Concentrix(US:CNXC)2026-03-24 11:32Financial 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]