reached a quarterly record of over $287 million [21] - The company returned $258 million to shareholders through dividends and share repurchases during the fiscal year [23] Business Line Data and Key Metrics Changes - The company successfully reduced non-complex work from 7% to 5% of revenue, primarily through automation and technology solutions [6] - Annual contract value of deals in the pipeline increased by 6%, with a 9% increase in new wins year-on-year [9] - Transformational deal values grew by 14%, and cross-sell upsell deals increased by 23% [9] - The launch of the IX Suite AI platform generated over $60 million in annualized revenue, with 40% of new business including some form of the company's technology [10] Market Data and Key Metrics Changes - Revenue from banking, financial services, and insurance clients grew by 11%, while revenue from communications and media clients increased by 7% [20] - Revenue from travel clients also grew by 7%, while technology and consumer electronics, as well as healthcare clients, saw a decrease of approximately 2% [20] Company Strategy and Development Direction - The company aims to evolve into a high-value intelligent transformation partner by focusing on complex work and high-value services [5] - Investments in technology and capabilities totaled $95 million in 2025, aimed at optimizing client cost structures and enhancing service offerings [6] - The strategy includes leveraging proprietary technology to differentiate from competitors and drive efficiencies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing consistent revenue growth and strong cash flow generation [19] - The company anticipates a conservative revenue growth guidance for 2026, expecting reported revenue between $10.035 billion and $10.180 billion [25] - Management highlighted the importance of scale, domain expertise, and a diversified service offering as key competitive advantages [16] Other Important Information - The company reduced net debt by approximately $184 million during the fiscal year [23] - Cash and cash equivalents at the end of Q4 were $327 million, with total debt at $4.639 billion [24] Q&A Session Summary Question: Metrics for AI-related software investment - The company focuses on ensuring that AI investments are accretive, achieving a run rate of $60 million with a total spend of around $50 million [31] Question: Determining support for customers facing slowdowns - Investment decisions are based on the type of services clients need rather than call volumes, focusing on long-term relationships with clients [35] Question: Market growth rate expectations - The traditional CX market is flat, while adjacent services are growing at high single digits, indicating a positive outlook for specific segments [37] Question: Consolidation and its impact - The company expects continued consolidation in the market, leveraging its global footprint and technology to drive growth [36] Question: Margin outlook and improvements - Management anticipates sequential improvement in margins in the second half of 2026 as overcapacity issues are resolved and transformational deals are implemented [40]

Financial Performance - The company's 2025 revenue reached $9.8 billion[5], demonstrating a 2.2% year-over-year increase[44] - The three-year Compound Annual Growth Rate (CAGR) for revenue is 15.8%[5] - Adjusted Free Cash Flow for FY 2025 was $626 million[5] - The company anticipates revenue between $10.04 billion and $10.18 billion for FY 2026[44] - The company returned over $258 million to shareholders through share repurchases and dividends in FY 2025[43] Client Base and Services - The company serves over 2,000 clients, including over 160 Fortune Global 500 clients[5] - The company's client base includes 8 of the top 10 Fintech companies and 10 of the top 10 global automotive companies[18] - The company offers a broad portfolio of services including Strategy & Design, Data & Analytics, and Enterprise Technology[13, 14, 16] AI and Operational Improvements - The company's AI solutions are deployed across 1,000+ clients and 400,000+ desktops[35] - An energy client case study showed a 16.5% improvement in first contact resolution after implementing the company's solutions[26] - A consumer goods case study showed a 1.8% increase in Customer Satisfaction (CSAT) and a 7% improvement in Average Handle Time (AHT)[27]

