NelsonHall recognizes Concentrix for AI innovation and resultsNEWARK, Calif., Jan. 20, 2026 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced it has been named a Leader in NelsonHall’s 2025 NEAT research for Transforming Business Operations with GenAI. This recognition highlights Concentrix’ success in helping its clients reimagine their operations to create simpler, smarter customer interactions using Generative AI (GenAI) technologies. The ...

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2,400,000,000 for Q2, an increase of 1.5% year on year on both a constant currency and reported basis [14] - Adjusted free cash flow was $200,000,000 in the quarter, an improvement of about $240,000,000 sequentially from Q1 [17] - Non-GAAP diluted EPS was $2.7 per share, an increase of $0.1 year on year [17] - GAAP net income was $42,000,000 for the quarter, with GAAP diluted EPS at $0.63 per share [17] Business Line Data and Key Metrics Changes - Revenue from retail, travel, and e-commerce clients grew 3% year on year, led by growth with travel clients [15] - Media and Communications also grew 3% year on year, while revenue from banking, financial services, and insurance clients grew 2% [15] - The tech and healthcare verticals were relatively flat, reflecting offshore movement [15] Market Data and Key Metrics Changes - The company is seeing a strong pipeline across verticals and geographies, with a favorable mix of services and margin profiles [7] - A Gartner study revealed that 85% of enterprises expect to increase their outsourcing budget over the next two to three years, primarily for AI initiatives [9] Company Strategy and Development Direction - The company is focused on delivering integrated technology-led solutions that align with client needs and expanding the value provided across a broader portfolio of business solutions [12] - The strategy includes automating or de-investing in commodity work to keep the underlying business healthy [12] - The company is well-positioned against competitors, particularly for large-scale programs that combine consulting, IT integration, CX expertise, and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting revenue and margin improvement as investments made begin to pay off [12][23] - The company anticipates a steady acceleration in growth rates and is committed to driving strong year-on-year free cash flow growth [23] - Management noted that clients are centralizing spend with partners that have scale, breadth, and expertise to deliver real-world solutions [12] Other Important Information - The company returned approximately $67,000,000 to shareholders in the quarter, including share repurchases and dividends [18] - Cash and cash equivalents at the end of the quarter were $343,000,000, with total debt at approximately $4,900,000,000 [18] Q&A Session Summary Question: What is the outlook for revenue acceleration in the second half? - Management indicated that momentum is broad-based across verticals and geographies, with positive trends in banking, tech, and media [28] Question: How is AI impacting the company's market position? - The company has seen strong adoption of its AI solutions, with clients increasingly interested in practical applications rather than hype [10][36] Question: What caused the margin decline in Q2? - The margin decline was primarily due to clients pausing projects in response to tariffs, but management expects margins to improve in Q3 [16][44] Question: What is the expected revenue contribution from IX Hello and IX Hero? - Management expects these AI offerings to be accretive by the end of Q4 and sees potential for revenue growth without increasing spending [54] Question: How is the company addressing pricing dynamics? - There is growing interest in outcomes-based pricing, but the company still primarily operates on a transactional basis [87]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2,400,000,000 for Q2, an increase of 1.5% year on year on both a constant currency and as reported basis [14] - Adjusted free cash flow was $200,000,000 in the quarter, an improvement of about $240,000,000 sequentially from Q1 [18] - Non-GAAP diluted EPS was $2.7 per share, an increase of $0.1 year on year [17] - GAAP net income was $42,000,000 for the quarter, with GAAP diluted EPS at $0.63 per share [17] Business Line Data and Key Metrics Changes - Revenue from retail, travel, and e-commerce clients grew 3% year on year, led by growth with travel clients [15] - Media and Communications also grew 3% year on year, while revenue from banking, financial services, and insurance clients grew 2% [15] - The tech and healthcare verticals were relatively flat, reflecting offshore movement [15] Market Data and Key Metrics Changes - The company is seeing a strong pipeline across verticals and geographies, with a positive sentiment from clients regarding increased outsourcing budgets [9][10] - A Gartner study revealed that 85% of enterprises expect to increase their outsourcing budget over the next two to three years, primarily to support their AI agenda [9] Company Strategy and Development Direction - The company is focused on delivering integrated technology-led solutions that align with client needs and expanding the value provided across a broader portfolio of business solutions [12] - The strategy includes automating or de-investing in commodity work to keep the underlying business healthy [12] - The company is well-positioned against competitors, particularly for large-scale programs that combine consulting, IT integration, CX expertise, and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting revenue and margin improvement due to a strong pipeline and new business signed [20][22] - The company anticipates meaningful sequential margin improvement in both Q3 and Q4, driven by the recovery from the tariff impact and ongoing investments in technology [16][22] - Management noted that clients are looking for pragmatic solutions and are increasingly centralizing spend with partners that have scale and expertise [12][13] Other Important Information - The company returned approximately $67,000,000 to shareholders in the quarter, including share repurchases and dividends [19] - Cash and cash equivalents at the end of the quarter were $343,000,000, with total debt at approximately $4,900,000,000 [19] Q&A Session Summary Question: Revenue acceleration in the second half - Management indicated that revenue acceleration is broad-based, with solid pipeline building across geographies and verticals, particularly in banking, tech, and media [28] Question: AI technology journey and market recognition - Management highlighted strong market traction for their AI products, with clients adopting their technology faster than expected and seeing significant growth in adjacent services [36] Question: Margin impacts in Q2 - Management explained that margins were impacted by clients pausing projects due to tariffs, but they expect margins to improve as clients resume projects and new business ramps up [40][42] Question: Revenue contribution from IX Hello and IX Hero - Management expects IX suite products to be accretive by the end of Q4 and plans to maintain spending while accelerating revenue growth [54] Question: Operating environment and sales cycles - Management noted that transformation deals are taking longer but are not shrinking, and they are seeing good win rates in their pipeline [62] Question: Pricing strategy evolution - Management mentioned an increasing interest in outcomes-based pricing but noted that traditional transactional pricing still dominates their revenue streams [87]

Core Insights - Concentrix Corporation has been awarded the "Intelligent Personal Assistant of the Year" at the 2025 AI Breakthrough Awards for its iX Hello AI-powered application, highlighting its innovative contributions to the AI market [1][3] Company Overview - Concentrix Corporation is a Fortune 500® company that provides technology and services solutions, helping over 2,000 clients across various industries to address their business challenges [7] - The company focuses on delivering integrated, end-to-end solutions that enhance enterprise efficiency and customer engagement [7] Product Features - The iX Hello application enables organizations to create customizable, GenAI-powered virtual assistants that are smart, multimodal, and intuitive, tailored for various needs such as customer and employee interactions [2] - It offers no-code setup and can be deployed across enterprises within days, integrating seamlessly with systems like Salesforce and Microsoft, and supports hybrid cloud environments [2] Industry Recognition - The AI Breakthrough Awards program received over 5,000 nominations from more than 20 countries, emphasizing the rapid growth and significance of AI technology in the 21st century [3][4] - The award recognizes the most impactful technologies and innovations in AI, covering various categories including Generative AI, Natural Language Processing, and more [3][5]