Financial Performance - Revenue for Q4 2025 was $2,552.9 million, a 4.3% increase year-on-year, exceeding guidance[6] - Operating loss for Q4 2025 was $1,382.4 million, representing (54.1)% of revenue, primarily due to a non-cash goodwill impairment charge of $1,523.3 million[6] - Non-GAAP operating income for Q4 2025 was $323.2 million, or 12.7% of revenue, down from $346.7 million, or 14.2% of revenue in Q4 2024[10] - Adjusted EBITDA for Q4 2025 was $378.6 million, or 14.8% of revenue, compared to $402.9 million, or 16.5% of revenue in Q4 2024[10] - Fiscal year 2025 revenue reached $9,825.8 million, a 2.2% increase year-on-year, also exceeding guidance[11] - Non-GAAP diluted EPS for Q4 2025 was $2.95, a decrease of 9.5% from $3.26 in Q4 2024[10] - Total revenue for the three months ended November 30, 2025, was $2,552,925, representing a 4% increase from $2,448,024 in the same period of 2024[32] - The operating loss for the three months ended November 30, 2025, was $(1,382,379), compared to an operating income of $144,536 in the same period of 2024[32] - Net loss for the fiscal year ended November 30, 2025, was $(1,278,924), a significant decline from net income of $251,217 in 2024[32] - Non-GAAP operating income for the fiscal year ended November 30, 2025, was $1,253,544, down from $1,317,912 in the previous fiscal year[34] - Operating margin for the fiscal year ended November 30, 2025, was (9.3)%, down from 6.2% in the previous fiscal year[34] - The company reported a constant currency revenue growth of 3.1% for the three months ended November 30, 2025[34] - The company reported a net loss of $1,479,384 for the three months ended November 30, 2025, compared to a net income of $115,650 in the same period last year[35] - The diluted earnings per share (EPS) for the three months ended November 30, 2025, was $(23.85), compared to $1.72 in the same period last year[36] Cash Flow and Shareholder Returns - The company returned $258 million to shareholders through dividends and share repurchases while reducing net debt by $184 million[11] - The company anticipates generating approximately $630 million to $650 million of adjusted free cash flow in fiscal year 2026[14] - Free cash flow for the fiscal year ended November 30, 2025, was $572,471, an increase from $428,730 in the previous fiscal year[36] Future Guidance - For Q1 2026, the company expects reported revenue of $2.475 billion to $2.500 billion, implying constant currency growth of 1.5% to 2.5%[19] - 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%[19] - Revenue for the three months ending February 28, 2026, is forecasted to be between $2,475,000 and $2,500,000, with a fiscal year ending November 30, 2026, revenue forecast of $10,035,000 to $10,180,000[37] - Reported revenue growth under U.S. GAAP is expected to be 4.4% to 5.4% for the three months and 2.1% to 3.6% for the fiscal year[37] - Constant currency revenue growth is projected at 1.5% to 2.5% for the three months and 1.5% to 3.0% for the fiscal year[37] - Operating income for the three months is forecasted to be between $139,500 and $149,500, with a fiscal year operating income forecast of $687,500 to $737,500[37] - Non-GAAP operating income is expected to range from $290,000 to $300,000 for the three months and $1,240,000 to $1,290,000 for the fiscal year[37] Assets and Liabilities - Cash and cash equivalents increased to $327,347 as of November 30, 2025, from $240,571 in 2024[30] - Total assets decreased to $10,761,086 as of November 30, 2025, down from $11,991,438 in 2024[30] - Total liabilities increased to $8,016,741 as of November 30, 2025, compared to $7,951,714 in 2024[30] Impairment and Charges - The impairment charges for the three months ended November 30, 2025, were $1,527,726, with no charges reported in the same period of 2024[32] - The company incurred impairment charges of $1,527,726 for the three months ended November 30, 2025[35] Revenue Segmentation - The company’s revenue from banking, financial services, and insurance increased by 12% to $402,566 for the three months ended November 30, 2025[32] Share Count - The weighted-average common shares outstanding for the three months ended November 30, 2025, were 62,071, down from 64,315 in 2024[32]

Core Insights - Concentrix Corporation reported financial results for the fiscal fourth quarter and fiscal year ended November 30, 2025, highlighting significant challenges due to a non-cash goodwill impairment charge of $1,523.3 million, which impacted operating income and net income significantly [1][6][12]. Financial Performance - Revenue for the fourth quarter was $2,552.9 million, a 4.3% increase year-on-year, while fiscal year revenue reached $9,825.8 million, up 2.2% from the previous year [6][13]. - The company experienced an operating loss of $1,382.4 million in Q4, compared to an operating income of $144.5 million in the same quarter of the previous year [6][12]. - Non-GAAP operating income for Q4 was $323.2 million, down 6.8% from $346.7 million year-on-year, with a non-GAAP operating margin of 12.7% [6][12]. - Net loss for Q4 was $1,479.4 million, compared to a net income of $115.7 million in the prior year [6][12]. - Adjusted EBITDA for Q4 was $378.6 million, a decrease of 6.0% from $402.9 million in the previous year [12][13]. Shareholder Returns and Cash Flow - The company returned $258 million to shareholders through dividends and share repurchases in fiscal 2025, while also reducing net debt by $184 million [5][13]. - Record cash flow from operations was reported at $807 million for the fiscal year, with adjusted free cash flow of $626 million [5][12]. Future Guidance - Concentrix introduced guidance for 2026, indicating expectations for ongoing revenue growth and adjusted free cash flow expansion [5][7]. - For Q1 fiscal 2026, the company anticipates revenue between $2.475 billion and $2.500 billion, with operating income projected between $140 million and $150 million [14][15]. Management Commentary - The CEO of Concentrix emphasized the company's commitment to advancing its business and meeting evolving client demands, indicating confidence in the strategy and model for future growth [7].

Core Insights - U.S. stock futures are trading slightly lower, indicating a cautious market sentiment ahead of key earnings reports [1] Company Earnings Expectations - Delta Air Lines Inc (NYSE:DAL) is expected to report quarterly earnings of $1.53 per share on revenue of $14.73 billion, with shares rising 0.1% to $71.06 in after-hours trading [1] - JPMorgan Chase & Co (NYSE:JPM) is anticipated to post quarterly earnings of $4.95 per share on revenue of $46.20 billion, with shares increasing 0.2% to $324.97 in after-hours trading [1] - Concentrix Corp (NYSE:CNXC) is projected to report quarterly earnings of $2.91 per share on revenue of $2.54 billion, with shares gaining 1% to $40.90 in after-hours trading [1] - Bank of New York Mellon Corp (NYSE:BK) is expected to report quarterly earnings of $1.98 per share on revenue of $5.14 billion, with shares falling 0.3% to $120.25 in after-hours trading [1] Company Restructuring - Meta Platforms Inc. (NASDAQ:META) plans to cut about 10% or more jobs in its Reality Labs division to focus on next-generation AI initiatives, with potential layoffs announced as early as Tuesday [1]

Core Viewpoint - Concentrix Corporation is expected to report a decline in quarterly earnings while showing an increase in revenue for the fourth quarter of 2025 [1][2]. Group 1: Earnings and Revenue Expectations - Concentrix is projected to report earnings of $2.91 per share for Q4 2025, down from $3.26 per share in the same quarter last year [1]. - The consensus estimate for quarterly revenue is $2.54 billion, an increase from $2.45 billion a year earlier [1]. Group 2: Recent Performance and Guidance - On September 25, Concentrix reported third-quarter earnings that were worse than expected and provided weak guidance for the fourth quarter [2]. - Following the earnings report, Concentrix shares rose by 2.9%, closing at $43.88 [2]. Group 3: Analyst Ratings and Price Targets - Barrington Research analyst Vincent Colicchio maintained an Outperform rating with a price target of $62 [3]. - Baird analyst David Koning also maintained an Outperform rating but reduced the price target from $75 to $62 [3]. - Canaccord Genuity analyst Joseph Vafi maintained a Buy rating with a price target of $80 [3]. - B of A Securities analyst Ruplu Bhattacharya maintained a Neutral rating and lowered the price target from $65 to $61 [3].

Core Viewpoint - Concentrix Corporation is set to announce its fourth quarter and fiscal year 2025 financial results on January 13, 2026, and will host a conference call to discuss these results and its strategy for 2026 [1]. Financial Results Announcement - The financial results will be announced before market open on January 13, 2026 [1]. - A conference call and webcast will take place at 8:30 am Eastern Time on the same day to discuss the results and answer analyst questions [1]. Conference Call Details - The live conference call will be available in listen-only mode on the Concentrix website under the Investor Relations section [2]. - A replay of the conference call will also be accessible on the website following the event [2]. Company Overview - 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 solutions [3].

Core Insights - Concentrix Corporation has launched a new suite of pre-built, emotionally aware Conversational AI Agents aimed at simplifying the integration of AI into brand experiences [1][2] - The suite includes four specific agents: Product Support, Order Status, Appointment Scheduling, and Collections, designed to address common customer challenges [2] - The AI agents are built to provide both efficiency and emotional intelligence, adapting to customer behavior and cultural nuances [3] Company Developments - Concentrix has partnered with Nespresso to implement advanced AI conversational technologies, enhancing customer engagement strategies [4][5] - The collaboration with Nespresso has improved service efficiency and responsiveness while empowering frontline employees [5] - Concentrix's new agents are designed to help companies leverage AI for relationship-building and growth, moving beyond cost-saving measures [5] Technology and Framework - The agents are developed within Concentrix's Agentic Operating Framework™, utilizing the iX Hello™ platform, part of the Intelligent Experience (iX) Product Suite [5] - The conversational agents adhere to high standards for secure and trustworthy AI, certified by ISO standards [5]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][6][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming energy equivalent to that of small cities [2][7] - The company in focus owns critical nuclear energy infrastructure, making it a key player in the future of clean and reliable power in the U.S. [7][8] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization [8][10] - It is trading at a low valuation of less than 7 times earnings, indicating significant upside potential compared to other energy and utility firms [10][11] Market Trends - The company is positioned to capitalize on the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration's energy policies [5][7][14] - There is a growing interest from hedge funds in this company, suggesting it is undervalued and overlooked by the broader market [9][10] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related infrastructure [12][13] - The overall narrative emphasizes that investing in AI and its supporting energy infrastructure is not just about financial returns but also about being part of a transformative technological revolution [15][19]

Core Insights - Concentrix Corporation has achieved multiple AI governance certifications, positioning itself as a leader in delivering ethical AI solutions [1][4] - The Intelligent Experience (iX) Product Suite has been certified under ISO/IEC 42001:2023, ISO 31700:2023, and HITRUST AI requirements, demonstrating compliance with high standards in AI governance, privacy, and security [2][3] Group 1: Certifications and Standards - The iX product suite meets the ISO/IEC 42001:2023 standard, which is the first global management standard specifically for AI, providing a framework for responsible AI governance [3] - The combination of ISO 31700:2023 and HITRUST AI requirements with ISO/IEC 42001:2023 establishes a baseline for secure and scalable AI systems [3] Group 2: Company Commitment and Market Position - Concentrix is among a select few organizations globally that meet the full combination of AI governance, privacy, and security standards, reinforcing its commitment to responsible AI adoption [4] - The certifications enhance client confidence in Concentrix's technology, enabling them to innovate and strengthen customer relationships while building brand trust [5]